How investing in loans work
With SaveLend, you invest in loans, meaning your investments finance the loans of individuals and companies. Your return on investment consists of the interest the borrowers pay for these loans.
We offer investment opportunities in a wide range of asset classes, from consumer loans, corporate loans, factoring, debt collection portfolios, and more. Choose whether you want to use our default investment settings or customize your own investment strategy, for example, if you only want to invest in a specific type of loan.
For each loan you invest in, you will receive payments to your SaveLend account as the borrower repays their loan. Loans on our platform get repaid in different ways; some borrowers repay their loans monthly, some pay interest on an ongoing basis with a lump sum amortization at the end, while others repay the entire loan when it matures.
When receiving your repayment, you can choose to either reinvest it automatically using SmartInvest or transfer it to your bank account. If you choose to reinvest your return, you will get compound interest, meaning that you earn interest on both your original investment and your earned return.
Diversify your portfolio – invest in loans
The goal of all investments is to get a return. Since all investments are associated with some form of risk, a higher risk on the investment generally means a higher return,
To reduce your overall risk, diversification is important. This means that you spread your capital across industries, markets, sectors, and types of investment. In other words, do not put all the eggs in one basket. Investing in loans with SaveLend is a great way to diversify your portfolio.
