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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.

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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.

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Income Marketplace is a new player in the FinTech field. Based in Estonia, this crowdlending marketplace offers its investors a platform that’s safe and transparent. Their Cashflow Buffer and diverse Loan Originators make P2P investing look promising.

If you’re interested in this new platform, then keep reading. We’ll be reviewing Income Marketplace in this review to help you decide whether or not it’s right for you.

Income Marketplace Overview

Income Marketplace was founded in 2020. It’s one of Estonia’s newest crowdlending marketplaces that allows you to select and control Loan Originators while using risk management mechanisms like Cashflow Buffers. It’s an interesting way to invest in P2P.

Their CEO, Kimmo Rytkönen has a solid background in FinTech. One of the companies he has helped to build is Tunaiku, the lending arm of recently IPO’d Amar Bank in Indonesia. The whole team also has a proven track record in their field. They have a background in management, fundraising, international finance, consumer lending, and P2P investment.

The company’s goal is to make loan investing more transparent and secure. It’s a place where you can invest in loans to earn passive income effortlessly.

[Read more…]

Fully in-line with the growth of fintech, more and more peer-to-peer platforms are entering the market. As such, knowing which provider is right for your financial goals and attitude to risk can be a challenge.

In this review, I explore the ins and outs of Iuvo Group – a fast-growing fintech platform in the P2P sector. I cover key metrics surrounding how the platform works, what interest yields can be achieved, and how safe your investment capital is.

Iuvo Group- An Overview

Iuvo Group is a peer-to-peer marketplace registered in Estonia but operating primarily from Bulgaria.

Launched in 2016, the platform allows its users to invest in loans offered by financing companies. In turn, these originators benefit from the extra source of funds that will help them further expand their credit-based endeavours.

As is quickly becoming the norm in the P2P space, when you invest via the Iuvo Group platform, your capital will be allocated to its partnered loan originators.

Borrowers make loan applications to these originators. In turn, once they are approved by the respective lending company,  the loan agreement will appear on the Iuvo Group platform. You then have the ability to fund the loan.

At the moment, Iuvo Group has over 23,000 registered investors that have funded more than 150 million euros worth of loans. To date, the platform has also paid out more than 3 million euros in interest.

Below I list the core features offered by Iuvo Group:

• Multi-currency investments in euros, Bulgarian lev, Russian ruble, Polish zloty, or Romanian leu.
• Obtain an average interest rate of between 7% and 12% annually.
• Automated investing based on your financial goals.
• A Buy-back guarantee is available on loans.
• Minimum investment amount of just 10 euros.

Loan Originators

Currently, Iuvo Group collaborates with 12 loan originators – all of which are regulated, non-bank financial institutions. These are primarily operating in European and Asian countries, including Bulgaria, Romania, the Philippines, Latvia, Russia, and Poland.

Iuvo Group provides detailed information regarding each of the leading companies it has partnered with. You will be able to see the activities of each originator, including the type of credit it offers, its license, the value of its portfolio, and whether or not it offers a buy-back guarantee.

This allows you to make informed decisions on which originators you want to invest with. What makes Iuvo Group different from other P2P marketplaces is that its partnered originators are required to put up at least 30% of loan capital themselves. In other words, they have more ‘skin in the game’.

This will ensure that loan originators also have a considerable stake in the loans it issues and thus – will operate with the best interests of investors in mind.

Iuvo Group has set a strict due diligence process for adding new loan originators on the platform. However, you must also know that three of the loan originators on this P2P platform are owned by the same parent company as Iuvo Group  – namely Easy-Credit, iCredit Romania, and Viva Credit.

Loan Types

Loans on Iuvo Group are available both for the long-term and short-term. The duration of loans typically ranges from 14 days to 60 months.

You can find a detailed description of the different loans available on the site, which includes information such as the collateral type, amount, and details regarding the buy-back guarantee.

Note: You will not be able to access the identity of the borrower as with other P2P platforms in Europe. However, you can access the credit score class that will tell you the probability of the borrower defaulting their loan. 

Iuvo Group Secondary Market

Apart from investing in newly issued loans, Iuvo Group also allows you to tap into the secondary marketplace.

For those unaware, secondary markets allow you to sell loans you have already bought. It is up to you to decide whether you want to sell the loan at a discount, premium, or a nominal rate.

Crucially, the secondary market ensures that your investment is liquid. That is to say, you won’t need to wait until the respective loan agreement has matured to receive your capital back. However, like any secondary marketplace in the P2P space – there is no guarantee that you will find a buyer that is willing to take your loan on.

At the other end of the spectrum, the secondary market also gives you the opportunity to invest in discounted loans. This will be the case if a seller is willing to sell their investment at a lower rate, perhaps because they need fast access to cash.

That said, it is important to note that investing via the secondary market also comes at a 1% fee – which is payable by the seller. On the other hand, buyers can access the secondary market commission-free.

Iuvo Group Buy-Back Guarantee

All Iuvo Group loan originators are required to provide a buy-back guarantee for the principal amount. This will protect you in the event of a loan default. That is, if any borrower is unable to pay back the loan, the respective lending company will purchase the loan from you.

The buy-back guarantee on Iuvo Group is activated if the loan is overdue by more than 60 days. Additionally, the buy-back guarantee is applicable only for the principal amount and not the interest. 

It is important to note that the buy-back guarantee is offered by the individual loan originators and not Iuvo Group itself. As such, if the loan company in question went bankrupt, the buy-back guarantee will become null.

As I always explain, this is just the nature of the game in the P2P space – so never become disillusioned that your investment is risk-free. On the contrary, the risks are fully in line with the high interest rates that you target.

