Treasury bills or crowdlending: which option may fit your portfolio better?

Treasury Bills represent debt issued by the State, whereas crowdlending makes it possible to finance loans to companies or individuals through specialised platforms.

For this reason, comparing them solely by the interest they offer may lead to mistaken conclusions. The risk assumed, the term, liquidity, taxation and the role that each investment may play within a portfolio are equally important aspects.

What are Treasury Bills?

Treasury Bills are short-term public debt securities issued by the Spanish State.

They are currently issued with maturities of 3, 6, 9 and 12 months, and have a minimum nominal amount of 1.000 euros. They are issued at a discount: the investor initially pays an amount lower than the nominal value and receives the full nominal amount at maturity. The difference represents their return.

For example, if a Bill has a nominal value of 1.000 euros, the investor may acquire it for a lower amount and receive 1.000 euros when maturity arrives, provided that the investment is held until then.

The specific return depends on market conditions and on each auction.

In the auction of 6 October 2026, for example, the marginal interest rate was 2,798% for 6-month Bills and 3,026% for 12-month Bills. These figures serve as a point-in-time reference, but should not be interpreted as a guaranteed return for future issues.

What is crowdlending?

Crowdlending is a form of collective financing through which several investors contribute capital to finance loans.

In the case of business loans, a company obtains financing and investors receive remuneration in accordance with the conditions established in the transaction.

Unlike Treasury Bills, here the investor is mainly exposed to the credit risk of the borrower.

If the company meets its obligations, the investor receives the scheduled payments. If it experiences financial difficulties, delays, recovery proceedings or losses may occur.

The potential return may be higher than that of certain lower-risk assets, precisely because the investor is assuming greater credit risk.

Treasury Bills vs. crowdlending: main differences

The comparison can initially be summarized as follows:

Feature Treasury Bills Crowdlending

Borrower Spanish State Companies or other borrowers

Type of investment

Public debt Private loans

Usual terms

3, 6, 9 and 12 months Depend on each project

Main risk

Credit risk of the issuer and market risk if sold before maturity

Credit risk of the borrower

Return Determined by the issue price and market conditions

Determined by the terms of the loan

Liquidity A secondary market exists for Treasury securities

A secondary market may exist depending on the platform

Diversification Exposure to the same state issuer Can be diversified across different borrowers

Minimum capital 1.000 € per nominal value Depends on the platform and the project

This table reveals a fundamental point: we are not comparing two equivalent products.

Treasury Bills are short-term public debt, whereas crowdlending is a form of private credit.

Return: what can each option offer?

The return on Treasury Bills depends on interest rates and on the price at which they are purchased.

When interest rates are high, new Treasury Bill issues may offer more attractive returns than in periods of very low rates. However, that return may change in future auctions.

In crowdlending, the interest rate is set according to the characteristics of the loan and the risk associated with the borrower.

Therefore, directly comparing a 3% return on a Treasury Bill with, for example, 8% on a P2P loan does not mean that the latter is simply "better".

The difference between the two interest rates also reflects a difference in the risk assumed.

A business loan with a higher return may be subject to delays or defaults, whereas a Treasury Bill is backed by the paying capacity of the issuing State.

Risk: government debt versus business loans

This is probably the most important aspect of the comparison.

Risk of Treasury Bills

Treasury Bills are debt of the Spanish State. The investor therefore assumes the risk associated with the issuer.

If they are held to maturity, the return is determined by the purchase conditions and the amount received at maturity.

If they are sold earlier, their price may have changed as a result of market conditions and the evolution of interest rates.

Risk of crowdlending

In crowdlending, the main risk is that the borrower fails to meet its obligations.

A company may experience financial difficulties, delay payments or stop paying.

Depending on the structure of the loan, there may be collateral or other protection mechanisms, but these do not completely eliminate the risk of loss.

For this reason, diversification plays a particularly important role in a crowdlending portfolio.

Liquidity and term

Treasury Bills have relatively short maturities that are known from the moment of investment.

Investors may hold them until maturity or, in certain circumstances, sell them earlier on the relevant market.

In crowdlending, capital is usually tied to the specific term of the loan.

