Jean Galea

Health, Wealth & Happiness

Lonvest Review 2023 – One of the Best New P2P Platforms

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Invest with Lonvest

When investing in European P2P lending platforms, it’s important to maintain a healthy level of diversification across said platforms, but also to always be on the lookout for new (and perhaps better) platforms to allocate to. Lonvest is one platform that fits the bill, having launched in 2023 in Croatia.

The platform has already issued 280K worth of loans with an average rate of 13% and it’s growing quite fast.

Let’s dive into the nuances, strengths, weaknesses, and unique features of this platform.

Introducing Lonvest

Like its counterparts in the Peer-to-Peer lending sector, Lonvest offers a platform where investors have the opportunity to funnel their funds into loans, collaborating with other investors, and aiming for periodic interest. As mentioned, the platform was launched in 2023 and it’s registered in Croatia.


The main components of the team, on the other hand, are Ukrainian, and they are by no means newcomers to the P2P lending scene. The team has run lending platforms successfully in multiple countries for around 10 years, and this is simply a new twist or addon to a model that they have perfected over the years.

Loan Originators

I mentioned that Lonvest is the latest innovation from a team that has been in this business for many years, and that is why this platform is not an aggregator of loan originators, but rather a way of accessing the loan originators of the parent group – Space Crew Finance group. The group runs loan originators in Sri Lanka, Poland, Philippines and Vietnam.

While this may limit the amount of loans on offer on the platform, as an investor I know that there is direct responsibility of the quality of the loans, and Lonvest is not simply relying on 3rd party loan originators, all with their own systems, due diligence and market risks.

Loan origination fees typically range from 0.5% to 1% of the loan amount. These costs won’t be a surprise at the end of the term because they are typically determined before the loan payment is approved.

Expected Returns on Lonvest

Your earnings on Lonvest are contingent on your chosen investments. Based on the data from their in-house loan originators, the platform boasts potential annual returns of up to 13%, and they project an average annual yield of 12% for their investors.

This aligns with averages across several of its peers, and it’s something I’m keen on exploring further.

How to Invest with Lonvest

Setting up an account and making your first investment on Lonvest is remarkably straightforward, making it one of the most user-friendly platforms currently available. Here are the steps to get started:

  1. Fill out the short initial registration form.
  2. Complete the easy KYC process with Veriff – you just need an ID and to take a selfie.
  3. Add funds to your account via bank transfer, reflected in your account within 2 days.
  4. Choose one of the automated investment strategies (options starting from just 30 days).

Lonvest start investing

You can make a minimum investment of €10, which in reality is only practical for testing out the platform. Most investors will deposit a few hundred/thousand euros to diversify suitably across the loans and geographies available.

Usability of the Platform

The team’s experience in the tech sector instantly showed when I started using the Lonvest platform. Everything works flawlessly, and it’s an easy process to register and get everything in order and ready to invest.

Moreover, the site is available in 3 languages: English, Spanish and German. I was able to verify the content in English and Spanish and found it to be easily understandable with no major issues. The blog is currently only available in English, but translations are on the way.

Safety Features of Lonvest

All loans on Lonvest come with both a buyback guarantee and a group guarantee. This ensures that if a borrower defaults, the loan originator will intervene, purchasing the loan and ensuring investors are reimbursed. This safety net is a staple among many platforms and is pivotal for securing your investments.

Given Lonvest’s oversight of its loan originators, investors can gain additional assurance. Their commitment to security is also evident in their embrace of AI-driven identity verification and adherence to GDPR protocols.

As mentioned, while not a security feature, the loan originators (part of the SpaceCrew Finance group) on this platform have a long positive track record.

Since Lonvest is based in Croatia, where there is no regulatory compliance need, this is not something that we can rely on for Lonvest. However, the reason why they chose this route is to launch rapidly, and they are in the process of also obtaining a European license as a financial platform.

The Team

In my experience, the biggest risk factor in this game is having an inexperienced team that doesn’t really has a good playbook, or is either too focused on the financial side, or on the tech side.

The founder of Lonvest, Roman Katerynchyk, started off his career by launching a tech outsourcing company that still exists, and he organically became familiar with the financial side of things by providing services and helping manage existing finance platforms in Ukraine. This gives him a rare mix of competencies in both the financial and tech sectors. At the end of the day, P2P lending platforms need a sound financial system behind them, and rely on the tech side to keep ahead of other players, including banks, and fulfill an uncovered need for investors and borrowers.

All other members of the team have their own years of experience, and Lonvest clearly displays the main figures behind the platform, with links to their Linkedin profiles where you can check out their experience and judge for yourself.

