On the 15th of March 2022, P2P Empire published a review about Max Crowdfund.* P2P Empire is a website that posts reviews of popular Peer to Peer lending sites so that its readers can find their perfect fit. This blog will summarise the review and highlight the benefits of investing through Max Crowdfund, according to P2P Empire.
*The figures in this article are based on the statistics of March 15, 2022
Max Crowdfund was launched in 2020 and currently has over 7,000 users on the platform, of which more than 1500 are active investors with a total of over €21 million invested in the platform. P2P Empire rates Max Crowdfund with 4.0 stars, with the following highlights:
- Receive an average interest rate of 9.55% per year
- Invest in real estate
- From €100
- Regulated platform
Max Crowdfund offers loans in Germany, the Netherlands, Belgium, and the UK. Currently, there are no defaults. Furthermore, investors earn 9.55% interest, and the average number of investments per investor is 5.8.
The average investment amount is €2,672 and when it comes to fundraising, the average raise is €253,363 with an average publication of 8 days. According to P2P Empire, it is refreshing to see that our platform makes a lot of its statistical information available, which increases trust in the platform.
The requirements to open an account and invest on Max Crowdfund are relatively standard and are as follows:
1. Be over 18 years old
2. Valid email address
3. Pass the KYC verification
4. Pass the bank account verification
The KYC verification requires users of Max Crowdfund to submit personal information and photographic ID such as a passport or driver’s license. In addition, EU users also need to verify their identity via bank account identification.
An important thing to note is that investing in P2P lending platforms that offer independent evaluation reports and mortgage-backed loans is connected with lower risks than investing in unsecured consumer loans or even unsecured business loans. For example, Max Crowdfund uses a risk rating model to inform its users of which fundraises are lower risk and high risk. They do this to help users who are newer to P2P lending so that they invest in the opportunities that suit them best.
All of the loans on Max Crowdfund are backed by real estate assets. If a loan should default, Max Crowdfund will cease the property and sell it to repay investors.
Max Crowdfund provides valuation reports for every project, which the user can download. Additionally, the platform offers a lot of information for users to evaluate the performance of previous loans to decide whether they should invest in the platform.
Max Crowdfund is regulated by the Dutch Financial Authorities and was the first platform of its kind to receive approval from the Authority for the Financial Markets (AFM). Furthermore, the new European Union Crowdfunding Regulations come into effect in November 2022, which Max Crowdfund will apply for soon.
On average, investors earn 9.55% interest when investing with Max Crowdfund. In addition, the platform has a loyalty program for investors that rewards investors for the number of investment opportunities they invest in. Through the loyalty scheme, investors do not earn higher returns but receive a discount on their monthly admin fee.
When investing with Max Crowdfund, investors pay 0.1% of their outstanding investment amount as a monthly fee. In addition, there is also a subscription fee for bonds which fluctuates between 0-2% of the invested amount.
The interest payments frequency depends on the loan a user invests in. For example, if you invest in a linear loan, your interest will usually be paid out every month, but it also could be paid every 3,6 or even 12 months. On the other hand, if you invest in a bullet loan, you will receive repayment only at the end of the loan term, which can be up to 60 months, but the interest is being paid during the loan term.
Max Crowdfund is an easy way to earn an average of 9.55% return by investing in real estate backed loans. The company is secured and works with a regulated platform so that users can feel more comfortable about investing their funds. Considering the low minimum investment amount of just €100, Max Crowdfund is a good choice for a beginner starting with P2P lending.