Blog | Jean Galea

Esketit Review 2023 – One of the Hottest P2P Platforms

Published: March 18, 2023Leave a Comment

If you’ve been exploring opportunities in the consumer loan space and are curious about the Esketit platform, then you’re in the right place.

Esketit is a fintech company that’s been generating some buzz in the consumer loan market. Their focus is on providing transparent and accessible financing solutions to borrowers, but they also offer a unique opportunity for investors like us to participate in this growing industry. As someone who’s always keen on exploring new investment opportunities, I found their approach quite intriguing.

Esketit was founded in December 2020 by Davis Barons and Matiss Ansviesulis, who also established the highly successful Creamfinance Group. Since its inception in 2012, Creamfinance has been consistently profitable, generating an impressive revenue of 70 million in 2019.

Affiliated loan originators issue the loans on Esketit, ensuring transparency and easy oversight throughout the entire process. Davis and Matiss adopt a ‘skin in the game’ strategy, which gives investors greater confidence in the Esketit Platform.

Investing in personal loans through the Esketit Platform is simple and secure. With operations across five diverse markets, Esketit provides investors with access to a global landscape. By joining Esketit, you can benefit from top-tier practices in the P2P lending industry and enjoy high returns without compromising security.

Invest on Esketit

The Investment Process

The Esketit platform streamlines the process of investing in consumer loans. To start, you’ll need to create an account and complete the necessary verification steps. Once you’re all set, you can browse the available loans on the platform, assess the risk levels and potential returns, and decide which loans to invest in.

What I appreciate about Esketit is the detailed information they provide about each loan, such as the borrower’s credit score, loan purpose, and repayment history. This transparency allows investors like us to make informed decisions and effectively manage the risk-reward balance.

Founders’ Skin in the Game

The founders of Esketit, Davis Barons and Matiss Ansviesulis, follow a “skin in the game” approach. This means that they invest their own money alongside the investors on the platform. By co-investing, the founders demonstrate their confidence in the platform’s performance and align their interests with those of other investors. This approach adds a layer of assurance for investors using the Esketit platform, as the founders have a personal stake in ensuring the platform’s success and the quality of the investment opportunities offered.

Diversification Opportunities

One key aspect of successful investing is diversification, and Esketit doesn’t disappoint in this regard. The platform offers a wide variety of consumer loans, including personal loans, auto loans, and home improvement loans, among others. This variety allows investors to build a diversified portfolio and spread their risk across different loan types and borrowers.

Auto-Invest Feature

Esketit’s auto-invest feature is something I find particularly appealing. This tool allows you to set specific investment criteria and automatically allocate funds to loans that match your preferences. It’s a real time-saver for busy investors like me who want to maintain a diversified portfolio without having to constantly monitor and manually invest in individual loans.

Returns and Risk Management

Esketit offers competitive returns compared to traditional investment options, with annualized yields typically ranging from 5% to 15%, depending on the risk profile of the loans you choose to invest in. Of course, higher returns come with higher risks, so it’s essential to be diligent in your loan selection process and employ proper risk management techniques.

To help mitigate risk, Esketit employs strict underwriting standards and performs thorough due diligence on all borrowers. Additionally, the platform offers a secondary market where you can sell your investments before the loan term ends, providing liquidity in case you need to exit your investment early.

Customer Support

From my experience, Esketit’s customer support has been responsive and helpful. They offer multiple channels for communication, including email, phone, and live chat. This level of support is comforting, as it ensures that any questions or concerns you may have as an investor are addressed promptly.

Some Drawbacks to Consider

No investment platform is perfect, and Esketit has its drawbacks as well. One thing to keep in mind is that investing in consumer loans involves a certain level of risk, and there’s always the possibility of borrowers defaulting on their loans. It’s essential to be aware of these risks and manage your investment strategy accordingly.

Additionally, the platform is relatively new, so it’s yet to establish a long track record. While the early results seem promising, it’s important to approach such investments with caution and stay up-to-date with any developments that could impact the platform’s performance.

Alternatives to Esketit

Esketit faces competition from several other prominent platforms in the European P2P lending and investment industry.

