Envestio review IMPORTANT NEWS 22 January 2020:
Right now Envestios Website is down and there is not much to hear from them at the moment since january 20/21 when they made a news release on Their Blog and Social media accounts about being targeted of both falls news and an attack on their site. I can’t answer on this to be true or not right now. There are many questions about last weeks problems with investors not receiving there withdrawals made since 13 January and overall panic in the P2P area after Kuetzal went under water a month ago. This together with bad communication from Envestios part to the community on what’s going on makes investors panic right now. I would say that the hope for this to be resolved is not lost but it looks bad. Me, you and the community needs to wait and see what’s happening in the weeks to come. Hopfully this is just bad crisis handling together with to much to handle for them at the moment and things might go back to normal. If not, it can mean all these investments are lost since no investment is safe. No one knows at this point so stay tuned. I will update on this with some days apart forward.
The review is from my past experiences up to 19 January when my last interest still was paid out on time as expected and things was working like normal. ( I didn’t try to withdraw money since this time and now the website is down for whatever reason so I’m in the dark as all of you but still hope it’s gonna work itself out for now) You find my review below.
In this Envestio review I will cover all you need to know, and also my experience with this P2P platform. I made my first investment on Envestio in May 2019 after almost 1 year of researching the platform and there projects. After I had been waiting to settle down in my new country I finally got invested. My account is verified with Envestio with all the documents needed so everything is setup and in order for future deposits and withdrawals. The projects listed on Envestio gives around 18.5% interest in average which is a good return on investments.
Envestio was my second step into the P2P & crowdinvesting world.
I’ve had my eyes on Envestio for some time now and I must say it feels like it’s a great marketplace in the jungle of P2P & crowdfunding sites out there. I had been investing on Mintos for some time before with success and when Envestio is having higher interests 12-30% and most of them with some kind of buyback it’s a done deal for me. I will update this Envestio review to keep up with changes they make and important news.
Envestio started out as a private investment fund back in 2014, since then they launched the platform in 2017 that is used today for crowdfunding projects with some of the higher interest rates for the investors compared to other platforms out there.
They have an office in Riga, Estonia that have been getting more and more attention in the world of crowdfunding & P2P platforms.
They research different projects from businesses that apply to be listed on the platform. One good thing here is that they keep away from private loans all together and go for a more ethical approach helping companies instead. This is something I really like about Envestio and hope they never change this view. Until now they have more then 10 000 investors on the platform from many parts of the world.
Envestio profit so far ( Updated 05 January 2020)
Envestio is showing good signs for my investments there. Always on time with payouts and no problems that I can think of.
I have received over € 230,02 in profit after being invested since May 2019.
Interest rate for my portfolio is at 17.1%
Total account balance: € 2230,02 ( updated 05.01.2020 )
Projects I have invested in on Envestio
I’m currently invested in 3 projects on Envestio. These are: Materials for the construction of roads and technical salt, tier 1 at 19%. Financing of refurbishment of hostel– Mezaparks, tier 2 at 19% and Development of a large dolomite deposit-tier 2 at 17.5%. All of them pays out the interest on time so I can’t ask for an easier investment 🙂
My first loan I funded on Envestio was to a project called Production of Sawn Timber – part 6 that was launched at Envestio 8 May 2019. This loan was for 7 months and came with 16.75% interest. It was repaid each month on time and I received the principal back in December 2019. It was good to see that things went like it should and without any delays at all.
Here is some information on that project:
Down below you can see print screen with an example of repayment schedule of the investment in this project. One good thing is that they have good descriptions on every project with plenty of information.
Who can invest on Envestio?
Everyone that’s over 18 years old and have bank account in EU is eligible to be an investor at Envestio. Companies can invest here also but like most of the platforms out there, this will require more paperwork then for private persons. They can accept people from outside to but then you will have to contact them.
High interest earnings.
Envestio give out high interests on the projects that they let us investors get involved in. The rates is between 12% and up to staggering 30% if we check back in time. Lately it has been around 15-23% depending on the project, averaging around 18.5%.
So I think a reasonable take on what you can expect if you invest in a project at Envestio is between 15-20%. When this is compared to other P2P platforms this is really good.
You can find some platforms giving the same percentages but usually you invest in other currencies than Euro which I try to avoid. And if there is no Buyback guarantee I don’t invest there even if they give you more in return. For me that’s a risk not worth taking.
Is there many projects to invest in?
