The world of financing has changed a lot since 2008, when an economic crisis that affected any country in the world was denounced. Until that moment of time, the monopoly of financing was practically from the banks; Although their conditions were far from being the best, how they handled the money of the clients, it was easy to ask for a loan there.
Following the crisis, the banks decided that they would stop financing. They raised the level of requirements, raised interest and, in short, put a lot of obstacles so that anyone could request the money.
The financial market is very curious: at the moment in which a road closes, many alternatives appear to weigh it. And that is why the P2P loans appeared.
This type of loan is given between individuals; that is, neither the bank nor the entity that controls them is in charge of controlling liquidity at any time.
A good example of this type of credit is Gandalf.
The P2P system has changed the way of designing loans: companies find a solid way to finance themselves, while investors find a good place to deposit their money, a real place that helps them squeeze the profitability of their savings.
We want to present you in detail to Gandalf and, in order to do so, we analyze all its characteristics in the following points:
What is Gandalf and how does it work?
Gandalf is a company that was launched on the market in 2013, specializing in crowdlending and the first to start operating in Spain. Its maxim is to guarantee a type of service that is capable of offering value and a new experience for the user.
They currently have a total financing volume of € 16,845,000 ; 45% of this capital refers to a type of retail investor, while the remaining 55% is associated with an accredited professional investor.
It is also important to know that the number of companies financed reaches 365 ; Of these, 10% have capital exceeding 20MM , 25% have capital between 10 and 20MM , 30% have capital between 5 and 10MM , and 35% have a capital of less than 5MM
Basically they specialize in granting private loans to companies, where the money is lent by a type of private investor, or a private individual. A very common mistake is to think of Gandalf as if it were a financial entity, but this is not the case: the company does not lend the money, it only takes care that the process can be completed in the established way, applying guarantees to make it so, besides of exercising disciplinary measures against users who do not comply with the established.
Is Gandalf legit?
The entity is regulated and supervised by the ASDF , so that, in the unlikely event that it breaks, customer deposits are guaranteed. Any company that wants to dedicate itself to this type of business will need to have the approval of the ASDF, and this is precisely what Gandalf does.
How is a new company, they even open several employee selection processes; currently they are looking for people in Madrid and Barcelona, in positions such as responsible for attracting companies, commercial investment management, risk analyst, or backoffice manager.
How does Gandalf work?
It should be clear that, in the same way as any entity that is based on a concession system through crowdlending , the money will not be granted by Gandalf . The advantage of this is that the user can get interesting interests at the time of lending money, but at the same time can also face significant risks, and is that you can always give the case that the investor does not comply with the stipulated .
Gandalf acts as a mediator so that investors and borrowers can get the money by signing an agreement that commits both. In other words, the company will be a meeting point that will be used to locate customers. It is also responsible for analyzing the solvency of the investor ; If an investor does not have a good capacity to respond to the credit, or if there is any significant problem or inconvenience, the most normal thing is that the credit is rejected.
Requirements to request a loan with Gandalf
To guarantee minimum conditions, the entity will not accept any type of company, but must comply with spatial conditions. In each case different requirements may apply, but these are the most common:
- Antiquity: The company that is going to request the money must have a minimum of 12 months at least. This does not surprise anyone, since when it comes to requesting any type of P2P loan , it is one of the most common requirements. In the event that the business has less time, it will be difficult to access this type of financing.
- Good balance: Not only will it be enough to count on this time of seniority, but also the numbers of the company must be good. With this, Gandalf will ensure the financial health of the entity; that is, that he is really going to be able to face the debt.
- Demonstrable income: Obviously, this income must be demonstrable, and for this it will be necessary to provide documentation such as Income Tax, VAT, Corporation Tax, or any other type of document.
- Registry of defaulters: Gandalf will deny the request almost immediately when it detects that a company is registered in a register of defaulters (as in the Phineas ). It is possible that, if the debt is small, still allow access to it. But if it is high, we can forget. In these situations we will have no choice but to look for an alternative, or to satisfy the debt before.
- Reason: In addition to all the above, the entity will ask us to indicate the reason why we want to request the money. For example, if the objective is to develop a new product or service, we must provide a personalized plan indicating everything related to the project. This, which is not always mandatory, will add points when Gandalf decides to grant the money.
How to request a credit with Gandalf?
The process to request a loan (financing), with Gandalf is very simple, and can be summarized in these steps:
- Beginning of request: Before doing any type of procedure, the entity will require that the client registers in the platform, in order to be able to provide the information that he needs. We can create the account simply to take a look at what the platform offers us, without this involving any kind of commitment. If what we see we do not like, we will be free to go to another platform. If we are interested, then we can continue with the process.
- Study of the operation: The system must study the solvency of each client based on the information received. If the resolution is positive, then Gandalf will announce the clients’ credit solution
This study analyzes the position of the business in the market, risk, solvency, as well as any other criterion that is important.
- Bid system: It will be then when the investor will bid in relation to an offer. In it, criteria such as the interest rate that is established or the financial cost will have to be evaluated.
- Acceptance: If the client accepts, then the loan will have to be signed to complete the process.
What can the Gandalf borrower expect ?
The investor will be able to manage real economy operations, with fixed interest and periodic charges. It is a good alternative for all those people who have some savings, but still do not know what to do with them. The profitability of the investment will oscillate between 4% and 5% annually ; If you do the calculations, you will soon come to the conclusion that it is considered much more profitable than deposits or public debt.
Another advantage of this system is that it is less volatile than equities; At the moment in which you have found an investor to offer you the money, you will have a regular source of income with charges that will be established month by month. The investor will receive very interesting capital and interest.
One of the main problems of the vast majority of banking products is that conditions are usually not very transparent; Often there are hidden fees and commissions that make the entire process lose value. With Gandalf we can control the investment in real time, so at any time you can know where your money is.
It is estimated that 99% of investors monetize the investment; However, there is a 1% chance of losing what has been contributed, so it will be necessary to evaluate carefully who is going to give the money.
If you want to start investing with Gandalf, you will only have to fill in this form (which will be used to create an account). If you do not have it very clear, and do not want to start with an account, you always have the possibility to chat directly with them; in the bottom right of the screen you will have a box that says (Chat with us), with a form in which you can enter the question.
And what happens if the investor does not pay, or is late?
As any entity that works with P2P type payments , Gandalf will have the capacity to take legal action. The most normal thing is that you start by notifying the client that a debt exists, and that you inform him of how the process will work in case he does not satisfy it on time. These notifications will be made through e-mail, by phone, and by registered letter.
If the user ignores, then his file will be included in a register of defaulters, in addition to initiating the appropriate legal measures.
Advantages of betting on Gandalf
- A fair deal for all: Everyone will win if they start using Gandalf ; On the one hand, the investor will be able to find financing for any project. The borrower, on the other hand, will be able to move that money that has stopped so that it begins to be profitable.
- Specialized advice: As we have already seen, Gandalf offers a whole series of formulas to get in touch with its customer service team: thanks to this, the user will never be helpless.
- Guarantees: In addition, the platform guarantees deposits in case you want.
Both investors and borrowers who have tried the platform say it is worth it, so Gandalf opinions are very positive. If you still have doubts, take a look opinion opinion to convince yourself.
Conclusion: Is it worth to bet on Gandalf?
It’s worth it, but you should study the commissions and the different charges with all kinds of detail. In the case that there is something that does not finish convincing you, the best thing you can do is opt for another payment entity for P2P.