Mintos, a well-established player in the market, offers a wide range of investment opportunities in loans issued by various loan originators.

Bondora, another competitor, has been operating since 2009, providing access to consumer loans from multiple European countries.

PeerBerry, a relatively newer platform, focuses on short-term consumer loans with a buyback guarantee, catering to investors seeking lower-risk investment options. Each of these platforms has its unique selling points, such as the range of loan types, geographical diversification, and risk management features. Investors should carefully consider their specific needs and preferences when choosing a platform to diversify their portfolios in the growing P2P lending space.

Final Thoughts

Overall, I find Esketit to be an interesting investment opportunity in the consumer loan space. The platform offers a streamlined process, detailed loan information, and attractive diversification opportunities. The auto-invest feature and competitive returns make it an appealing option for investors seeking exposure to this growing market.

That being said, it’s crucial to remember that investing in consumer loans comes with inherent risks, and the platform’s relatively short track record means that caution is warranted. As with any investment, it’s essential to do your own research, employ proper risk management techniques, and ensure that your investments align with your overall financial goals and risk tolerance.

In conclusion, if you’re an investor looking for an alternative investment opportunity in the consumer loan market, Esketit might be worth considering. The platform offers various features that cater to different investment styles and preferences. As always, be sure to carefully assess the risks and weigh them against the potential rewards before diving in.

Invest on Esketit

Banking Options for Businesses in Malta – Is it Possible to Open an Account?

Published: March 17, 2023Leave a Comment

Malta, a small island nation in the Mediterranean, has long been a popular destination for businesses seeking a favorable tax environment and robust regulatory framework. However, opening a bank account in Malta as a business entity has become increasingly challenging in recent years due to the country’s low-risk policies. In this article, I will explore the banking options available to businesses in Malta and discuss how to navigate these challenges.

The Big Players: Bank of Valletta and HSBC

The largest banks in Malta are Bank of Valletta and HSBC. While these institutions offer a wide range of banking services and have a strong presence in the country, they have adopted low-risk policies that make it difficult for many businesses to open accounts. This is due in part to Malta’s unfortunate greylisting a few years ago. Although the country is no longer grey-listed, the financial sector has tightened up significantly to curb any abuses.

The chances of opening a bank account with these two banks are slim, especially if it’s for a non-traditional business. They are simply not willing to take any chances and are not very interested in attracting new business.

Alternative Banking Options: Agribank and Sparkasse

For businesses that encounter difficulties opening accounts with Bank of Valletta and HSBC, there are alternative banks that may prove more amenable. Agribank, an agricultural and commercial bank, has had some success in accommodating businesses unable to establish accounts with larger banks. Similarly, Sparkasse Bank Malta, a subsidiary of the German Sparkassen Group, has been known to provide banking services to companies facing challenges with the larger institutions.

Other banks that operate in Malta and could potentially serve as alternatives include APS Bank, Lombard Bank, and FIMBank. These banks may be more accommodating to foreign businesses, but it is essential to research their specific requirements and policies to determine whether they are a good fit for your company.

It is quite common for these alternative banks to charge an application fee, in order to cover their costs of processing the application and determine if your business would be a good fit. They will also typically charge extra fees on a yearly basis when compared to the larger banks that don’t have any fees beyond the usual card fees and currency conversion fees.

The Hassle-Free Option: Wise (formerly TransferWise)

For businesses seeking a more straightforward solution, Wise (formerly known as TransferWise) is an excellent option. This fintech company provides borderless accounts, allowing businesses to receive and make payments in multiple currencies with minimal fees. While Wise is not a traditional bank, it offers many of the core banking services that businesses need, such as a debit card and currency conversion.

Wise’s borderless accounts are especially useful for businesses with international transactions and make it easier to manage finances without dealing with the stringent requirements of Maltese banks.

Open a business account with Wise

Conclusion

While opening a bank account in Malta as a business entity can be challenging due to the country’s risk-averse banking policies, there are options available for those who persevere. By considering alternative banks like Agribank and Sparkasse or using innovative financial solutions like Wise, businesses can successfully establish their banking presence in Malta and reap the tax benefits of operating in this country.