Some platforms offer secondary markets that allow an attempt to sell an investment before maturity. However, the ability to sell depends on a buyer being available and on the conditions of the transaction.

Therefore, a secondary market does not mean guaranteed liquidity.

This difference is important for anyone who may need to recover their money on a specific date.

Taxation

Both Treasury Bills and crowdlending generate returns that may have tax implications, but their treatment depends on the specific nature of the return and on the investor's circumstances.

In the case of Treasury Bills, the difference between the purchase price and the redemption value generates a return that must be included in the relevant tax return.

In crowdlending, the interest earned by the investor constitutes income that must be taken into account for tax purposes.

It must also be considered that certain losses or expenses may receive different treatment depending on the type of investment and the applicable regulations.

For this reason, taxation should not be analysed solely on the basis of the advertised interest rate.

How much money is needed to start?

Treasury Bills have a minimum nominal value of 1.000 euros, so this is the minimum reference amount for purchasing an individual Treasury Bill.

In crowdlending, the minimum amount depends on each platform.

This difference may be relevant for investors who wish to start with small amounts or to build a diversified portfolio progressively.

However, having a low minimum entry amount does not mean that any amount is sufficient to diversify adequately.

In a crowdlending portfolio, spreading capital across several loans may reduce the impact of a possible individual default.

Which investor profile may each alternative suit?

There is no universal answer. The choice depends on the investor's objectives.

Treasury Bills may be a better fit when...

• A short-term investment is sought.
• Exposure to government debt is a priority.
• The investor wants to know the maturity date in advance.
• A simple structure is required.
• The priority is to limit credit risk in relation to private borrowers.

Crowdlending may be of interest when...

• Exposure to private debt is sought.
• The investor accepts taking on higher credit risk.
• The investor wants to diversify across different loans.
• A higher potential return is sought.
• The investor is willing to keep the capital invested for the term of the transactions.

However, crowdlending involves significant risk and may result in partial or total loss of the invested capital.

Can Treasury Bills and crowdlending be combined?

Yes. In fact, comparing them does not necessarily mean that only one of the two must be chosen.

They may serve different functions within a portfolio.

For example, an investor could use short-term government debt for a portion of the capital that is to be held over a relatively defined horizon, and allocate a different portion to private loans in order to seek a higher potential return.

The proportion will depend on factors such as:

• Time horizon.
• Liquidity needs.
• Risk tolerance.
• Available assets.
• Return objectives.
• Composition of the rest of the portfolio.

Diversification does not consist solely in holding many products, but in combining investments with different characteristics and sources of risk.

Which option is better?

The question "Treasury bills or crowdlending?" does not have an answer that is valid for all investors.

Treasury bills may be more suitable for those who prioritise a short-term public investment and a relatively contained risk profile.

Crowdlending may be more appropriate for those who accept taking on greater credit risk in exchange for a potentially higher return and wish to add private debt to their portfolio.

For this reason, the comparison should be made taking into account return, risk, liquidity, term and role within the portfolio, not only the advertised interest rate.

Conclusion

Treasury bills and crowdlending can both be used to obtain a return on capital, but they represent two very different types of investment.

Treasury bills are short-term public debt issued by the State, whereas crowdlending makes it possible to fund private loans and to assume directly the risk associated with the borrowers.

The former may offer greater predictability in terms of term and structure, whereas crowdlending may provide a higher potential return, but it also entails different credit risk and liquidity.

It is therefore not a matter of deciding which one is "better", but of determining what role each alternative can play within a portfolio and whether the risk assumed fits the investor's objectives.

In certain cases, it may even make sense to combine both: using public debt for one part of the portfolio and private debt to diversify the potential sources of return.

As always, before investing it is advisable to analyse the specific conditions of each product and not to commit money that may be needed in the short term.

The content of this article is provided for informational and educational purposes only. It does not constitute investment, financial, tax, or legal advice. Peer-to-peer (P2P) lending and crowdlending investments carry a risk of partial or total loss of capital. Past performance does not predict future results. Liquidity on a secondary market is not guaranteed. Readers are encouraged to conduct their own research and consult qualified advisors before making any financial decisions. The availability of products and services may be restricted in certain jurisdictions.