My goal 2022: €100,000 portfolio at Esketit

The new year starts with an interesting plan of one of our users. This year, Andreas Tielmann, our member from Germany, wants to grow his Esketit portfolio to €100,000. You can read about his full plan in the original post here. If you’re not well-versed in German, don’t worry, we provide you with a translation below.

Translation of the blog post:

My goal 2022: €100,000 portfolio at Esketit

At the beginning of each year, I set a certain goal for what I want to achieve in P2P loans that year. Last year 2021 it was to achieve a return after all defaults of at least 12%. I was able to achieve this goal and even exceeded it significantly.

For the year 2022 I set myself the goal to build a portfolio of €100,000 at the P2P platform Esketit. With an interest rate of 12%, this would mean a monthly income of €1,000.

Translation: Goal 2022: €100,000 portfolio at Esketit

For the following reasons, I would like to significantly increase my portfolio at Esketit (Creamfinance loans):

► Creamfinance profitable every year since 2012 (exception 2020 because of pandemic)

► Creamfinance with good current business figures from 2021/9M (+ 2.2 m € profit)

► Good interest rate of up to 12% with buyback commitment

► Thanks to a fee-less secondary market, I can exit Esketit quickly if needed

► The founders of Esketit/Creamfinance still have skin in the game and hold shares in the companies

In this article (link to German article), I explained in detail why I want to allot more capital than usual in Esketit. In the article there is also info about the founders, business figures and other info I have gathered.

The goal: €100,000

So my goal is to get to a total portfolio of €100,000 through deposits during the year.

Esketit – The road to the €100.000 portfolio

At an interest rate of 12%, that would be about €1,000 of interest earned each month. Once the goal is reached, I plan to pay out all the interest thereafter so that the portfolio remains stable at €100,000, and then I pay myself the interest of about €1,000 every month.

The start: €10,906.47

Today on January 1, 2022, I start to take on the goal. My portfolio currently at Esketit exactly amounts to €10,906.47. So to reach the goal of a €100,000 portfolio I need to deposit about €7,425 every month. That’s about €250 every single day. In reality, a bit less because the interest of Esketit increases the capital. I will not make the same amount of deposits every month, there rather will be differences. Certainly, there will be months of less and months of more deposits.

Translation: Bottom right shows the portfolio total of €10,906.46

This is how my portfolio currently looks like

Currently, the country distribution looks like this:

95% of all loans are from Spain. There is a 12% interest rate.

5% of my portfolio consists of loans from Jordan. There is more interest there – 14%. However, there is no group guarantee for the Jordanian loans. For this reason, I am not planning to buy too much in these at the moment.

Esketit – portfolio by country

My portfolio at Esketit – distribution in percent

Translation: Spain, Jordan

Loans from the Czech Republic are currently not in the portfolio at all. These are currently only subject to an interest rate of 10%. I still prefer the other countries. But this will change. The bigger the portfolio, the more I will later allot to Czech and Jordanian loans to avoid buying too much capital in Spanish ones.

About 3/4 of the loans are current.

Translation: Number of purchased claim rights, current assets, 1–15 days late (16–30, 31–60, 61+), total

My bid amount

Currently, I have have purchased claim rights to 199 different loans. The goal is always to have between 200 and 300 different loans in the portfolio, to be sufficiently diversified. Currently, I bid €50 for each loan.

The higher the alloted capital, the more I would like to allocate per loan.

The LIVE-portfolio is updated daily

I have set up the Esketit LIVE-portfolio. It updates its current status every day, and it’s also visible at the top left of every page.

In what cases will the target be changed?

There are several reasons why I might change the target:

• For example, if there are not enough loans and I can’t allot the capital (doesn’t look like it, but could happen if many new users join during the year).
• Esketit lowers the interest rates significantly (e.g. below 10%).
• Creamfinance publishes annual reports with a loss (then I would be a bit more cautious and deposit less, e.g. only €50.000).
• Other events that could affect the payment morale of the borrowers occur (e.g. strong economic crisis in a country where Creamfinance lends).
• Delayed or unaudited financial reports could cause me to pause deposits.
• If there are changes in the management of Creamfinance, I might also lower the target slightly.
• As soon as any of the above events occur and I make a withdrawal, it will be immediately visible in the Esketit LIVE-portfolio.

Recent Creamfinance business reports

In the first 9 months of 2021, Creamfinance posted a profit of over €2.2 m:

That’s why I’m willing to increase the Esketit portfolio so much. There are recent numbers and the numbers have improved a lot from the 2020 pandemic year.

I will post an interim report on this goal on the blog at the beginning of each month. The first interim report will be published on February 1, 2022.