Teaching Kids How to Code

Published: March 10, 2023Leave a Comment

In today’s fast-paced, technology-driven world, it’s no secret that coding has become an essential skill for everyone, including children. The ability to code can open up a world of opportunities, from creating apps and websites to developing software and even designing robots. In this article, I’ll share my journey on teaching my kids how to code and include useful resources for you to check out as a parent.

First of all, why is coding so important for kids to learn? For starters, coding helps children develop critical thinking and problem-solving skills. When kids learn to code, they learn how to break down complex problems into smaller, more manageable pieces. This kind of thinking is useful in all aspects of life, from schoolwork to personal relationships.

Coding also promotes creativity and innovation. By learning to code, children can bring their ideas to life and create things that have never been seen before. They can design their own games, apps, and websites, or even build robots and other cool gadgets.

Another important reason to teach kids to code is that it’s a highly sought-after skill in today’s job market. In fact, according to the Bureau of Labor Statistics, employment of software developers is projected to grow 22% from 2019 to 2029, much faster than the average for all occupations. By learning to code at a young age, kids can set themselves up for a successful and rewarding career in the future.

When I was in my teens, software development was not yet a very respected career path, the internet was still in its infancy, and my parents were somewhat worried about my obsession with computers and coding instead of being interested in more traditional subjects and professions. Of course, today the world is completely different, and software developers are among the most sought-after people and are highly paid.

Early Exposure to Coding Principles

For toddlers and young children (ages 1-6), there are also plenty of coding toys and games available that can help introduce them to the basics of coding. Examples include the Code-a-Pillar by Fisher-Price, which teaches kids sequencing and logic skills, and the Ozobot, a small robot that kids can program using color codes.

Of course, other logic-based games will also help. For example, with my kids, I used a lot of puzzles (from 1.5 years) as well as introduced them to draughts and chess around the 4-year mark.

Parallel to that, I used non-screen-based resources that are more directly related to coding. As parents, we wanted to limit screen time for our kids, and thankfully there are some pretty good toys that help to introduce kids to programming without needing a screen.

Learning Resources’ Coding Critters Go Pets Scrambles the Fox was a good first intro to teach my kids that we can build electronic devices that follow certain routines. In this case, the fox follows a line that can either be drawn or assembled using the provided cards.

Also from Learning Resources, Botley is a coding robot that is designed for children aged 5 to 9, however, I used it with my son as early as 2.5 years old. It is a fun and interactive way for kids to learn the basics of coding and problem-solving. Botley comes with a remote control that children can use to program Botley to move around, avoid obstacles, and perform various tasks. Botley also has sensors that can detect lines and objects, allowing children to create obstacle courses and mazes for Botley to navigate. The programming occurs with little cards that you use to create the logic of your program.

Online Learning Platforms for Kids

Here are a few online tools and platforms that are useful in helping kids start their coding journey. I’d say the online platforms are good for kids aged 7 and upwards.

Hatchcoding

Hatch is an online coding platform designed specifically for kids, with interactive lessons and games that make learning to code fun and engaging. Hatch offers a variety of courses, from beginner-level coding to advanced topics like web development and game design. Parents and educators can also track their child’s progress and provide guidance and support along the way.

Scratch

Another great resource for teaching kids to code is Scratch, a free online platform developed by MIT that allows children to create interactive stories, games, and animations. Scratch is easy to use and offers a variety of tutorials and resources to help kids get started.

What Snow Chains Do You Need for the Pyrenees in Spain and Andorra?

Published: March 09, 2023Leave a Comment

Every winter I travel to Andorra or Spanish ski resorts, and an essential part of my travel gear are snow chains or snow socks.

Here’s my research and recommendations on the subject. When it comes to safety and security, I always go for the best even if it means spending a bit more money. For this purpose, I chose to focus on Michelin’s offerings, as it is a reputable company in the tyre business.

