Lenndy is a platform of business loans, personal loans and invoice trading of Latvian origin that acts as a marketplace or intermediary of a small set of originators . Yes, it can be likened at a first glance to a small brother of Mintos, but the truth is that performance and functionality may well merit a gap in our portfolio as a diversification.
Do you want to know all the details and our opinions about LENNDY? … Do not miss our MEGA review!
What is Lenndy Statistics and Global Data
Lenndy is a marketplace originally from Latvia that is gradually taking muscle within the community of investors in European crowdlending … With almost 5,000 registered users and more than 17 million euros in financed loans , Lenndy has numbers that rival many other platforms of P2P investments.
In addition, its average profitability to date, over 12% is in the medium-high range of this sector, which makes it an attractive investment website to diversify any portfolio.
First Steps in Lendy
Opening a new account in Lenndy is simple: just fill in the initial questionnaire and verify our address. To start investing, we will have to follow the process and also open an account in the payment platform Paysera (a 100% secure payment gateway with a banking license in Lithuania, without commissions, usually used as a payment gateway for European crowdlending companies, an equivalent to Lemon Way in Spain, to give an example).
Requirements to create an investor account in Lendy Loans
+ Be of legal age (over 18 years).
+ Registration is open to anyone with a European bank account. Other countries, please check with Lenndy at email@example.com
Steps to Open an Account in Lenndy P2P
➊ Fill out the account opening form
➋ Confirm the email by clicking on the message that we will receive from Lenndy (check the unwanted mail tray in case you can not find the message!).
➌ Open an account in Paysera (Secure Payment Platform that will take care of deposits and withdrawals, as well as verification of the user’s identity). More information about this step a little further down in this same review.
➍ Make the first contribution of funds by bank transfer.
Deposits How to add funds to our Lenndy Crowdlending account
As we have said before, Lenndy works with the Paysera Lithuanian payment gateway, which has an electronic banking license and manages deposits and withdrawals. Lenndy deposits are made by bank transfer to our Paysera account number, and usually within 24 hours we have the money ready to be invested in the platform.
Paysera – Procedures to Open an Account and Verify Us
At the end of the registration in Lenndy, a message will be sent asking us to register in Paysera, as we have mentioned in the previous points. When you click on that message, a screen like this will appear:
Fill in the data and we will send a message to our inbox in which we will have to click on the activation link.
Once we activate our account, we can enter it with our email and the password that we chose, and to have it operational it will only be necessary to validate our mobile phone (through an SMS that we will receive) and verify our identity.
This last part we will do it well through the camera of the mobile or the computer, since we will have to take a photograph of our ID or passport on both sides and a photograph of our face.
These stricter controls than usual are because Paysera has a banking license, which is required by law to apply the same checks and validations as any bank with its customers.
Within a maximum period of 2 hours Paysera will validate our documents and identity and we will have the account 100% operative , with which we will be able to return to Lenndy and carry out our first deposit from there.
Lenndy Promotional Code (Promotional Code)
How Lenndy Works Commissions
Neither Lenndy nor Paysera charge absolutely no commission to investors: neither to deposit money, nor to withdraw it, nor to manage the loan portfolio … “0 commissions” … As all crowdlending platforms should be for all investors!
How to Invest in Lenndy in 2020
Lenndy offers us the possibility of investing both MANUALLY and AUTOMATICALLY in its primary market, starting from 10 euros per transaction in any of the loans that its originators have published.
In the LOANS tab we will see a list of available operations similar to the one shown below:
Manual Investment Lenndy Analysis – Most Important Parameters
From the list of loans we have access at a glance to the most relevant parameters that define the operations in this marketplace. Let’s take a closer look at some of them:
1 – Originator
The originator is the external credit entity-independent of Lenndy-issuer of the credit or loan in which we will participate .