They usually list 3 to 10 projects every month on Envestio, these all Business related. You will not find the typical P2P loans to private persons here like consumer loans & car loans. This is a good choice if you don’t like private loans that many other platforms have.
Here you get to invest in sectors like Mining, Industry, Energy, Food and others. They even have Crypto mining projects which sounds like the least attractive alternative right now for me atleast.
The size of the funding the projects need can be from EUR 100 000 to 900 000, so there is room for plenty of investors to the projects listed. From an investors point of view, you can invest down to only 1 Euro per project.
The projects gets funded quick
Lately because they have been growing much, the projects can be funded within 1 hour after they release them. This means that you will have to be fast if you’re going to jump in to a new project.
They email all investors when new projects is listed so that’s a nice touch, but I would like to get some days notice before and hope they will add this in the future.
The track record is getting better and better for Envestio
They have over 65 completed projects and currently over 30 projects that’s funded and making investors interest every month. Having most of the loans at under 1 year periods is something I also like.
A good thing here is that not one project have been defaulted since they started. So it looks like they do good research on the businesses they end up listing projects for.
Like they call it Repurchase guarantee. It’s different than other platforms buyback feature.
This will the projects list information about so you can decide from there. This can be more or less, so always check it out. Like most investments don’t invest money you can’t afford to spare.
The other part of this Buyback feature is that they do something else if and when the loans Default.
If a project goes bad they will refund 80% of the principal to you. After that there is two options to pick from as an investor.
- You take back additional 10% they give you and move on to the next project. This giving you back 90% of the invested money.
- You let Envestio and the legal entities try and get all the money back from the failed project. This can take long time, but you might get everything back.
Sell your loan back to envestio
This will also let you sell back the loan to Envestio at any given time before the loan is finished. They have a fee connected to this, it’s usually 5% of the invested capital. At Least 95% of the capital is safe if you need a fast exit for some reason. You can see how it looks in the picture below and I will explain it.
Here you will see your invested amount that you started with in the project, stated “Investment sell: €1000″ Even if you have gotten interest paid out already it will not show on this page since it’s your money now.
Losses due to premature selling: €8.26 is the interest accumulated in this monthly period that you will lose if you sell before it pays out the date that is stated for your projects interest payout.
Penalty for sold investment: €50 from the original investment made. It’s the Fee of 5% that’s the normal amount on almost every project there if you want a fast exit.
Returned amount: €950 is the amount you will get back if you decide to sell which is 95% of the capital you invested from start. + you get to keep the interest accumulated until the last month you had interest paid out of course.
Risks and my opinion on this buyback / selling option on Envestio.
*This saftynet and the buyback which can trigger in if a project fails is only as good as the liquidity of Envestio. There is no guarantee they can uphold this if there would be many projects to fail at the same time or if there would be a mass withdrawal from investors in a short period.
*I recommend not to sell your loans since the projects normally is only up to 1 year and if you made an investment there should be no need to make a quick exit. You should only invest money you can be without and also in the timeframe you see before investing.
*There is also a risk like with all investments that you one day lose it all if something goes wrong.
Envestio finally launched there auto invest option in July 2019. The whole community have been waiting for this to happen. Since every time they launch a new investment opportunity it fills up fast this can help for those waiting to invest to not miss out.
The minimum investment in the auto invest feature is at 100 euro and up to work. ( In my opinion this limit should be much lower, say around 10-20 Euros )
You can set your own criteria so you only invest in the loans and a specific category you want easy. You decide what loan types, the limit of the portfolio, also the amount in each loan. Set what percentage your looking for and also the length of the projects. So it’s rather straightforward to get it set up like the picture below:
What can you invest in on Envestio?
On Envestio they have a team that works together with the companies that applies to be listed on their platform to get funding. If they pass the requirements set by Envestio they will get a green light.
Here you don’t invest in private loans like on Mintos and Grupeer. Here it’s only to entrepreneurs & companies that have different projects going on.
They have 5 different categories on the platform for the projects listed to seperate to be more easy to search for what your interested in.
There is: Other, Real estate, Energy, Crypto mining and Production and Trade.
This category is more a mix of everything else. Here they put many things I think should be under the Product and trade category. You can find projects like Import of construction materials and furniture, production for wood pallets, production for sawn timber, fruits factoring and many other things.
The real estate projects listed at Envestio is usually projects from Latvia. It can be projects for both private and commercial buildings. I have seen projects to build Street markets, Hotel/hostels and bigger facilities for both apartments and shops. These projects are usually big and gives good interest for the investors.