Whichever choice you make, be sure to include long arm-covering gloves and a towel and some wet wipes to help you stay clean when you install the chains. I also recommend having a snow scraper. The Michelin snow scraper is a simple yet effective tool that is designed to remove snow and ice from your car’s windshield and windows. The snow scraper features a sturdy plastic handle with a wide, curved blade that is designed to efficiently remove snow and ice from your car’s windows without scratching the glass.

Ok, let’s get into the options.

Snow Socks – Michelin SOS Grip Evolution

Michelin offers a range of snow socks that are designed to provide additional traction on snow and ice. The snow socks are made from a patented textile material that is highly durable and long-lasting. Here are some of the features and benefits of Michelin’s snow sock range:

Easy to Install: Michelin snow socks are easy to install and remove, and they can be fitted in just a few minutes. The snow socks stretch over the tire and are secured in place using a tensioning system that ensures a snug and secure fit.
Improved Traction: Michelin snow socks provide improved traction on snow and ice, which can help drivers stay safe and avoid accidents. The snow socks are designed to grip the road surface, providing better traction and stability when driving on slippery surfaces.
Quiet and Comfortable: Michelin snow socks are designed to be quiet and comfortable, even at high speeds. They are made from a soft and flexible material that does not create excessive noise or vibration when driving.
Durable and Long-Lasting: Michelin snow socks are made from a patented textile material that is highly durable and long-lasting. The material is resistant to tears, abrasions, and punctures, which ensures that the snow socks will provide reliable performance for multiple seasons.
Easy to Store: Michelin snow socks are compact and lightweight, which makes them easy to store in the trunk of your car. They come with a storage pouch that can be used to keep the snow socks clean and dry when not in use.

Overall, Michelin’s range of snow socks provides drivers with an effective and convenient solution for driving on snowy and icy roads. They offer improved traction, easy installation, and long-lasting performance, making them a popular choice for many drivers.

I have used their SOS9 grip for my tyres and have been impressed by how easy it is to install them and remove them. Always keep a big bag with you for storing them as they will be dripping wet and very dirty when you take them off. You’ll want to chuck them into a washing machine for a rinse and dry them out before you put them into long-term storage. The fact that they retain a bunch of water in them after you remove them is the main disadvantage, together with their lack of durability/robustness compared to other solutions.

I was able to get both snow socks on within 5 minutes.

However, if you’re going for a quick trip or two once a year, these are the perfect thing to have in your boot to get you out of a tough spot if/when needed.

Price: around €80

Composite Snow Chains – Michelin Easy Grip Evolution

The Michelin Easy Grip Evolution is a type of snow chain that is designed to provide extra grip and traction on snowy or icy roads. It is designed to be easy to install and remove, and it does not require any special tools or equipment.

The Easy Grip Evolution snow chain is made of composite materials and features a central snow grabber that provides additional traction and grip on the road surface. The chains are designed to fit snugly over the tire and are secured in place using a tensioning system that ensures a tight and secure fit.

One of the key features of the Michelin Easy Grip Evolution is its compatibility with a wide range of vehicles, including passenger cars, SUVs, and vans. It is also designed to be durable and long-lasting, with reinforced links and a flexible design that helps to prevent damage to the tire or wheel.

In addition, the Easy Grip Evolution is designed to be easy to store and transport. It comes with a storage case that can be easily carried in the trunk of your car, and it can be quickly installed in just a few minutes.

Snow socks are designed to provide moderate traction on snowy or icy roads, while the Easy Grip Evolution snow chains are designed to provide more significant traction and grip. This makes the Easy Grip Evolution a better choice for drivers who live in areas with more extreme winter weather conditions.

Another difference is their durability. The Easy Grip Evolution snow chains are generally more durable and long-lasting than snow socks, which may wear out more quickly and need to be replaced more frequently.

The Easy Grip Evolution chains will take up more space to store and take longer to install and remove compared to the snow socks, but they also do away with the water retention issue when storing them immediately after use, since they have a much smaller surface area in contact with the road and ice/snow.

For those who are used to snow chains and who make frequent tips to snowy areas, I recommend these over the SOS snow socks, as the latter are meant for emergency situations only rather than regular use.