In addition, I can also share that I’ve met the founder Roman, and he has left a very good impression on me. He is a responsible person with lots of passion for this industry, and indeed is very knowledgeable both on the tech and finance side. Since these two sectors have always interested me and I also have years of experience in them, we had a very good conversation. In particular, I enjoyed learning about the way that he orchestrates Lonvest’s entrance in new markets, which is pretty impressive and requires a lot of moving parts that act in concert to make sure that money is made on the loans, while at the same time respecting the borrowers and their financial situations. This shows me that the team at Lonvest is not only good at generating returns but also has a very high ethical standard.

Liquidity

You can invest in short-term loans of 30 days, and Lonvest employs a buyback guarantee which means that you can sell back the loans within the 30-day period without incurring any penalties. This is a really positive point about this platform.

Support

I’ve interacted with support in English and got my questions answered cordially and professionally with no problems of any sort. Lonvest has a bot that can help you find answers to your questions easily, and if that is not enough, you can speak to an agent via live chat or get a reply over email.

Unique Points

One of the ways that Lonvest intends to differentiate itself from the rest of P2P platforms is by being very transparent about its operations. They plan to be very communicative with their investors and help educate them if they are newbies to this space. The Lonvest blog, or “Lending Insights”, proves to be a highly interesting read, and so far they are keeping to their promise by publishing regular and very interesting content, including interviews, news about the P2P lending space, and educational articles.

Things to Improve

There are several obvious things that should be improved, like for example the introduction of a secondary market and more languages on the site. However, given that this is a new platform it’s completely normal that those things are still being built out.

It would also be ideal to have a wider range of loans in terms of geography and loan originators. This is a double-edged sword though. If you only include your own loan originators in the platform, you can control things better and the lenders can trust your track record. This is currently the case with Lonvest. On the other hand, you can open the platform up to other loan originators, which brings more options to borrowers, but less control over loan quality and dependence on the performance of third parties.

Therefore I think that as long as Lonvest can keep the loan pipeline flowing, it’s perfectly acceptable to only offer loans from the loan originators within the same group.

Alternatives to Lonvest

There are many players in the space, but here are a few good alternatives if you’re trying to diversify across multiple P2P platforms

  • Peerberry – One of the biggest P2P lending platforms that has been around for a number of years already.
  • EstateGuru – A top choice if you want to diversify your lending portfolio into real estate loans in addition to consumer loans.
  • Mintos – Probably the most well-known and trusted European P2P lending platform.

Conclusion

While Lonvest is technically a new P2P lending platform, the company and team behind it are anything but new to the lending space. They have had a ton of success for over 10 years, and I have full confidence that this will be a good platform to allocate going forward.

Lonvest offers good returns while treating borrowers fairly and offering a really nice interface for investors. I also look forward to seeing the educational material that Lonvest have promised to release in the coming months, as this would make it one of the best platforms for investors new to P2P lending.

Invest with Lonvest

Nibble Review – How Flexible Investment Works

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Nibble review

In an era of economic volatility and historically low interest rates, innovative financial platforms have sought to offer individuals novel avenues for growing their wealth. Nibble.Finance, an Estonia-based affiliate of the IT Smart Finance (ITSF) group, is one such platform. Its approach is distinct: the platform enables investments in short-term microloans, a type of peer-to-peer (P2P) lending. This review will delve into the functionalities, user interface, security measures, and overall investment proposition of Nibble Finance.

The platform was founded in 2020, and IT Smart Finance Group is the holding company, while Joymoney is well-known as a credit company, and they are all linked.

The average interest rate obtained by more than 8,000 investors using the platform is 12%. More than €2m has been invested in the platform so far, proving that Nibble has been accepted by the general investor community in Europe.

The website is available in English, German, Spanish and Italian, catering for a big chunk of investors in their native language.

How Does Nibble Work?

Nibble Finance operates within the financial technology (FinTech) industry, where it leverages its affiliation with ITSF to offer a distinct investment product. The platform specializes in allowing investments in microloans issued by companies within the ITSF group. These short-term loans come with relatively high interest rates, enabling investors potentially to achieve an attractive return on investment compared to traditional bank deposits.

User Interface and Functionality

First impressions can significantly affect a user’s overall experience with a digital platform, and Nibble Finance doesn’t disappoint. The platform’s design is sleek and minimalistic, which enhances navigability and usability. The dashboard is intuitive, providing investors with vital information about their investments, including the loan portfolio, accumulated interest, and expected return.

Functionality-wise, Nibble Finance excels. The sign-up process is quick and straightforward, and investors can easily transfer funds to the platform. Investment products are presented clearly, enabling investors to choose from available loans with varying terms and interest rates. Overall, the user journey from sign-up to investing is well-guided and intuitive.

Auto-Investment Strategies

One of the key innovations is the flexible investment feature, designed to make investing as hassle-free as possible. This feature allows investors to set their desired investment parameters, such as investment amount, loan duration, and interest rate. The system then automatically allocates their investments across various loans that meet these criteria. This not only saves time but also ensures a diversified portfolio, which can potentially mitigate risk.

