This interview took place on the 3rd of May 2019 with Simona Vaitkune, the CEO of Fast Invest.
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Why should we choose Fast Invest over other crowdlending platforms?
One of the main features of P2P that appeals to new starters over other forms of investment is that it’s easy to start small. With many of the P2P platforms, you can begin your portfolio with minimum funds.
For example, with Fast Invest you can start from as little as €1 – which means that you can test the water before you jump in. Of course, starting with a single Euro isn’t going to make you rich, or even be a particularly good way to take stock of your potential for return, but it does allow you to play with the platform.
While there is some risk involved, with the possibility of borrowers defaulting on payments, this can be reduced by diversifying your investments. As well Fast Invest offers one of a kind MoneyBack Guarantee (you can stop investing any time should your circumstances change – we will buy back your investment within one day) together with the leading BuyBack Guarantee (if the borrower you’ve invested in fails to make a payment, loan originators will cover that deficit in three days, meaning that you’re never left out of pockets) in the market.
What is the average interest rate of your investors?
70% of the investors gain at least 12% returns annually. The minimum interest rate that is offered through our platform is 9%, and the maximum that we’ve had is 16%.
Could Brexit affect your investors in some way?
No, we have very little number of investors from UK and no loan originators there, so it won’t affect us in any way. It depends on the regulations that the UK will implement after the Brexit.
At the moment our main markets are continental EU countries, and we will make sure to provide the service for them. Because of political instability, we are waiting for the government’s decisions, and we will adjust accordingly.
We have plans even for the worst case scenario, and therefore we are ready to face the challenges that may be in place after the Brexit.
What percentage of loans default?
Depending on the loan originator, about 10-15% of loans published on our platform default and get covered with the BuyBack Guarantee in 3 days – if the borrower you’ve invested in fails to make a payment, loan originators will cover that deficit in three days, meaning that our investors are never left out of pockets.
If we had a more extended BuyBack period, the default rate would be even lower, since the borrowers may repay the loans after the 3-day delay.
What would happen if Fast Invest goes on bankrupt?
If we go bankrupt, which is unlikely since we have been in profit over the last years, our investors should still receive the repayments from the loan originators since we have the assignment agreements with them and our bankruptcy does not free the borrower or the loan originator from the obligations to our investors.
What is your borrower selection process?
We do not select the borrowers. Their creditworthiness is being assessed by the loan originators who have to go through the in-depth due diligence and KYC process with our compliance. We evaluate their performance in the last years, and we choose them very carefully. It is the lengthiest and the most challenging process in the company. Recently, we had a lack of loans to invest in, but we still did not accept the loan originators who did not live up to our standards. We prefer to offer the fewer amount of loans than we are capable of funding as long as the returns are high, the BuyBack is fast, and the loan originator is trustworthy.
How many workers does your company have?
FAST INVEST is expanding, and we are looking for keen and talented professionals. Our team holds 25 experts in a variety of different business areas.
What are your goals in the short and in the long term?
We want to be a modern and innovative platform, that provides the easiest ways for the people to invest and to be able to do it from any device comfortably. For this reason, we are working on developing a mobile app.
In the long term, we want to become the go-to platform for individuals who are starting to dip their toes in the investment world. To offer the safest and most reliable platform with enough investment opportunities for every interested person since we consider that this should be a standard way of how people save their money and grow their wealth.
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