Payday Loan – Investment Portfolio


In recent months I have been updating my investment portfolio , the only payday loan platform for companies in Portugal. In this article I will update the performance of the portfolio and leave some notes that I consider important.


Current Portfolio Status

Current Portfolio Status

My portfolio is currently comprised of 153 loans, with an average loan amount of € 28 and an average rate of 7.3%. I have four loans in arrears that make a total of roughly 2% of the portfolio. I’ve had less defaults and I’ve had more. I was annoyed that one of the loans failed at the end of 1 month and the risk rating is even good (B +). I do not understand what’s going on. In fact, the lack of information from defaulting companies is something that does not make much sense to me, especially if we are talking about business loans. We should be more informed.

Evolution of investments


As someone who invests , we need to have the tracker enabled. If we do not activate this feature we are sure that we will not be able to have loans in our portfolio. This is because there are many investors and the number of companies wanting to borrow money on this platform is reduced. Some ideas about this:

  • We ended up buying loans without analyzing the company and its ratios.
  • We need to rely on analytical capabilities, but we must be aware that the business model of this company is to earn a commission on each loan. Therefore, there is a potential conflict of interest here, especially at a time when the company wants to go public.
  • We must also be aware of the reason why companies seek loans in this way, and pay a higher interest rate than the one practiced in banking. We speak here of the speed but also of analysis criteria that may be different.

Evolution of my rate of return

Evolution of my rate of return

The rate of return in my last analysis was 7.2% and increased slightly as I sold some loans with lower interest rates. Otherwise, it was on the same level as it is still reasonable. But I am also aware that there is risk. That is, if you consider the loans in arrears the low rate a bit and if defaults increase I think it will be difficult to justify the risk / return relationship.

A note that I also consider important relates to the current state of the market. That is, in an economic situation like the current these loans and this rate can be interesting . However, it seems to me that when the economy “goes around”, default rates are expected to increase and so my return goes “to the bar”. In addition, when the bank closes the tap, I fear that companies that resort to these platforms will be less interesting (and I doubt many companies will survive with 10% interest rates). So, I do not think it will increase the involvement, at least until you have more visibility on this platform. I have preferred to invest in Twinnie – here is my investment strategy with Twinnie.

Other investment ideas? See the Twinnie, ViaInvest and Mintty platforms where you can get returns between 8% and 12%

A note about the references

I have put our affiliate link in this article. Being affiliated means that whoever invests with our code ends up generating a commission for our investor account. It could not do so, as the commission is residual. But I leave this note for the sake of transparency and to know that I do not present these investment ideas as a matter of commission. Incidentally, I also follow the portal Valuables that recommended 2 years ago and in 118 references received € 112 commission. Anyway …

One last note about customer service

One last note about customer service

There were days I opened an  account for a friend and I had to contact the phone line because the payment had not been credited (because of me because I had sent an email that did not match the email of the proof). Unfortunately I was only served by an automatic call and the only alternative was to send an email. I believe that now only the trustworthiness of the investor is lacking.

Declaration of intentions

It is important to make it clear that I like and that I am happy with my investment in this platform . What I am writing here is not an investment recommendation and what I am referring here is only about my specific case. This investment involves risk and can lose all your money, so you should do a careful analysis.

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