How Auto-Invest works

In addition to investing in crowdfunding projects manually, you can now choose to invest automatically. Lendahand has developed the Auto-Invest feature for this purpose. 

You can read all about Auto-Invest here, from setting your project preferences to understanding how it works. By the time you enable Auto-Invest, you'll know exactly when auto-invests will happen.

 

How does automatic investment work at Lendahand?

Auto-Invest is disabled by default. You can easily enable and disable Auto-Invest on the page linked below. Both activation and deactivation are immediate and free.

Once you activate Auto-Invest, we will ask you to specify your project preferences. Auto-Invest only invests in projects that meet your pre-defined criteria. This way, you decide which projects you want to invest in and which ones you don't.

 

Setting personal preferences

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

Filter	Definition
✓ Maximum amount of investment per project	Each investment remains within the selected maximum amount per project.
✓ Minimum investment amount per project	Each investment meets at least the selected amount per project.
✓ Maximum investment amount per company	A company or financial institution often posts multiple projects on our website over time. With this setting, you determine the maximum amount that can be invested per borrower.
✓ Maximum investment amount per month	This is the maximum amount Auto-Invest will invest per calendar month.
✓ Minimum interest rate	Each investment offers an interest rate at least equal to that set by you.
✓ Minimum credit rating	Each investment meets at least the minimum credit rating you specify.
✓ Maximum duration	Only projects with a duration up to your chosen maximum duration are eligible for investment.
✓ Currency	Investments are limited to projects in the currency of your choice (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 Settings

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 distribute your balance as much as possible among the available projects.
• The amount to be invested per project depends on:

1. a) the minimum and maximum investment amounts you have set,
2. b) your available balance and,
3. c) the number of projects that meet the two aforementioned criteria.

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

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 the moment, of which 3 have an interest rate of 5.5% or higher, and 2 have an interest rate below 5.5%. One hour after activating 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%. Once the project appears, the €500 remaining in your wallet will be automatically invested.

Example 2:

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

Example 3:

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

 

Permission

The offer of Individual loan portfolio management (Auto-Invest) is subject to authorization in accordance with the European Financing Regulation EU/2020/1503. Lendahand is licensed to provide this service.

Certain terms and conditions apply to participation in automatic investments. When you activate Auto-Invest, you will be asked to accept these terms. To read the terms and conditions, click here.

 

 

Do you have questions about Auto-Invest or investing through Lendahand? We are here for you at [email protected]