How Auto-Invest works

Aside from manually investing in crowdfunding projects, you can now also opt for automatic investing. Lendahand has developed the Auto-Invest functionality for this purpose. 

You can read everything about Auto-Invest here, from setting your project preferences to understanding how it works. By the time you activate Auto-Invest, you'll know exactly when automatic investments will take place.

 

How does automatic investing work at Lendahand?

Auto-Invest is off by default. Easily activate and deactivate Auto-Invest on the page linked below. Both activation and deactivation take effect immediately and are free of charge.

Once you activate Auto-Invest, we'll ask for your project preferences. Auto-Invest only invests in projects that meet the criteria you've specified in advance. This way, you determine which projects you want to invest in and which you don't.

 

Set personal preferences

Auto-Invest only invests in projects that meet your preferences. Enable the following filters:

Filter	Definition
✓ Maximum investment amount per project	Each investment remains within your chosen maximum amount per project.
✓ Minimum investment amount per project	Each investment meets at least your chosen amount per project.
✓ Maximum investment amount per company	A company or financial institution often places multiple projects on our website over time. With this setting, you indicate the maximum amount that can be invested per borrower.
✓ Minimum interest rate	Each investment offers an interest rate that is at least equal to your specified interest rate.
✓ Minimum credit score	Each investment meets at least the minimum credit score you specified.
✓ Maximum maturity	Only projects with a maturity up to your selected maximum are eligible for investment.
✓ Currency	Investments are limited to projects in the currency you choose (EUR and/or USD).
✓ Invest in financial institutions or directly in a company	Lendahand offers different types of investments: through financial institutions in microfinance or directly in a company. This preference excludes investments for a specific type. Read more about the types of investments at Lendahand.

 

 

 

Auto-Invest Investment Setup

Once one of the above four investment moments occurs, an automatic investment will take place based on the following logic:

• Auto-Invest will only invest in projects that meet the following two criteria:
  •  You have not previously invested in this project, even manually,
  • The project meets all your personal project preferences.
• If multiple projects meet these two criteria, Auto-Invest will spread your balance as much as possible across the available projects.
• The amount to invest per project depends on:

1. a) the minimum and maximum investment amounts you've set;
2. b) your available balance and;
3. c) the number of projects that meet the two criteria mentioned above.

• It's possible that Auto-Invest may only be able to invest in some projects that currently meet the above criteria (1a and 1b). For example, if the minimum investment amount you've set is too high. In this case, Auto-Invest will choose the project that has been on our website the longest.

Example 1a:

You have €2,000 in your wallet. You activate Auto-Invest, set the maximum investment amount per project to €500, and set the minimum interest rate to 5.5%. There are 5 projects on the website at that time, 3 of which have an interest rate of 5.5% or higher, and 2 have an interest rate of less than 5.5%. One hour after you activate Auto-Invest, €500 will be automatically invested in three projects. €500 will remain in your wallet.

Example 1b:

Two days later, a new project appears on the website. The project has an interest rate of 6%. As soon as the project appears, the €500 remaining in your wallet will be automatically invested.

Example 2:

You receive a repayment of €1,000 in your wallet. Auto-Invest is enabled, and you've set a minimum investment amount of €400. There are 3 projects available that meet your personal preferences. Two hours after the repayment, Auto-Invest will invest €500 in 2 of the 3 available projects. Auto-Invest will invest in the 2 projects that have been on the website the longest.

Example 3:

You deposit €2,000 into your wallet. Auto-Invest is enabled. You've set a minimum interest rate of 5%, a maximum term of 24 months, only projects in euros (EUR), and only in financial institutions. At that time, there's no project available that meets your preferences. Fifteen minutes after the deposit, Auto-Invest will decide that it cannot invest the money, and it will remain in your wallet. Auto-Invest will only invest once a new project that meets your preferences becomes available.

 

 

License

Offering Individual portfolio management of loans (Auto-Invest) is subject to licensing under the European Crowdfunding Regulation EU/2020/1503. Lendahand is licensed to provide this service.

Some terms and conditions apply to participating in automatic investing. When enabling Auto-Invest, you'll be asked to accept these terms. To read the terms and conditions, click here.

 

 

Do you have any questions about Auto-Invest or investing via Lendahand? We're here for you at [email protected]