Which P2P Lending Marketplaces in Europe Accept American Investors?

European p2p lending services are growing. And yields of 10+% are achievable on some of the platforms. This attracts international investors. But if you are a US resident, you may have made the experience that you cannot register on some marketplaces. This is mainly due to KYC (know-your-customer) and AML (anti-money-laundering) requirements, which get more complicated if the client is outside Europe.

I have asked many of the European p2p lending marketplaces, whether they accecpt US residents and US companies as investors.

Here is an overview of 5 services (sorted aplphabetically) that do allow US investors. I have not provided a review for each of the service as the article would have gotten too long, but you can easily find news and reviews by entering the company name into the search box on the upper right of this blog.

On some platforms you need a bank account in the European Union. In most cases Transferwise borderless or Revolut will help (while technically e-money accounts, they function pretty similar to bank accounts) and do not charge any monthly fees. They are both very useful for currency conversion (Revolut is better). On Assetz Capital the currency is GBP. On the other marketplaces it is EUR. Mintos has additional currencies. Transferwise borderless is available in all US states except Hawaii and Nevada. Revolut is currently rolling out the service in the US.

Mentioned new customer cashbacks were correct at the time of the publication of this article. If you are reading the article at a later time, it may have changed. A current list of cashback offers is here.

Assetz Capital

Assetz Capital is a marketplace for UK SME and property development loans. The liquid ‘access’ products offer 4.1% to 5.75% interest. Other product types offer higher rates.
US investors are welcome. UK bank is account required – see notes above. US companies are eligible, but verification might take longer than for individuals. Expect 1-10 days for company registration.

Assetz Capital cashback for new investors: 50-250 GBP (dependent on investment amount; minimum 1000 GBP). To get it just register using this link: Assetz Capital registration and start lending

bondora-logo-2016bBondora

Bondora is an Estonian p2p lending marketplace for consumer loans. The highly liquid Go&Grow product offer yields 6.75%. With other products higher yields of 10+% are achievable.
US investors need to be accredited investors to use Bondora. A bank account in the European Union is not necessary. US companies are eligible to invest. Bondora recommends that interested US investors and companies contact them at investor@bondora.com or by phone at +44 1568 6300 06 (during business hours, Mo-Fr: 9–17 EET) to check eligibility and clear any questions concerning registration.

Bondora cashback for new investors: 5 EUR, to get it just register using this link: Bondora registration and start lending

Estateguru LogoEstateguru

Estateguru is an Estonian marketplace for property loans. Typical interest rates are 10-12%.
US residents are eligible, if they have a bank account in the EEA (European Economic Area) – see notes above. US companies can invest, if they have a bank account in the EEA.

Estateguru cashback for new investors: 0.5% (1% in October) cashback on all investments in the first 3 months. To get it just register using this link: Estateguru registration and start lending

FlenderFlender

Flender is an Irish marketplace for SME loans. Typical interest rates are around 10%.
US investors and US companies are eligible.

Flender cashback for new investors: 5% on all investments in the first 30 days after signup. Register using this link Flender registration and start lending

Mintos

Mintos is a Latvian p2p lending market place. A wide range of loan types is offered. The fairly liquid ‘Invest&Access’ product currently promotes around 8% rate. Yields of 10+% are possible with manual and autoinvest.

US investors and US companies are welcome. A bank account in the EEA (European Economic Area is required) – see notes above.

Mintos cashback for new investors: 1% cashback on all investments in the first 90 days. To get it just register using this link: Mintos registration and start lending

 

The following companies replied to my query that they do not accept US investors: DoFinance, Grupeer (may change in future), Monethera, Ratesetter, Robocash, Swaper, Twino, Wisefund, Zopa

The article was updated on Nov. 21st as Estateguru has meanwhile changed its position saying that Revolut or Transferwise are sufficient now to satisfy the requirements on a bank account in the European Union.

P2P lending bears high risks, including total loss of investment. This article is not investment advice.

A Revelation

I read a lot. Really a lot. I average about 100 to 150 books I read each year. Nevertheless I rarely blog about a book on this blog, since I want to keep this blog focussed on the topic.

I’ll make an exception today. For one of the best books written by a politican I ever did read.

It does not offer a vision. It is better. It is a profound, through analysis of the current state of society, the upcoming huge challenges we face, the likely consequences of these and a set of solutions that actually are logical, made sense to me and are financially feasible.

