October provides loans to SMEs across Europe, allowing you to lend directly to these businesses and facilitate their growth and development. Operating primarily in the Eurozone, October focuses on business loans, ensuring that your funds are allocated to various sectors to support economic growth. The platform is known for its rigorous selection process for borrowers, ensuring a lower risk for its investors.
Key numbers
Who can invest?
How it works
Private and institutional investors from France, Spain, Italy, the Netherlands, and Germany can invest in October, but those unable to meet local regulatory requirements or located outside these regions cannot invest.
- Specialisation: P2P
- Maximal observed interest rate: 9.5%
- Average rate: 6.5%
- Minimum investment amount: €20
- Average terms: The average duration of loans on October is 45 months, with terms ranging from 6 to 60 months
- Currencies supported: €
- Foundation year: 2014
- Commission: 0%
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Instruction:
October, formerly known as Lendix, is one of Europe’s top peer-to-peer (P2P) lending platforms. It’s all about connecting SMEs with individual and institutional lenders.
Getting started with October
Step 1: Sign up
First, you’ll need to create an account. It’s pretty simple—just fill out a form with your details, confirm your email, and complete the Know Your Customer (KYC) process by uploading some ID documents. The minimum amount you can start with is €20, so it’s accessible to many.
Step 2: Add funds
After your account is verified, you can add money via bank transfer. October doesn’t charge fees for depositing or withdrawing money.
Step 3: Choose projects
October gives you detailed info about each project. You’ll see the company’s financial health, the purpose of the loan, and the risk rating. You get to pick which projects you want to invest in. The platform also notifies you about new projects, making it easier to diversify your investments.
Investment types and returns
October focuses on business loans with average returns of 4-7%. There’s no provision fund or buyback guarantee, but some loans, especially in Italy, come with government guarantees, making it a relatively low-risk platform. However, it lacks a secondary market for selling loans early.
Risks and considerations
Default risk: October has a low default rate, averaging an annual cost of risk at 1.75%. However, as with any investment, there’s always a risk of losing your money.
Liquidity risk: You can’t sell your loans early, meaning your funds are locked in until the loan term ends.
Inflation risk: Long-term investments could be affected by inflation, reducing the real value of your returns.
Key Features
Portfolio Diversification: October allows you to invest in a wide range of projects across different countries and industries, helping you spread your risk and maximize returns.
Monthly Interest Payments: Lenders receive monthly interest payments, which provide a steady income stream.
No Fees: There are no entry or management fees for lenders, meaning you get to keep all of your returns.
Transparent Information: Each project comes with comprehensive details about the business, its financial health, and the loan terms, allowing you to make informed investment decisions.
Contact
Contact form