Price: around €100-120

Michelin Fast Grip

The Michelin Fast Grip is a type of snow chain that is designed to provide additional traction on snowy or icy roads. The Fast Grip is made of a composite material and features a diamond pattern that is designed to provide extra grip and traction on the road surface.

One of the key features of the Michelin Fast Grip is its ease of use. The chains are designed to be easy to install and remove, and they can be fitted to the tire without moving the vehicle. This makes the Fast Grip a convenient solution for drivers who need extra traction but do not want to spend a lot of time installing and removing chains.

Price: around €350-400

Other Considerations When Driving in Snow

If you live in snowy regions, you already know that a 4×4 with winter tyres is the best option. But what about the rest of us? There are many debates online about tyre choices, and whether it’s best to have a FWD or AWD vehicle.

To me, it’s clear that if you visit snowy areas frequently in winter, but actually live in a warmer area, it could be a good idea to equip your car with all-weather tyres. Then you can do away with the chains and there is no further work on your end. Another option is to have a set of winter tyres and another set of summer tyres. This is only an option if you have plenty of storage in your garage and don’t mind the hassle of changing your tyres once or twice a year.

When it comes to FWD vs AWD, while it is clear that AWD is a better option for offroad use and snowy conditions, it is much better to have a FWD vehicle equipped with winter tyres than an AWD vehicle equipped with summer tyres.

So there is no need to sell your FWD to buy an AWD, just decide on what strategy you want to use with tyres or chains and you’re set for your winter fun in the snow.

Whichever setup you have, be prudent on the road as icy and snowy conditions will always have some effect on your car’s handling, and more importantly, you can expect the unexpected from other vehicles, some of whose drivers are encountering these conditions for the first time and might not have equipped their cars in an adequate way.

Should Freelancers Set Up a Company in Estonia?

Published: March 06, 2023Leave a Comment

Estonia has emerged as a popular destination for freelancers looking to set up their own companies. With its digital infrastructure and low-tax environment, Estonia offers a range of benefits for freelancers looking to establish their businesses.

In this article I want to take a look at why thousands of European freelancers have been setting up companies in Estonia in recent years, and whether this could be a good option for you.

Set up in Estonia with Xolo

Here are some of the top benefits for freelancers when setting up in Estonia. I’ve spoken to many freelancers who have taken the step, and the vast majority are happy with their setup.

Streamlined company formation process through Estonia’s e-Residency program, allowing entrepreneurs to set up a company in as little as 15 minutes.
Low tax environment with a flat tax rate of 20% for all income, including corporate income.
No minimum capital requirements for setting up a company, making it accessible for freelancers and small business owners.
Access to a range of digital services, including secure online banking and e-signatures, to streamline business operations.
Strong focus on innovation and entrepreneurship, with a vibrant startup ecosystem and a range of resources available to help businesses grow and scale.
Access to the European Union market through Estonia’s membership in the EU.
Strong legal framework and protection for investors, with a transparent and efficient business environment.
Low bureaucratic burden, with a range of government services available online.
Support for internationalization and global expansion, with a range of programs and resources available to help companies expand beyond Estonia.

Ease of Doing Business

One of the main benefits of setting up a company in Estonia is the ease of doing business. Estonia has streamlined its company formation process, allowing entrepreneurs to set up a company in as little as 15 minutes. This is thanks to the country’s e-Residency program, which allows entrepreneurs to establish a business in Estonia remotely, without needing to physically visit the country. This can be particularly beneficial for freelancers who work remotely and don’t have a physical presence in any one location (digital nomads).

Low Tax

Another benefit of setting up a company in Estonia is the low tax environment.

Estonia has a unique tax system that allows entrepreneurs to defer tax payments until profits are distributed as dividends, at which point they are taxed at 20%. Under this system, companies are not required to pay corporate income tax on their profits until they are distributed to shareholders as dividends.

This means that entrepreneurs can reinvest their profits in their business without being burdened by immediate tax payments. Additionally, when profits are distributed as dividends, they are subject to a lower tax rate than traditional income, which can further reduce the tax burden for entrepreneurs.

