Envestio is an Estonian peer to peer lending company that was founded in December 2017. They only offer business loans protected by a buyback guarantee that may differ on a per project basis.
Why is Envestio different?
Unlike other peer to peer lending platforms, Envestio aims to be different by issuing business loans to companies that add real value to the economy. Many entrepreneurs face difficulties finding funding for their projects, and this is exactly where this new Estonian platform steps in.
We’ve seen several projects where the funding is used for wind turbines, oil industry, power plants, urban mining, biomass fuel, and so on.
As an investor, you support entrepreneurship and more importantly you want to contribute to society and making the world a better place. If you ever felt like you were taking advantage of people on other peer to peer lending platforms offering consumer loans such as Mintos or Bondora, then you will find yourself at home at Envestio.
However, investing at Envestio doesn’t entirely come without risk, there may be a small penalty of roughly 5% to 10% in the buyback or default guarantee depending on the project your investing in. Since the peer to peer lending company has been only very recently founded in 2018, they don’t have a track record. But it’s worth knowing we haven’t seen any late loans or defaults yet.
Excellent interest rates of more than 16%, nowhere else to be found.
Buyback guarantee: Defaulting loans will be purchased back.
Experienced verifiable team.
Support responds to e-mails quickly.
Founded recently in 2018
No auto investment features available.
Depending on the tax rates in your country, it is very important to check the payment schedules.
You may want to avoid the ‘interest only’ amortized loans at Envestio. These loans pay back the accumulated interest first and then return the principal at the end in one big balloon payment. But like in most countries, you most likely pay tax on that interest first, as losses cannot be deducted from your tax liability.
This means that if one of these loans defaults the first 4-6 months, you will lose 5% of your principal as part of the penalty in the buyback guarantee. At the end of the fiscal year, you you will be left with a tax liability and still end up break even.
There are also plenty of fully amortized loans available, which is more favorable.
Overall, their website is quite simple to use and doesn’t contain to any unnecessary features.
The dashboard gives you a quick overview from the things that are the most important when you log in: the account balance and the repayment schedule. Sadly enough there is no way of seeing if any loans are running late, which is quite important.
The ‘My Accounts’ page shows you again your account balance with a few extra buttons to deposit or withdraw funds. The user interface could definitely use an improvement, but it’s plain simple to use.
On the right we have ‘History of operations’, or simply your account statement. Unfortunately there doesn’t seem a way to export this to a Excel document.
In the ‘Active Investments’ tab of the ‘Investments’ screen, you will find projects that need funding. At the time of writing the article, there were no projects available, but overall I prefer the ‘Projects’ screen for this, as it’s nicer with a few pictures.
The ‘My Investments’ tab of the ‘Investments’ page will show you your active investments and your accrued interest for that specific project. You are also able to view the loan’s status.
The ‘Statistics’ page has two simple charts that are controlled by a date range input field.
Clicking the ‘Projects’ link at the top of the screen in the white area will bring you to the ‘Active Projects’ page, which lists the projects that are being funded and currently being paid back. I really like how they use cards to display the investment opportunities. Although you may want to turn to the ‘Active Investments’ page if you prefer a table with filters.