Over the last few years, shared funding is referred to as “the next big thing in financial services”. But what the data points to – is no longer just a matter of discussion. The first players in the market have grown rapidly, some are already profitable, and the number of newcomers that are trying to enter the market is increasing on a daily basis. In this article, you will find answers to the most frequently asked questions when choosing a p2p platform to invest in.
1. In what type of loans should you invest?
An important factor influencing your investment decisions is the level of risk you are willing to take. When choosing a platform, pay attention to the type of loans that are offered and whether the platform offers a guarantee.
Secured loans, such as property or auto loans, are relatively more reliable investments than consumer loans and other unsecured loans. We attribute this to personal motivation when the debt is repaid due to the pledge when it is released.
Providing a guarantee on the platform is a good sign of it. Such platforms have carefully selected their originators, if they have them, or have placed investor security among their most important goals.
We at IUVO offer you the ideal balance – all the loans on the platform are backed by a buyback warranty, and the attractive yield now reaches 15.22% on an annual basis.
2. What are the return on investment levels you are seeking?
The planned return is another important factor related to the risk of an investment. The low level of competition among non-bank originators in underdeveloped markets gives more power to small players to determine the market trend, to charge higher borrower rates and respectively to offer higher returns on their investments.
Indeed, p2p platforms in underdeveloped markets can offer more attractive returns to investors. Peer2peer financing is not the only industry in which such a thing is observed. Whether you are financing a small business in France, consumer credit in Spain, factoring in England or a mortgage loan in Estonia, the return you will get from an investment in the p2p platform is many times greater.
Since the start of the platform in August 2016, We’ve increased earnings several times. We have achieved this by automating investment and increasing the originators. Thanks to Automatic Investing, we continue to reduce the lost profits of free funds in the account. The platform already has loans with yields of up to 15% annually, up from 12% originally.
From August 2016 we are stepping up in several Eastern European markets. Our long-term goal is to cover as much of the market as possible, as well as adding originators from the same countries.
3. How secure is the p2p platform?
From a product standpoint, it’s literally about your money, so you have to keep track of safety and compliance. For example, if opening an account, depositing funds and making an investment takes no more than 15 minutes without prior identity verification, be very careful and think before investing your money in a similar type of p2p platform.
In IUVO, investing on the platform without identity verification is impossible. We follow stringent EU regulations, such as anti-money laundering (AML) procedures, which require this information to be a customer statement. This is part of the KYC (know your customer) regulation under which we work as a financial service.
The transparency and simplicity of the site itself deserve your attention as well. Confused interface, uncertainty about simple details, complex layout, lack of intuitiveness – these features are rarely seen in a well-developed platform. Finding the perfect combination to ensure a seamless user experience, a high level of safety and a secure use of services are a real challenge for platforms.
Part of our team is engaged in the continuous maintenance of security. All data in the platform is transmitted via an encrypted SSL certificate.
From the middle of May 2017. We became part of FinanceEstonia on the “Crowdfunding” section. Each member company in this niche strictly adheres to “best practices for shared funding”. At the core of the practices is the “Observe or Explain” principle. According to him, every platform in FinanceEstonia is committed to “complying” with the prescribed practices and “explaining” publicly if it deviates from them.
Developing and implementing improvements to the platform are provoked by our drive to get closer to the most instinctive solutions. The positive assessment of our investors for the new look of our site is a good indicator that we increase the confidence of our users on a daily basis.
4. Does the p2p platform offer the new model of financing?
Peer-to-peer companies are part of the fin-tech revolution – business models based on new technologies that, thanks, to the more flexible management and missing regulations, have managed to offer more favorable offers than traditional financial institutions. Shared finance platforms are designed to provoke traditional banking by increasing access to finance. They offer better deals for investors, at the same time they are faster and more efficient by excluding dishonest intermediaries. Of course, the best p2p platforms realize this and put it into practice.
We at IUVO take care of the safety of our investors and, at the same time, offer attractive returns on their investments. All the credits on the platform have a buyback warranty through which the originators guarantee that they will repay the outstanding principal if the borrower stops servicing his loan. The risk for investors on the platform is actually zero.
Investing with us is free of charge, we accept investors from all over the world and we do not have a minimum deposit amount. Sign up and make your money work for you right now.