Quanloop Review - A New Investment Fund Offering Investors A Great Alternative To P2P Platforms

quanloop review investment fund

Quanloop avoids the risks attributed to P2P platforms and still manages to grant investors an opportunity to earn stable returns with low risk. Investing in P2P lending comes with a significant amount of risk. From loan defaults to bankruptcy, lenders are faced with copious amounts of uncertainty regarding the security of their investment. 

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In this article, we review Quanloop, an Estonian investment fund, which has tackled all risky aspects of a regular P2P lending platform and managed to offer a smarter auto-invest solution. Let's review Quanloop in greater detail:

How Does Quanloop Work? 

Firstly, it is important to distinguish is that Quanloop is Not a P2P lending platform. It is an investment fund committed to wholesale funding that offers investors to earn passively. They borrow money from investors and split it into €1-sized credit agreements for 24 hours to finance prospective loans offered by their partners – leasing and factoring businesses. Once Quanloop receives the loan back with interests, they pay out to investors with their interests first and then collect any profits made through interest rate spread. 

Quanloop has fully automated its investments, leaving investors the ability to modify their portfolio through risk diversification and setting interest rates. 

Quanloop offers low-risk plans to risk-averse investors who want stable returns backed by higher collaterals. Investors who are willing to risk more for higher earnings have the option to add the Medium- and High-risk plans to their investment strategy. Quanloop, however, prevents investors from allocating all their investments under both of the higher risk plans. At most, they allow half to be invested in the Medium-risk plan, and a third to the High-risk plan. This strategy is adopted to restrict investors and Quanloop from taking on disproportionate amounts of risk. 

The loans to Quanloop under the Low- and Medium-risk plans are all secured by collaterals. Most of the High-risk loans have collaterals, but not all of them. Investors should choose a competitive interest rate to ensure that their money stays in use since lower-interest-rate loans are taken from investors first. Higher-interest-rate loans are involved when there are insufficient funds and the demand is high. 

The interests earned are paid on every 15th calendar day of the following month. Investors can choose their profits to be paid to their bank account or added to their Quanloop balance to be reinvested, and apply the compound effect. 

To increase investors' profitability, they can invite new people and receive 2.5% of their interest revenues, as long as they keep investing. In turn, the referees receive €5 as a sign-up bonus. 

Investing in Quanloop requires investors to sign-up, get verified and transfer any amount to their account. They only accept Euros and require wire transfer through an IBAN account. The minimum amount is €1 per risk-plan. 

How Are They Different From P2P? 

Quanloop – unlike P2P platforms that act as an intermediary between borrowers with lenders – is the sole borrower. It eliminates the risks of borrowers defaulting in loans which are often found in P2P lending, as platforms are not responsible to the lenders directly. 

Quanloop does not offer a buyback guarantee, unlike P2P platforms. The main benefit of a buyback guarantee is a higher likelihood of obtaining the funds lost from a loan default so that an investor does not have to wait a long time for the loan to be paid back or the default claim to settle. Since Quanloop is the sole borrower, the need for a Buyback guarantee goes away, leaving the credit defaults up to Quanloop to manage. In the event of a loan default, it is left between Quanloop and their partner firms associated with the loan to review and take care of, leaving investors without concern. 

Quanloop does not have a secondary market according to our review. The purpose of a secondary market is to allow investors to sell their claim for a small fee before the loan term is up. Quanloop eradicated the need for a secondary market by keeping their funds highly liquid through putting aside an underwriting reserve of 10% for every loan given to their partners so that investors can exit early. If investors find themselves unable to withdraw within a day, Quanloop compensates the delay by offering an extra 2% per annum. 

Investors can modify their portfolio as many times as they wish, something that is not offered by P2P lending platforms. In P2P platforms, investors can only set a fixed interest rate for the entire loan term and only pick loans from a list that are remotely close to their criteria. If there aren't any suitable ones, they will have to wait until one becomes available, leaving their money untouched. Quanloop adjusts the investments according to the modified rates of all investors by borrowing the money with the cheapest rates first. 

Quanloop's most unique offer to investors is their inflation-safe investment that no other platform or bank offers. Based on the calculation of Eurostat, they compensate the amount lost to inflation every month. If there are two contrasting calculations between the individual EU state and the overall EU, Quanloop will always pay the higher amount to maintain a high rating. 

How Do They Avoid Risks That Come With P2P? 

The risks of P2P lending platforms have become more evident in the current market. Many platforms are going through a money drag, meaning that not all of the investors' money is being fully invested and therefore, some of the money is stagnant. 

Many of the loan originators of big lending platforms have defaulted, putting their investors' money at risk and many P2P platforms have turned out to be fraudulent. This brought attention to the most popular security measures – the buyback guarantee which is only as good as its originator – if they are in trouble, their guarantee means nothing. 

There is also a risk of platform bankruptcy which poses a more serious threat to an investor – when a platform goes bankrupt, investors can lose all the money they have invested. 

Quanloop avoids all the risks of P2P by forgoing the need for a buyback guarantee and leaving all of its assets to investors. Since all of the investors' money is held in an off-balance clients' bank account, all the money will be returned to the investors immediately in case of insolvency. Moreover, if one of Quanloop's partners fails, investors will be covered from the Quanloop funds. 

Investors do not have to lock up their funds for a long loan term to receive the best returns in Quanloop as they have to in P2P platforms. Investors can withdraw anytime and receive their money the following day. 

Quanloop Review Conclusion

Quanloop offers all the necessary information on its website so investors can be confident before deciding to invest. 

If you are struggling which P2P platform to try next, try a real alternative – take a look at Quanloop. Choose a solid return from 5.5% p.a. with considerable security or take on more risk and earn up to 15.7% annually with automated investments. 

We hope this Quanloop review has been helpful for your investment goals!

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