The good news, however, is that partnered loan originators at Iuvo Group are properly vetted and have been profitable for several years. This suggests that they are in good standing to fulfill the liabilities of the buy-back guarantee.

Iuvo Group Auto-Invest

Iuvo Group also gives you the option to automate your investment endeavors.

With the ‘Auto Invest’ feature, you can create a portfolio based on any specific criteria you have. For instance, you can define a portfolio based on the credit score class for each loan, interest rates, loan status, and more.

Before you confirm, you can see the number of loans available that match your preferences. This way, you can make sure that your parameters are fully aligned with your financial goals and tolerance for risk. Once you have set your desired parameters, you can activate the portfolio, and the system will go on autopilot mode. 

Meaning, the platform will automatically invest in suitable loans. The process will continue for as long as there are funds available in your account and there are loans that match your criteria. You can also have more than one Auto-Invest portfolio on the platform – perhaps to cover several strategies.

That said, Iuvo Group still gives you unanimous control over your Auto Invest portfolio. You are free to change the criteria, pause it, or cancel it at any given time. However, remember that when you delete an Auto Invest portfolio, you can only delete the criteria and not the investments you have already made.

It is worth noting that you can manually invest on the platform regardless of whether you have the Auto-Invest portfolio set up or not. This means the Auto Invest feature might capitalize the same loans you have already invested in manually.

In order to be eligible for the Auto Invest feature, you need to have a minimum amount in your account. This varies from one currency to another – starting from 400 Russian rubles to 10 euros.

Who can Invest with Iuvo Group?

Iuvo Group investments are open to both individuals and companies.

As an individual investor, you need to fulfill the following requirements:

• Be at least 18 years old.
• Hold a valid bank account in the European Union or a third country that runs an equivalent anti-money laundering program.

You will also need to submit an identification document and contact address.

On the other hand, if you want to invest in Iuvo Group as a legal entity, then there are a few more boxes to tick off.

You must provide:

• Identity information of the representative.
• Documents concerning company registration.
• Contracts that establish the ownership, management, and control of the company.
• Information about the owners, shareholders, and partners who hold over 25% of shares directly or indirectly in the company.

Iuvo Group Fees and Charges

As with the majority of P2P platforms, Iuvo Group also allows you to invest for free in the primary market.

However, as I mentioned earlier, you will have to pay a 1% fee to sell a loan on the secondary market.

Other than this, the platform doesn’t charge you any fees to make deposits or request a withdrawal. Bear in mind that you might still be liable to pay a fee charged by your bank to process your deposit.

Iuvo Group Customer Support

The platform enables you to reach the support team through email, telephone, and various social media platforms. The usual response time via email averages 1-2 days.

Iuvo Group Safety

As with any P2P lending platform, the security of your funds should be your main priority. In this section, I explore how safe your capital is when investing at Iuvo Group.

Regulation and Reputation

Iuvo Group is a part of Management Financial Group, a well-established company providing non-bank financial services in Europe. The firm manages a diverse portfolio of investment models that range from business loans, consumer loans, credit cards, and alternative financial solutions.

Iuvo Group is also registered and regulated by the Estonian Financial Supervision Authority (EFSA). In addition, the company is regularly audited and certified by an independent auditor under the guidelines of International Financial Reporting Standards.

If you need further information regarding the financial standing of Iuvo Group of MFG, you can find detailed reports on its website.

Risks Involved

With P2P investments, the main concern is that the borrower will be unable to pay back the loan in full. If this happens, your investment is, of course, at risk.

This is where the buy-back guarantee comes into play – securing you against such an event.

However, since the buy-back guarantee on Iuvo Group is completely dependent on its partnered loan originators, it will be wise to hedge against the potential risk of default by diversifying your capital as best as possible.

Not only in terms of investing through multiple originators at Iuvo Group – but across several different P2P sites. Iuvo Group is also transparent about how it selects its partnered loan originators and subsequently provides sufficient information on each of them.

However, if any of these originators terminate their relationship with Iuvo Group, they are still obliged to continue providing you with information regarding any current investments you might have with them.

Iuvo Group has a contractual relationship with each lending company, and if any irregularities occur, ‘relevant steps’ will be initiated. However, the provider does not explicitly state what these measures are.

Iuvo Group notes that it will not hesitate to take legal actions against lenders that fail to fulfill its obligations towards investors. Any details regarding such actions can be found in the blog section of the website.

This additionally reinforces that Iuvo Group takes the best efforts in securing the relationship between loan originators and investors. Ultimately, although it appears that the P2P site has several safety nets in place, your money is never 100% safe – so do bear this in mind.

Pros of Investing with Iuvo Group

• Highly diverse loans.
• Attractive interest rates.
• Auto-invest and manual investment options.
• Access to the secondary market.
• Buy-back guarantee on the principal amount.

Cons of Investing with Iuvo Group

• Investment returns are inconsistent across partnered lending companies.
• 1% fee when selling loans on the secondary market.
• Primarily focused on European countries.
• The buy-back guarantee doesn’t cover the interest.

Iuvo Group: The Verdict?

All in all, Iuvo Group appears to be a legitimate marketplace. The platform employs strict verification requirements while selecting loan originators. As such, all lending companies you find on the platform are profitable and according to Iuvo Group – possess healthy balance sheets.

On top of average interest rates of between 7% and 12% – the buy-back guarantee is another aspect that I like. Crucially, the main benefit of investing through Iuvo Group is that you can gain access to the central and eastern European marketplaces – if it is something you want to achieve.

As always, make sure that you do your own due diligence before you start investing on any P2P platform. After all, you must consider how a financial turndown will impact the safety of your capital.

Invest with Iuvo Group