Dudas inversores [Envestio responde]

Envestio es una plataforma de crowdlending de Estonia fundada en 2014 enfocada en la financiación de proyectos innovadores en energía, inmobiliario y minería de criptomonedas. En los últimos meses, la plataforma ha incorporado interesantes proyectos de descuento de pagarés al 21% de interés anual.

Hemos planteado algunas dudas al equipo de Envestio a título personal dado que ofrecen unos altos tipos de interés (22%) y queríamos entender (i) los motivos qué expliquen porqué los intereses son tan altos, (ii) el tipo de empresa que acude a solicitar financiación (iii) la due diligence que hacen antes de aprobar una operación y (iv) las garantías que dichas empresas aportan. Amablemente nos han respondido y queremos compartirlas.



1.- What is Envestio?
Started as a private investment fund, now Envestio is a modern crowdinvesting platform, which offers new ways of making investments in traditional and innovative investment projects. Envestio offers investors premium level investment opportunities, which were carefully chosen from many applications and thoroughly studied by Envestio analytical team. Entrepreneurs from different industries can apply for structured financing at Envestio platform and quickly receive it from the pool of registered private investors. Envestio takes care of the transparent full-cycled fundraising process, and ensures honest and unbiased information exchange between all participants of every investment project. You may check the background of founders and team here.


2.- What type of companies come to you and why?
It is a common knowledge that many p2p lending companies emerged on a basis of “payday loan” businesses, which mainly concentrate on issuing small unsecured loans to private persons. Envestio never operated in this industry, consequently, our business idea was quite different from the very beginning as we decided to focus on providing financing to real businesses, which create added value to the economy. Real estate, energy, urban mining, even blockchain/crypto-mining – companies from these industries operate via real assets and create real jobs. Those can be properly analyzed prior to issuing a loan, thus decreasing the ambiguity, and provide investors with a certain level of confidence.

Currently, we are concentrating in the field of providing bridge financing/equity replacement loans to the owners of investment projects, so companies is need for bridge financing/equity replacement loans are presented at Envestio platform. There is a good market for such type of financing and businesses are able to cover higher interest expenses, as platform-provided loan constitutes only a certain portion (usually up to 40%, often around 25%) of total financing, attracted to the project.


3.- Why so high rates?
As it has been previously mentioned, Envestio works in the field of providing bridge financing/equity replacement loans, which constitute a relatively small portion of the total financing, attracted to the specific project, so total interest rate burden for the project is much lower than Envestio’s rate. We do not completely finance big projects at the current stage of operations.

Another option is a short-term addition to working capital, which allows completion of an additional business cycle resulting in high incremental profit, bearing in mind that the fixed costs of the company still remain the same.


4.- What due diligence does Envestio do?
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. Being more flexible than traditional commercial banks do not mean that Envestio uses a more shallow approach in evaluating the submitted projects; actually, in many cases, our criteria list is even more strict.


5.- What pledges does Envestio take and what happens in case of delay / default?
We have mixed company assets under pledge and personal guarantees from the beneficial owners (for the amount of the loan). The assets are pledged separately from banks and other lenders. You may find more about the procedure here.


Si tenéis alguna duda, Envestio se ha dado de alta en el foro y se han mostrado encantados de participar.

Gracias Admin por la info ...

slds

Dear Sirs,

Thank you all for coming to this blog page and expressing your interest in our platform.
We are here to help you and answer your questions.

Kind regards,
Envestio Team

Como sabéis, otras plataformas/originadores co-invierten en los préstamos que publican en el marketplace una media de entre un 5% y un 15% con el objeto de alinearse con los intereses de los inversores, de forma que ambas partes, plataforma e inversores, están interesados en que el análisis de riesgos sea correcto y el prestatario pague.

Pues bien, en otro post, @faradis preguntaba cual era el skin-in-the-game de Envestio.

Pregunta para Envestio:
Does Envestio have any skin-in-the-game in loans published in the marketplace in order to have aligned interests with investors?

We’re aware that our competitors have a so-called "Skin in the Game” in their projects by investing a sum amount in every project. But we take quite a different approach.

As we provide buyback opportunities to our investors during the loan period (usually at 5% penalty rate), we’re ready to step in and provide a project with additional liquidity if necessary.

Moreover, Envestio participants are aware about our buyback opportunities in a low probability case of a default (more information available here: https://blog.envestio.com/how-safe-i...-envestio-are/). We provide 80%-90% instant recovery of the principal amount from our reserves, with a possibility to recover up to 100% in future.

So, every time we evaluate a project and make a decision to place it, we adjust our reserves and take the risk, that we might be asked to step in. Though, we make sure that the assets under pledge and personal guarantees of the owners are sufficient for us to recover our funds in future. This is our so-called “Skin in the Game”.

Mi duda es, en caso de impago o retraso en los pagos, ¿esa posibilidad seguirá existiendo? ¿Se reserva Envestio la posibilidad de retirar la opción en algún caso?

If there is an impayment or a delay on it, will be this posibility able? Can Envestio deny this option in any case?

Gracias!

Dear Sir,

The buyback opportunity is active until every project closure. After that (in case there are any delays with payments) there is a separate procedure, still allowing to recover 80-90% of funds instantly with the possibility to recover up to 100% over time. You may read more about the procedure here: https://blog.envestio.com/how-safe-i...n-envestio-are

Good morning.

Currently there is only one project to invest in your website.
Is it planned to increase the number of projects to invest? When?

Greetings.

Buenos dias.

Actualmente unicamente hay un proyecto para invertir en su pagina web.
Esta previsto aumentar el número de proyectos para invertir? Cuando?

Saludos.

Dear Sir,

We’re finalizing the arrangements and plan to publish additional projects shortly.
Most probably there will be 1-2 new opportunities by the end of this week.

Hi,
I would like to ask one thing that keeps my attention: As you're a stonian company which is the reason of all (or almost all) opportunities are located in Latvia??

Thanks,