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Investing in P2P Lending – Beginner`s Guide Vol. 2

Tutorials

In the previous article, you learned how to choose a P2P investing platform, how to create your account at iuvo, what we require from you to pass due diligence, and how to filter loans in the Primary market. It’s time to dig a little deeper and show you a trick on how to make smart investments, without missing out on excellent loan opportunities.

Auto-Invest feature in iuvo

The Auto-Invest feature is here to save you time and help you take advantage of all loans that match your investment criteria, even when you’re not logged into the platform. It allows you to build your investment portfolio, by enabling you to craft your loan preferences and save them. Once you set up this feature, the platform will browse for all published loans that match your filter and will invest in them on your behalf.

Auto-Invest doesn’t stop you from doing manual operations through iuvo. If anything, it enhances your investment opportunities.

How do I set it up?

The easiest way to set up the Auto-Invest feature is to replicate the work you’ve done when filtering loans on the Primary market. Since you’ve already browsed through different sizes and types of loans, you’ve probably decided which ones you’d rather invest in. You can set up filters like score class, expected returns, the number of outstanding payments, loan status, etc. – everything you consider important.

Be smart when choosing your preferences, because from now on the platform will only select loans that match them, and it will filter out all other loans.

How much should I invest?

To take full advantage of the platform’s benefits, we recommend that you enter a larger amount than the actual funds available in your account. When you do that, the platform will start automatically reinvesting all your returns, subsequently bringing you more earnings from the compound interest.

Can I stop the Auto-Invest feature? How?

There is nothing mandatory at iuvo, and Auto-Invest makes no difference to that rule. You can stop or resume using the feature at any moment. Once you have created a custom portfolio, you can simply hit the “Pause” button, and Iuvo will stop investing in that filter until you resume.

You can save multiple filters and experiment with investing in various types of loans. If you find that one of your portfolios isn’t bringing you good returns, you can press “Cancel” and delete it altogether.

Okay, I see my returns growing! What do I do now?

Undoubtedly, the best part about investing is getting to see your success, and having your Account Statement full of earnings! You have two possible choices about what to do with these funds. The first option is, of course, to reinvest them back into new loans. You can either do that manually or use Auto-Invest – you know the deal by now.

The second option is to withdraw some of your free funds and have them transferred to your bank account.

How do I withdraw?

When it comes to withdrawals, we have separate rules for individuals and companies.

If you’re an individual, you have to pass due diligence at this point, by sending us your ID and address details. You can verify your address by sending us a scan of a suitable document, such as your latest utility bill. Once complete this step, withdrawing is simple – just go to your Dashboard, and click on “Withdraw.”

If you’re a company, you’ve already passed the ID verification step when you registered your account. At this point, you will need to confirm your address.

There are no restrictions on how much you can withdraw at once – the only limit is the amount of available free funds. And by free, we mean funds that aren’t currently invested in loans.

How much does it cost to withdraw, and when will I see the money in my bank account?

Iuvo doesn’t charge you any withdrawal fees, but please note that the bank transfer might cost you a small fee, depending on whether your bank charges for incoming transfers.

Your withdraw request will be processed within two business days, however, with some banks, it might take a little longer than that.

Conclusion

We hope this article will make it easier for you to get around iuvo, and build your investment strategy. If you feel like you need to read more about specific topics, don’t forget to check out our previous blog posts! We’re sure they will set the right foundation for you!

Investing in P2P Lending – Beginner`s Guide Vol. 1

Tutorials

Nowadays more and more people are exploring investment opportunities for their free funds. There are so many options that it all gets too overwhelming and beginners don’t know how and where to start. If you’re considering investing in P2P lending and are wondering how to do it – here is a brief step-by-step guide for you!

 

Choose a P2P lending platform

Before choosing your P2P lending platform, there are some key factors you should consider. In short, you should look for high returns, liquidity, and a buy-back guarantee. Probably sounds easy but you might be wondering what those things actually mean.

