We are happy to give you a chance to earn a comparatively high return on investment—the current average interest rate is 15.35% on hive5. It is one of the highest numbers in the market. In general, P2P lending allows investors to make more money than, for instance, the stock market, which is typically said to offer an average annual return of 8%.*
Our team has received some of the investors' questions: why do we offer comparatively higher investment returns? We understand such a concern as one of the most popular theories in finance is that higher risk leads to higher returns. But it is not our case. We give you the same risk level as other trustworthy P2P platforms in Europe. Firstly, during the first meetings, we decided that to differentiate ourselves from existing platforms, we would offer investors to earn more, especially in the first years of the business. It is one of our unique selling points and part of our business strategy.
In addition, our Loan Originator, "Ekspres Pozyczka", has a unique scoring system for borrowers. Therefore, the company maintains a default rate of approximately 6% for its entire portfolio, which is 50% lower than other loan originators. Moreover, the automated operational processes, such as scoring, production, and collection, have also led to lower personnel and operating costs.
What's more, we decided to reduce the marketing budget precisely because we want our primary marketing channel to be word of mouth, not paid Google ads. Besides, our marketing costs are lower in Poland because the company has reached a steadily growing flow of recurring customers every month. This result has been achieved by optimizing customer service and upselling processes.
Finally, we are happy that our distinct methodology sets us apart from competitors, enabling us to provide investors with slightly higher returns to investors.
Of course, before investing on any P2P platform, we always recommend evaluating its trustworthiness regarding crucial security indicators. Find out about the owners of the company and historical default rate, consider how the company is communicating, what security types they offer, learn more about the loan originators, etc. (read more on our blog: here)
We are always ready to help you with any questions or suggestions: firstname.lastname@example.org