A fundamental difference between Go & Grow and Portfolio Manager or Portfolio Pro is the liquidity.
With Go & Grow, you can request to liquidate your investment at any time simply by clicking on “Withdraw.” Here’s a short video on withdrawing from Go & Grow. Please note that we charge a flat €1 fee each time you withdraw money from Go & Grow.
If you would like to liquidate funds before the maturity of loans, the easiest option would be to transfer your portfolio to Go & Grow, if we can make you an offer for your investments. This can only be done for the whole portfolio, not partial. Check out this video for more details on the transfer process.
To transfer your existing investments, click on settings on your Go & Grow account, then select “Add existing investments.” Next, you will receive an offer from Bondora to liquidate your existing portfolio based on the current portfolio value. It is possible that you will be offered a lower amount due to—for example—defaulted loans in your portfolio. If you accept the offer, Bondora will transfer your portfolio to your Go & Grow account and you can start earning right away. It’s important to remember that it’s likely you will achieve a lower net return using Go & Grow. Before proceeding, think carefully if this is the right decision for you as it cannot be reversed once you accept the offer.
If you’ve already sold more than 25% of your existing investments on the Secondary Market yourself, Go & Grow cannot take over your whole portfolio (including defaulted and overdue loans). However, you will still receive an offer, which you can review before choosing to proceed.
2. Selling investments manually on the Secondary Market
Bondora is a long-term investment, meaning ideally, it has an investment horizon of more than 5 years. Currently the only way to make sure you do not damage your returns when exiting is by stopping reinvestments and running off your portfolio, taking cash out as loans are repaid on a monthly basis. Selling loans can result in a loss of original principal, as the secondary market typically does not provide high enough premium for current loans to compensate for the non-performing part of the portfolio. Therefore selling loans should be done cautiously.
The speed of the sales process depends on the market demand. In general, current loans are more liquid and will be sold within a day in case there is no premium added or there is a small premium. Delinquent loans may take more time or the sale can be unsuccessful. You will receive the funds to your Bondora account as soon as other investors have purchased your investments.
To sell your investments on Secondary Market, log in to your Bondora account to see an overview of your investments on the Investments page. Choose the loans you want to sell by clicking on the cart icons. Once you’ve picked the loans and made adjustments, confirm the sale with the "Sell all" button.
On the Public Reports page > “Secondary market transactions history” you can see all the data points we track in the secondary market transaction. This report provides some useful data to analyze and understand the patterns or trends present in Secondary Market transactions.
The first data point you want to look at to understand how the secondary market works is the “Result” data point where you can search for all transactions or only the successful ones.
Successful means the loan was sold on the market. Maybe there is something to learn from the “Failed” ones too, which are the sales that didn’t go through. Failed loans might leave clues for you as to why those loans did not sell so you can successfully sell yours. For instance, too big of a price markup may have meant no sale as the price was too high.
Bondora cannot give any investing advice, but according to the statistics it is more probable to sell the non-performing part of your portfolio using a discount. It usually requires a more active approach and experimenting with different discounts, to see what works best.