Lendermarket review 2025
Read this in-depth Lendermarket review to assess if using the P2P lending platform aligns with your financial goals and preferences. See an overview of our analysis of Lendermarket just below:
Lendermarket
Pros
Cons
Lendermarket review summary:
Lendermarket is a high-yield P2P platform offering an average annual return of 15.90%. Despite these impressive returns, it carries significant risks. The platform provides a 60-day buyback guarantee and a group guarantee from the profitable Creditstar Group, but frequent loan extensions and pending payments of up to 240 days raise liquidity concerns, especially with no secondary market. While Creditstar’s track record supports its guarantees, investors should remain cautious amid the high volume of late payments.
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Introduction to our Lendermarket review
Considering Lendermarket? Our Lendermarket review will help you decide if it’s worth using. It’s a bit lengthy, so feel free to jump to the most relevant sections or read it all. Remember, it reflects our opinion and should not be taken as financial advice.
Learn about the following in our Lendermarket review:
- What is Lendermarket?
- What is the return on Lendermarket?
- Is it safe to invest on Lendermarket?
- Who can invest on Lendermarket?
- How to invest on Lendermarket?
- How to withdraw money from Lendermarket?
- What are the best Lendermarket alternatives?
- Conclusion of our Lendermarket review
What is Lendermarket?
Lendermarket is an Irish-based peer-to-peer (P2P) lending marketplace that launched in 2019. It offers advertised returns of up to 18% by allowing investors to invest in consumer loans from several European and Latin American countries. The platform was founded by the same group behind Creditstar, a well-known loan originator.
Lendermarket works by connecting investors with loan originators who have already issued loans to borrowers. By investing through Lendermarket, you provide liquidity to these loan originators in exchange for interest income.
More than 17,000 investors have joined Lendermarket, and the platform has funded over €466 million worth of loans.
Lendermarket Limited is regulated as a Crowdfunding Service Provider (CSP) by the Central Bank of Ireland under registration number 585178.
Lendermarket statistics:
| Launched: | 2019 |
| Investors: | 17,000 + |
| Interest rate: | 12 – 18 % |
| Loan period: | 1 – 96 months |
| Loan type: | Consumer |
| Loans funded: | € 456,000,000 + |
| Min. investment: | € 10 |
| Max. investment: | Unlimited |
Lendermarket Trustpilot rating
Lendermarket has received a TrustScore of 2.8/5 based on 549 reviews on Trustpilot. While several investors appreciate its competitive interest rates, new interface, and swift customer support, many have voiced frustrations over long-standing pending payments, sporadic liquidity, and a perceived lack of transparency. Despite these concerns, some users note recent improvements in payment processing and remain hopeful about the platform’s ongoing developments.
What is the return on Lendermarket?
Lendermarket’s average annual investment return is 15.89%. This rate is notably high compared to many other P2P lending platforms in Europe, indicating that investors may face a higher level of risk. While the yields can be compelling, investors should be aware that a higher return may imply a need for diligent monitoring of loan performance and platform stability.
The interest rates on Lendermarket ranges from 10% to 18%, accommodating both moderate and higher-yield strategies. Although the potential returns are appealing, actual results may vary based on loan availability.
Lendermarket cashback campaigns
Lendermarket frequently offers cashback campaigns with up to +5%, which can further increase your return.
Time-limited welcome bonus
Readers of this Lendermarket review are eligible for a 1% cashback bonus on all investments for 90 days. To unlock this time-limited offer, new investors must sign up using the button below and invest at least €10. No Lendermarket promo code is required.
Does Lendermarket withhold taxes?
Lendermarket does not withhold any taxes from your investment earnings. Unlike certain regulated competitors (such as Mintos, NEO Finance, VIAINVEST, and TWINO) that automatically deduct a portion of your gains, Lendermarket leaves you responsible for settling any tax obligations directly with your local authorities.
Tax report
Lendermarket provides a detailed tax report for your investment account. You can easily download your tax statement from the dashboard and use it to declare your earnings appropriately.
Is it safe to invest on Lendermarket?
