Crosslend: Cashback and Dutch loans

Crosslend LogoP2P Lending Marketplace Crosslend launched last September. The unsecured loans are open for investment for investors in Germany, Spain, UK and the Netherlands.
I gave a short overview in my Crosslend review for investors. So far the couple of Crosslend loans, I invested in, are all current.

In mid-January Crosslend added Dutch loans and I made a bid on the first Dutch loan listing. The majority of loans are still sought by Spanish borrowers. Currently there are over 50 Spanish loan listings available and also a few German or Dutch ones.

10% Cashback

Crosslend currently offers a cashback promotion. New and existing investors get 10% cashback on all successful investments made until March, 31th 2016 (up to a maximum bonus amount of 1,000 Euro per investor; further conditions apply, e.g. minimum investment of 250 Euro during promotion period). Investors contemplating to test Crosslend should consider making use of this cashback offer now.

Update Jan 31th: was informed that this offer runs currently only in the German market; other markets will follow later

Crosslend Review – My First Steps

As reported earlier today, new p2p marketplace Crosslend (Spanish site) (German site) offers unsecured p2p loans to consumers. There was a soft launch phase last week, which enabled me to register early and gain first insights into the marketplace interface. After registration I awaited verification of the newly opened lender account at biw Bank and then deposited money there (if you are outside the Eurozone, you may consider using Transferwise or Currencyfair instead of doing a direct transfer).

In the dashboard I selected ‘Browse Notes‘ which led me to an overview of all available note. Since my test was conducted during soft launch, there was only one available not.

Crosslend Filter
Screenshot Browse Notes (click for larger view): at the bottom there is the listed loan (risk grade B) for 6,000 EUR vehicle financing at 8.59% interest

Crosslend Filters

Initially only the general filters (loan term, risk classes) for selecting loans are displayed. By clicking on ‘show all filters’ I expanded further loan selection filters: Borrower filters are DTI, monthly net income, home owner, country and supporting documents (proof of income, proof of residence and utility/phone bills). Loan filters include loan amount, funding percentage and loan purpose. It is possible to save filters to reapply them again in future. Continue reading

Crosslend Launches New P2P Lending Marketplace

Today, new p2p lending marketplace Crosslend launched offering unsecured loans to consumers. Opening to borrowers and investors in Germany and Spain as well as investors in the UK, Crosslend aims for further European expansion and creating a unified European marketplace.

The Berlin headquartered startup was founded by Oliver Schimek and Daniel Schlotter (both had previous FinTech experience at Kreditech) and Marie Louise Seelig (formerly Skrill). Crosslend already raised a funding round prelaunch from Lakestar, Atlantic Internet and others.

Markets targeted by Crosslend

When a loan is granted it is purchased and acquired by Luxembourg based Crosslend Securities SA and securitized by a series of ‘notes’. Notes are debt securities which can be purchased by investors. A series of notes is made up of a number of notes, each with a denomination of 25 EUR. The total nominal value of a series of notes is equivalent to the amount of the loan. When a borrower makes their loan repayments, CrossLend Securities SA makes the corresponding payments of interest and principal pro rata to the holders of the notes.
This will enable Crosslend to offer a secondary market, which is due to be launched in a few months.

Crosslend Notes

Borrowers can apply for loans from 1,500 to 30,000 Euro for loan terms from 6 to 60. Crosslend will grade loans in risk classes A to G, HR. Interest rates (APRs range from about 3.5% to about 17%) and borrower fees are dependent on the assigned risk classes. Crosslend checks submitted proofs of income for all loan applications.

To invest lenders first open an account with biw Bank, the partner bank of Crosslend, this involves a short video verification process of the investor’s identity (webcam required). Video verification is an innovative account opening process which several German online banks started to use to replace the identification via postal communication.
Investors then deposit money into their account (250 Euro minimum). Then investors can choose which loans they want to invest into (25 EUR minimum bid per loan). Crosslend charges investors a 1% fee at origination.

UK investors should consider using Transferwise or Currencyfair to exchange money into Euro to avoid possible bank fees and a bad exchange rate applied by the bank. Continue reading