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Profitus Review: Is it good? Don't invest before you read this! (2/2023)

Profitus

Profitus

Lvovo g. 101 Vilnius

Test result

3.46 of 5

Invest now on Profitus*

Safety

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3.50

Interest & Risks

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3.65

Features

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3.00

Advantages

  • Regulated

  • Invest free of charge

  • Automatic investment function

  • Secondary market

Disadvantages

  • Comparatively low Ø interest rates

  • No app (yet)

How good is Profitus?

If that's what you want to know, then keep reading.

We took a close look at the platform and tell you whether it's worth it.

In this test, we show you:

What is Profitus?

Projekte auf Profitus

To be precise, Profitus is not a P2P platform, but a peer-to-business crowdfunding platform from Vilnius, Lithuania, founded in 2017.

The platform offers P2B loans that real estate developers use to finance their projects.

Since its inception, the platform has brokered more than €70 million worth of loans, making it one of the smaller P2P platforms in Europe.

How does Profitus work?

To invest on Profitus, you must first register online and then deposit money via a bank transfer.

With your first deposit via a standard bank transfer, you also confirm the bank account to which withdrawals can be made.

After that, you can invest directly in the offered credits.

There is a minimum investment amount of €100 and you can invest manually or automatically.

When investing, you can use the primary market (first issue of loans) or the secondary market (loans from other investors).

Features

In the following, we would like to present the most important features of the platform.

Regulation

Profitus is officially regulated by the Central Bank of Lithuania, but not according to the regulations of the European Directive 97/9/EC.

Therefore, despite being regulated, the platform does not offer investor protection up to €20.000.

Loans

On average, the loans have an interest rate of 9.84% and loans are offered with a minimum interest rate of 6% to a maximum of 14%.

A comparison shows that the platform with its average interest rates is below average and there are several platforms that offer higher interest rates.

These include, for example, EstateGuru with about 11% and Reinvest24 with about 17%.

On Profitus, only real estate loans from Lithuania are offered, with terms of 3 to 36 months and in rare cases, loans with longer terms are also available.

To assess the risk of each loan, the platform assigns risk classes (ratings) from D to A+ (low risk).

We have observed that sometimes only few or no new loans are offered on the primary market. Lendermarket told us that they launch 38-45 projects each month, thus new projects to invest in are available regularly.

In case there is a scarcity of loans, we would recommend using the auto invest function, so your money is invested as quickly as possible.

Manual investing

You can select each individual loan you want to invest in on the platform.

This makes sense, among other things, if you are just starting to invest and don't want to wait for Auto Invest to invest for you.

Or if you intend to invest in the secondary market because you cannot automatically invest in the loans on the secondary market.

Auto Invest

With the automatic investment function, Auto Invest you can determine within a short time in which loans you want to invest.

The following settings are possible:

  • Investment per loan,

  • interest rate,

  • LTV and

  • term.

We like the Auto Invest from Profitus because it makes a tidy impression and has all the important settings in our opinion.

Within minutes, you can specify which loans you wish to invest in.

Loan-To-Value (LTV)

As with the well-known real estate platform EstateGuru, on Profitus, the loans are displayed with the LTV ratio.

This ratio is important to determine the risk of a loan and typical for the real estate industry.

It indicates the ratio between the loan taken and the value in a loan.

It is true that the lower the loan-to-value ratio, the lower the risk and, of course, the same is true in reverse.

Secondary market

On the secondary market, you can offer your loans to other investors or buy their loans from others.

The secondary market is arranged clearly, and you can invest in a loan with one click.

As already mentioned, you cannot invest in loans on the secondary market via Auto Invest. You have to choose the loans individually.

Tax report

On Profitus, you can easily create the documents for your tax return.

A tax report is offered for each year, which you can download.

App

The platform plans to launch an app by January 2023 the latest.

How much does investing on Profitus cost?

The use of Profitus is almost free of charge for investors.

Only for sales on the secondary market, Profitus charges a fee of 2% of the amount.

Otherwise, the platform does not charge any fees for deposits, withdrawals or other transactions.

Warning signals (red flags)

Currently, we do not see any warning signals at Profitus.

Frequently asked questions

Below, we address some questions that are often asked about Profitus.

As mentioned above, the platform is officially supervised by the Lithuanian Financial Market Authority.

Moreover, Profitus has successfully funded loans in a large enough volume, which undoubtedly speaks for a serious and legal business model.

Therefore, we have no doubts about its safety.

How does Profitus earn money?

Profitus earns its money through the commissions charged by real estate developers.

Apart from that, there are no significant income opportunities, as the platform is free of charge for investors.

There might be some sales fees on the secondary market, but these are probably negligible.

Who owns Profitus?

The owners are Viktorija Cijunskyte and Mindaugas Vanagas, who founded the platform with their own capital.

Expert conclusion

Profitus is a safe P2P platform with an official regulation and a financed loan volume of more than €70 million, and the use is free of charge for investors.

After a quick registration and an initial deposit, the Auto Invest can be used to easily determine in which loans to invest. Both a primary and a secondary market are offered.

The platform shows its greatest weakness in the interest rates, which are somewhat low, especially in comparison. It can also happen that only few loans are available. Both points are rather disadvantageous for the return of investors in the medium to long term.

Overall, we consider the platform recommendable.

Invest now on Profitus

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Last updated on 12 November 2022