What is TFG Crowd?
TFG Crowd is an innovative business crowdfunding company registered in Estonia. Its main office is located in Tallinn, but they also have in Latvia, United Kingdom and Germany. They’re part of the TFG group, whose payment solutions branch, TFG Pay, is authorized by the FCA (CNMV equivalent in Spain) as a financial services provider. They combine short-term business loans with sexy interest rates.
Their Trustpilot score is 9.2/10 (wow!). At the end of this review, you’ll find out why the investors are so satisfied with their platform!
What return can I expect?
Their average return to investors is 15.16%. At the time of writing, my current interest rate (annualized) is 16.03%.
At TFG Crowd there are tons of secured loans up to 19% in the marketplace. Let’s see how a loan details page looks like:
As you can see, TFG Crowd provides a decent level of detail, so the investors can make informed decisions. Not only about the project itself, but about the overall market sector. Plus, they’ve also added an interest calculator in each project page, so you can easily calculate what money you can expect. It takes into account the interest rate and the term of the loan.
Use the Portfolio Estimator to see how your portfolio would perform over the years.
Most of the loans of TFG Crowd‘s marketplace includes a buyback guarantee, meaning that if a loan’s payment gets delayed by more than 60 days, the loan originator will automatically repurchase the contract with no required action by the investor’s side.
One of their strengths is transparency: they display their current buyback fund in real-time (you can check it out in their Buyback Guarantee Fund page). From 1st September 2019 onwards 2% of each project funded through the TFG Crowd platform will go towards funding their Buyback Fund. At the time of writing, they’ve collected €104K (quite enough taking into account the average project loan amount).
However, it’s still not completely free of risk (there is no free money, my friend). You would only lose your investment if TFG Crowd platform defaults (which is an unlikely scenario according to their recent trajectory).
Unlike Mintos or Grupeer platforms, TFG Crowd does not offer an auto-invest tool. Anyway, I personally prefer to check the projects manually because they provide plenty of information, and I usually invest more than 200€ per each (the min. investment is 100€).
At the time of writing, there is no Secondary market available. I hope that sooner than later they will offer an alternative (like Envestio, where you can exit anytime with a 5% penalty). Still, TFG Crowd‘s average term is like 8 months-ish. So not a big deal for me!
There are no fees applied to the investors.
Sign up link
Unfortunately, TFG Crowd does not provide any bonus for new referred users. However, I’d appreciate that you decide to sign up through my affiliate link. At no additional cost to you, I’ll earn a commission which will allow me to keep posting interesting stuff in this blog. Thanks in advance for your support!
The bottom line
To sum it up, TFG Crowd has been consolidating as a reliable alternative in the P2B crowdlending market. Looks like their business model aims towards Envestio or Kuetzal direction, which seems quite promising. Their interest rates are above the average, and their platform is very easy-to-use. That’s why I decided to incorporate them into my p2p investing portfolio.
Any question? Already using TFG Crowd? Do not hesitate in asking your doubts or sharing your personal experience in the comment section below.