Later we describe in more detail the main Originators that make up the Lenndy ecosystem, but for investment purposes, we are interested in diversifying our shares among as many originators as possiblein order to minimize the risk in case some of these entities suffer a bankruptcy and can not for example honor the Repurchase Guarantee – if any –
2 – Term
The term is the period of duration of the loan in months . In Lenndy we will find a wide range of operations, from crowdfactoring operations to a month to business loans to 5 years.
It is important to adapt the duration of the loans to our investment style – in case, for example, that we are short-term P2P investors – or to diversify and include different time horizons in our portfolio – in case we are global diversified investors.
3 – Loan Type
Lenndy is a marketplace of loans that covers a wide range of operations to invest. In fact, we have up to 5 different asset classes to invest in, so we can choose the ones that best suit our style or diversify by investing in all kinds of operations.
3.1. CROWDFACTORING (INVOICE FINANCING)
Type of operation aimed at discounting invoices and promissory notes. These are usually very short-term operations that usually present a lower risk than P2P personal loans and even P2B business loans because of the intrinsic guarantees that they include.
3.2. P2B LOANS (BUSINESS LOANS)
Loans to companies with personal and / or business guarantees by the owners of the borrowing business, this is one of the most common operating modalities, with a good balance between profitability and risk.
3.3. LOANS WITH CAR AS A GUARANTEE (SECURE CAR LOANS)
Car loans as collateral are a relatively safe mode of operation in which the principal and interest are insured with the vehicle of the borrower. In case of defaults or default, the asset will be sold to recover our capital and pay our interest.
3.4. LOANS WITH MORTGAGE LOANS
With the same concept as the previous category, in these cases the guarantee is even greater, since a property – a flat, an apartment, etc. – is presented as a guarantee of payment, and in case of incidents it is possible to proceed to the sale of the same to cover capital and interest due.
3.5. PERSONAL LOANS
Personal loans are the highest risk category of operation, although in general this fact is compensated with a Repurchase Guarantee by the Originator of said credit, which will pay us principal and interest in case of defaults of several installments.
4 – Interest Rate
Lenndy offers fairly uniform interest rates ranging from 12% to 14% for virtually all loans . Given this uniformity, it is in our hands to weigh more the personal loans with buyback, the mortgage loans without repurchase guarantee or to establish a mixed model in which we invest both in loans with buyback and in loans without buyback.
5 – Guarantees (Collateral)
The guarantees are the repayment guarantees presented by the borrower in order to grant him the financing he desires. In Lenndy we mainly find three types of collateral:
5.1. PERSONAL GUARANTEES
Personal repayment guarantees are the most basic type of collateral, and although they may be useful, they generally represent the least protection against incidents in loan repayment.
The mortgage guarantees present a good degree of protection against incidents in the repayment of the loans.
Offering the car as collateral is an option that borrowers have to get their credit while investors protect the recovery with additional collateral.
6 – Buyback Guarantee
We will talk about it in more detail below, but at this point we must be clear that some Lenndy loans come with a Buyback Guarantee and others do not. Those with Buyback appear with a shield on the list. Keep this in mind in case you want to invest exclusively in assets with repurchase guarantee.
Lenndy How Autoinvest Works (Automatic Reversal) – Step by Step Tutorial and Configuration
Lenndy has a simple and easy to configure Autoinvest that will allow us to automate our investments in the platform and customize them to fit our investment profile . The steps to configure the Auto-invest function are the following:
➊ We go to the AUTO INVEST tab (autoinvert) of our Dashboard.
➋ Enter the name we want for the auto-invest that we are going to configure.
➌ We indicate the maximum size of the self-investment portfolio (auto-invest will be automatically deactivated if this self-inverted amount is exceeded).
➍ We introduce a minimum and a maximum amount per transaction . If we seek to diversify as much as possible, we recommend putting the minimum possible in both fields: 10 euros.
➎ Here we specify the size of the loans in which we want to invest, by default the range is from € 100 to € 300,000 to cover all possible. We can leave it as it is to diversify to the fullest.
➏ Here we specify the minimum and maximum terms in which we will invest. If we do not indicate anything, the default minimum (1 month) and the default maximum (60 months) will apply.
