Reinvest24 will no longer charge a one per cent fee when investing in new projects and instead will take the fee once the project is exited.
The European peer-to-peer lending platform, which has offices in Estonia, Germany, Spain and Moldova, said it will no longer charge this fee on newly listed projects from 22 November.
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Reinvest24 noted that a one per cent fee is one of the platform’s income streams, so it will still be charged but at the end when the project is exited.
It means that the one per cent will be charged from lenders’ principal amount at the time of its repayment.
Reinvest24 said this way, investors will earn from the entire amount invested, which will result in more earnings than before, and the fee will only be taken after the investment is repaid.
The platform called the new fee, which will not be applied to ongoing projects, a ‘success fee’ and said it will result in 1.9 per cent more earnings for investors if reinvesting monthly income.
In the secondary market, the new fee structure will be applicable only for newly published projects. Sellers now have to pay a one per cent fee and there is no fee for the buyer.
“This is a huge development of things for Reinvest24 and our investors,” said Tanel Orro, chief executive of Reinvest24.
“In fact, the entry fee accompanied us since the very beginning.
“At first, it was two per cent, then last year we cut it in half. And now we are tying it with repayments instead of entry.
“Reinvest24 is growing rapidly and we are constantly thinking about how we can improve our users’ experience on the platform. We decided that now was the right time to modify Reinvest24’s fee structure, thus giving the extra income to our investors.”