auxmoney is an online credit marketplace where loan seekers and lenders are brought together. Private brokerage bypasses high costs of traditional banks and guarantees easy and easy loan settlement. Especially in times of financial, euro and economic crisis in Germany and abroad, alternative investment forms are becoming increasingly popular. Therefore, we often read about different ways to borrow or invest money. As a financial test, the ability to borrow from auxmoney has been scrutinized by independent financial firms. But what is really up to auxmoney? Is investing as an investor safe? Is it worthwhile for borrowers and investors alike?
Test for borrowers
Many people do not get credit due to bad conditions at banks. The auxmoney loan is often the last-saving way to get credit for new investments, regardless of the classic bank. The good news for the borrower: a positive Schufa statement is not necessarily a must for auxmoney to obtain a loan. However, it increases the chance that the desired loan will actually be fully funded within a short period of time. Once a loan project has been created at auxmoney, it can be viewed by investors. It is advisable to make the loan project appealing and detailed in order to give the investors a lot of useful information.
These then have the option to bid on a loan project with minimum amounts of 25 euros or more. On the one hand, credit projects with high returns are particularly attractive, on the other hand, projects by borrowers, which attest to investors maximum security. The most attractive feature for borrowers at auxmoney is the fact that credit project creators have the opportunity to receive individual credit by choosing the amount and term of the loan. Not for nothing does Stiftung Warentest refer to auxmoney in an extensive auxmoney test as “an alternative to the bank”.
Test for investors
Like borrowers, investors also have the freedom to choose from loans, maturities and amounts. The risk of a default is determined by the auxmoney score and can therefore be kept relatively low for the investor. Using the auxmoney score, borrowers are divided into different score classes based on their credit ratings. As an investor, it is possible to invest any amount in a loan.
The minimum amount, however, must always be 25 euros per investment. The investment in several loans is conceivable. An auxmoney test aptly sums up the appeal of this investment model: Investors can “achieve a return of up to 16.3%. The average yield is 5.0% “. Particularly with today’s daily interest rates, which are sometimes less than 1%, more and more investors are considering private credit options such as auxmoney. If the loan project is 100 per cent financed, the loan is paid out to the borrower and the proportional installments, including the distributed return, are transferred to investors on a monthly basis.
The auxmoney test and the auxmoney experience have shown that private lending is an attractive alternative to the bank for both investors and borrowers, which is likely to gain in significance in times of the euro and the financial crisis.