An Envestio review after 6 months of use

Envestio is a crowd investing platform based in Estonia. It offers investing opportunities from a wide range of industry sectors. The investments have a yearly interest rate between 12% and 22%.

Envestio is a crowd investing platform based in Estonia. It offers investing opportunities from a wide range of industry sectors. The investments offered have a yearly interest rate between 12% and 22%.

Envestio just decided in January 2020 to delete their website and leave. The Estonian police is apparently investigating them. Given this recent turn of events, I’ve decided to stop investing in Envestio loans. (A bit too late, but hey, you learn from your mistakes)

Platform highlights

  • Launched: December 2017
  • Terminated: January 2020
  • Headquarters: Estonia
  •  Loan types: Business Loans
  • Loan terms: up to 1 year
  • Loans funded: 33 million EUR
  • Investors: 14000
  • Interest rates: 12-22%
  • Fees: no fees
  • Minimum investment: 1 EUR
  • Currency: EUR
  • Secondary market: no
  • Auto-invest: yes
  • Buyback guarantee: yes
  • Accepts investors from: EEA countries, Switzerland

How does Envestio work

Envestio started as a private investment fund and switched to crowd investing in December 2017. They’re relatively new on the market, and they only funded their first project in February 2018.

There are 2 types of loans offered to investors:

  • secured debt, meaning the loans are secured by either company assets, mortgage or personal guarantees
  • subordinated debt, meaning that while the loan was approved by Envestio, there’s no additional collateral attached to it

Investors fund these loans and start receiving payments every month. The payment schedule is available on every project’s page or on the investor’s dashboard.

There is no secondary market, but Envestio has a repurchase guarantee and investors can sell back their investment to Envestio before the loan matures, with a 5% fee.

If the loan defaults, meaning it is late with the payment by more than 5 days, Envestio also has a buyback guarantee. The investors receive 80% of their investment back from Envestio’s provision fund immediately. For the rest of 20%, the investors have 2 choices: either receive instantly half of it or wait for the debt collection procedure to finalize and receive the full amount.

Becoming an investor

You can join Envestio from anywhere in the world. After registration, you can fund your account by either credit card or bank transfer.

If your primary bank account’s currency is not EUR and you want to cut some currency conversion fees you can always use Transferwise or Revolut. I personally use Revolut because it has slightly better rates than Transferwise (and slightly more negative feedback, but that doesn’t bother me).

Platform experience

The user interface is rather ambitious, with filtering based on various criteria, sorting, paging of the results. The problem is that so far there are only 2-3 projects active at a time, so the interface looks a bit over-engineered. This being a new platform there might be more projects in the future though.

envestio available loans

You can view more details about the investment on its own page. The details include details about the borrower, payment schedule, loan purpose.

Each project has also a nice presentation page describing the company, the purpose of the loan and how they intend to use the loan. This is helpful because you can research those company outside of Envestio platform and get a second opinion about the company health, other loans, etc.

Envestio recently added an auto-invest tool, letting you invest in the upcoming projects with a minimum of 100 EUR.

There is no secondary market either, so it’s a bit harder to exit your investment than other platforms like Mintos or Viventor. However, Envestio lets you sell your investment back to them, with a 5% fee.

Why invest here – 3 reason I love Envestio

Buyback Guarantee

In case of borrower default, you can get instantly back 90% of your invested funds. Or get instantly 80%, and then wait for the debt collection procedure to finalise and get the full amount.

Ethical Investment Projects

Envestio approaches its investment projects from an ethical perspective. The projects they fund help build businesses and infrastructure and help create stable jobs.

Good returns

The returns are between 12% and 22% yearly. Each investment project has a payment schedule visible to all investors. Additionally, each investor can view the published annual financial statements of the companies they invested in.

The projects offered range from real estate to energy sector to crypto mining sector. Each project has a page explaining the details of the business model and why it needs that specific amount of funding.  The interest rate offered varies depending on the loan term and the risk category (real estate projects would carry a lower risk than crypto mining ones).

My portfolio

  • Last update: October 2019
  • Started Investing: November 18th, 2018
  • Current value: 970 EUR
  • Profit: 141 EUR
  • Average interest rate: 18%

Envestio has been the best performing platform for me so far. I’ve added most of my funds at the beginning of the year and projects were pouring in at the time. All payments have come in time and I also have a few loans that matured and were paid in time.

Recently, it’s been hard for me to invest because Envestio has become so popular that loans are funded sometimes in less than 5 minutes.

Conclusions on Envestio

Envestio is a good option if you need to diversify your portfolio of online investments.

The interest rates are great, and the repurchase guarantee offered by Envestio, even with the 5% fee, offers an additional security cushion in case you want to free up your funds early.

The buyback guarantee offers peace of mind in case of borrower default, and it minimizes the risks for the investors. It’s one of the few p2p lending platforms offering high returns and also a buyback guarantee.

The projects you invest in help creating stable jobs and bring value to the economy. So, there’s that. It’s a good alternative to p2p lending platforms that offer payday loans if you have an ethical problem with that (I do).

I don’t like the fact that there’s no constant flow of projects available and lately, my funds sit idle without knowing when there’s going to be a new project. I would like it very much if Envestio had a feature similar to the one Crowdestor offers, telling potential investors that a new project will be available in 7 days.