If a platform has a high return rate, that means you can earn a substantial profit – provided you develop a good strategy and are consistent and smart with your moves. Liquidity means that you will be able to invest your funds straight away, without worrying about frequently changing asset prices and possible financial losses. And finally, the buy-back guarantee assures you that the loan originator will repay the invested principal, in the event of loan default.

Iuvo proudly covers all three of these essential factors. The most impressive part is undoubtedly our returns rate, which can get as high as 15,22%! Our loan portfolio is more than €30M up to date, with more than 16 000 loans available for investment.

 

Open an account and pass due diligence

Opening an account with Iuvo is easy as 1,2,3. Just register and verify your e-mail – your account is created!

If you are an individual, you can start investing straight away. You could pass due diligence at this point if you prefer to. However, it’s not mandatory until you decide to withdraw funds. We’ll address this in Vol. 2 of this guide, so stay tuned!

If you’re a legal entity, however, you’ll need to get verified before you can invest with Iuvo. The required documents are: scanned copy of your passport or both sides of your ID card; certificate of current legal status – translated in English; information for UBO / actual owners– translated in English; and company’s articles of association– translated in English.

You might be wondering – why do I need to pass this step? Since this is an investment platform and we operate with real loans and real money, we need to follow specific verification practices, called KYC and AML. KYC stands for “Know Your Customer,” and AML stands for “Anti-Money Laundering.” These practices help us prevent malicious actions from being done through our platform, such as: identity fraud, credit card details theft, and money laundering.

 

Deposit your funds

You can deposit in EUR, BGN, and RON. Make sure to do your research and make a final decision, because you can’t change your currency setting later on. Once you have chosen your preferred currency, go to your Dashboard, and click on “Add Funds.” You will see a detailed explanation of every step onward. Note that the general deposit method at Iuvo is via bank transfer – we have accounts in Allianz and Swedbank. Of course, there’s an option for intra-bank transfer, so you don’t need to have an account in either of those banks. For further information on deposits, check our article, called Depositing And Withdrawing Funds.

 

How do I start investing?

Iuvo has two main investment channels – the Primary market, and the Secondary market. The Primary market is a list of all loans coming from our originators. Before you invest, it’s a good idea to get acquainted with the Primary market specifics and browse through a couple of published loans. This will give you a good idea of what to take into consideration when investing.

First of all, loans have specific attributes that help you decide whether you want to invest in them. These attributes include loan class, borrower demographics, return rate, currency, and of course – repayment plan (how many installments have already been paid, and how many are due).

The loan class is marked with letters (A-E, HR) and shows the level of risk for each particular loan – how likely is the borrower to delay it, or not pay it all. The lowest risk rate is in A class loans. To further try and estimate the risk yourself, you can also check the demographics of each borrower such as age, education, income, etc.

If you want to see only certain kinds of loans, use the provided filters. You can filter by status, for example, and see only current or delayed loans. Another preferred filter is by expected return.

Now that you’re familiar with the Primary market, it’s time to create you auto-investment portfolio. To learn more about the auto-investment feature, how to set it up, get returns and withdraw your funds, stay tuned for the next article!

Loan Score Class and How to Use It

Tutorials

What is the Loan Score Class?

The loan score class is iuvo’s credit risk rating mark. It helps you determine the probability of a particular loan going default. Typically, each originator measures credit risk using its framework. However, for centralization, we had to develop a way to make credits from different originators comparable within iuvo. This is why we implemented the loan risk class – our own rating system.

The credit ratings at iuvo are:
Class A: 0 – 2% default probability
Class B: 2 – 10% default probability
Class C: 10 – 18% default probability
Class D: 18 – 25% default probability
Class E: 25 – 35% default probability
Class HR: above 35% default probability

How does the score class affect my profit?

People have a natural inclination to seek stability and avoid risk. With investments, however, the risk isn’t a bad thing, as long as you’re smart and strategic about it. When investing in a high-risk asset, you should be aware of the possible losses versus the amount of profit you can make.

