Who is Envestio?
To start with Envestio was a private investment fund from 2014-17 and they started in Estonia. In January 2017 they launched as a public company and so fare they have 16 completed projects and 57 active projects.
If you compare Envestio to other crowdlending companies, Envestio is different. At first glance, they are like other crowdlending companies, you invest in loans that are tied to projects that are featured on the platform, and in exchange, you will get interests on the money that you invested.
With Envestio you invest in business loans with a specific project, and a lot of the projects are really innovative and unique projects. This approach is different from other platforms that typically offer small chunks of consumer loans. Because of that their loans are larger and fewer, but instead, it´s very easy to quickly get a detailed overview of their loans. A few former loans was a cryptocurrency mining, the renovating of a power plant and Renewal of freight containers. A lot of loans on Envistio is also supported by a buyback guarantee for the principal of each loan, this means that you get your invested money back if a loan defaults.
When Envestio first caught my attention they had interest rates between 15-22% but the last period (q4 2018) it has fallen to around 15-17,5% still a high return compared to Mintos. My investments have an average interest rate at around 16% which is still way higher the Mintos, Grupper, fast invest etc. On the bad side they don’t offer you an easy way to get a statement of your annual return, so you have to calculate this yourself. Nevertheless, this is relatively simple to do when you use the Statistics tool to generate returns reports for certain periods.
How does it Work?
When you log in to the platform is easy to navigate and smooth working. Envestio interface is easy to use and understand when you make your first investment.
You start with signing-up, for my part it to 2 days to get my documents verified, my money deposited and ready to invest. When login to your account you will meet your ‘Dashboard’ which shows you the overview of your balance, if you press ‘ My accounts’ you will get a more detail view of your investments.
If you press ‘Investments’ you will get all the available loans. Their loans seam’s very popularly so they are normally funded quite fast, so my experience is that their loan is only available for a short period. I think their platform is very simple and gives you a lot of detailed information on your loans, for me that makes It very transparent what you invest in. I think a lot of other platforms could use some of that info.
How to invest?
It´s as you possible noted, very easy to invest in loans on their platform. Actually, I was a bit surprised when I made my first investment, It doesn't ask you for a confirmation, so once you put in an amount and press ‘Invest’ your money are transferred to the selected loan. I like the details of the loan that gives information on what the money is wanted for, like a real project for a company, and not a quick loan from a person in need of money for spending. You get a lot of information on the loan, repayment schedule, loan information etc, plus if you in the bottom of the page press ‘Go to project page’ you will get a prospect of the loan.
After you press investment and you navigate to ‘projects’ you can see a list of your active investment projects.
What I´m missing is an auto invest function, so as an investor you need to login if you want to be 100% invested all the time. You will get an email from Envestio each time there are new loans on the platform, so you get reminded to invest. You minimum deposit is 100€, but you can invest as little as 1 € per project. It´s also possible to redraw your money fast, but beware that you will pay a penalty of 5% of the invested amount, so if you have invested 1000€, you will only get 950€ back. So compared to a platform as Mintos you can´t sell your loan to other investors with a profit or at 0%. For me, it would only be an option in an emergencies situation.
Envestio is at this moment one of my favorite crowdlending company, Their return is high, they give a lot of information on their projects and for me, it gives a feeling of transparency. When you log in to the platform they have all the basic functions for you to use, this makes using them very easy. On the plus side, they give a high-interest rate, an option to invest as little as 1 € per project, and it´s possible to sell your investments prematurely. On the minus side, it´s not possible to make an auto investment strategy, and there are only a few loans to invest in which means lower diversification opportunities. They have no secondary market to sell your loans, so if you want to sell a loan you pay a penalty.
In my opinion, the plusses by far outnumber the minuses, the biggest risk is that the loan taker can´t repay or Envistio/loan taker goes bankrupt. In those scenarios, legal procedures will start, but you might/might not get your money back. Some loans come with a Secured debt which means that they make legal insurance, like mixed collateral or personal guarantee you can read more on their blog here.
My strategy are to spread my money across different platforms to diversify and minimize my risk and you as an investor should never invest more then you are ready to lose.
Click here to sign up with Envestio and get €5 plus 0.5% bonus on your investments made in the first 270 days
Note: A few images have been edited and details omitted to maintain my anonymity, but all opinions are 100% honest and unbiased.