Furthermore, the platform operates with a “skin in the game” model. The ITSF group companies, which issue the loans available for investment on Nibble Finance, retain a portion of each loan on their balance sheets. This aligns the interests of the platform, the loan originators, and the investors, providing an additional layer of security for investors.

The Flexible Investment product includes three investment strategies – Classic, Balanced and Legal. The strategies differ in the ratio of risk to profitability and based on previous periods’ results.

For each strategy, loans are selected according to their level of risk of going into arrears. On the Nibble website you can find a diagram showing the breakdown of lows based on their risk profile and what goes into each strategy.

Classic Strategy

You invest in unsecured consumer loans classified as AA, A, BB, for which the borrower’s risk of going into a payment delay is very low. With the buyback guarantee, you are protected from risks and receive a guaranteed income at a fixed interest rate.

Balanced Strategy

These are investments in consumer loans classified as BB, B and CC. As a rule, the degree of risk of non-repayment of a loan under this strategy is minimal though NPL 30 and NPL 60 might occur. However, they are nearly always paid back. The default risk for this strategy is low, but the income is significantly higher than that of the strategy with fixed income.

Legal Strategy

The litigation and recovery process takes a long period of time, so the minimum investment period is 6 months. The litigation and collection management is provided by Boostr. More on this strategy below.

To be fully transparent, Nibble has described all the risks investors bear under each strategy. More information on the strategies can be found on the Nibble website.

Nibble Introduces High-Yield Investments

In 2023, Nibble ITSF introduced a revolutionary Legal Strategy for private investors to invest in debts. Debt Investments are not reserved for banks and financial institutions anymore!

All high-yield debt investment portfolios are covered with 8% guaranteed returns. The new debt investment strategy offered by Nibble is designed to deliver to private investors appropriate assets to diversify their investment portfolio and earn lucrative returns. This investment proposal is called Legal Strategy. It provides investors with a unique opportunity to invest in the debt market without the need for intermediaries such as banks or financial institutions. With this new feature, Nibble investors will be able to invest in secure debt portfolios and earn a guaranteed passive income on their investments.

The Legal Strategy is designed for investing in portfolios consisting of consumer loans classified as B, CC, and C, which are in the process of pre-trial and judicial recovery. Since these loans have overdue debts and fines, the yield of this strategy reaches up to 14.5% per annum. All assets are covered with a minimum of 8% Deposit back guarantee.
The litigation and recovery process takes an extended period, so the minimum investment period is from 6 to 12 months. 

Risks & Guarantees:
*Including the risk of non-repayment of the loan/default of the entire loan amount

  • The strategy comes with the Deposit back guarantee – this is the obligation of the collection agency to return the full investment amount at the end of the investment period and ensure a minimum yield of 8% per annum.
  • Due to investment into a portfolio consisting of a large number of loans, the risk of not receiving income from several contracts is reduced as they are covered by other loans.
  • Daily interest accrual at 8% per annum, payouts every 90 days according to the received yield up to 14.5% per annum.
  • During the fundraising process for a portfolio purchase, we accrue income at 8% per annum. This is your bonus yield to the main one which goes up to 14.5%. The maximum term for fundraising to purchase a portfolio is 30 days.

How to Invest in the Legal Strategy

The process of investing in Legal Strategy is fully automated. Go through a simple registration and immediate verification procedure. Choose the Legal Strategy and a portfolio to invest in according to portfolio preferences. Top up an investment portfolio with any amount from €50 up to €10,000 monthly. Nibble does not charge any commission for financial transactions.

While the portfolio is in the fundraising process, an interest of 8% per annum is accrued daily. After the end of the fundraising process, investors continue receiving daily interest at a rate of 8% per annum and every 90 days, Nibble automatically calculates the actual yield of portfolios and grants the difference between the guaranteed rate of 8% and the actual rate of up to 14.5% to the investors’ accounts. Thus, every 90 days you receive an income ranging between 8% and 14.5% in your Nibble account.

Example: By investing 1000 euros for 12 months, at the end of the term investors get back the entire capital of 1000 euros and receive an income between 80 and 145 euros, which will be added straight to their Nibble account.

How Does the Debt Investment Market Work?

Understanding what the debt investment market is and how it works is crucial if you want to invest in Nibble’s Legal Strategy.

I did some research myself and found it pretty interesting to know what happens when loans go bad. Here’s the lowdown.

Any financial company specializing in lending inevitably faces loans that are not repaid within the terms specified in the contract. Many companies sell such loans in large portfolios at auctions with an 85% discount, to quickly return a part of the money to the business.

Since 2019, auction platforms specializing in the sales of debt portfolios, such as Debex and NLPBroker, have begun actively appearing on the European market, which demonstrates the growth of the market. Also, there are many other collection agencies on the market specializing in debt recovery.