Furthermore, Estonia has no capital gains tax, which means that entrepreneurs can realize capital gains without being subject to additional tax payments. This can be particularly beneficial for entrepreneurs who are looking to sell their business or realize a return on their investment.

Easy Digital Services

Estonia also has a reputation for being a digitally advanced country, with a strong focus on innovation and entrepreneurship. This means that freelancers who establish companies in Estonia can benefit from a range of digital services, including secure online banking, e-signatures, and other tools that can help streamline their business operations. Additionally, Estonia has a vibrant startup ecosystem, with a range of accelerators, incubators, and other resources available to help freelancers grow and scale their businesses.

Some well-known startups from Estonia are Wise, Skype and Bolt.

Access to the EU Market

Setting up a company in Estonia can be a smart move for non-EU freelancers looking to sell their services and products in Europe. Estonia’s membership in the EU provides a gateway to the world’s largest single market, with over 500 million consumers. This can open up new opportunities for non-EU freelancers to reach new customers and expand their business operations.

Many non-EU freelancers encounter problems when invoicing European clients for various reasons, including being digital nomads and thus having no home base, or being based in a country that European countries regard as shady or downright blacklisted. These issues are solved once you set up in Estonia.

Competent Financial Professionals and Legal System

Estonia has a reputation for having a highly competent and skilled financial professional workforce. This is due in part to the country’s strong focus on education and innovation, which has helped to produce a steady stream of talented professionals in finance and accounting.

Moreover, Estonia’s legal system is known for being efficient and transparent, providing a stable and predictable business environment for entrepreneurs and freelancers. The country’s legal framework is designed to promote business growth and development, with a strong emphasis on protecting investors and ensuring a fair and competitive market. Additionally, Estonia’s legal system is backed by a well-developed infrastructure of legal professionals, including lawyers, notaries, and other experts, who can provide guidance and support to businesses navigating the legal landscape in Estonia. Overall, Estonia’s competent financial professionals and efficient legal system make it an attractive destination for entrepreneurs and freelancers looking to establish and grow their businesses in a stable and predictable environment.

Is it the Right Choice for You?

Setting up a company in Estonia can be a smart move for European freelancers looking to establish their businesses in a low-tax, digitally advanced environment. With its streamlined company formation process, low tax rates, and innovative business environment, Estonia offers a range of benefits for freelancers looking to take their businesses to the next level.

If you’re struggling with high taxes, too much bureacratic overhead, or access to the EU market, then it makes sense for you to look into Estonia as a possible base. In my view, it is currently the friendliest jurisdiction for freelancers who want to set up shop in Europe.

The one thing I always mention is that you should consult with a local tax lawyer before you make such a move. The biggest risk is that of being accused of profit shifting, which can occur if the entrepreneur uses their Estonian company to shift profits from one jurisdiction to another in order to minimize their tax liability. This can be a complex issue, and it’s important for entrepreneurs to understand the tax laws in their own country as well as in Estonia in order to ensure that they are operating within the bounds of the law. Some countries are known to be very strict about this, while others are more laxed, so it is extremely important to look into it before you go ahead with a move to Estonia.

If, on the other hand, you’re a digital nomad with no permanent tax residency in a particular country, things should be less risky for you and the move to Estonia would be much easier to justify.

For getting help to set up in Estonia, I recommend Xolo.

Xolo is a platform that can help entrepreneurs set up a company in Estonia quickly and easily. With Xolo, entrepreneurs can create and manage their Estonian company remotely, without needing to physically visit Estonia. This can be particularly beneficial for entrepreneurs who are residents of other countries or who work remotely and don’t have a physical presence in any one location.

Xolo offers a range of services to help entrepreneurs get their business up and running in Estonia. This includes assistance with the company formation process, help with opening a bank account, and access to a range of digital tools and resources to help manage business operations. Additionally, Xolo provides ongoing support and guidance to entrepreneurs, helping them navigate the complexities of doing business in Estonia and ensuring that they are operating within the bounds of the law.

If you are currently a resident of Malta, USA, Spain, or Portugal and want to look into the implications of such a move from the perspective of your local laws, I can connect you to my preferred lawyers.