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Lender interview #2: Benjamin M.

November 7, 2018

 

Today we interview Benjamin M., a faithful lender that has been accompanying us since the launch of October in Spain. The 45-year-old Basque works as a risk prevention technician in a multinational company specialised in manufacturing motoring components. Today, he shares with our community his vision and own experience as a private lender in October.

How long have you been lending to companies through October?

I started to lend through October at the very beginning, in 2017 when it became operational in Spain.

How did you discover October? Did someone recommend us or did you know the platform on your own?

I read a press release on one of the crowdfunding forum (forofintech.org).

What kind of investor are you: conservative, risky or balanced?

I am rather conservative, although I am always open to exploring riskier investment opportunities.

Had you already invested in financial products before October? If so, did it help?

Yes, I had. I know the stock market and I have some knowledge in investment funds as well. I had also been through other Spanish lending platforms so when I started to lend in October, I already had a background and was familiar with this model.

Does the nationality influence the project to lend?

If it does, although I give more importance to other aspects for example rating, history, results of the company…). I am aware that different national legislations can influence in different ways in cases of delinquency. In case of default, I take into account that the level of protection of the investor is not the same in all countries since the legal processes and the recovery periods are different. As an example, Italy has recently implemented a guarantee system for some eligible projects that may cover part of the outstanding capital of the loan.

How do you manage the risk of capital loss that implies lending to companies?

First, you need to have a high degree of confidence in the platform. If I invest in October, it’s because I have studied the company’s business model beforehand and that I trust both October’s project selection and its ability to manage delayed payments and defaults. Then, it is on lenders to diversify their portfolio, which is key to reduce the risk of capital loss.

Do you think that crowdlending can be one of the most interesting financial investment products in the next 5 years?

Sure, and this may be especially relevant in Spain, where investors are very conservative and require products with a controlled level of risk. Although we noticed a high growth in this fragmented sector, so I think that only strongest and more profitable proposals will survive.

Thanks a lot Benjamin!

Do you also want to share your experience with the October community? Go to TrustPilot and let us a review.