Many people don’t know how or where to invest their money. So they leave it to their local bank and fail to keep the value of their capital in the longer run. Alternatives exist: there are lots of choices out there with a variety of interest returns. But do they offer a simple inflation-risk free investment solution?
Let’s review Quanloop, an investment fund dedicated to wholesale funding offering investors returns up to 15% per annum. Their investors can participate in short-term financing rounds called investment loops, and invest money for as little as for one day. Your 1 euro will be added to the big pool of money and divided between a massive number of credits to financial institutions, known as Quanloop partners. The partners are professional leasing and factoring businesses from Europe. Some partners reside in the Baltics and Scandinavia, one in France, and two in Spain.
To keep your money safe, it is backed by the credit you have financed, as well as the other guarantees and pledges offered by a partner originating the credit. To maximise your portfolio diversification, your money is split into small loan-agreements. All of your funds are never used in a single project; rather, they are distributed between multiple ones.
A big chunk of the population in need of investing is stopped by their habitat and lack of education, as well as access to foreign stock markets. Quanloop, on the other hand, is open to everyone and is strikingly easy to use. It is as simple as transferring money and choosing your interest rate preferences. The funds will then be automatically invested and returned to your balance by the end of the day, ready to be reinvested on the following day. It is because Quanloop only takes money from investors for 24 hours. So if you don’t withdraw your money today, it will be invested again tomorrow.
To make sure your capital continues working, keep an eye on Quanloop demand. When there is low demand, lower your interest rate target to ensure your money is invested, rather than other investors’. In reverse, if there is high demand, keep your interest rates high because most likely the funds will be used and you’ll be able to get bigger returns at a lower risk.
You can savour your profits on the 15th of every month. Quanloop transfers your earnings to your bank account or repays to your balance for compounding.
Every year your money loses value due to increasing levels of inflation. For example, if you get 10% interest returns, but the inflation rate is 3%, your profits are diminished to 7%. Quanloop created a cashback reward programme to oppose the inflation loss. Every month, Quanloop checks for the inflation of the previous month and calculates the value of the money you lost. The losses gained from inflation are refunded to investors every 25th of the calendar month, thus making their annual return inflation-risk free.
Loan defaults are reviewed by Quanloop and its partners and then taken care of without any additional input needed from investors.
Quanloop is quite transparent, indeed. You’ll find a big chunk of information about the credits they finance on their website along with answers to most of your questions. Even more, the Quanloop loan portfolio page shows you exactly how much money they have from investors and how much have they used today.
Since Quanloop is not a p2p platform, there is no need for a secondary market nor a buyback guarantee. To withdraw your money, you don’t need to sell your loan or share, just say that you wish to exit tomorrow and your money won’t be invested at midnight. Quanloop adds its own skin in every credit they finance – the real cash guarantees 10% of each credit held on the bank account ready to finance your exit. If that is not enough, you’ll earn an annual 2% extra to your current return rate for every full day that your withdrawal is delayed.
Many alternatives experience far less volatility than the stock and bonds market. Consider adding inflation-safe instruments to your portfolio.