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* 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* 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 email@example.com or by phone at +44 1568 6300 06 (during business hours, Mo-Fr: 9â€“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* 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
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* 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.