If you are reading this, it means that you have already chosen P2P investing and are wondering how to do it. On iuvo you can choose to invest by selecting the loans manually, as well as automatically by setting your own criteria with the help of filters.
In this article we will tell you more about investing manually – how to do it, what details to pay attention to, how to find useful data about the borrowers that will help you with your choice, and the specifics of secondary market.
What is manual investing?
Manual investing gives you the opportunity to take a closer look at each loan before you invest in it. It works in the following way:
– Open primary or secondary market;
– Filter the loans by originator, interest rate, score class, currency, etc., depending on what is important for your strategy;
– Press the “Invest” button for a loan you want to invest in. Keep in mind that the minimum amount for investing in one loan on primary market is: EUR – 10, BGN – 10, PLN – 25, RON – 25, RUB – 400; When you enter the amount you want to buy, click on the shopping cart symbol. There is no minimum amount for investing in one loan on secondary market;
– After successfully selecting loans and adding them to the primary market shopping cart (or the secondary market one), it is necessary to confirm the investment. For the purpose, open the shopping cart tab and press “Confirm”.
It is good to know that the shopping cart gives you the chance to change your mind and to deselect some of the loans. You can also decrease or increase the amount you want to invest in the loans.
What advantages does the manual investing bring you?
The Auto Invest on iuvo is the tool that makes this a passive income because you do not need to spend time every day to invest your funds. Manual investing, however, gives you additional information about the borrowers, which can positively affect the amount of your investments with regular repayments.
In the details of every loan you see valuable information about the borrower: monthly salary, years of work experience, education, age, etc.
It is also very useful to track the history (if there is such) of installment repayments. This is also possible to see from the details of the loans in the payment schedule, which shows you the due dates of all installments and what amount has been paid and when. A possible situation can be a loan that is late with 20 days but to see from previous payments that on the 30th of every month 4 installments are paid at once (for the 7-day installment type). This means that if you invest in this loan today, it is very possible to receive interest and principal payments for 4 installments in just a couple of days.
Specifics with investing manually on secondary market
Secondary market provides you with faster liquidity of your investments on iuvo. Investors sell their investments to other investors in order to get out of a loan faster. What opportunity does this give to the active investors?
The bigger part of the loans on secondary market is already with a payment history and are no longer available on primary market. Such loans have a higher probability to be fully repaid and you can receive the interest payments according to the payment schedule.
It is very important to pay attention to the price of the loans on secondary market. The percent you see in the “Discount/Premium” column can have a different color. Red means that the loan is on a premium price, set by the selling investor, and it may not be a very profitable deal for you. If you see a green percent with a minus in front of it – you will generate an additional profit from the lower price. If you see only zeros in black – there was no change in the price.
This is why we advise you to filter the loans by “Discount/Premium (%)” and to enter 0 (zero) in the second box of the filter in order to see only loans on nominal price or with a discount.
Manual investing helps you get to know the platform easier. We have always recommended the Auto Invest because time is one of the most valuable resources. However, you can combine the two ways of investing in order to take advantage of the full potential of iuvo.