Crowdestor review shows that Crowdestor is Estonian-based peer-to-peer lending marketplace, focused on the business financing. Company was founded in 2018 and over 10670 investors have already invested more than €29 million in loans listed there.
Crowdestor gives everyone the opportunity to invest directly in real estate and business projects without middlemen and hidden conditions or costs. With Crowdestor you can start investing from 50 euro with an annual interest rate from 12%.
There are two types of crowdfunding models Crowdestor offers:
Classic crowdfunding – way of raising capital for business from multiple investors by giving pledges or collaterals on it.
Equity crowdfunding – way of raising capital for business from multiple investors by selling parts of equity off.
Crowdestor works under the jurisdiction of Estonian law. The central office and working team are based in the heart of the Baltic States – Riga, Latvia.
If someone is trying to stop Crowdestor operations, investors investments are safe since the loan security holder is CROWDESTOR SECURITY AGENT OÜ, which is a separate company.
In every project that Crowdestor offers on the platform, they take part in it as co-financiers and/or co-developers. This ensures accountability from their development partners on behalf of their investors.
Key facts about Crowdestor
Estimated annual returns: Up to 21%
Loan security: Yes
Provision fund: Yes
Buyback guarantees: No
Registered investors: 10670+ in January 2020
Minimal investment: € 50
Time to become invested: instantly
Time needed managing: Low
Regulation: Crowdestor works under the jurisdiction of Estonian law
Country of operation: Estonia
Defaulted loans: N/A
Borrowers verification: By the platform
Accepted currencies: Euro
Accepts investors from: Worldwide
Crowdestor Review: Pros and Cons
– User-friendly and intuitive dashboard for investors
– Investment policy can be tailored to purchase whole loans based on pre-defined criteria or invest into fractional loans across the market
– International business architecture
– BuyBack Fund
– Not Regulated (as there are no guidelines for crowdfunding platforms in Estonia)
– High interest rates
Mintos, Twino, Savy, Neofinance, RoboCash, Viainvest
Crowdestor review: What I have experienced so far…
Firstly, some words about opening account at Crowdestor. For me it was easy process, all I needed was to click login with Google account (you also can choose to do that with Facebook or do full registration). And that’s it. Later you have to upload your ID card copy to Crowdestor dashboard and wait for confirmation.
Add funds to Crowdestor account also is enough easy. You can choose to make a deposit with bank transfer. It will take up to two working days to receive funds to your account.
Secondly, some facts about my experience at Crowdestor. A commonly asked question about P2P lending concerns the high unusually interest rates. How is it possible to make annual returns of well over 12%? Many projects listed there have returns higher than 14%. And some of the projects in Crowdestor are high risk. That is, there are projects rejected by the banks. The founders of Crowdestor do their own due diligency whether they think the bank is wrong. So far they have evaluated the projects correctly, since no loan has yet defaulted. Of course, most of the projects listed there have not repaid the loans, so let’s see what the future will be.
All in all, Crowdestor really competitive returns for investors (up to 21%) compared to other P2P platforms. They issued more than €29 million in loans, has a big amount of investors and offers to them attracting returns. Moreover, the platform has user-friendly and intuitive dashboard In the other hand, Crowdestor is not a regulated crowdfunding platform (as there are no regulations for crowdfunding platforms in Estonia), doesn’t have a big buyback fund that could cover a defaulted loans and is quite a young platform. As in my example, net returns are really good, but you have to keep in mind the risk you are taking.
Crowdestor review is written by Tomas Medeckis