Taking risks pays off in the long run, or in our language: investing in lower score class loans should ultimately bring you bigger returns. Here’s how it looks:

Class A: 5.03% – 6.31% return
Class B: 6.07% – 7.21% return
Class C: 6.96% – 8.13% return
Class D: 7.87% – 9.05% return
Class E: 10% – 12.34% return
Class HR: 11.87% – 15.22 return

This data is based on loans from December 2017. It can vary slightly between months and periods, however, what’s important is the trend: annual returns grow in reverse proportion to the loan score class. To maintain a healthy risk level in your investment portfolio, always keep in mind both the default probability and the expected return rate, and try to find your perfect balance between the two.

I’m trying to build my own investment strategy. Should I only look at the score class?

It’s never a good idea to follow only one attribute of the assets you’re investing in. When it comes to P2P lending, you can enhance your strategy by monitoring both the loan score class and the borrower`s details.

Once logged in, go to the Primary market, and click on any loan’s ID – this will reveal the loan’s attributes. Check the Borrower and Collateral section. There you can see insightful data about each borrower’s profile. All the information in this section is provided by the loan originator and isn’t edited or altered by iuvo.

The borrower profile includes: sex, age, education, occupation, salary level, and partner’s salary level (unless the borrower is single/unmarried). Based on these details, as well as other factors (such as personal credit history) originators evaluate a borrower’s solvency, and thus – the credit default probability.

Due to confidentiality restraints, iuvo doesn’t have access to borrowers’ personal information such as name, ID number, and credit history.

How is the borrower`s profile connected to the loan score class?
By going through borrower profiles and considering their loans’ score class, you can narrow down your own criteria and start targeting a certain type of “borrower persona” in the platform. E.g., you could decide that a reliable borrower for you means someone within a certain age group, whose earnings exceed a certain amount, and who has a certain education level.

Before you design your final strategy, make sure to experiment a bit with different borrower profiles and loan score classes – this will help you assess what risk level works best for you

What if I fail in my judgment?

Don’t forget about the Buy-back guarantee! In case a loan goes default, the Buy-back guarantee covers the full unpaid principal for the remainder of the loan. Read more about it here: What is Buy-back guarantee and how to control your investment risk.

Need more info? Check out the FAQ, as well other posts from the Tutorials section in our blog!

All the returns you can receive with iuvo

Tutorials

The most rewarding part about investing at iuvo is, of course, the moment you get to see your returns. As satisfying as it is to look at your account balance growing, you shouldn’t settle for just making sure that you’re earning something. It’s a good idea to regularly go through your Dashboard and your Account Statement for insight on how much you’re earning, and where it’s coming from. Keeping track of your returns’ size and origin can help you build your future investment strategies. Furthermore, collecting this information (and being precise about it) is especially important once you have to calculate and declare your income taxes.

What, where, how?

You can see an overview of your returns by going to your Dashboard. It represents a summary of all payments you receive, sorted by currency type. For a detailed breakdown of all incoming transactions, you can check your Account Statement. Payments you receive are calculated with an accuracy of 10 digits after the decimal point. However, for tidiness’ sake, we only display two digits after the decimal point.

We understand that the Account Statement might look a little confusing at first, but once you get the gist of it – it becomes effortless to analyze. To make it even simpler for you, we’ve prepared an overview of what kinds of payments you can expect to see.

Returns from loans you’ve invested in

When you invest in a loan from the primary market, your return flow depends on specific vital factors, such as:
– The agreed payment plan;
– What percentage of the loan you’ve invested in;
– Whether the borrower is keeping up with payments (or being late… or paying at all);
– Whether the borrower decides to make an early payment.

Regardless of the scenario, some rules always apply. For example, you get paid as soon as the originator receives a payment from the borrower, i.e., with each scheduled installment. Also, you will always get your returns from the interest and your returns from the principal, as two separate payments.

To illustrate your returns payments, let’s take an exemplary loan with duration of 12 months, and a 30-day installment plan. There are three possible scenarios:

A/ The borrower pays on time each month
In this case, you get paid once a month for twelve months. In your account statement, you will see two incoming transactions, as mentioned above.

