This interview took place on the 21st of March 2019 with Alesia Nikalaichyk, the Senior Account Manager of Envestio.
If you are not still using Envestio crowdlending platform, check out my unbiased Envestio review. Sign up through my affiliate link to receive a 5€ first-time bonus (if you invest more than 100€) plus an extra 0.5% of cashback during the first 9 months.
Why should we choose Envestio over other crowdlending platforms?
We’re a modern market player (the platform was launched in 2018), growing steadily in the market of crowd investments. We do not work with personal payday loans, which in many cases have only negative consequences for the economy. Instead we provide financing for real business ventures that provide working places and source of income for a number of people in Eastern Europe. During the year 2019 we plan to offer our investors an opportunity to invest also in several equity-type projects from the sphere of green energy, pollution-free transportation, and healthy lifestyle.
What is the average interest rate of your investors?
What particularly distinguishes us is that we offer higher than average returns on investments in the market, the average interest rate of the already presented projects is 18.77%.
Could Brexit affect your investors in some way?
We are mostly focused on EU residents and projects, so Brexit should not influence us much. The UK investors receive their funds and interest earned in full and it’s their responsibility to declare the income earned in the UK.
What percentage of loans default?
So far, we have a 0% default rate and will do our best to maintain it further.
What would happen if the company goes on bankrupt?
The trilateral agreements electronically signed between Envestio, borrowers and investors will remain in force and will be transferred to a debt collection agency in Estonia. You may read more about various scenarios of default in this post.
What is your borrower selection process?
We evaluate each investment project from different perspectives, which are essential for getting an insight into the venture, main of which are business, financial, legal, and reputational aspects. Prior to publishing the project at Envestio portal, its owner must prove that the business concept or idea is clear and stable, financial flows, contracts, and timeline are transparent and reliable, local legislation is observed, all necessary approvals are in place, etc. Last but not least is the reputation of the business and its owner. Also we make sure that we obtain sufficient guarantees/pledged assets from a borrower, to be able to recover the funds in case a project default may happen.
How many workers does your company have?
Our team is currently rather small, you may get to know us here. We are trying to be as efficient as possible and outsource a lot of services (IT, legal, accounting services and so on).
What are your goals in the short and in the long term?
The main goals for 2019 are to grow our pool of investors (ideally obtaining 10,000 registered users by the end of the year) and to maintain a zero project default rate. Also we are planning to further develop Envestio website by offering new investment and reporting tools, including an auto-invest function and a secondary market for buying and selling active investments to other investors. Of course, we are also going to publish a number of high-yielding investment projects, both from already known and completely new investment project owners.
Any question? Already using Envestio? Do not hesitate in asking your doubts or sharing your personal experience in the comment section below.