Most politicians seem to be doctoring with tiny steps on the symptoms, but in this book the author describes a clear path he would want to take forward.

The book is written by Andrew Young, running for US president in 2020. I have no idea what his chances are. And I actually do not care much about inner-American politics.

The point is: In my view this book is not (only) about America. It addresses the major questions most Western society will face in the next decade. In Europe the impact will be delayed a few years and softened by better social security systems, but many aspects are the same.
One of these challenges is the replacement of many, many jobs by algorithms (AI) or robots (did you watch ‘Humans need not Apply’?).

What does it mean for all of us if millions of job disappear in a very short time-frame?

As part of the answer he proposes Universal Basic Income (UBI). I have been very sceptical about UBI. It reminds me too much about the failed Eastern European economies of the last century. And I am still not convinced. But Yang lays out a very logical set of arguments that makes me more curious.

Rarely have I wanted so much to see the implementation of a political plan, to see if it works out and delivers the expected results. A lot would have to happen. It is one thing to lay it all out beautiful in a book and a totally different beast to win the majority to implement change.

The book gets rave reviews on Amazon.com and in my view they are well deserved. If you are looking for a really interesting book either to read yourself or as a gift, I highly recommend:

‘The war on normal people’. The book is available at Amazon.com, Amazon.co.uk, and Amazon.de.

The title is the least fitting part of this book.

International P2P Lending Volumes December 2017

The table lists the loan originations of p2p lending marketplaces for last month. Funding Circle leads ahead of Lendinvest and Zopa. Mintos finished a remarkable month fueled by the cashback promotion. The total volume for the reported marketplaces adds up to 582 million Euro. I track the development of p2p lending volumes for many markets. Since I already have most of the data on file, I can publish statistics on the monthly loan originations for selected p2p lending services.

This month I added PeerBerry, Look&Fin and MyTripleA.

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available. UK investors can compare IFISA rates.


Table: P2P Lending Volumes in December 2017. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.
*Prosper and Lending Club no longer publish origination data for the most recent month.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes November 2017

The table lists the loan originations of p2p lending marketplaces for last month. Funding Circle leads ahead of Zopa and Ratesetter. The total volume for the reported marketplaces adds up to 573 million Euro. I track the development of p2p lending volumes for many markets. Since I already have most of the data on file, I can publish statistics on the monthly loan originations for selected p2p lending services.

Funding Circle reaches the milestone of 3 billion GBP loans originated since launch.

I removed Comunitae, because of the stop due the fraud case.

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available. UK investors can compare IFISA rates.

p2p lending volume 11/0217
Table: P2P Lending Volumes in November 2017. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.
*Prosper and Lending Club no longer publish origination data for the most recent month.

Notice to p2p lending services not listed: Continue reading

International P2P Lending Volumes April 2017

The table lists the loan originations of p2p lending platforms in April. Funding Circle leads ahead of Zopa and Lendinvest. The total volume for the reported marketplaces adds up to 445 million Euro. I track the development of p2p lending volumes for many countries. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending platforms. This month I added Nucleus.

Milestones reached this month are:

  • Younited Credit crossed 500 million Euro loan volume since launch

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available. UK investors can compare IFISA providers.

p2p lending statistic April 2017
Table: P2P Lending Volumes in April 2017. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.
*Prosper and Lending Club no longer publish origination data for the most recent month.

Notice to p2p lending services not listed: Continue reading

Statistic of International P2P Lending Services March 2017

The table lists the loan originations of p2p lending marketplaces in March. Volumes picked up considerably compared to February. Funding Circle continues to lead ahead of Zopa and Ratesetter. The total volume for the reported marketplaces adds up to 532 million Euro. I track the development of p2p lending volumes for many countries. Since I already have most of the data on file I can publish statistics on the monthly loan originations for selected p2p lending platforms. This month I added Lenndy and Credit.fr.

Milestones reached this month are:

  • Mintos crossed 150 million EUR in originations since launch
  • Moneything reached 50 million GBP since inception

Investors living in national markets with no or limited selection of local p2p lending services can check this list of international investing on p2p lending services. Investors can also explore how to make use of current p2p lending cashback offers available.

P2P Lending Statistic 03/2017
Table: P2P Lending Volumes in March 2017. Source: own research

Note that volumes have been converted from local currency to Euro for the purpose of comparison. Some figures are estimates/approximations.
*Prosper and Lending Club no longer publish origination data for the most recent month.

Notice to p2p lending services not listed: Continue reading