How to choose a safe P2P platform for your investments?

How to choose a safe P2P platform for your investments?

Have you decided to invest in consumer or business loans and wondered which P2P platform could be the safe place for your money? Firstly, it's essential to understand the risks and the main aspects of choosing a trustworthy P2P platform. Let's objectively review the main details of your right choice for investing.

Who does work behind the company?

Every company starts from the business owners. The first thing to look up is the background of the platform's founders. You should check the "about us" page of the web to get a sense of the background of a platform's founders. Additionally, it is necessary to look at the team behind the platform. Only trust a company which openly communicates about the team members. It is a red flag if there is no information about the team or their backgrounds. We recommend avoiding such P2P platforms.

Accordingly, we are proud of our co-founders and the whole team, who are true professionals at what they do. Hive5 was founded by two leading professionals: Andrius Rupšys and Ričardas Vandzinskas, with know-how in finances and technology. Moreover, the team consists of full-time investors, so we know how vital is businesses' transparency and reliability when choosing an investment platform. We always share our knowledge with every investor during the investment journey.

Default risk

Generally speaking, one of the main P2P lending risks is that a borrower doesn't repay the loan. The consequences if the loan is late differ by P2P lending platform. Hence, looking at the statistics before investing in loans is essential. However, historical performance does not guarantee future returns but can indicate a platform's risk management processes. For that reason, hive5 and other platforms offer a buyback guarantee. Moreover, our Loan Originator "Ekspres Pozyczka" has a unique scoring system for borrowers. As a result, the company could manage a tolerable default, which is about 6% of the entire portfolio and is lower than other loan originators on the market by 20%. No doubt, it shows the great advantage and safety for investors.

In addition, our platform stands out from the others: our loan originators immediately respond if the borrower is late for just a few days, they return the money to investors and start their debt collection processes.

Here you can find out more about the statistics of hive5: https://hive5.co/statistics/

Regular communication

Before investing:

  • Try to find information for the main questions on the web,
  • If needed, communicate with customer service, make a phone call or email them to ensure the team is professional.

It may look obvious, but if you cannot get a reply to your email for weeks, this platform may not be the right choice for your investments.

Accordingly, hive5 provides regular reports about business performance. We always wait for your feedback or any questions.

Protection of your money

One more crucial question which should be asked for the P2P platform is how do they protect your invested funds? Find out if the money is held in a separate bank account and if the company gives any guarantee in case a borrower doesn't pay back.

For instance, we protect your invested funds by giving a Two-layered buyback guarantee in case the payments are delayed for more than 60 days. It means: first, the Loan Originator and then "Hive finance" will be obliged to redeem the investment with all accrued interest following the Assignment Agreement. It reduces the need for investors to worry about bad debt.

Moreover, all investors' uninvested funds are securely held in a separate bank account. So, the money can be withdrawn at any time in case of any unpredicted events related to the platform.

Loan originators

Moreover, it would be best to learn more about the lending processes to feel safe regarding your investments. Does the platform originate loans itself? Or do the lending processes belong to other loan originators? If so, learn more about them.

One of the trustworthy facts is if the platform is related to Loan Originators or originates loans themselves. In this case, investors could get faster responses to questions regarding lending and risk management processes. Hence, as long as they operate transparently, this is a significant strength.

Final note

Nevertheless, the first thing that you should know, all investments are associated with a certain level of risk, but always be aware of ways to reduce the risk.

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