Lendermarket is not considered one of the safest P2P lending platforms in Europe due to the high-risk nature of loans on the platform. The platform often experiences a high share of pending payments, with loan originators not paying back on time, which causes potential liquidity issues for investors and questions about reliability.
However, Lendermarket has safety measures including a buyback guarantee on all loans and a group guarantee on loans from the Creditstar Group to protect investors from non-performing loans.
Lendermarket Limited is regulated as a Crowdfunding Service Provider (CSP) by the Central Bank of Ireland under registration number 585178. Its regulated status indicates that Lendermarket is legitimate and not a scam.
Lendermarket loan originators
Lendermarket has 4 loan originators in 8 countries that deal in 2 different loan types, making it less attractive for diversification compared to marketplaces such as Mintos, PeerBerry, and Iuvo Group.
All loans on Lendermarket come from the lending companies Creditstar, Credifiel, Dineo and RapiCredit.
Lendermarket requires loan originators to retain 5-10% skin in the game on each loan, matching the industry norm. When loan originators hold a portion of the loan themselves, they share the risk with investors. This can foster more careful underwriting and discourages reckless lending practices.
Lendermarket buyback guarantee
On Lendermarket, all loans are covered by a 60-day buyback guarantee. This means that if a borrower is more than 60 days late with repayments, the loan originator automatically repurchases the loan from the investor along with accrued interest.
The Lendermarket buyback guarantee has a duration of 60 days, which is the industry standard. This is longer compared to Robocash and Loanch, which offer the shortest buyback duration on the market at 30 days.
Investors should keep in mind that the reliability of the Lendermarket buyback obligation depends on the financial stability of the loan originators. If the loan originators are unable to buy back the loans, the buyback guarantee becomes worthless.
Lendermarket group guarantee
Lendermarket offers a group guarantee for loans from the Creditstar Group. This guarantee is activated if a loan originator is unable to honor the buyback guarantee. In such cases, the Creditstart Group steps in to fulfil the buyback obligation, ensuring the protection of investors’ investments.
The reliability of the Lendermarket group guarantee depends on the financial health of the Creditstar Group, which means that investors should continuously pay attention to the financial stability of the group.
Creditstar Group profitability
Creditstar Group is a profitable lending group that reported a net profit of €6,691,000 in 2023. The group has consistently been profitable since it was founded in 2006. Being a profitable lending group increases the likelihood that the Lendermarket group guarantee will be honored.
| Year | Net profit/loss |
|---|---|
| 2023 | 6,691,000 euros |
| 2022 | 7,376,000 euros |
| 2021 | 5,417,000 euros |
| 2020 | 6,616,000 euros |
Is Lendermarket profitable?
Lendermarket Limited is a profitable P2P lending platform that reported a net profit of €87,836 in 2023. In previous years, the platform had been unprofitable. Lendermarket’s status as a profitable platform decreases the overall platform risk.
| Year | Net profit/loss |
|---|---|
| 2023 | 87,836 euros |
| 2022 | -257,097 euros |
| 2021 | -600,289 euros |
| 2020 | -407,698 euros |
Two-factor authentication
Lendermarket offers two-factor authentication (2FA) to strengthen account security. This feature generates unique, time-based passcodes to 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 Lendermarket?
It is possible for both private individuals and companies to invest on the Lendermarket platform.
Individuals
To create a user as an individual, you must meet the following requirements:
- Be a least 18 years old
- Having a bank account in the European Economic Area, UK or Switzerland
- and have their identity successfully verified by the Lendermarket team
If you meet the above requirements, it is easy to get started at Lendermarket. Just follow the steps below, and then you should quickly be up and running:
- Create an account
- Add funds to your account
- Invest in loans from the loan list
Companies
It is also possible for companies to invest via Lendermarket. When you sign up on their website, simply select “company” instead of “individual” in the signup form. This will give you a slightly different registration form. But from here, the user creation process is straightforward.
How to invest on Lendermarket?
Before you can start investing on Lendermarket, you must complete the following steps:
- Sign up on the Lendermarket website.
- Verify your identity.
- Complete the KYC questionnaire.
