Lendermarket Review
Quick Overview
Platform Age
Operating Since
Loans Funded
Total Volume
Assets Managed
Current Assets
Active Investors
Registered Users
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Investment Focus
Short-term consumer loans and credit lines with durations ranging from 30 days to 53 months from nine loan originators (six of which belong to Creditstar Group).
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Expected Returns
High yields ranging from 9% to 18% annually with an official average return of 15.89%, making it one of the highest-yield P2P platforms in Europe.
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Regulatory Status
Authorized by the Central Bank of Ireland as a Crowdfunding Service Provider under EU Regulation since December 2024, providing a regulatory framework.
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Risk Factors
Persistent liquidity issues with frequent pending payments, loan extensions that undermine the value of the buyback guarantee, and Creditstar Group concentration risk.
Standout Features
Up to 18% annual returns, significantly above market average
1% cashback on investments for first 60 days
No fees for registration, deposits, or investments
Recently acquired EU regulatory authorization
Investment Calculator
Projected Investment Value
(without delays)
Return
Recommended Risk Management Strategy
Given Lendermarket’s reported liquidity issues, consider limiting your exposure to no more than 10% of your P2P portfolio. Focus on the shortest possible loan terms and be prepared for payment delays that could significantly impact your actual returns.
Our Experience with Lendermarket
We've been testing Lendermarket since October 2023, with a small test portfolio of €1,000 allocated to various loan types. Our experience reflects both the potential high returns and the significant liquidity challenges reported by many users.
Our Test Portfolio Results
What Impressed Us
- High nominal interest rates (up to 18%)
- No platform fees for investors
- Recent regulatory authorization
- Simple user interface and auto-invest
- Low €10 minimum investment
Significant Issues
- Frequent and prolonged payment delays
- Multiple loan extensions undermining buyback
- Up to 60% of portfolio in "pending" status
- Heavy concentration in Creditstar Group
- No secondary market for early exits
Payment Delay Experience
The most significant issue we encountered with Lendermarket was the frequent payment delays. At the peak of these issues:
- Delayed Portfolio Percentage: Approximately 60% of our portfolio was in "pending payment" status at the worst point.
- Extension Frequency: We observed multiple loans being extended up to six times, pushing the actual loan duration far beyond the original term.
- Withdrawal Time: A test withdrawal of €100 took 18 days to process, considerably longer than most P2P platforms.
- Recent Improvements: In early 2025, we've seen some improvement with newer loans, though a portion of older investments remain delayed.
Impact on Returns
While Lendermarket advertises impressive interest rates of up to 18%, our actual experience showed a significant gap between nominal and effective returns:
- Nominal Rate: Our portfolio had a weighted average interest rate of 16.2%.
- Effective Rate: After accounting for payment delays and calculating the actual cash flow timing, our effective annualized return was only 9.7%.
- Opportunity Cost: The liquidity constraints meant we couldn't reinvest returns when expected, creating substantial opportunity cost.
- Cash Flow Uncertainty: The unpredictable timing of payments made financial planning difficult.
Final Opinion
Lendermarket presents a mixed investment case. While the platform offers some of the highest nominal interest rates in the P2P lending space and has recently secured EU regulatory authorization, the persistent liquidity issues and payment delays significantly undermine its value proposition.
The recent regulatory approval and platform upgrade ("Lendermarket 2.0") may indicate positive changes ahead, but the platform's Trustpilot score of 2.8/5 suggests ongoing operational challenges that haven't been fully resolved.
For risk-tolerant investors who want exposure to high-yield opportunities and can tolerate significant liquidity uncertainty, Lendermarket might warrant a small allocation within a diversified P2P portfolio. However, we recommend most investors consider more reliable alternatives, especially if predictable cash flow is important to your investment strategy.
Platform Safety Analysis
Key Risk Factors
- Persistent liquidity challenges with significant payment delays
- Loan extensions undermining the practical value of the buyback guarantee
- Heavy concentration risk with 6 of 9 loan originators belonging to Creditstar Group
- No secondary market for early exit options
- Low Trustpilot rating (2.8/5) indicating ongoing user dissatisfaction
Investor Protection Mechanisms
EU Regulation
Recent authorization as EU Crowdfunding Service Provider offers standardized regulatory framework
Group Guarantee
Creditstar Group provides enterprise-level guarantee for subsidiary loan originators
Platform Upgrade
Recent "Lendermarket 2.0" infrastructure upgrade may improve operational capabilities
Improved Leadership
New CEO since September 2023 may bring improved operational management
Historic Performance During Crises
Lendermarket's performance during global economic challenges provides insights into its resilience:
- COVID-19 (2020): As a relatively new platform at the time, Lendermarket navigated the pandemic with the support of Creditstar Group. Details are limited, but the platform reportedly managed reasonably well compared to some competitors.
- Ukraine Conflict (2022): No direct exposure to Russian or Ukrainian markets limited direct impact, though this period coincided with an increase in platform yields, potentially indicating increased risk premiums.
- Liquidity Challenges (2023-2024): The platform faced significant liquidity issues, apparently stemming from Creditstar's aggressive expansion. Many investors reported substantial portions of their portfolios locked in pending payments.
🔍 Creditstar Group Concentration Risk
While Lendermarket lists loans from nine loan originators, six of these belong to the Creditstar Group, creating significant concentration risk:
Creditstar Group Profile
- Founded in 2006 (pre-dates Lendermarket)
- Operates in 8 European countries
- Profitable for over 8 years
- Aggressive expansion strategy in recent years
- Reported increased profits throughout 2024
Risk Implications
- Most loan originators share common financial foundation
- Creditstar liquidity issues affect majority of platform loans
- Group guarantee value depends on Creditstar solvency
- Limited effective diversification despite multiple originators
- Correlated risk across portfolio regardless of loan selection
Final Verdict
Key Takeaways
- High nominal returns (up to 18%) significantly reduced by liquidity issues
- Persistent payment delays affecting substantial portions of investor portfolios
- Buyback guarantee undermined by extensive loan extensions
- Recently acquired EU regulatory authorization may improve operations
- Low Trustpilot rating (2.8/5) reflects ongoing investor dissatisfaction
May Be Suitable For
- High-risk investors seeking maximum potential yields
- Those who can afford to have capital locked up indefinitely
- Investors willing to test with small amounts only
- Those interested in tracking recent regulatory improvements
Not Recommended For
- Investors requiring reliable cash flow or liquidity
- Conservative investors focused on capital preservation
- Those allocating significant portions of their portfolio
- Investors who prioritize regulatory maturity and platform stability
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