For investment portfolios offered through the Nibble platform within Legal Strategy, collection, and litigation management are performed by BOOSTR. Boostr is a company that buys overdue loans from banks and MFOs at auctions, with a discount of 85%, and automates the process of extrajudicial and legal recovery. Thanks to the deep experience and technologies developed by Boostr, it is possible to achieve a high percentage of capital return. The company draws on more than 5 years of successful experience in the area of debt collection.

  1. Boostr buys overdue loans from banks and MFOs at auctions, with a discount of 85%.
  2. The agency contacts the borrower and tries to agree on the return of the debt extrajudicially.
  3. If it is not possible to find a solution out of court, then Boostr initiates an automated process of recovering debt by initiating legal proceedings to obtain a court decision on the debt collection from the debtor.

After the issue of a judicial order, debt, interest, and fines are collected through the bailiff services and banks.

Risks & Guarantees

Despite the potential for high returns, investing through Nibble Finance does come with inherent risks, as does any form of investing. Firstly, the return on investment is not guaranteed, and investors could potentially lose some or all of their capital.

Secondly, while Nibble Finance does have a BuyBack guarantee in place to protect investors against borrower default, it’s important to note that this guarantee is only as strong as the financial stability of the loan originator. If the originator experiences financial difficulties, it may be unable to honor the BuyBack guarantee.

Only the Classic Investment Strategy has a buyback guarantee. The guarantee provided by creditor companies forms a reserve fund, both in Russia (where it is mandatory by law) and in Spain, which covers the risks of loan defaults and provides a buyback.

Loan Originators

joymoney loan originator

Joymoney, another brand owned by IT Smart Finance, provides the pipeline for loans. These loans are given in Russia, Spain and Mexico. These are not great markets in terms of default rates, so I would expect a high-interest rate for my money given the extra risk involved.

Support

Support is provided via email, phone and chat, as is standard within the industry.

The customer support team is responsive and capable of addressing issues or queries efficiently, reflecting a strong commitment to customer service.

Security & Compliance

In the world of online investments, the security of a platform is crucial. Thankfully, Nibble Finance demonstrates a commitment to investor security through several measures. The platform uses HTTPS encryption to secure data during transmission, and as mentioned earlier investor funds are protected through a BuyBack guarantee in the case of the Classic Strategy. While the guarantee does not eliminate risk entirely, it does provide some protection to investors in the event of borrower default.

Nibble Finance complies with relevant EU regulations, and the loan originators in the ITSF group are regulated financial institutions in their respective countries. This commitment to regulatory compliance adds an additional layer of trustworthiness to the platform and its operations.

Team

The platform operates under the law of the Republic of Estonia and its main team is listed on the website, together with a description of each individual’s role and his/her experience in the industry. I like this, and they do seem to have a strong team in place.

While their legal address is in Tallinn, the team operates from Barcelona.

Funding Your Account

Investors can top up their balance via Visa / Mastercard, as well as by bank transfer. No problems whatsoever here, and if you use my favorite online banks you will get your SEPA transfers free of charge:

If you’re based in Spain, you might also be interested in checking out my dedicated article about Spanish commission-free bank accounts.

Nibble Alternatives

There are many excellent alternatives to Nibble that have all been around for a while, with Mintos leading the pack. Swaper and Peerberry are also platforms I would recommend checking out as they operate with a similar model for P2P lending but have a longer track record than Nibble.

However, if what you read in this review together with the information and model presented on the Nibble site inspires confidence, I see no obvious reason not to invest some money in Nibble.

Conclusion

Nibble Finance presents an innovative and attractive option for individuals looking to diversify their investment portfolios. The platform’s high level of transparency, commitment to security, and user-friendly interface make it a noteworthy player in the P2P lending space.

The platform’s core appeal lies in its economic model. By investing in short-term microloans, investors can potentially earn higher interest rates than what traditional bank deposits offer. The platform provides an auto-invest feature, which automatically diversifies an investor’s portfolio across different microloans.

However, it’s important to note that investments through Nibble Finance carry inherent risk. The projected returns are not guaranteed, and the capital invested can be at risk. Therefore, the platform may be more suited to investors who understand and are willing to accept these risks in return for high rates.

Check out Nibble

Fintown Review 2023 – Invest in AirBnB Apartments in Prague

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Open a Fintown account

Fintown is an investment platform powered by Vihorev Group (more than 10 years of experience in the Czech real estate market) that provides investors with convenient and safer opportunities to invest in real estate developments across Europe, with a special focus on Prague, the capital city of the Czech Republic. The platform aims to make real estate investing more accessible to individual investors, enabling them to diversify their portfolios and benefit from the potentially high returns of property investments.

Account Opening and Verification

My experience with Fintown began with the account opening process, which I found to be user-friendly and efficient. The platform required me to provide some basic personal information and upload a copy of my identification document for verification purposes. The verification process took a few days, which I considered reasonable given the importance of ensuring investor security.