This category is something that I think have good value. The projects under this can be everything from investing in Wind turbine farms, Power Plants and Oil production.
It’s nice to see they promote projects like Wind turbines with green energy in focus. Now we need to see more improvements in that area for the future so we can step away from using so much Oil and these things.
They have some companies that build big crypto farms for mining different cryptocurrencies. It was much of this type of projects one year ago but now it’s not so often I see new projects for this.
In my opinion it’s the most risky category they have since it’s not yet a perfect system and the value can change fast like we have seen before.
Production and Trade
This category I can’t say so much about since they have never posted a project under this. So like I said in the “other” category, there are many projects that should fit under this one but I don’t know why they post most of them under Other and don’t use this one when they have it.
Envestio doesn’t have any secondary market available today. It’s stated that it will be added in the future but without any timeframe. We just need to wait and see when this happens
What are the risks on Envestio?
In this Envestio review we need to talk about the main risks around investing in projects at Envestio. I would say there is two main riskt if we dont think about late payments or the risk of a new bank crisis in the world, since then almost everyone will have problems.
The first being if Envestio go bankrupt. The good thing here is that if this happens your investment should still be safe. Since your claims to the borrower is still intact and will be handled by a third party. Usually this would be a debt collector that takes over and handle this in Estonia where they are registered and operate.
The second would be if the projects default and the borrower can’t fulfill the payments of the loan. In this case there is also an extra layer of protection from Envestios part, the Buyback guarantee. They will buy the investment back to you minus the fees they have for this that we talked about in the Buyback section further up in this Envestio review.
The list could go on forever if we think al P2P and crowdfunding platforms. I will list some of them here for you to have a look at Crowdestate, Crowdestor, Grupeer, Mintos, Estateguru & Bulkestate is some of them.
Envestio customer support
Envestio support is doing an okay job in my opinion. I have been emailing them maybe around 10 times with different questions and they usually answer in 1-2 working days. They offer a live chat also but that one haven’t been online the times I have been in need to contact them. I have heard that they are going to expand their team in the future so it might help them to be even faster with responses now when they have gained much attraction.
Setting up your account
I would recommend registering through this link because it is an affiliate link where you will get an extra 5 Euros on the first deposit + 0.5% extra return on your investments made within first 270 days (9 months). In the long run it will add up to quit good extra money for free. This extra return will be paid out directly to your account.
I must say it’s easy to create an account at Envestio. Simply write in your email and personal info, and done! You have an account.
You will need to send in ID, proof of address & bank statement because you are dealing with EU financial laws. I think it’s a good thing and it makes it more secure.
All the documents are for security reasons, so if you only want to start an account and look around, you can wait until a later date. BUT, better to have this in order so you have less work the day you need to withdraw the money!
Account and Deposit fees on Envestio
The minimum deposit is 100 EURO and there are no fees for deposits or to open an account. If you use bank transfer, you will of course be liable for the bank fees. But that’s normal when you send money to other countries.
The good thing is that you can invest as litle as 1 Euro per project if needed. So you will find it easy to reinvest the interest you get monthly even if its low numbers.
I would just point out that you should only send EUROS to avoid any exchange fees.
Withdraw money from Envestio
Another good thing is that Envestio don’t have any fees connected to withdrawing money in normal cases. Like you see in the screenshot on top here where the fees are stated it’s only if you withdraw less than €5. This is understandable since there should be no reason to withdraw that small of an amount.
It is also very important to note that if someone tries to hack your account and transfer money to themselves, the transaction would stop automatically as funds can only be transfered to the account holder’s name, so that’s a relief.
Envestio Website layout and usability
From the first time I took a look around on Envestio in 2018 the website has changed for the better. They do updates on the platform once in awhile and introduces new features on the way. Latest was the Auto invest feature that was much appreciated by the community.
It’s easy to navigate on the site since it’s rather simple and straightforward I have to add. You can only choose between English or German language right now on the site. Since the platform is from Estonia I don’t know why they skipped out on the option for their own language where P2P is a big thing. Most of us know English so it’s no big deal from my point of view but it’s just a thought.
You can easily access new projects to invest in or just check up on your own invested capital.
They have a statistics page where you can download all the information on your investments and payouts made for the period you choose. This can come handy for tax purposes and overall control.
