Swaper Review: My P2P Investing Returns with Peer-to-Peer Lending Swaper

Swaper Review My P2P Investing Returns with Peer-to-Peer Lending Swaper
My Review on Swaper P2P Platform
  • Invested in Swaper - €1 000
  • Self-reported returns - 12%
  • Passive earnings per month - €10
  • Investing time on Swaper - 6 months
4.8

My Swaper Overview:

Swaper is a stable platform and a good option to include in your portfolio in order to diversify it not only among loan originators but also among platforms. So far, my returns from the platform are one of the most consistent.

When I tried to sell my portfolio in order to test how the liquid is the primary market, it sold literally in minutes. Depositing and withdrawing cash happens very quickly, without any delay. Their support is very prompt and helpful.

Till now, Swaper has covered every important aspect I need in a stable peer-to-peer platform so I believe that Swaper is a good choice for anyone who wants to invest as passive as possible.

Update after COVID-19 2020 crisis: Read why I included Swaper in my list of the Best Peer to Peer Lending Platforms to Survive the COVID-19. Also, check out our p2p cashback offers available for new investors.

Introduction to P2P Lending Platform Swaper

Before proceeding with my Swaper review, let’s explain to the beginners what Peer-to-Peer lending is.

What is Peer-to-Peer Investing?

Peer-to-peer lending, for short P2P lending, is a type of loan service, where a P2P business lends money to companies and individuals online and matches lenders with borrowers. The P2P services are often offered online as it is cheaper than the traditional financial institutions.

The result is that lenders earn higher returns compared to deposits and savings accounts, provided by banks. And at the same time, borrowers can borrow money at lower interest rates. 

Thanks to the development of the FinTech industry in the last 10 years, we are now able to earn interest rates on our cash higher than even. And we don’t even have to go to the local office to do so.

For the past 30 months, I have been actively investing in 18 platforms for P2P and Crowdlending platforms, and in this article, I will make a review on one of the most famous European Peer-to-Peer lending platform – Swaper. If you haven’t read my previous review on the Viventor lending platform, go check it out.

Let’s do this FIRE-starters!

What is Swaper?

Swaper is a peer-to-peer lending service launched in 2016. The platform has been around for a few years, and it already has a standing in the industry, though we can’t say it’s particularly old. 

The company behind Swaper is the Wandoo Finance Group. Currently, it’s their main business.

Let’s Review Swaper’s Primary Features

Let’s take a look at Swaper’s features. Right now, the platform offers the following:

  • an interest rate of 12%;
  • a loyalty bonus of 2%;
  • buyback guarantee, including accrued interest;
  • zero fees/no hidden charges;
  • consumer loans only.

Swaper Peer to Peer Overview

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Why Choosing Swaper?

Swaper is a refinancing company, which means it refinances consumer loans. Wandoo Finance Group (its parent organization) is the one responsible for issuing the loans. As a company, Swaper is registered in Latvia, where it conducts its primary operations.

However, there are five countries in total where they issue the loans, namely Spain, Denmark, Poland, Russia, and Georgia.

Wandoo Finance Group itself is heavily focused on credit scoring: they make decisions about who they issue loans to. Swaper, at the same time, can quickly refinance those loans using investors’ funds, which is the main purpose of the company.

A question arises: why would Wandoo operate in such a way? Because it allows for a much faster turnaround of capital. As their own funds return to them, they can reinvest the money, thanks to individual investors.

Who Can Become an Investor with Swaper?

In order to be eligible as a Swaper investor, you must be at least 18 years old as well as be a resident of one of the countries that belong to the European Economic Area (EEA). Correspondingly, you must have a valid bank account in an EEA country.

Who Exactly is Considered a Resident?

First: any citizen of a given country. Second: anyone with a residence permit. Third: any officially registered taxpayer in a given country. As long you’re one of these, you’re qualified.

How to Get Started with Swaper P2P Lending?

If you want to invest in Swaper, it’s not particularly hard. Follow these steps:

  1. Visit waper.com and go to the “Open Investor Account” page;
  2. Enter your login details and check “Agree;”
  3. Enter further account info and pick your base currency;
  4. Submit personal identity information for verification, such as a photo of your passport and a utility bill;
  5. Deposit money;
  6. Select an option such as “Swaper Auto-Invest.”