B/ The borrower is late with their payment or doesn’t pay at all
Each originator charges borrowers a fee once their payment is overdue with more than 20 days. These fees vary in size and accrual period between originators. Your returns will directly depend on the percentage you hold from each loan.

If the borrower fails to make a payment, you are protected by the Buy-back guarantee. Once this guarantee is activated, you will be refunded with the remainder of the unpaid principal. These funds will go straight back to your account. The Buy-back guarantee does not cover the rest of the outstanding interest.

C/ The borrower decides to do an early repayment
Let’s say three months have passed, and the borrower chooses to pay the remaining nine installments all at once. In this scenario, you will receive the remainder of the unpaid principal, split into nine separate monthly payments per the pre-set installment schedule.

You will also receive a one-off payment for the current installment’s interest. Since we’re talking about an early repayment case, no interest will be accumulated anymore. That means you will stop getting interest rate for this loan – you will only get returns from the unpaid principal.

Returns from selling and buying loans on the secondary market

In the secondary market, you can get two types of returns:

A/ Selling loans for a higher value than what you invested
If you feel like a certain loan in your portfolio might be attractive for other investors, you can sell it at a higher price than your original investment. Having done that, you will receive two payments – one equal to the nominal value of the loan, and one equal to the premium/discount amount.

B/ Buying loans at a discounted price
In this case, you will start receiving payments according to the agreed installment plan for each loan. Again, you will see two payments in your account statement – one for the principal, and one for the interest.

Conclusion

This overview should help you better understand your returns size and origin. If you need further information, you can always check our FAQ section or contact our Customer Support associates at [email protected] Invest away!

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P2P lending as a long-term investment opportunity

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Most people dream of achieving financial independence at an early age and spending the rest of their time enjoying life. But to do that one needs a solid plan of how to reinvest his hard-earned savings and make the most of them.

Achieving Financial Independence and Retiring Early

You can find many materials and instructions across the internet on how to retire at an early age provided by both finance industry professionals and regular people who want to share their experience. Of course, there are also many scams that promise unrealistic returns, and you should avoid them.

All investment opportunities for achieving your financial goals have a common theme – they are related to some form of investments such as stock, shares, indices, pension and mutual funds, buying property, government securities and other similar instruments. There is also the option of waiting for the return on your bank savings, which will most likely take forever. In most cases, these methods are a zero-sum game, where your gains are equal to the losses of someone else. Also, there are situations where you are left with the amount which you had in the beginning or less. Naturally, each opportunity has its merits and should be considered, but none presents a combination of the two most demanded elements when it comes to investment – high return and low risk.

Furthermore, in recent years there has been a trend of lowering interest rates, set by the central banks in the US and the EU. It affects all levels of the economy and limits the profit that you can make on interest, especially on bank deposits, which in some cases might even yield negative profitability.

There is a conclusion that can be drawn here – in order to retire at an early age and even become a millionaire; there comes a time when your money should do the work for you. Not merely sitting in a safe place, but actively accumulating a steady return.

P2P Lending as a Long-term Investment Alternative

A new investment opportunity has emerged among the turbulence of recent economic conditions, one that addresses the limitations of other methods while yielding steadier and higher returns – investing in p2p lending platforms. It is a service that enables people to invest in consumer loans and profit by receiving a percentage of each loan.

This type of investment provides a drastically higher annual return when compared to bank deposits or even trading stock, but it also allows you to better hedge the risk by crafting a loan portfolio according to your risk preferences. Even when keeping the risk at a minimum, the return is still high and steady.

But the real beauty of investing in consumer loans through platforms like Iuvo is the long-term return. The key to being profitable in the long term is the compound interest which enables investors to utilize their capital most efficiently and get the highest returns.

Here`s an illustrative example where you will be able to relate personally.

If you start now it is realistic to say that in 30 years you can be a millionaire, the key is to be consistent and stick to the plan – invest 5 000 Euro each year for 30 years and reinvest the earnings from each year.

Let`s go through the numbers in more detail. The typical return on a p2p investment platform ranges from 7% to 15%, so if you invest 5 000 Euro each year, with an average yield of 8% and keep reinvesting your earnings, in 28 years, you will have over 500 000 Euro in your account.