➐ Here we indicate the interest rates we want. By default the minimum is 12% and the maximum 15%, we can leave it that way to maximize the diversification.
➑ IMPORTANT: Here we specify if we want to invest only in loans with Buyback (Buyback = YES), in loans without buyback (NO) or both types (BOTH). We leave it in BOTH, because above all we are interested in diversifying, but that each one chooses what they feel comfortable with.
➒ Originators , here we “turn on” or “turn off” the originators in which we want to invest. Below we have more details about the different companies. We keep all activated.
➓ Typology of loans . According to what we describe a little above. We keep all classes active, without excluding any.
➊➊ Reinvestment . In this tab we indicate whether or not we want to reinvest the interest. The default is yes. We have it activated – we are long-term investors who seek to maximize capital.
➊➋ We must accept the Terms and Conditions .
➊➌ Click on SAVE (save) … Ready!
Lenndy Secondary Market and Liquidity
Lenndy does NOT have a secondary market … and the liquidity of our investments in the platform will depend to a large extent on the terms in which we invest … It is not the same to invest exclusively in Invoice Trading in 1 or 2 months than in P2B loans in 60 months. Keep this in mind when planning your investments.
Still, Lenndy gives the option to sell automatically and when we want any loan that is not in a situation of delay or non-payment at any time paying a penalty of 5% on the capital pending amortization (for example if we want to recover a stake of 100 euros, Lenndy will charge us 5 euros for this operation).
Lenndy is a marketplace that offers us a wide variety of loans and operations to invest in … Not all of them present the same risks and not all are issued with Buyback.
If for us the Repurchase Guarantee is an indispensable condition, we should note that the loan in which we are going to invest is listed with the white and brown shield that denotes that it is issued with Buyback, and if we invest in automatic, we must specify the tool that we only want to invest in loans with Repurchase Guarantee, as we have shown in the previous sections.
In Lenndy, the Originator who has issued the loan honors the Repurchase Guarantee after 60 days from the first unpaid installment , paying both the initial capital invested and the interests that correspond to us.
Originators Lenndy Crowfunding
Lenndy has 4 independent originators in its marketplace, and requires each of them to keep a minimum of 5% of all loans published on their platform. The lenders participating in Lenndy are the following:
First Finance (UAB “Soscredit”)
First Finance is a non-bank credit institution specialized in financing small and medium-sized companies in Lithuania. With an excellent track record since its founding in 2012, it is one of the pillars that fuels Lenndy’s marketplace, with a special emphasis on the selection of reliable borrowers through an exhaustive risk analysis.
SimpleFin (UAB “Išmanusis finansavimas”)
Simplefin is one of the fastest growing non-bank creditors in Lithuania in recent years. Specialized in factoring operations for small and medium-sized companies, and created in 2012, it has an excellent track record, with a delinquency rate of less than 2%.
Credital Verslui (UAB “Įmoka lengvai”)
Credital is a relatively young credit company (created in 2015) focused on mid-term corporate P2B loans.One of the hallmarks of this company are the strict requirements that it asks its borrowers to sign a series of personal guarantees or demanding rights on invoices from their business as collateral.
DailyCredit (Daily Credit Sp. Z oo)
Daily Credit is an originator specialized in personal loans in Poland. Its range of financial assets ranges from microloans to large personal installment loans.
Lenndy Crowdlending Cash Withdrawals
In Lenndy we can withdraw whenever we want our capital not invested through Paysera without any cost for us and from a single cent of euro. Withdrawals are processed very quickly and in 24 – 48 hours we will have the money in our bank account.
Is Lenndy SIA safe? Risks and Regulation
Lenndy is a company registered in Latvia with license # 40203066717 and registration date May 2, 2017subject to both Latvian and European laws.
Like any crowdlending platform, Lenndy offers us to participate in profitable investments, but not exempt from risk. Let’s review some of the most relevant risks applicable to Lendy:
Risk of lack of liquidity of the invested capital
Lenndy does not have a secondary market in which we can sell our holdings in loans to other users , so that in principle, once we enter into an operation, our capital will be immobilized until the end of it.
