MB Capital Strategies Global

P2P Lending

MB Capital Strategies Glossary — Updated June 2026

What Is P2P Lending?

Peer-to-peer (P2P) lending platforms act as online marketplaces where individual investors fund loans to small businesses, real estate developers, or consumers — bypassing commercial banks entirely. The platform handles origination, credit scoring, legal documentation, and collections. You earn interest; the borrower repays principal plus interest over the loan term.

The asset class sits between bonds and equity on the risk spectrum. Unlike dividends from shipping or mining stocks, P2P income is contractually fixed — but so is your loss if a borrower defaults. There is no price appreciation, no underlying hard asset, no inflation hedge beyond the interest rate itself.

For income investors already holding dividend-paying stocks with variable payouts, P2P can offer predictable monthly cash flow as a complement — not a replacement — for equity income.

How P2P Returns Work

You select loans from the platform's marketplace (or use auto-invest), fund them at a set interest rate, and receive scheduled repayments. Most platforms pool loans from multiple originator companies rather than originating directly.

Most platforms advertise a buyback guarantee: if the borrower is more than 60 days late, the loan originator repurchases your investment at face value plus accrued interest. This sounds like capital protection — but the guarantee is only as strong as the originator's own balance sheet. If the originator goes bankrupt, the guarantee is worthless.

This is precisely what happened on several platforms during 2020–2022 when multiple originators defaulted, leaving investors with illiquid, non-performing loans worth 20–40 cents on the euro.

Top P2P Lending Platforms in Europe (2026 Comparison)

Debitum Network: Why It Stands Out in 2026

Of all the platforms I have tracked since 2021, Debitum has the clearest regulatory positioning: it operates under the EU ECSP (European Crowdfunding Service Providers) licence, which requires quarterly loan performance reporting, investor onboarding KYC, and mandatory 4-day pre-contractual reflection periods.

The platform focuses on SME working capital loans rather than consumer debt. Business loans backed by receivables and inventory typically recover more in default scenarios than unsecured consumer credit. Debitum publishes quarterly portfolio updates showing NPL rates and recovery timelines — a transparency standard that most competitors still don't meet.

Expected return: approximately 10–13% annually on a diversified portfolio of 20+ loans. See my detailed Debitum reality check for current numbers and my own position.

P2P vs. Dividend Stocks: When Does Each Make Sense?

I hold both — but they serve different functions in a hard-asset income portfolio.

Dividend stocks (shipping, mining, energy) give me inflation protection, NAV discount potential, and the possibility of capital appreciation. The yield fluctuates with commodity cycles — a tanker stock might yield 5% in a trough and 18% near a peak. The capital itself can double or halve.

P2P lending gives me fixed contractual income regardless of commodity prices or macro cycles. If TORM's dividend drops 60% because tanker rates fall, my Debitum loans still pay 11%. That predictability has value, but it comes at the cost of capital risk (no recovery if originator fails) and illiquidity (loans have fixed terms, secondary market is thin).

My personal allocation: P2P is a satellite position (under 10% of total income portfolio). The core remains hard assets and dividend-paying equities with real underlying businesses.

For investors with no equity exposure who want to start generating income: P2P is one of the cleaner starting points — low minimum investments (€10–50), monthly cash flows, no broker needed. But cap the allocation and diversify across at least 3 platforms.

Key Risks Every P2P Investor Must Understand

1. Originator Risk (Most Underestimated)

The buyback guarantee is only as good as the originator. When Grupeer, Kuetzal, and Envestio collapsed in 2020–2021, investors lost hundreds of millions. These platforms had strong-looking track records until they didn't. Always check: Is the originator publicly disclosing financial statements? Is the default rate trend rising?

2. Platform Risk

The platform itself can face insolvency or regulatory shutdown. An ECSP licence reduces this risk substantially — it requires segregated client funds and regulated conduct. Unregulated platforms carry much higher platform-level risk.

3. Liquidity Risk

Most loans lock up your capital for 6–36 months. Secondary markets are thin and often close in stress periods when you most need them. Size your P2P allocation so you can afford to have that capital unavailable for up to 3 years.

4. Tax Treatment

In Germany, P2P interest income is subject to the 25% Abgeltungsteuer (capital gains tax) plus solidarity surcharge. Losses from defaults can be offset against gains — but only P2P gains, not equity gains. Check current tax rules with a Steuerberater before investing.

5. Currency Risk (Non-EUR Platforms)

If the platform operates in GBP or emerging-market currencies, you take on FX risk in addition to credit risk. Stick to EUR-denominated loans where possible.

What I Look For in a P2P Platform

My current checklist before allocating to any new P2P platform in 2026:

• ECSP or FCA licence — non-negotiable for new capital
• Originator financials public — I want to see balance sheets, not just platform claims
• NPL trend flat or improving — rising defaults are an early exit signal
• Buyback track record — has the guarantee actually been honoured?
• Diversification — minimum 3 originators, prefer 5+
• Secondary market exists — even a thin one is better than none

P2P Lending in Your Income Portfolio: Practical Allocation

If you are building an income portfolio with a target yield of 6–8% overall:

• 70–80% dividend equities — shipping, mining, energy, pipelines, REITs. Inflation hedge + price upside.
• 10–15% fixed income / bonds — investment-grade corporate or government. Stability anchor.
• 5–10% P2P — predictable monthly cash flows, higher yield than bonds, but higher risk. Use for cash flow smoothing.

For how much income a given allocation generates, use the YOC calculator and DRIP calculator to model reinvestment over time.

P2P income flows monthly — ideal for investors who want regular cash flow without waiting for quarterly dividend payments. If you are in accumulation phase, auto-reinvest everything. If you are in drawdown, P2P can smooth the income curve between equity dividend dates.

Bottom Line: Is P2P Worth It in 2026?

The asset class has matured significantly since the 2020–2022 implosions. Regulated platforms with ECSP licences, transparent loan data, and verified originator track records now exist. Returns of 10–13% are achievable with proper diversification and originator selection.

That said, P2P remains a higher-risk income instrument than dividend stocks backed by real assets. Capital loss is permanent and unrecoverable when originators fail. Size accordingly: treat it as satellite income, not core portfolio.

My recommended starting point: read the full Debitum review — it covers what 11% XIRR actually means net of defaults, and compares it to what shipping dividends yield in the same period.

Marco Bozem

Investor & Analyst | Hard Assets, Dividends, Shipping | MB Capital Strategies

Marco has tracked P2P lending platforms alongside dividend equities since 2021. His income portfolio combines hard-asset stocks (shipping, mining, energy) with a satellite P2P allocation for cash-flow smoothing. All analyses based on publicly available platform data and personal investment experience. Not investment advice.