Once I got verified, I was able to deposit euros, which is the only currency available for deposits on Fintown. You can start off with as little as €50.

User Interface and Experience

Once my account was verified, I gained access to the Fintown platform’s dashboard. I found the user interface to be clean and intuitive, making it easy to navigate and manage my investments. The platform offers a seamless user experience, with clear navigation menus and quick access to essential features like the investment marketplace, portfolio overview, and transaction history.

Flexibility is one of the platform’s major selling points, with the emphasis being on exiting an investment easily, gaining daily interest accrual (rather than say, monthly, which would reduce exit flexibility), and 0% commissions on deposits and withdrawals of cash. There are also no fees for participating in an investment.

Investment Options on Fintown

Fintown’s primary focus is on real estate investments, offering a range of opportunities for investors to participate in European property development projects. The platform carefully vets and selects projects based on factors such as location, potential returns, and overall risk. This allows investors like myself to have confidence in the investment opportunities presented.

Many of the projects are rental apartments in Prague (Czech Republic). This is perfect for those who want exposure to this burgeoning economy.

The minimum investment is €50 and there are no investment fees. You will be glad to know that the team invests at least 20% of their own funds in every project, meaning they have skin-in-the-game.

The available investments generate between 9% and 12% yearly yield and pay monthly interest, which is pretty good.

Types of Real Estate Offered

The real estate investment opportunities on Fintown cover various types of projects, but mostly short-term rental apartments in Prague, the capital city. Specifically, the apartments are located in the Smichov District. You can view several of the apartments on Booking.com and view for yourself the level of reviews for these properties. Here’s one example

The short-term rental market in Prague has experienced significant changes in recent years. Following the global pandemic in 2020, the short-term rental market, particularly Airbnb-style accommodations, faced a substantial drop in demand due to lockdowns, travel restrictions, and social distancing measures. However, as travel restrictions have eased and the world has gradually adapted to the new normal, the short-term rental market in Prague is rebounding and showing positive signs of growth.

One of the factors contributing to the good prospects of short-term rentals in Prague is the city’s enduring appeal as a tourist destination. With its rich history, stunning architecture, and vibrant culture, Prague continues to attract millions of tourists every year. As international travel resumes, the demand for short-term rentals is expected to increase, offering property owners and investors opportunities to capitalize on this growing market.

Additionally, the rising prices of real estate in Prague have contributed to the overall appeal of short-term rentals. With property prices increasing, purchasing a property for short-term rental purposes has become an attractive investment option for many investors, both domestic and international. The prospect of earning a higher return on investment compared to long-term rentals has further fueled interest in this market segment.

Moreover, the city’s thriving startup scene and the growing number of international companies establishing their presence in Prague have increased the demand for temporary housing for business travelers and remote workers. This trend further strengthens the prospects of the short-term rental market, as professionals seeking comfortable and flexible accommodation options often prefer short-term rentals over hotels.

All these factors make investing in short-term rentals in Prague very attractive at the moment, and Fintown offers one of the easiest ways to get exposure to this market.

Investment Process

Investing in real estate developments through Fintown was straightforward. Once I had reviewed the available projects and identified one that aligned with my investment objectives, I simply had to decide on the amount I wished to invest and complete the transaction. The platform also provides updates on project progress, keeping me informed about how my investments are performing.

There are two formats for investing, mezzanine loans and participative loans.

A mezzanine loan is a type of unsecured subordinated debt, which implies that in the event of borrower default, the borrower’s assets will be liquidated to repay a senior loan (such as a mortgage) before addressing other obligations, including subordinated debt.

A participative loan is a type of debt extended to a borrower in which the lender shares both the income generated and the losses resulting from the loan agreement.

Both types of investments carry a higher risk compared to loans secured by a mortgage.

Returns and Exit Strategy

One of the key considerations for any real estate investment is the potential return on investment and the exit strategy. Fintown projects typically offer attractive returns, with the platform aiming to provide investors with a combination of capital appreciation and rental income, depending on the nature of the project. As for the exit strategy, Fintown usually outlines the projected timeline for each investment, giving me a clear idea of when I can expect to realize my returns.

Each project featured on Fintown has a specified minimum term, which indicates the lock-up period for your funds.

These terms range from 9 to 24 months. Once the period concludes, you have the option to withdraw your funds at no additional charge whenever you choose.

Should you decide to exit your investment prior to the loan term’s completion, you can submit a request directly through the platform. However, note that Fintown will assess an exit fee based on the remaining duration of the term.

Fintown VIP Club

Fintown’s VIP Club is an exclusive program designed to reward its dedicated investors with bonus interest on their total invested amount. This initiative stands out as it offers additional interest irrespective of the specific projects one invests in.

Benefits at a Glance:

  • Investments ranging from €10,000 to €29,999 earn an extra 0.5% p.a. interest on the total amount.
  • Investments exceeding €30,000 are entitled to a 1% p.a. bonus interest.