Admittedly, such a thing might seem impossible or grandiose now, but remember that this is a long-term methodical investment, with a steady return rate and a specific plan behind it. By sticking to the plan and maintaining the same level of risk (by investing in loans of particular score class) you can achieve a total return of 8%. When coupled with the reinvesting of your previous earnings it will help you be financially independent at a much younger age than if you relied on other investment methods, or simply regular pension funds. The key here is that you have control over your money and can make them do all the work for you. You can do all the compound interest calculations yourself and see how the profit adds up by using this calculator.

Of course, this is a quick and shortened explanation of the mechanism, and many other aspects and practices should be considered when investing in p2p lending platforms. You can read more about them here.

However, we should emphasize again that to be most efficient you should always reinvest any available funds in your account. Otherwise, you`re losing money that could be making a profit.

What conclusion can you draw from this all

In order to be able to retire at 50, or at least be able to have enough savings to feel financially secure, one must act with a clear plan in mind and stick to it. There are no other investment opportunities that present the same great balance of high return and low risk as investing in p2p lending does. Furthermore, you can adjust the level of risk and micromanage your portfolio for optimum efficiency, but there is also an auto-invest feature that can handle all of that.

If you`re still not sure, then give it a try by investing a small amount for a shorter period of time, (a month or a year) and if things go well, dedicate yourself to the long-term strategy that will help you retire early.

Why investing in p2p lending is right for you

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P2P lending might sound confusing or unreliable to someone who is not familiar with the concept or hasn`t tried it personally. In reality, it is a reliable long-term investment method that will make you feel grateful for giving it a go. The purpose of this article is to examine the factors that turn p2p lending into such a great investment opportunity and see exactly who can benefit most from it. Perhaps it will turn out to be the thing you`ve been looking for all along.

Iuvo as your p2p lending partner

At iuvo, we continuously aim to present our customers with the best investment options and provide the optimum return on it. You can think of us as a trusted partner who always finds the best way to gain profits on free capital and expand your horizons. This is achieved by making the platform as efficient as possible, but also by negotiating the best terms with our partnering originators and extending our portfolio of investment opportunities. Just recently we included the option to invest in Romanian Lei thanks to our partnership with a new originator – iCredit.

Better Opportunity than Most Investment Options

P2P lending presents a new take on long-term investment and addresses many of the limitations that other such opportunities have. Current existing investment opportunities such as banks offer almost non-existent returns, whereas other risky and highly volatile options such as Forex trading give you very little control and virtually no predictability. With p2p lending however you can be sure in the slow, but steady return on your initial investment, while also being ensured that your money is safe by the buy-back guarantee. There is no need to try and decipher complicated charts or follow economic fluctuations. Plainly put, it is the kind of investment your future self would be thankful for. The returns offered on the iuvo platform go above the average for most platforms, reaching up to 15.22% annually.

Another significant aspect of p2p lending is predictability. Depending on how much you`re willing to invest and the type of loans you choose, you can calculate the expected annual return with close to perfect accuracy. Furthermore, with P2P lending you can easily adjust the level of risk based on your preferences. If you are more risk averse you can invest in A and B rated loans which yield a smaller but safer return. But as we`ve mentioned before, the buy-back guarantee protects your funds and turns the investment into D, E or HR rated loans more preferable and lucrative.

Simple Automated Investment Process

The platform enables you to adjust every step of the process and handcraft your investment portfolio as you deem fit or simply use the auto invest feature. We recommend the auto invest feature to all of our users, regardless of whether they`re just getting started or if they`re seasoned investors. You merely need to input your preferences, and the system does the rest, following your instructions and investing in the type of loans you`ve selected. The most significant benefit is that it saves time and once you make the adjustments it does all the work by itself. You can modify the auto invest preferences anytime you like.