Swaper Auto-Invest in Action

Auto-Invest is a simpler option. There are also more advanced ones. Let’s focus on an Auto-Invest portfolio first. Click on “Create Portfolio” in order to create your profile. You can limit the portfolio size as well as its validity period. If the size is set big enough, that ensures that your portfolio doesn’t cap the total invested capital.

 As soon as you finished, you can explore the “More Options” panel. Here are some more details on it:

Swaper Autoinvest Function

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  1. Portfolio Size sets the limit for the entire Auto-Invest portfolio. It’s best to set it to a higher value.
  2. Portfolio Term defines the validity period; then, it will automatically stop. Since you can stop it at any time, you can set a higher value too.
  3. Annual Interest determines the interest rate. Currently, Swapper has a fixed rate of 12%.
  4. Max Investment in one loan sets the level of diversification. A smaller number implies a higher spread. Since there’s a buyback guarantee, you can set a higher value (like 1000).
  5. The remaining Principal amount determines the re-investable amount. It can be just left blank.
  6. Loan Term in Months defines loan duration. This is an important option. If you want to only invest in short-term loans, you should set a lower maximum, like 3 months. Set a higher maximum for long-term loans.
  7. Don’t Invest if Balance is Less Than – this one is just a balance cap. You can set some value if you always want to keep some balance, otherwise leave it at 0, which is usually enough.
  8. Countries are just a country filter. Not necessary.
  9. Reinvest means any gained interest will be reinvested in your portfolio. Just leave this option checked.
  10. Extended loans allow for a scenario when the borrower defers a principal payment after paying interest. Swaper already has full protection against defaults, so this can be left checked.
  11. Delayed is about loans that are not paid on time. Swaper fully covers late payments, so you can leave this checked (some people don’t prefer it, though).

How Much Can You Earn on Swaper’s Platform?

When it comes to interest rates, Swaper offers a fixed yearly rate. This is rather similar to another lending platform, Robocash. In the case of Swaper, the yearly rate is 12%. On top of that, Swaper offers a loyalty bonus. 

You have to invest at least $5000 over the course of 3 months. When these conditions are met, you receive a loyalty bonus of 2%. Combined, it makes up 14% in total.

Common Risks when Investing

Obviously, it’s important to evaluate all possible risks in advance. Swaper is directly tied to Wandoo Finance Group, its parent company. As a result, both companies carry identical risks.

Wandoo Finance Group issues the loans, Swaper refinances the loans. The primary risk is the bankruptcy or insolvency of one of the companies.

Liquidity and Secondary Market

Generally, Swaper offers a pretty decent level of liquidity. You can keep your capital on short-term loans exclusively.

Sell loans on Swaper

If you want to quit your auto-invest portfolio for whatever reason, you’ll get most of your money back within a month, and in another month, you’ll get the rest because of Swaper’s buyback guarantee. In other words, if you’re suddenly in need of cash, you can get it soon enough.

Additionally, there is always access to the secondary. It is also rather liquid. Overall, Swaper doesn’t have any noticeable problems with liquidity.

Buyback Guarantee

The good thing is, Swaper offers a complete buyback guarantee. It applies to all loans issued on the platform. It also covers for accrued revenue in case of late payments.

When is the buyback activated? For short-term loans, it happens when the payment is late by more than 1 month. For long-term loans, it’s when the payment is late by more than 2 months.

Which Are the Best Alternatives to Swaper

Some of the platforms, similar to Swaper, and where I invest in are Peerberry, Bondora, Mintos, Robocash, Klearlending.

Final Thoughts on My Swaper Review

Swaper is a stable platform and a good option to include in your portfolio in order to diversify it not only among loan originators but also among platforms. So far, my returns from the platform are one of the most consistent.

When I tried to sell my portfolio in order to test how the liquid is the primary market, it sold literally in minutes. Depositing and withdrawing cash happens very quickly, without any delay. Their support is very prompt and helpful.

Till now, Swaper has covered every important aspect I need in a stable peer-to-peer platform so I believe that Swaper is a good choice for anyone who wants to invest as passive as possible.

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