Eligibility and Terms:

  • Any investor who commits €10,000 or more is immediately eligible for the VIP Club, with no other conditions.
  • The program calculates bonuses based on the total investment, not individual transactions.
  • After a 12-month holding period, members can decide to reinvest or withdraw their accrued bonuses.
  • As long as the investment stays above €10,000 post the 12-month period, bonuses will keep accumulating and can be withdrawn whenever desired.
  • However, if due to partial withdrawals, the balance drops to between €10,000 and €29,999 from an initial €30,000 or more, the bonus interest rate will decrease from 1% to 0.5%.
  • If an investor’s balance goes below €10,000 post-withdrawal, their VIP Club benefits will be halted, and any related earnings will cease.

Fintown’s VIP Club is an enticing proposition for investors looking to diversify their portfolios. By reaching the €10K or €30K investment thresholds, members are instantly rewarded with an additional interest percentage. This program not only incentivizes higher investments but also ensures that dedicated investors receive tangible benefits for their commitment. Join the VIP Club by clicking this link.

Customer Support

During my time using Fintown, I had a few occasions to interact with their customer support team. I found them to be responsive and helpful in addressing my concerns and questions. They were knowledgeable about the platform and its features, ensuring that I received accurate information and guidance when needed.

One of the interesting things I chatted with them about was the Czech market, so this helped me to learn more about the market there, specifically in Prague, and how investors are generating good returns due to the favorable conditions there.

Alternative Platforms

While I’ve had a positive experience with Fintown, it’s always a good idea to explore alternative investment platforms to find the best fit for your individual needs. Here are a few other platforms that you may want to consider:

  1. EstateGuru: EstateGuru is a European real estate crowdfunding platform that offers investors the opportunity to invest in property-backed loans, providing a different approach to real estate investing.
  2. CrowdProperty: CrowdProperty is a UK-based peer-to-peer lending platform that specializes in property development financing, allowing investors to fund projects in exchange for attractive returns.
  3. ReInvest24: ReInvest24 is a real estate investment platform that allows investors to buy shares of rental properties, offering a more passive approach to property investing and the potential for rental income and capital appreciation.

In conclusion, my experience with Fintown has been positive overall. The platform provides a unique opportunity for investors to participate in real estate projects in the Czech Republic as well as potentially in other countries in Europe. They offer carefully selected investment opportunities and a user-friendly experience. Although there are some limitations, such as the platform’s exclusive focus on real estate investments, I believe Fintown is a valuable addition to my investment portfolio.

Invest on Fintown

Monefit Review 2023 – 7% Per Year Returns with SmartSaver

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In this article, I’m taking a look at Monefit, a consumer loan platform designed to provide quick and convenient personal loans to customers in need of financial assistance.

Monefit was launched by Creditstar Group, an established financial services provider with over a decade of experience in the market. Operating across several European countries, Creditstar has built a solid reputation for offering short-term and installment loans to customers .

Register now at Monefit SmartSaver through this link and receive a 2% cashback on all your net deposits in the first 60 days.

Registration and Account Setup

Getting started with Monefit is a straightforward process. The registration and account setup are user-friendly, and once registered you can either deposit money and start investing (SmartSaver) or apply for a credit line (CreditLine).

Auto-Invest Feature

Monefit is a black-box platform. This means that you do not have visibility into the loans that you’re investing in, but are trusting the platform to make the best use of your money and allocate it in a responsible way. This is similar to how Bondora’s Go and Grow Unlimited system works. So to invest, you will need to use Monefit’s auto-invest tool called SmartSaver.

Monefit gives you a return of 7% per year, and boasts more than €850m invested and €83m in interest earned by investors on the platform.

Your SmartSaver account has no fees of any kind and no hidden cost, so you know exactly how much you will receive when you decide to withdraw your funds.

However, it is worth mentioning that there is a €50 minimum withdrawal limit in place. Moreover, withdrawals are not instant, however the platform promises to process them within 10 days.

Deposits and withdrawals can only be made in Euros.

One thing to mention is that while the interest is advertised at 7%, possibly hinting that it’s a fixed return, it can actually fluctuate at the platform’s will, as detailed in the terms and conditions. So take that with a pinch of salt.

Monefit and Creditstar

As I mentioned, there are very close ties between Monefit and Creditstar, so it’s worth spending some time on investigating Creditstar itself.

The Credistar Group is a prominent and audited European lending group that offers loans to borrowers across Europe, operating in countries such as Spain, the UK, Sweden, Denmark, Poland, the Czech Republic, Estonia, and Finland.

Although Credistar recorded a profit in its audited financial statement for 2021, the company’s commitment to meeting investor obligations has been somewhat inconsistent.

Credistar also sources funds for its loans through platforms like Mintos and Lendermarket. However, investors using these platforms have encountered considerable delays in payments, as Credistar was unable to repay investors due to insufficient liquidity to finance its loans.

