P2P Loans – My Balance Sheet After 4 Months

In the first place, I decided to invest in P2P loans to try this type of investment. After reading Cole’ book “Investing in P2P Personal Loans:

What You Should Know How to Avoid Mistakes and Invest Successfully “I was curious to read. Last but not least, of course, I want to see what is possible in terms of return.

I registered with three providers at the end of last year: Good Finance, Fast Express, and Good Credit. The registration based on email address and password went quite quickly on all 3 portals. So after I was “in there” it was time to deposit money.

Money was available for investments.


Both Good Finance and Fast Express made the process very, very easy. I transferred 100 USD from the current account to the accounts of Good Finance and Fast Express by bank transfer. After a few days, the money was available for investments.

Good Credit has screwed it up at this point, compared to the other two.

Here you first get a letter from their partner bank biw, then you have to open an account there using the PostIdent procedure, to which you can transfer your money from your checking account in order to be able to invest it forever. Annoying process, I still went through it.

How was my capital distributed across the individual loans?

How was my capital distributed across the individual loans?

3 accounts charged with 100 USD each. And now? How does the money get to the borrowers? If you like, the respective platform automatically takes over the selection, distribution and ultimately an investment in loans.

And because I like everything that relieves me of work, I invested in this way. How does it work exactly?

Portfolio manager at Good Finance

At Good Finance, my money was invested faster than I could watch. I no longer know whether the portfolio manager was activated from the start or whether I pressed the button. Anyway, everything went pretty quickly.

I have set how much risk I want to take (“balanced”) and how much my investment per loan should be at least and maximum. I naturally acted according to the bid: Do not put all eggs in one basket and stated a maximum bid of 10 USD per loan. Revenue should be reinvested directly.

  Portfolio manager Good Finance  Prtfolio manager Good FinanceThe next day everything had already happened: The portfolio manager invested my 100 USD in 20 loans.

The distribution was as shown below. The rating levels are particularly interesting. B is the best, HR is “high risk”. My portfolio consists largely of E, F and HR loans than B, C and D. No risk, no fun, right?

Auto Invest at Fast Express

With Auto Invest from Fast Express, you can make more settings than with Good Finance’s portfolio manager. Particularly exciting: the buyback guarantee. If a borrower is in arrears, Fast Express will buy the loan back and pay you off. o you want that?

Yes, you want that! Cole explained wonderfully how to configure Auto Invest correctly. t Fast Express, it took a little longer for my 100 USD to be fully invested. But it worked. Auto Invest distributed my money nicely evenly over 10 investments. Here is an insight into the exact loans (as of today, unfortunately, I have no screenshot of the initial investments):

Good Credit and I no longer become friends. First the hustle with the account and now that: After I have paid my 100 USD and click on “Automatically invest”, it comes:

Topic did. Well, not quite yet. My attempt to transfer the 100 USD back to my checking account failed due to the TAN. You don’t get it, as is customary in 2017 via SMS. No, it looks like I got a list. On paper. With numbers to cross out. By post. Hopefully, Good Credit will still be around when I find it again …

So how about yields ?!


After feeling a little overwhelmed by the many reports, statistics, dashboards, cash flows, and bank statements, I can now announce the following results:

My Auto Invest at Fast Express is set up to buy back overdue loans. Indeed, this has happened a few times. The following screenshot shows you (in part) what has happened (completely automatically) in my portfolio.

To date, a total of 6 out of 10 (!) Of my investments have been bought back. The consequences: 1. No defaults, no credit in arrears, happy happy. 2. One inevitably wonders what happens to the overdue loans after the buyback, that is, how Fast Express gets his money back. Collection (again costs additional)? How can that pay off? Through the service fees?

At Good Finance, 4 of my 23 investments are in arrears. In total it is about 30 cents repayment and 1.28 USD accrued interest. Whether I will see these amounts again remains open for the time being.

Lenita Madrid

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