In part, this risk is mitigated on the platform in 2 different ways:
✦ On the one hand, we can resell to Lenndy itself any loan that we have in portfolio and NOT in a situation of delay or default, with a penalty of 5% with respect to the capital that we want to recover.
✦ On the other hand, Lenndy offers numerous very short term crowdfactoring operations (from 1 to 3 months), which makes it possible to build a very fast maturity portfolio to improve the liquidity of our investment-
Risk of non-payment of loans by borrowers
As in the rest of crowdlending platforms, one of the main risks in Lenndy is that the person or business taking the loan in which we invest is not able to pay the capital and interests of the same producing a default.
Lenndy manages this risk in multiple ways, greatly minimizing the likelihood of this happening:
✦ All credit originators thoroughly examine borrowers before granting credit, making sure they have a high probability of repaying the loan according to their own risk assessment systems
✦ All originators have a minimum of 5% “skin in the game” -that is, the percentage of loans that do not sell in Lenndy and that they are left to themselves-to make sure that their interests are aligned with ours.
✦ Most of the loans are issued with a series of guarantees and guarantees that we can examine in the loan detail card, as we have already mentioned, which may include -personal guarantees, car as collateral, mortgages, etc.-
✦ Many of the operations are issued with buyback (repurchase guarantee that returns capital and interest in case of non-payment after 60 days of delay). Beware, not all loans are issued with buyback, so we must look at if we are interested only in this type of operations.
Bankruptcy risk of one of the Credit Originators
In marketplaces of loans like Lenndy we have the risk that one of the credit institutions that publish their loans in the platform breaks.
In this unlikely event, our participation in the loans will not be altered, but the Buyback Guarantees may be affected if there are any in those specific operations, since the originator may not be able to do so. to repurchase the loan in case of default by the borrower.
Lenndy makes a careful selection of its originators to ensure that only those companies with an excellent track record and financial solvency publish their operations on the platform. It also requires them to retain a% of each of these operations to ensure that their interests are aligned with those of investors.
Bankruptcy risk of Lenndy
In the unlikely event of insolvency of the P2P platform itself, according to the procedure indicated in the Lenndy FAQ, an Administrator would be appointed who would perform the portfolio management functions that Lenndy currently performs. Our collection rights of all the loans and operations we have with the corresponding borrowers would not be affected , so the impact on our investments would be very limited – beyond the inconvenience of changing the platform that manages the loans.
Recall also that all our money not invested in Lenndy is in an account in our name in Paysera – payment entity with a banking license completely independent of Lenndy -, so that capital would not be affected at all.
Ergonomics Lenndy P2P Web and Reports
Lenndy presents a modern, functional and very intuitive web page that makes things easy both to start investing and to control our loan portfolio.
Making an analysis of the number of clicks necessary to carry out a series of basic actions on the platform, we come to the following results:
★ 3 clicks to invest in one of the projects
★ 2 clicks to see the status of one of the projects in which we have invested
★ 6 clicks to withdraw money
Which is pretty good except in the section to withdraw money. This is so because we have to enter our Paysera account and make the arrangements from this entity, which makes the process a little slower – at the click level – but it is equally easy and intuitive.
Lenndy Lifetime Real Annual Return
Lenndy’s gross profitability is quite stable and is currently between 12% and 14%. Many of their loans are issued with a repurchase guarantee, and among those that are not issued with Buyback, the incidence of defaults is frankly low.
In addition there is no type of commission that reduces performance to our portfolio of operations in the platform.
Taking all these factors into account, with a well-diversified long-term portfolio, we are obtaining a net return close to 12%.
Lenndy Taxation – Tax Retention
Lenndy does not practice any type of withholding on the interests we generate in its marketplace, which is why it is up to us to incorporate these data into our Annual Income Tax Return and pay them at the established rate (19% up to 6,000 euros). In case of doubts, consult a tax advisor.
