P2P Lender Robo.cash Shares Insights on Investment Approach and Liquidity Strategy

The team at Robo.cash, a Croatian peer-to-peer lender, has shared insights on different investment approaches.

In a new blog post, Robo.cash talks about the liquidity strategy. As explained by the P2P lender,  liquidity is one of the “significant factors” that make assets appealing to investors. Robo.cash further notes that the ability to return funds quickly has become particularly crucial during the COVID-19 crisis.

High portfolio liquidity “means flexibility in investment tactics, profitability and personal financial stability,” the Robo.cash team explained. They also mentioned that investments in Robo.cash may be “highly liquid.”

As noted by Robo.cash:

“Let’s say you put €10,000 in short-term loans from Spain and reinvest this amount throughout a year. In the end, your income will be up to 1,050 euros (terms apply). Compared to other ways, in your wallet it would depreciate by 0.25% due to inflation (inflation according to data for 2020), and a bank deposit, in turn, would bring you only 19 euros of income instead of 1,050 (the annual rate on deposits for a period of less than a year is 0.19%).”

Robo.cash further explained that in addition to higher income, investing in loans is “a liquid asset, as you could stop investing and withdraw your money in a matter of several days.”

Robo.cash’s blog post added:

“Alternatively, you could opt for long-term loans. There is also relatively high liquidity on loans from the Philippines as well as commercial loans by RC Riga, where you can invest from 30 days to 2 years.”

But how can a loan be liquid when it’s 2 years in term, the Robo.cash team asks, while noting that any loan you invest in (short-term and long-term) may be sold via the secondary market, where investors “meet to buy or sell them.” On average, on Robo.cash, “95% of such loans wait in the wings for less than a week,” the company revealed.

As mentioned in the update from Robo.cash, they’ve shown that investments via their platform may not only be profitable, but also “highly liquid.”

The company clarified that the “final choice of investment strategies will be made with your specific financial objectives and criteria in mind.”

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