EstateGuru is a peer to peer lender based in Estonia that has grown to over 46,000 investors from 106 countries originating more than €200 million in loans to date. The debt-based crowdfunding platform is now preparing to raise capital via Seedrs – and the offering is accepting registrations now.
EstateGuru has built a business based on issuing debt securities secured by property. The short term loans have averaged around 11.84% in gross returns over the years. EstateGuru describes itself as a small and flexible organization that is willing to help companies that are denied financing by banks despite a strong business plan and solid collateral. The company reports doubling in size every year since platform launch.
An average loan issuance is around €142,000 with a term of about one year. While many of the loans are issued in the Baltics, the platform has expanded its reach into other European countries. There is a statistics page so you can see the performance of the loans by category as well as the default rates and return of capital.
So how has the COVID-19 pandemic impacted the platform so far? It’s an important question.
Earlier this month, EstateGuru published a blog post that said the company was “not only able to weather the storm, but emerge from it stronger than ever before.”
To quote the statement:
“Still, no capital loss has occurred to our investors and we are putting more effort into recouping defaulted and late loans during the current turbulent times. Our historical LTV is below 60% and we have enough of a buffer to protect investors against a real estate market decline and an increased number of defaults. We are constantly improving our procedures related to debt collection and monitoring of borrowers. Besides in-house knowledge, we have partnerships with debt collection agencies and law firms in every country where we operate.”
If you are interested, you may pre-register here without any commitment. The deal terms have not yet been made available but the offering will be one to watch once it becomes available.
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