One Year Invested in Zencap

This is a guest post by German investor Martin R.. The article was written in April.

These days, Zencap celebrates its first anniversary. I’ve been involved right from the beginning and invested the full 10k€ you can invest without having a premium account.

Zencap – my characteristics

Zencap offers investment in corporate loans. You invest 100 EUR in one loan. The total loan is usually between some 10,000 EUR and approximately 200,000€. There are different scoring classes essentially determining the interest rates which are usually located between 5% and a little over 10%. The loan term ranges from 3 months up to 5 years, the main focus being 3 years. As the loans are instalment loans, you will usually have half of your investment plus interests available after 18 months. The nominal interest rates are decreased by 1% through fees for the investor. The loan listings are presented with a short description and have differently detailed documents attached. Some projects have personal sureties.

My experiences

are mixed. I’m rather satisfied with a yield of about 5.7% and no payment delays up to now. The payout takes place promptly after the scheduled payment at the 15th of each month. The bidding amounts are straightforwardly drawn through direct debit, however, the period between bidding and drawdown drag on very long from time to time (debiting is just before the first paying out, though). Now and then there are special promotions which increase the yield (see below). Continue reading

How P2P Lending Services Collect User Feedback

P2P lending services are young and developing in an innovative environment with little established best practise examples. Every company is constantly trying to learn how to improve the experience for its users. Whether it be user interface, information pages, business model and fees – there is lots of room for incremental improvements.

P2p lending services certainly test run some things before the general public gets to use them. Examples of methods to do this are closed betas, monitored usability tests, A/B tests, ….

One of the most valuable sources of information & ideas for improvements are the users themselves. The mass of users ensures that every little step of every process gets used possible times, bugs identified and misinterpretable information questioned.

Here is a set of methods that p2p lending companies can use to collect and profit from the wealth of user experiences.

  1. Run a forum (I talked in previous articles about the advantages of p2p lending forums)
  2. Consider using a simple to use ticket system instead of user support via pure email (advantage: allows statistical analysis of user problems, handling times and outcomes)
  3. Talk to your customers. Especially right after launch, it can be extremly helpful to call lenders and borrowers and asks them how easy they found the process and if they have any suggestions for improvement
  4. Analyse you webtracking stats. Where have users abandonned steps, where do they stay long times (possibly stuck) and where do they leave the site?
  5. Use online surveys to get structured feedback from customers.

Yesterday I attended the first ‘lender conference’ of Smava in Berlin. I put ‘lender conference’ in quotation marks because that term sounds a little magniloquent and misleading for the type of event it actually was. More fitting would be a discussion with a panel of selected experienced lenders. Smava handpicked 5 of those and invited them to Berlin reimbursing travel expenses. After a short tour of the premises, processes, lender wishes and market situation were discussed in depth (see longer report at The small number of participants enabled an extremly useful discussion.

Continue reading