Quanloop wants to help investors make money by creating a B2C debt investment marketplace for anyone to put their money to work.
The platform employs a safe methodology to invest users’ funds through an investment loop that pools €1 per investor per day towards debt financing of businesses in Europe.
Quanloop gives investors the freedom to invest in low-risk or high-risk investment loops according to their risk appetite.
The question however on many investor’s lips is whether Quanloop is a legitimate B2C debt investment platform or a scam loop in disguise.
In this review, we’ll dissect the many features of Quanloop to know whether it’s a legitimate vehicle to invest your money in or not.
Here we go.
What Is Quanloop All About?
Quanloop is a marketplace for debt investors to pool their money into an alternative investment fund that finances businesses, projects, and assets in Europe.
The company claims to be a financial business group that focuses on wholesale funding for their commercial partners such as production companies, leasing companies and crowdfunding platforms.
In other words, Quanloop acts as a debt originator that pools and manages investors’ funds towards debt financing.
Quanloop Business Model
Quanloop employs an interesting business model where they split needed capital between all investors within each risk bracket at a value of €1 each.
They pool €1 from investors within each risk bracket to raise needed capital and lend it to businesses that reflect advertised risk factors.
They then return that debt to each investor with some interest within 24 hours.
How Does Quanloop Make Money?
Obviously, their business model involves having a share from whatever investors make from debt financing.
That is what we are made to believe though.
Quanloop could also have vested interest in some of the assets or projects being financed with funds pooled from investors.
How to Invest With Quanloop
To start investing with Quanloop, you have to register on the marketplace and verify your profile with a recognized ID.
Then, you’ll have to choose a risk profile according to your risk appetite. Here are the available risk profiles:
- Low Risk: This risk profile is secured with collaterals that have an LTV up to 55%
- Medium Risk: This risk profile is secured with collaterals that have an LTV up to 85%
- High Risk: This risk profile is secured with collaterals that have an LTV of over 85% and sometimes without collateral
The minimum investment per investor on Quanloop is €1 while the maximum investment amount is €15,000.
What Other Ways Can You Make Money With Quanloop?
Apart from investing, Quanloop has a referral program where users can make money by referring others to the platform.
Users get to earn 2.5% of whatever their referral earns from the Quanloop platform, and this 2.5% reward is earned throughout the lifetime of the referred user.
How Much ROI Does Quanloop Offer?
Quanloop offers ROIs based on the risk bracket of an investor. The return you get from Quanloop will depend on the risk profile you choose.
Here are the ROI options:
- Low Risk Plan: Average ROI – 6.5%. Investors can get returns ranging from 5.5% to 8.9%
- Medium Risk Plan: Average ROI – 9.5%. Investors can get returns ranging from 9% to 12.9%
- High Risk Plan: Average ROI – 14.9%. Investors can get returns ranging from 13% to 25%
Is Quanloop Legit or Scam?
There is no straightforward way to know if Quanloop is legit or a scam, although I’m quite skeptical about the company.
Nothing is known about the company except that it is owned by two Estonian entrepreneurs, and that the company and its subsidiaries are registered in Estonia.
The company’s partners, assets, or businesses in which it invests investors’ funds are largely unknown.
So, make of that what you will.
What I Like About Quanloop
The most exciting feature about Quanloop is its business model.
The platform takes a structured approach to pooling funds from investors, with each investor required to invest only €1 every 24 hours to make up the needed debt capital.
This not only puts investors minds at rest, but ensures that losses are minimized as much as possible.
What I Dislike About Quanloop
What I Dislike most about Quanloop is that there is no clarity on how investors funds are used.
Investors are only made to believe that some assets, projects, or businesses are being financed with their pooled funds.
Like they claimed on their website, “Some text on their website is purely for marketing communication… [and] Nothing published by Quanloop should be relied upon for any investment activities…”
So, the talk about investing pooled funds into debt financed projects could be false and maybe there are no assets or businesses that are being financed.
Can You Lose Money With Quanloop?
Quanloop also has a disclaimer on their website that investors should not invest unless they are prepared to sustain a loss of their invested money plus any commission or other transaction charges.
So, make of that what you will.
Should You Invest With Quanloop?
In my opinion, Quanloop is quite an interesting platform to invest money.
Its positioning as an alternative investment marketplace and its business model is something that will get many investors interested.
But I think the opportunity is quite risky for me.
Even though they offer a low risk option for investors with a low risk profile, the fact that there is no clarity in which businesses and projects investors monies are invested in, is a big enough risk for me.
If you’re willing to risk your money with Quanloop, then you should do so with money you are willing to lose.