On their FAQ section most questions will be answered and if that’s no help they have email, chat and telephone support.
How much should I invest at Envestio?
I get this question many times from people I talk to. The big question on how much should you invest for it to be worth it. Most people say that you need to have much money to start but that’s wrong in my opinion. Just never invest money you can’t afford to take a risk with like any other investment you make.
I mean of course the more you invest the bigger the payouts will be it’s obvious. But even if you invest €100 or €1 000 000 the percentages is still the same for the interest you will get.
We have to start somewhere so if you start with a small amount it will still grow more than in your bank account so don’t let that stop you. Since they have minimum deposit at €100 and that the platform lets you invest down to only €1 in a project this makes it good for small and big investments.
My goal for investing at Envestio
My aim is to achieve a solid return of over 15% on investments made at Envestio per year. At that rate I would be happy and everything over would be a huge plus for me. Since they have higher average on the interest for the investors this should work fine.
Pros at Envestio
|High interest projects towards companies.|
|Easy and understandable site.|
|Shorter term projects available, from 4 months to under 1 year.|
|Good reviews on Trustpilot|
|Repurchase-guarantee on most of the projects. ( 1. If you want a quick exit you can sell the loan back to Envestio for a Fee. 2. If a project fails, Guaranteed 90% back within 2 days or you can let Envestio do their legal work with creditors in Estonia. In this case you should recover the full 100% if you have the time to wait. )|
Cons at Envestio
|Shorter history to go on, so you must do more investigation about the projects.|
|Not so many projects / loans compared to the bigger and older P2P sites like Mintos.|
When you login to Envestio your at the dashboard on the first page. Here you can see the account balance. The site is easy to navigate in so most people should do it without a problem. Here you see what you have invested, how much you have earned and what’s free to use.
On the right side you have the repayment schedule for all your investments listed like the picture below.
For more information on the investments you have done you go to Investments at the top of the site, then My investments for a quick overview. There it shows the interest made from each project this month and some other info like interest and status.
You can also click on view for more information on the loan or if you want to sell the loan and cash out faster. You will see how far the loan have been going and time left until it’s finished. Investment details shows what you have invested and accrued interest for this month before it gets paid out and start over after next payment again. loan details is general information on the loan and term and percentages of the interest. Like you see in the picture here.
Envestio affiliate program for investors
At Envestio they offer a good affiliate program for those who’s invested. This is one of the better once compared to other P2P platforms I have to say. Everyone that has an account on Envestio can take part of this as long you follow the rules.
Both you and the person that signs up through a referral link will get €5 after they have made the first deposit of €100 or more. This will be paid out within 24h after the funds is registered on Envestio.
After that we have the second part, there will be a timespan bonus that is active for 270 days. For the one that gets referred they are going to get 0.5% extra back on all investments made in this period.
The one that is inviting a new investor to the platform will get 2.5% extra cash back for the same period of 270 days from the new participants investments. There isn’t many platforms that gives this much from what I have found out.
It’s also a long time compared to other platforms that usually have this active for 1 to 3 months. Envestio offers 9 months so maybe other platforms should follow their strategy.
What can improve on Envestio?
There is always room for improvements on every platform. For Envestios part I think there are a few things I would like to see in the future.
First, if they add a secondary market where we can buy & sell the loans with the same cost, with a discount or premium. This would give the investors a chance to sell loans without paying the 5% fee when selling it back to Envestio that is the only option today.
Second, they can make a better detailed statistical information on the loans and payouts made. Today you can download it from the platform for the periods you want to a Word document. It’s a rather straightforward document but it can be improved.
Third, I would like to see more statistics on the borrower for the projects. Don’t get me wrong they post rather much information already. But I would like to see how their financial status is and if they have loans from before that is getting paid on time or not. With this it would be more easy to calculate the risks involved and also help out with transparency.
My opinion on Envestio
When it comes to P2P lending and Envestio I have to say it’s one of my favorite platforms.
The site is easy to navigate, the interest rates are high and payments comes as planned. The track record for projects at Envestio is good and no project have ever defaulted until now. So in my view it’s a good choice for my portfolio.
There are some things that I would like to see get better. Like I said before in this Envestio review, the auto invest should have a lower minimum limit. They need to get a secondary market so you can use that instead of the penalty fee for a quick exit if needed.
And more projects to be listed each month of course, cant get enough of that 🙂
I hope this Envestio review is helpful and if there is anything just write a comment and I will come back to you.