Crowdestor review 2025
Read this Crowdestor review to learn if the platform is for you.
Crowdestor
Pros
Cons
Crowdestor review summary:
Crowdestor is a high-yield business crowdfunding platform that comes with considerable risk. While it does have a Buyback Guarantee Fund that appears to have grown over time, many investors experience extended delays in repayment, minimal communication, and ongoing legal or collection issues.
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Introduction to our Crowdestor review
We strongly advise you to read this review if you have considered investing through the platform but have not yet decided. In this Crowdestor review, we will take a closer look at the safety of their platform.
As you read this Crowdestor review, you should be aware that it contains only our own opinion of the platform, and that the information should not be considered financial advice.
You are of course welcome to read the review from one end to the other, but if you are just looking for something specific, you can use the navigation below to get to a specific point in our Crowdestor review.
Learn about the following in our Crowdestor review:
- What is Crowdestor?
- What is the return on Crowdestor?
- Is it safe to invest on Crowdestor?
- Who can invest on Crowdestor?
- What are the key features of Crowdestor?
- What are the best Crowdestor alternatives?
- Conclusion of our Crowdestor review
What is Crowdestor?
Crowdestor is a Latvia-based peer-to-peer (P2P) lending platform that was launched in February 2018. It connects businesses in need of capital with individual investors, offering advertised returns of up to 28%.
Crowdestor works by pooling funds from individual investors and allocating these funds to various business ventures, such as real estate and manufacturing. In return, investors receive interest payments from the borrowers, subject to the performance of those projects.
The platform has over 27,000 investors who have collectively funded business loans totalling more than €57,200,000.
Crowdestor OÜ is not regulated, as it is not required in the jurisdiction in which it operates.
Crowdestor statistics:
| Launched: | 2018 |
| Investors: | 26,200 + |
| Interest rate: | 10 – 36 % |
| Loan period: | 1 – 24 months |
| Loan type: | Business |
| Loans funded: | € 57,200,000 + |
| Min. investment: | € 50 |
| Max. investment: | Unlimited |
Crowdestor Trustpilot rating
Crowdestor has received a TrustScore of 1.6/5 based on 238 reviews on Trustpilot. While a few users praise instances of successful repayments, stable interest rates, and a straightforward interface, the majority of reviewers cite project defaults, delayed withdrawals, and inadequate communication as major shortcomings. Despite these concerns, there remains a small but loyal contingent of investors who express hope for improved outcomes and continued platform development.
What is the return on Crowdestor?
Crowdestor’s average annual investment return is 28%. This figure is notably higher compared to many other P2B platforms, indicating a potentially greater level of risk. While the advertised returns appear very attractive, factors such as delayed repayments and project performance can reduce the overall effective yield.
The interest rates on Crowdestor ranges from 10% to 36%, reflecting one of the widest spreads in its market segment. Although a higher maximum interest rate can be appealing, it often involves lending to riskier ventures, which can adversely affect the consistency of returns.
How does Crowdestor handle taxes?
Crowdestor does not withhold taxes from investors’ earnings, allowing you to handle your tax obligations independently. This approach contrasts with certain regulated competitors like Crowdpear, Debitum and HeavyFinance, which retain part of your earnings for tax purposes.
Tax report
Crowdestor provides a tax report to simplify declaring your earnings to local authorities. You can conveniently download your income statement from your dashboard on the platform, making it easier to submit the necessary information to local authorities.
Is it safe to invest on Crowdestor?
Crowdestor is not regarded as one of the safest P2P lending platforms due to its bad track record. Most of its loans are either late or in recovery, and very few are current. Moreover, Crowdestor OÜ is not regulated, which can be a concern for investors looking for a reliable and safe environment. While there is no definitive indication that the platform is a scam, these issues raise questions about the overall legitimacy and security of investing with Crowdestor.
Crowdestor BuyBack Guarantee Fund
In 2019, Crowdestor introduced a new program called “BuyBack Guarantee Fund”. This fund was created in order to safeguard investors against the potential default of the borrowers.
Since March of 2019, Crowdestor has devoted a commission of 1-2% to the fund from all the projects funded on the platform.
In the case that a borrower defaults, investors will be compensated with a proportionate amount of their contributions to the particular project.
As of April 2022, the BuyBack Fund had a size of €442,554 (check the current fund size).
Two-factor authentication
Crowdestor offers two-factor authentication (2FA) to strengthen account security. This feature works with the Google Authenticator app, generating unique, time-based passcodes that protect investor funds from unauthorized access. Since hackers have targeted P2P lending platforms in the past, enabling 2FA is strongly recommended.
Who can invest on Crowdestor?
In order to be able to invest via Crowdestor you must meet the following requirements:
- Be at least 18 years old
- Have an active bank account
If you meet these requirements, simply follow this registration process:
- Go to https://crowdestor.com/
- Complete the registration process
- Wait up to 48 hours for approval of your account
- Invest projects on Crowdestor
If you have any questions regarding the registration or wonder if you can invest, you can simply contact Crowdestor with the information found at the bottom of this page.
It is possible to send funds to your account with TransferWise and bank transfer. But when withdrawing money from the platform, you can only use bank transfer.
What are the key features of Crowdestor?
In the following, we will walk you through some of the main features of the platform, and why they matter to you as an investor.
Crowdestor secondary market
Crowdestor offers a secondary market for all its investments, enabling investors to sell their loans before maturity. While sellers are charged a transaction fee of 2%, buyers can use the secondary market without any fees.
The time it takes to sell investments on the Crowdestor secondary market depends on the price set by the seller and current market conditions. Sellers have the flexibility to list loans at face value or to apply discounts or premiums to attract potential buyers.
Crowdestor’s secondary market is expensive compared to other P2B lending platforms. Investors who actively use secondary markets may want to consider more affordable alternatives, such as LANDE or HeavyFinance.
What are the best Crowdestor alternatives?
Some of the best alternatives to Crowdestor are Debitum Investments, Maclear and Crowdpear. These P2B lending platforms each provide a diverse array of investment opportunities that distinguish them from Crowdestor.
Conclusion of our Crowdestor review
Crowdestor is a disappointing business crowdfunding platform due to its significant repayment issues.
While it does have a Buyback Guarantee Fund that appears to have grown over time, many investors experience extended delays in repayment, minimal communication, and ongoing legal or collection issues.
Based on the volume of recent critical Trustpilot reviews, prospective investors may wish to seek more transparent and consistently performing alternatives before choosing Crowdestor.