Investments that had reached maturity on Mintos were shifted to “pending payments,” while those on Lendermarket saw their terms extended.

These circumstances heightened investor risk and significantly affected their liquidity.

Despite both P2P lending marketplaces advertising Credistar’s loans with the highest returns, investors have expressed dissatisfaction with the company’s methods and its failure to honor the buyback guarantee it had pledged on both Mintos and Lendermarket.

The underlying cause of Creditstar’s “liquidity challenges” could be attributed to the lender’s assertive lending approach and unforeseen fluctuations in financing.

To maximize profits, the lender must issue a greater number of loans and secure more funding. This rationale could explain why the financial group opted to introduce an additional “financing source” – Monefit SmartSaver.

Alternative Platforms

As an investor, it’s crucial to explore and compare different investment platforms to find the one that best suits your needs and preferences. Here are some alternative platforms I’ve considered or invested in:

  1. Mintos: Mintos is a popular peer-to-peer lending platform that offers a wide range of loan types from various loan originators across the globe. The platform provides a comprehensive auto-invest feature and a secondary market, making it a strong competitor to Monefit. However, Mintos’ extensive range of loan originators and countries may require more due diligence and research from investors.
  2. PeerBerry: PeerBerry is another well-regarded European P2P lending platform that focuses on consumer loans, similar to Monefit. The platform is known for its user-friendly interface, auto-invest feature, and competitive interest rates. However, PeerBerry’s loans also have a geographic concentration in Europe, posing similar risks to Monefit.
  3. Bondora: Bondora is a long-standing P2P lending platform that offers consumer loans in Estonia, Finland, and Spain. The platform is known for its simplicity and ease of use, with an auto-invest feature called “Go & Grow Unlimited” that targets a fixed return rate. Bondora’s main drawback is its limited geographic exposure, which may not suit investors seeking greater diversification.

Conclusion

This platform leaves me with mixed feelings. On the one hand, it’s not a platform that has to start from scratch, given that it’s backed by Creditstar, and the latter company has plenty of experience in the space. However, Creditstar itself does not have a stellar track record in its behavior towards investors.

Therefore, I would say that Monefit could be a good platform for you if you want absolute ease-of-use and high liquidity and you’re a fan of other similar products in the market such as Bondora’s Go & Grow. Monefit does in fact currently offer better returns than Bondora, but I would classify it as being riskier.

It’s always a good idea to explore and compare alternative platforms to find the one that best aligns with your investment goals and risk appetite.

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Viainvest Review 2023 – A Tried and Tested Platform

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Viainvest home

Viainvest is a European P2P lending platform that connects investors with borrowers seeking short-term consumer loans. The platform aims to provide investors with an easy and secure way to invest in consumer loans, offering attractive returns and a simple, user-friendly experience.

Launched in 2016 and based in Latvia, Viainvest is part of the VIA SMS Group, which operates in several European countries, including Sweden, Poland, and the Czech Republic. The group has been operating successfully since 2009, and this undoubtedly contributes to Viainvest’s trustworthiness.

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Account Opening and Verification

One aspect of Viainvest that I found appealing was the ease of opening an account. The registration process is straightforward and can be completed within a few minutes. You simply need to provide some personal information, verify your identity, and link a bank account to start investing. This hassle-free process makes it convenient for new investors to join the platform and begin exploring the investment opportunities available.

User Interface and Experience

After my account was verified, I gained access to Viainvest’s platform dashboard. I found the user interface to be clean and easy to navigate, making it simple to manage my investments. The platform offers a seamless user experience, with clear navigation menus and quick access to essential features, such as the loan listings, portfolio overview, and transaction history.

Investment Options

Viainvest focuses on short-term consumer loans, which typically have a duration of 30 days or less. The loans are issued by VIA SMS Group’s lending subsidiaries, ensuring a transparent and easy-to-understand investment process. Most of the loans on Viainvest come with a buyback guarantee, which means that if a loan becomes more than 30 days overdue, the loan originator repurchases the loan from the investor, providing an additional layer of security.

Auto Invest Feature

To simplify the investment process, Viainvest offers an Auto Invest feature that automatically invests available funds according to my chosen criteria, such as loan duration, interest rate, and maximum investment per loan. This feature allowed me to save time and ensure that my funds were consistently invested without the need for manual intervention. Additionally, I could easily adjust my Auto Invest settings whenever I wanted to modify my investment strategy.

Returns and Risks

Viainvest advertises average annual returns of around 12%, which I found to be competitive within the P2P lending market. However, as with any investment, there are inherent risks involved. In the case of P2P lending, the primary risk is borrower default. Viainvest mitigates this risk through its buyback guarantee, which, as mentioned earlier, provides an additional layer of security for investors. It’s essential to keep in mind that the buyback guarantee is dependent on the financial stability of the loan originator, so it’s crucial to assess the overall creditworthiness of the platform and its affiliated lending companies.