- Deposit funds into your account.
The entire registration process usually takes about 5-10 minutes, including signing up, verifying your identity, filling out any required questionnaires, and making your first deposit.
You can deposit money into your Lendermarket account using SEPA transfers. The minimum deposit is €0.01, and funds typically arrive within 1-3 business days. It is only possible to deposit funds in Euros (EUR).
Once you have funded your account, you can start investing in P2P loans on the platform. Lendermarket allows you to invest manually by browsing available loans or automatically using an auto-invest strategy.
Lendermarket auto-invest
Lendermarket provides an auto-invest feature to automatically allocate funds into suitable loan investments based on each investor’s predefined criteria, saving time and simplifying the investment process.
The auto-invest tool enables you to configure key parameters, including portfolio size, maximum investment per loan, interest rate, loan term, countries, and loan originators. You can also automatically reinvest all returns.
Setting up a Lendermarket auto-invest strategy only takes 1 minute, and your funds should be invested within a few hours. If your auto-invest is not working, it is usually due to a lack of loans that meet your criteria. This can happen when your filters are too narrow or when no suitable loans are available.
How to withdraw money from Lendermarket?
You can withdraw your uninvested funds from Lendermarket at any time using the withdrawal section of your investor account. The minimum withdrawal amount is €50 and it usually takes 1-3 business days for your funds to arrive in your bank account.
Lendermarket does not charge any fees for withdrawing funds from your account, but your bank may charge fees for receiving international transfers.
To exit Lendermarket, you must first turn off all auto-invest strategies and wait for any outstanding loans to mature. If you hold non-performing loans, the platform must first recover the underlying debt before allowing withdrawals, which can negatively affect your liquidity.
No secondary market
Lendermarket does not have a secondary market, which means that investors must hold loans until they reach maturity. While this may not pose a problem for short-term loans with durations of 30 days, it can present a significant liquidity risk for investors with long-term loans.
The lack of a Lendermarket secondary market is a major drawback compared to other platforms like Mintos and Swaper, which offer secondary markets for enhanced liquidity.
Loan extensions and pending payments
Lendermarket frequently experiences problems with pending payments as loan originators fail to pay on time due to loan extensions for borrowers, thus preventing investors from withdrawing their funds from the platform. This problem arises from the significant risk associated with the high-yield loans offered on Lendermarket.
The extension terms for loan originators on Lendermarket vary due to differing extension policies with borrowers.
Creditstar can extend a loan up to 180 days (6 extensions of 30 days each). According to Creditstar’s buyback agreement, a loan should be bought back after 60 days of delay, making the maximum total number of late days 240.
If a loan you’ve invested in is extended, you’ll receive accrued interest up to the extension date and continue earning the same interest during the extension until the loan is repaid or bought back.
It is common to observe an increase in pending payments on Lendermarket during periods of decreased demand caused by events such as the COVID-19 pandemic, the war in Ukraine, sanctions on Russia, and economic downturns.
What are the best Lendermarket alternatives?
Some of the best alternatives to Lendermarket are Swaper, Esketit and Mintos. Contrary to Lendermarket, all of these platforms experience fewer problems with pending payments and also feature a secondary market.
Conclusion of our Lendermarket review
Lendermarket is a high-yield P2P lending platform offering the highest average annual return in Europe at 15.90%. The platform sets itself apart by leveraging the financial backing of the profitable Creditstar Group and providing a 60-day buyback guarantee on all loans, which helps mitigate some of the default risks investors face when seeking higher-yield opportunities.
While Lendermarket offers a competitive return rate, a straightforward user experience, and strong backing from Creditstar, investors frequently encounter loan extensions that can result in pending payments of up to 240 days. This, coupled with the absence of a secondary market, can heighten liquidity concerns and limit exit options for investors seeking faster access to their funds.
Lendermarket is suitable for investors comfortable with lack of immediate liquidity and who closely monitor platform and loan originator performance. It is not a good investment for investors who value quick access to their money or those who prefer a fully regulated environment with fewer late payments. If you need a more flexible or lower-risk option, consider other P2P lending platforms instead.
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