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Bondora today launched its “Go & Grow” program for all users

Bondora logo

Bondora today launched its “Go & Grow” program for all users on the platform and for new users, offering a return of over 6% per year and the ability to liquidate the investment instantly, thus providing a new tool that has never been met at any  peer-to-peer platform, to have almost instant access to the investments made and a much higher return than the bank deposits (similar to the liquidity of this investment facility).

Go & Grow is an incredibly simple and automated service that allows you to earn 6.75%* p.a. on your investment and take your cash out at any time. This is for the people who want low risk and ‘no-hassle’ investing with a predictable net return.

The main benefits of Go & Grow is that you can withdraw your funds at any time. You can set up a new account and call it a unique name, whether you’re using Go & Grow for your new dream home, your emergency fund or enev for that trip to Asia you’ve always wanted to do.

You can share acces to your Go & Grow account with someone you trust. Once you have created your own account, simply select “Invite to Go & Grow” then add their name and email address. You also have the option to give this person the authority to withdraw from the account, but this is not mandatory.

What are the benefits?

  • 6.75%* yield
  • Instant liquidity
  • Low risk –  A diversified portfolio of investments supported by advanced and reliable technology
  • You only pay tax when you make a withdrawal over your capital amount invested

Additional benefits?

  • Transfer your existing Bondora investment portfolio to Go & Grow
  • You can set up an auto-transfer from your existing portfolio to Go & Grow
  • A flat €1 withdrawal fee, no matter the size of the account
  • Great for beginners
  • No annual management fees
  • Share access to your Go & Grow account with the people you trust

How to transfer the existing Bondora investment portfolio to Go & Grow?

All you need to do is create a new Go & Grow account, then click on the small settings icon an click on “Add existing investments”. Then you will receive an offer from Bondora to liquiidate your existing portfolio based on the current portfolio value, however, it may be at lower amount. If you accespt, Bodora will transfer your portfolio to Go & Grow.

Is the rate of 6.75% guaranteed?

The rate is not guaranteed, however, the average net return on the Bondora platform is much higher than this. With this and our 10-year track record in mind, we’re confident the rate of 6.75%* is achievable with the benefit of instant liquidity to investors.

The net return is capped at 6.75%* – all excess returns over this percentage are reinvested to ensure you can earn the rate of 6.75%* going forward, despite there being no guarantee in place.

How investors will be taxed for this?  

You only pay tax on the money you withdraw which is over the total amount you have paid in. For example, if you invest €1,000 then anything you withdraw up to €1,000 is considered as a principal withdrawal, anything above €1,000 is considered as interest.

All payments made to your Go & Grow account are regarded as one investment, although the funds have been used to acquire individual claims. This is irrespective of when and in how many parts you paid cash into your Go & Grow account.

Bondora “Go & Grow”, announced a long time ago, was reserved for a number of existing investors. There’s been a huge amount of excitement around this product within the P2P community. As it stands, approximately 1,000 investors have deposited an average of € 1,000 each in their Go & Grow account.

The best part? You do not need any prior experience in investing or P2P to use Go & Grow, so whether you’re a retiree living in the Estonian countryside or an 18-year-old student in Berlin who’s new to the world of investing, Go & Grow is for you.

What’s more, you can invite someone you trust to join your Go & Grow account with you so you can invest for a shared goal, like a trip around the world, a wedding or even your child’s future.


What is Crowdfunding?


Crowdfunding is not a new concept, in fact, it’s been around for centuries. Investopedia describes it as:

Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, and has the potential to increase entrepreneurship by expanding the pool of investors from whom funds can be raised beyond the traditional circle of owners, relatives and venture capitalists.

Which can be summarised as decentralizing the banking monopoly by bringing together investors and people in need of finance. It’s unique compared to the traditional method of raising capital (especially a start-up) because your funding options were limited to a small group of wealthy individuals and institutions – today the power is in the hands of the individuals.

3 types of crowdfunding

Whilst there are still many niches of crowdfunding, here are the top 3:

  • Donation Model – This is commonly used for charity projects, such as raising funds for medical costs, foreign aid or specific organizations. Those who donate do not receive anything in return as their motive is usually believing in the specific cause or wanting to help. Two of the biggest platforms in this space are www.justgiving.com and www.gofundme.com.
  • Reward Model – If someone has an idea for a product, they may release the prototype of this on a page like www.kickstarter.com and allow people to make pre-orders. No equity is given here and it gives the business owner the opportunity to ‘Kick-start’ their project with guaranteed customers in the pipeline.
  • Equity model – You’ve seen Shark Tank and Dragon’s Den right? Imagine this, but instead of a panel of 5 billionaire’s you have a panel of thousands of ordinary people willing to invest their hard earned money for a given percentage of a business. The end goal for investors is to receive an appreciation in their initial investment based on the future success of the company, for example, profits and dividends.

The bottom line for the success of each model is a secure and trusted platform that connects both end users. A huge benefit of using these platforms is that some have a screening process that validates the concept or project before posting, it’s then published in a clear and understandable way for everyone. From the perspective of the person looking to raise the funds, they have the advantage of reaching a vast market of investors with most of the marketing and PR taken care of by the platform itself.

What is the difference between Peer-to-Peer (P2P) lending and Crowdfunding?

In short, crowdfunding as an investment focuses on the equity based reward whereas P2P investments (occasionally referred to as ‘Debt Crowdfunding’) fund a share of a loan which can be issued for personal, business, real estate use and more. With crowdfunding, your investment grows if the company grows and in turn makes a profit. On the other hand, your P2P investments can start to generate a return for you very quickly as borrowers start to make their monthly repayments, returning your initial principal and also interest on a monthly basis.

Generally, P2P lending can be viewed as lower risk and does not require the investors to have any previous financial knowledge as most platforms take care of all the hard work of screening the borrowers for you.

What are the benefits of crowdfunding and P2P other than interest?

This form of micro-financing truly is something revolutionary. Giving the power back to the individuals to mass fund a project that they truly believe in has a positive snowball effect on the wider economy. Projects and borrowers that traditionally may not have been funded by the banks (and would therefore have been forgotten about) now have a unique chance, with the end result being:

  • More small companies
  • More jobs
  • More social mobility
  • Less social inequality
  • Integrated society
  • More value and control for investors

Source: Bondora.com


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