Secondary Market and Liquidity

One aspect of Viainvest that I appreciated was the presence of a secondary market, allowing investors to buy and sell their loan investments before the loans reach maturity. This feature can be particularly helpful for those looking for increased liquidity or wanting to adjust their portfolio quickly. However, it’s essential to note that the secondary market’s liquidity depends on the demand from other investors, and there’s no guarantee that you’ll be able to sell your loans immediately or at the desired price.

Transparency

One aspect of Viainvest that I appreciated is the platform’s transparency. Viainvest provides detailed information about each loan, including the loan originator, borrower’s credit score, and loan purpose. This level of detail enables investors to make informed decisions about their investments and helps build trust in the platform.

Moreover, Viainvest is transparent about its fees, which are relatively low compared to other P2P lending platforms. The platform does not charge investors any fees for using its services, which means that you can keep more of your earnings.

Loan Diversification

Although Viainvest primarily focuses on short-term consumer loans, I found that there’s still some room for diversification within the platform. Viainvest offers loans from different countries, such as Latvia, Poland, and Spain. By investing in loans from various countries, I was able to spread my risk geographically and reduce the potential impact of local economic fluctuations.

On the other hand, it’s worth noting that the platform’s focus on short-term consumer loans may limit the extent of diversification across different loan types and industries. If you’re looking for a broader range of investment options, you may want to consider alternative platforms that offer loans across various sectors.

Customer Support

Throughout my experience with Viainvest, I found their customer support to be responsive and helpful. Whenever I had a question or needed assistance, I could reach out to their support team via email or live chat. They were quick to respond and provided clear, concise answers to my queries.

Financial Performance and Growth

An important aspect to consider when evaluating an investment platform is its financial performance and growth. In the case of Viainvest, the platform has demonstrated consistent growth in both the number of investors and the volume of loans funded. This indicates a growing interest in the platform and a strong performance in the P2P lending market.

Furthermore, Viainvest is part of a profitable group, the VIA SMS Group, which has been financially stable since its inception. This stability further reinforces the platform’s reliability and attractiveness for investors seeking a secure investment environment.

Tax Reporting

Viainvest also simplifies the tax reporting process for its investors by providing an annual tax report. This report includes all the necessary information for investors to report their earnings to their respective tax authorities, making tax filing a less daunting task. The convenience of having this information readily available is a valuable benefit for many investors.

What I Like About Viainvest

  1. User-friendly interface: Viainvest’s platform is easy to navigate and manage, making the investment process smooth and efficient.
  2. Attractive returns: With average annual returns of around 12%, Viainvest offers competitive returns within the P2P lending market.
  3. Buyback guarantee: Most loans on Viainvest come with a buyback guarantee, providing an additional layer of security for investors.
  4. Auto Invest feature: The platform’s Auto Invest feature simplifies the investment process and allows for easy portfolio management.
  5. Secondary market: The presence of a secondary market provides investors with increased liquidity and flexibility.

What Could be Improved at Viainvest

  1. Limited diversification: Viainvest primarily focuses on short-term consumer loans, which may limit opportunities for diversification across different loan types and industries.
  2. Dependency on loan originators: The buyback guarantee is dependent on the financial stability of the loan originators, which may pose a risk if the originator faces financial difficulties.
  3. Currency risk: As Viainvest operates in multiple European countries, investors may be exposed to currency risk when investing in loans denominated in different currencies.

Alternative Platforms

For investors interested in comparing Viainvest with other P2P lending platforms, here are a few alternatives to consider:

  1. Mintos: Mintos is a leading European P2P lending platform that offers a wide range of investment opportunities, including consumer, business, and real estate loans. With a large number of loan originators and a secondary market, Mintos provides an opportunity for increased diversification and liquidity.
  2. PeerBerry: PeerBerry is another popular P2P lending platform in Europe that focuses on short-term consumer loans. The platform offers competitive returns, a buyback guarantee, and an Auto Invest feature.
  3. Bondora: Bondora is an established P2P lending platform that provides investors with various investment options, including consumer loans and a unique “Go & Grow” feature that allows for simple, low-risk investing with instant liquidity.
  4. Estateguru: For investors looking to diversify into real estate-backed loans, Estateguru is a solid option. The platform offers secured loans with attractive returns and a user-friendly interface.

Conclusion

Taking into account the stability and longevity of Viainvest as part of the VIA SMS Group, the platform’s transparency, and the opportunity for some level of diversification, my experience with Viainvest has been overall positive. While there are some limitations in terms of diversification and dependency on loan originators, Viainvest remains an attractive option for investors looking to explore P2P lending. If you’re considering investing in P2P lending platforms, Viainvest is a solid choice with competitive returns and an easy-to-use interface.

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Jean Galea

Investor | Dad | Global Citizen | Athlete