Long-Term Flexible Investment

One of the best aspects of investing in peer-to-peer lending is the low threshold of entry which enables you to start investing with a minimal amount of money. You can start with the minimum, which is just 10 BGN or 5 EUR and decide for yourself if it`s the right thing for you. Another vital aspect to take into consideration is portfolio diversification. The ability to handpick the loans you invest in enables you to diversify the risk and see what combinations work best. This is just one of the aspects that make p2p lending very flexible. Although it`s a long-term investment opportunity, it`s all about the small steps that make up the whole process. Regular investments with small amounts per loan and a diversified portfolio is the approach that is most likely to yield best results over time. P2P also presents a great deal of flexibility due to the short-term nature of the loans. It enables the investor to adjust his strategy quickly if he sees that something is not going as planned.

Who should invest in p2p lending?

P2P lending is suitable for who is looking for a safe and lucrative method to capitalize on his savings, all that is needed is patience and motivation. In our experience, the profile of the investor who is most inclined to be successful in the long run is usually a male, in his 30s’ with a general interest in finance, investment or technology. But even if you don`t fall into that category, all you need is motivation and a mindset for profit.

Conclusion

If you approach investing in p2p lending with preparation and patience, you can expect stable returns that are hard to match by other investment opportunities. Remember that it`s all about the long-term.

How to choose your p2p lending platform

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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 lending 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 p2p lending 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 levels the return on investment you are seeking?

The planned return is another critical 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 provide more attractive returns to investors. Peer-to-peer 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 growing number of 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% initially.

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 to add originators from the same countries.

 

3. How secure is the p2p lending 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 lending 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. They are 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. Confusing interface, uncertainty about simple details, complex layout, lack of intuitiveness – you rarely will observe these features in a well-developed platform. The real challenge for the platforms is finding the perfect combination to ensure a seamless user experience, a high level of safety and a secure use of services.

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 lending 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 close to 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.

Companies are welcome to invest with iuvo

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Following the first quarter of 2017 and the demonstrated optimism and increased company investments, we would like to explain to you how company investors can invest and take advantage of the iuvo platform.

To ensure a secure portal where you can invest and realize high returns, we strictly comply with all EU anti-money laundering guidelines. That is why, from the launch of the platform, we use the “Know Your Client” (KYC) principle, which we apply on a daily basis. The “Know Your Client” policy is widespread and applied by credit institutions worldwide. It covers the development and implementation of customer approval policies, transaction monitoring, risk management, and more.

The principle is a cornerstone in the fight against money laundering, as well as a standard practice for identifying clients. The volume and type of required documentation depend on the kind of person (citizen, company, etc.) and the type of products used by the customer. Legal entities considering iuvo registration should be aware that they will go through Good Practices to “Know Your Client” with us.

At iuvo, we accept registrations from individuals over the age of 18 and from legal entities with valid bank accounts within the EU (or third countries following EU AML / CFT systems). To register on the platform as a legal entity, companies must provide:

– Identity card or Passport of representative,

– Company registration document or Certificate of good standing. Every company that registers with iuvo must be legally established, i.e., shall be recorded in a relevant trade, business or another equivalent register according to national circumstances,

– Articles of association (contract) – aims to establish the ownership, management, and control of the company,

– Information about actual owners (UBO) – information about shareholders and partners that directly or indirectly hold more than 25 percent of the shares or directly or indirectly have control over the legal entity.

Each of our users can get comprehensive information on all matters related to documents and identification by contacting us at [email protected] or by phone at +359 2 493 0108.

A known method for financing a company is to purchase real assets to replace old or to reduce working time/production. This type of investment, however, has its specifications and requires a strong knowledge of capital assets. Your sources of information must be reliable and profitable, as well as you need a know how to buy and sell. When investing in shares, the investor carries market, currency and liquidity risks, risk related to the obligated person, as well as a settlement risk (the final transfer of funds to the current accounts of the participants in the payment process).

The best scenario for investors is one in which the risk is low, and the returns are high. What distinguishes iuvo from alternative investment opportunities is that you can generate annual returns of up to 15% with risk kept to the minimum thanks to the 100% buy-back guarantee. Buy-back guarantee means that if a credit in which you’ve invested defaults, the investment amount will be refunded to you in full.

