Quanloop Review – a trustworthy investment company

An investment company needs to gain its investors’ trust by looking after their wellbeing and taking measures to protect them from risks. Quanloop managed to retain the confidence of its investors through responsible investment. Due to its drastic difference from the major P2P lending platforms, many investors wonder what it is and how it works. Here, we finally answer those questions, breaking down its investment model. 

How does Quanloop work? 
It is an investment fund geared towards wholesale funding. You can take part in the action with only a single euro and invest for a short period, or decide to leave it long-term and enjoy continuous compounding. Investing in the platform is super simple – create an account, verify it, and transfer money. You can choose your preferred interest rates in each of the three risk categories – low, medium and high risk. When you’ve decided, the rest is done automatically by the algorithm allowing you to get passive returns.

You can earn up to 15.7% annually from your investments. Despite offering high returns, which seems odd to many, most of the assets are secured with collaterals. The exception to this is lending under the high-risk plan.

Quanloop takes your money and splits it into many credit agreements, each valued at €1. They pool the funds together and lend them to financial projects offered by professional partners. These partners are leasing and factoring companies residing in Europe with a solid financial background and years of experience.

Every day, your investment is paid back and refinanced, either from your funds or from other investors’. If you continue keeping your money in the platform, it will continue to be invested; if not, Quanloop will borrow from someone else.

How do they ensure responsible investment? 
Quanloop ensures responsible investment from two sides – one from the investors’ side through diversification and another through Quanloop’s side through collaterals. 

  • Diversification:  You can diversify your portfolio using Quanloop’s auto-invest feature by choosing three categories: the low-risk plan with an LTV under 55%, the medium-risk plan with an LTV under 85%, and the high-risk plan with an LTV over 85%. Interest rates vary in each category as mentioned earlier: 5.5%-8.9% in low risk, 9%-12.9% in medium-risk and 13%-25% at high risk. In theory, you can choose the highest rates in all risks; however, lending is competitive. Quanloop takes money from investors with lower interest rate targets before investors who have chosen a higher interest rate. You could make 25% returns yearly if you choose the maximum interest rate and leave your entire investment solely under the high-risk plan. But in practice, restrictions are imposed on medium and high-risk projects to prevent irresponsible investments out of greed. Thus, the maximum amount allowed in the medium-risk plan is half of your entire investment and, at most, a third in the high-risk plan.
  • Collaterals and guarantees: There are collateral and guarantees attached to every loan issued. These collaterals are asset properties of Partners who offer their assets to Quanloop to get funding. These collaterals include cash, shares of a company, inventory, invoices and tangible assets of various kinds. The purpose of these collaterals is that when Partners default, Quanloop will be able to sue the partners and collect their assets and will pay investors their interests on time. Buyback guarantees are not necessary because investors only lend to Quanloop and not a third-party. In the event of a credit default, investors can rest easy as Quanloop and its partners clear it up. And in the case of insolvency, investors are guaranteed the total assets of the fund before Quanloop Group OÜ.

Why should you invest in Quanloop?
The main reason to invest in Quanloop during these turbulent times is inflation-safe investing. At this point, because demand has considerably gone down due to lockdowns and supply chains have taken a hit from the pandemic, there are deflationary pressures. However, once the effects of the virus diminish and the supply problems have worked out, the economy will face a rising inflation rate from all the money printed to stimulate the economy and keep people from going out of work.

Then you can enjoy the benefits of Quanloop’s cashback programme. Every month, on the 25th, they pay back what you lost through inflation by collecting CPI information from Eurostat and returning the value lost depending on your country of origin.

You can choose the earning mode, get interest payments every month in your bank, or choose the saving mode and generate exponential growth by reinvesting your profits.

Withdrawing your funds is straightforward – simply request for one, and you can expect it to appear on your bank account the next day. Despite not having a secondary market, it is highly liquid due to keeping a reserve of 10% for every loan they finance. Suppose during periods of illiquidity you decide to withdraw but can’t. In that case, you’ll get 2% extra p.a for every day your funds are delayed.

Now is the time to switch from bank deposits to alternative investments. Bank deposit rates have fallen so low that leaving your money in the bank will make it depreciate rather than grow. And they are not gonna raise interest rates anytime soon. Make the switch now and enjoy your profits tomorrow.