Envestio Review

First of all, I would like everyone to know that this is an 100% impartial and unbiased review of Envestio.

What is Envestio?

Based in Tallinn, Estonia, Envestio started as a private investment fund in 2014 and now is a crowdfunding platform, which offers new ways of making investments in traditional and innovative investment projects. Envestio offers investment opportunities in business loans and some development projects, which were carefully chosen from many applications and thoroughly studied by Envestio analytical team. Envestio takes care of the transparent fundraising process and ensures honest and unbiased information exchange between all participants of every investment project. The minimum investment in a single loan is only €1 but the minimum funding deposit is €100 and all loans are listed in EUR.

Envestio Home

Loans

Loans on Envestio consist of projects from renewal of freight containers and real estate developments to crypto-mining farm building. The period of the loans start from just 3 and can be as loan as 24 months. They provide plenty of information and it’s nice to put an actual business before the loan. You also get a nice summary of the project along with a long project description.

Envestio Loan Information

Rates

Rates on Envestio start from 15% and can be as high as 23% for some crypto-mining projects. The average interest rate is over 18.5%!

Envestio Active Projects

Loan liquidity

Envestio regularly adds large projects and will notify you with an email before they do but they are funded pretty quickly.

Buyback Guarantee

Envestio doesn’t offer a traditional buyback guarantee but all loans are “secured debt” meaning that 90% of the capital is secured.

Here is an example on Envestio’s Website:

  • You invest EUR 1000 in a project that closes on November 30, 2018. The project assumes monthly interest payments.
  • At any moment before 31/11/2018, it is possible to sell back the investment share to Envestio with 5% fee charge, i.e. for EUR 950. All interest payments, which are already received, remain in your possession.
  • In case the borrower does not repay the principal after 31/11/2018 the event of technical default takes place. After that, the borrower still has 5 working days to settle the debt without legal proceedings. If this is not done, then the delay turns into standard default and Envestio, with a support of a leading Estonian debt collector agency, starts a legal process against the borrower, including execution of all guarantees that were provided.
  • You, who invested EUR 1000 in a secured debt project, get back 80% of the investment principal, which is EUR 800, on the next working day after the event of standard default has taken place. For the remaining 20% there is a choice: instantly get back half of this amount or wait until the debt is recovered from the borrower. As a result, at least 90% of the investment is fully secured.

Auto-invest

Envestio does not offer the option of auto-invest but this is not a real issue since projects are limited and quite large. Also, you will get a notification email when projects are about to be available.

Risks

Since Envestios’ “principal repurchase guarantee” covers 90% of the principal, if you wish not to wait for the recovery, the maximum amount you will lose is 10% of the investment or 20% if you decide to go along the recovery process and there is no collection of funds. So the risk is whether Envestio will have the available cash to buy back your share of the loan. It is also important to not that Envestio has an excellent track record and it seems that they can choose their projects carefully since not a singe loan has ever defaulted. Pretty impressive, huh? For more information about the risks from peer-to-peer lending activities please the “What Is Peer-to-Peer Lending” article.

Secondary Market

There is no Secondary Market, however, you can sell your loan back to Envestio at any time before the due date with a 5% penalty.

Fees

The only fee that Envestio charges is for withdrawals for less than €5 which is €2. For withdrawals of €5 and more, it’s free of charge. Also, there is a 5% penalty if you wish to sell the loan back to Envestio before maturity.

Envestio Sign Up Process

The sign up process is pretty simple. You can click here (by doing that you will also earn 5 €+0.5% additional cashback for the first 270 days) and go through the steps as they are on the screenshots below.  It just asks for some general information and you don’t have to upload any documents until the moment you wish to make a withdraw.  The entire process is pretty fast and it only takes a couple of minutes.

Envestio’s Competitors

Envestio’s main competitors are CrowdEstor, Kuetzal, October, also, CrowdEstate, EstateGuru, BulkEstate and Grupeer.

Envestio Review – Conclusion

Envestio offers a very attractive platform, granted, they don’t have a secondary market and the traditional buyback guarantee but you can sell the loan back to Envestio and the yields are pretty high, the projects listed are pretty interesting and innovative and they have an excellent track record with no defaulted loans so far. Overall, I would recommend Envestio for a small part of your crowdlending portfolio to have some exposure to higher yield loans. I also like that it gives you the investments repayment schedule as shown below.

Envestio May 2019 Overview

Bonus:

As I said earlier, this is an 100% impartial and unbiased review of Envestio. However, if you would like to invest through Envestio I would appreciate it if you could use my referral link which gives you an exclusive 0.5% cashback from each investment made during the first 270 days plus a €5 for your first investment of more than €100.

If you would like to add something about Envestio or share you personal experience please leave your comments below.

Until Next Time,

Peter

5 Replies to “Envestio Review”

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