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The month of April started off with a letter from one of my banks where I have a High Interest savings account. That letter cemented my belief that going with crowdlending as an investment vehicle had been the right decision for me. Here is what the letter stated:
We write to you to tell us that we reduce the deposit rate at your High Interest account. Due to the low interest rate level in Denmark, Santander Consumer Bank has to adjust the deposit rate. This is in view of an appropriate use of the bank’s resources. Against this background, we today announce the following change:
Santander Consumer Bank lowers the deposit rate at High Interest account from 0.60% to 0.50%.
The interest rate cut will come into force on 3 May 2019.
Santander Consumer Bank.
When I went home to visit my parents during the Easter Holidays, my mom had just received a similar letter from the bank where she had her high-interest savings account. Only, on her account, the rate was cut to 0 % and a fee added in the amount of 2 euros per month, for having an account in the bank. Now, I fully understand the position the banks are in when it comes to savings accounts, but the rates have gone so low, that the inflation and the cut for the tax man eats away at your savings. If you have money set aside on a savings account, you could really benefit from trying out some alternative investments.
During the month of April, I added to my investments on four different platforms. Envestio, Crowdestor, CrowdEstate, and Grupeer. Here is how I split up the funds.
Grupeer: 1196,45 €
Envestio: 1639,39 €
CrowdEstate: 799,63 €
Crowdestor: 1378,6 € and 717,85 € from Mintos (To rebalance portfolio and get better interest rates).
In addition, all earnings during the month was reinvested into other investments on the same platforms.
Crypto-mining Farm rig build project with Envestio, 18.95 %!
At Envestio, I invested in a Crypto-mining Farm project that will run over 9 months and pay 18.95 %.
The company Baltreit SIA was looking for short-term bridge-financing amounting to EUR 850,000 for a time period of 9 months, necessary for purchasing and assembling a set of mining hardware that will be afterwards sold to one of the company’s clients. The whole order consists of 1100 GTX 1080ti graphic processing units (GPUs) that will be set up inside special rigs of a custom construction. These rigs allow centralized management of the whole mining farm, effective cooling, and lower electricity consumption, resulting in higher net profit from one GPU. In their turn, aforementioned GPUs allow great operational flexibility, thus ensuring longer life cycle of the equipment built on their basis in comparison to specialized mining equipment that can mine only specific crypto-currencies.
Robotics at a fish processing company with CrowdEstate, 15,45 %!
At CrowdEstate I invested in working capital for H.M. Seafood OÜ. The debt is secured and the loan runs over a year, paying out 15.45% in interests.
H.M. Seafood OÜ is a fast-growing fish processing company since 1999. The main activity is the production of sprat preserves (uncooked hermetically packaged product, which is matured during maturation). It is produced under its own brand as well as according to the wishes and recipes of the customers (retail chains), including packaging design and brand (private label products). The main export markets are currently Finland (50%), Denmark (30%) and Latvia (10%). This year, Germany will also become one of the export markets. The share of domestic sales is about 10%, of which 90% is made up of 100g of Kipper anchovy. Private label, or branded products, make up the vast majority (approx. 90%) of the sold products, which ensures solid and long-term cooperation with the customer. The Sponsor’s production is audited and holds the highest level of food safety management system certification – IFS (International Food Standard). The IFS standard is very demanding in terms of food safety management system, infrastructure (including suppliers), territory, and personnel, making it suitable for well-organized and modern production. The raw material comes mainly from the North Sea and the Baltic Sea.
Within the framework of this project, the Sponsor wishes to raise EUR 250000, of which EUR 150000 will be used to finance working capital and EUR 100000 will be invested. As part of the investment, a conveyor line is purchased, which is placed between the existing desktops and connected to the closing, washing and marking line. In this context, 2 workers will be released who will be directed to fish filleting, which will result in the ready-made boxes reaching the closing line. A marinade teaser is also purchased. As a result of the described investments, the current activity will become more automated and only 4 additional people will be needed instead of the planned 8 employees.
Mortgage-backed residential construction loan with CrowdEstate, 15,58 %!
At CrowdEstate I also invested in a Mortgage-backed residential construction loan for developing in Estonia. The development loan runs over 8 months and the expected rate of return is 15.58 %.
The Sponsor is developing an apartment building with 68 apartments in Võru (capital of regional district at Southern Estonia, about 260 km south of Tallinn), next to idyllic Lake Tamula. The nature of the project is the reconstruction of a former industrial building and its conversion into a modern residential building. There are 22 apartments sold based on legal debt agreements, 2 loan applications for apartments are being processed and 10 apartments are booked based on booking agreements. The total number of apartments currently in the sales pipeline is therefore 33.
To return the total senior loan amount in this project, including funds raised by this funding round, Sponsor has to sell 32 apartments.
According to building reports, the project is 85% completed. The sponsor is optimistic that it is possible to receive use permit and sell a sufficient number of apartments for returning all outstanding loans by the end of August 2019.
Expansion of international transportation company with Crowdestor, 17 %!
At Crowdestor, I invested in expansion capital for an international transportation company. The interest rate is 17% and the loan period is 9 months.
An international transportation company was raising expansion capital allowing further investments into feasible business projects in light of the highly competitive market of the Borrower’s main line of business. The Borrower owns and manages a fleet of 12 heavy trucks including 5 units of Volvo FH carriers/heavy trucks, 5 units of Mercedes Benz Actros carriers/heavy trucks and 2 units of Scania carriers/heavy trucks.
The Borrower, as a subcontractor to international logistics company LKW WALTER Internationale Transportorganisation AG, provides logistics services for the transportation of cargo by road in territory of United Kingdom, Spain and France.
Expanding INCH² product range to include shoes and bags, 18 %!
At Crowdestor I also invested in expansion capital for INCH² over 2 years at an interest rate at 18 % per year.
INCH2 was looking to launch women’s bags in April 2019 as a major addition to the brand’s product range. In addition, the Company is looking to expand its men’s footwear collection, as well as to introduce new accessories for both ladies and gentlemen in the future. See more on inch2.com.
Luxury Yacht Rental with Crowdestor, 19,5 %!
Finally, I invested in a loan for a Luxury Yacht Rental business. It will run over 18 months and payout 19,5 %.
An international tourism and leisure company is planning to raise capital for acquisition of an SANLORENZO SL62 Yacht with Port and Flag of Registration in Langkawi, Malaysia. SANLORENZO SL62 is a motor yacht with a overall length of 18.87 metres, beam – 5.14 metres, draft – 1.79 metres and gross tonnage of 47.51 tonne. The yacht is equipped with two Marine diesel MAN engines each 1100 horsepower.
Business concept – daily and weekly rentals of Yacht or organising individual cruise trips in Gulf of Thailand, Malaysia, Singapore, Thailand, Cambodia and Vietnam.
My crowdlending portfolio at the end of April 2019.
So let us take a look at the stats for my portfolio at the time of writing this blog post. If you are reading this article later than May 2019, you can find my updated portfolio on the My Crowdlending Portfolio page.
Two new crowdlenders have been born!
During the Easter Holidays, I introduced my parents to crowdlending. They both have some savings, but they just keep then on a savings account. Later, during dinner, my mom said that she would like to give it a go and invest 1500 euros into crowdlending. A few days after we sat down with a cup of coffee and we got her setup on Mintos and Grupeer. We went through everything on the platform and set up a solid auto invest strategy on both platforms. A short time after my dad wanted me to help him do the same. Now they both have a small crowdlending portfolio. I am actually really excited for them because a whole new world of investing will open up for them and I am certain that they will get hooked as well.