Lenndy P2P Lending – Contact Information and Customer Service
Lenndy is headquartered in Riga, the capital of Latvia and offers us an exclusive contact telephone number for investors, which is +37067724818. In addition, they have support and customer service email firstname.lastname@example.org.
All our exchanges with your Service have been fast and professional, with a high degree of satisfaction on our part. No problem in this regard.
The Team behind the Company
Lenndy has important actors within the Latvian, Lithuanian and European financial sector in general within its experienced staff. Its CEO, Donatas Satkauskas, is one of the members of the Board of Directors of the Lithuanian Association of Crowdfunding and P2P Loans, Arturas Stukalo is the CMO of the company, expert in digital marketing and communication and his CFO Tadas Krivickas has worked in the department of Santander bank risks in London.
Here we leave a video in which Tadas himself introduces the platform (in English):
Is Lendy reliable?
Lenndy is a company that has been in business for several years, and although it is not yet a veteran in the sector, it has managed to build a good reputation in the European investment community.
Although it still does not have many ratings in Trustpilot, the trend is clearly positive, and all blogs specialized in crowdlending corroborate the professionalism and good work of this platform.
Our Personal Investment Strategy in Lenndy
▷ AUTOINVEST: We take advantage of Lenndy’s automatic investment functionality, simple and effective when filtering loans that adapt to our needs.
▷ WITH BUYBACK … AND WITHOUT BUYBACK: We bet for a greater diversification in front of the restriction of investing in loans only with Buyback: we prefer not to discard any originator or any operation only because it is not issued with a Repurchase Guarantee, although each one You must choose the strategy that best suits your profile.
▷ WITHOUT FILTERS: We like Lenndy’s ecosystem: its marketplace presents a very interesting balance of short and long-term operations, P2B loans, P2P, crowdfactoring … In principle we do not discard or filter any operation in the interests of greater diversification.
Opinion Lenndy 2020 – Final Conclusion
Lenndy is one of the best options available to diversify the Mintos platform factor. Share with this marketplace several very interesting features, including the presence of a set of well-balanced originators, investments of only 10 euros per loan, and a rich variety of types of available operations, ranging from crowdfactoring to P2B loans, passing for P2P loans with Buyback.
The returns, in fact, are also at the level of the great Latvian platform, with gross returns in a range between 12% and 14%, and net expected returns close to 12%.
Logically, it still does not have the size of Mintos, and the offer is not as immense as in its marketplace, but Lenndy certainly points to good manners.
Advantages of SIA Lenndy – Strengths
➊ Wide variety of operations to invest, both by type and by originator.
➋ Average net profitability above the average in the sector, at the Mintos level and even slightly higher.
➌ Possibility of selling our shares in advance to Lenndy herself in case of needing liquidity.
➍ Investments from only 10 euros per loan.
Weaknesses and Aspects to improve
➊ The management of deposits and withdrawals via PaySera is a plus of security, as this is an entity with a banking license and independent of Lenndy, but opening an account with them is an additional procedure that we must perform when registering.
➋ It is not yet translated into Spanish.
Alternatives to Lenndy
Within the huge range of crowdlending platforms, of course there are several marketplaces that bring together originators and offer operations of all of them. Grupeer, PeerBerry or Viainvest are clear examples of this business model.
What these cited examples lack is the wealth of Lenndy’s operations : they can be specialized in P2B loans with Buyback as Grupeer or in short loans such as PeerBerry or Viainvest … but still being excellent platforms, they do not have the balance and the variety of Lenndy.
The only real alternative to Lenndy today is Mintos … but precisely for that reason, Lenndy is the ideal complement to the all-powerful leading Latvian marketplace in Europe, giving a plus of diversity to our global crowdlending portfolio.
Do you want to have a space to comment and share your doubts and experiences about this Latvian marketplace of crowdlending? … Look no further, here below we enable the Lenndy Forum so you can express yourself and ask freely … Write us your comment!