To start investing at iuvo, it is not necessary to have a personal financial adviser. Thanks to our Automatic investment, your investments will be managed quickly and easily.

The automatic investment ensures that you reinvest your free funds, thereby significantly boosting returns. Users remain solely responsible for tracking revenue earned on their account, but there is no need for additional training courses or knowledge to use the auto investment. It is intuitive enough, and you will be able to create your portfolio easily.

Unlike traditional methods of investing, the Peer-to-Peer investing platforms are entirely online. It is one of the reasons why this type of platforms offers such high returns. Joining iuvo as an investor is easy, and the necessary verification documents are only identification document (ID card) and contact address.

The primary objective of iuvo is to provide the best results for our investors. Our statistics show that more than EUR 1.5 million has been invested in our primary market since the launch of the platform in August 2016 and our investors have generated returns of up to 15% on an annual basis. Still, have doubts? Register your company on the platform and start securing your future now!

What do loan originators gain through iuvo?

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Our investors at iuvo purchase parts of loans, issued by registered non-banking financial institutions. In return, they get up to 15% annual return – much higher than interest levels on bank deposits.

All funds invested through iuvo are secured with buy-back guarantee by the originator.* It means that the investments in each loan that is more than 60 days delinquent will be repaid 100% to the investor.

When you look at it this way, the investment in iuvo sounds like the perfect deal. Each investor must be asking himself: am I missing something? Why a financial institution would share its return with me and would cover the losses from my bad investments?

Where’s the catch?

There’s no catch, only pure math.

Imagine that you run a non-banking financial institution (a loan originator) – you’ve covered all criteria of your national bank, you have the required capital, the necessary processes, and expert personnel and you are registered as a non-banking financial institution. Now you’re in the lending market, and you’ve gained the trust of clients that were deemed too risky for the banks. Your risk assessment is right; people are happy with your service – they take loans and pay on time – your business is growing.

At one point the demand for your loans is higher than the money you have at hand. Unlike banks, who can always attract more deposits to fund their lending, non-banking financial institutions can only use their funds. It means that to finance their business, they have to count on the money of their owners (equity) or debt funding (through banks, institutional investors or physical persons).

It is where iuvo comes into the equation. By investing through the platform, our investors inject “fresh money” into the lending business of the originators. In return, they get part of the return from this loan.

The interest that the loan originator is ready to pay for this financing is higher than returns from bank deposits. And still, it is more attractive than the interest rate (and all other fees, collaterals, covenants, etc.) that they would have to pay if they finance themselves through a bank loan or issuing of bonds to the public.

It is why the loan originators have the incentive to keep transparent and positive relations with the investors on the platform, including covering the risks of bad loans because in this way they maintain their source of funding which helps them to develop their business further.

Everybody wins

It’s a win/win situation for both sides that iuvo connects. This the reason why the peer-to-peer model of financing is so successful throughout Central and Western Europe and is gaining momentum in the Eastern part of the continent as well.

Register now and start generating up to 15% annual return on investment today!

How p2p investing compares to other investment methods

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After the wake of the financial crisis in 2008, the term “investment” gets more and more relevant for the regular citizen of the world. We see the incapability of governments and big financial institutions to properly handle economic turbulence, which is inevitable in a free market global economy.

Every one of us is seeking a different way to generate more profit and to assure their financial independence. It becomes one of our primary goals, and we are desperately searching to find the best possible way to achieve it. Meanwhile, the financial market has existed for 500 years and is a global phenomenon that offers different types of financial instruments – currencies, indices, stocks, futures, real estate, bank deposits, you name it. All of them have their pros and cons, represent an attractive investment opportunity.

In the recent years, we have a new player in town – peer-to-peer investing. And this newcomer is pretty impressive as an underdog.  Peer-2-peer was the answers to the questions of many investors after the meltdown in 2008. It was a new way to invest your funds, yielding more returns than most of the other traditional investing opportunities. Furthermore, investing in p2p platforms has shown to be less risky for the investors. Let’s see why p2p investment platforms have such a competitive edge over everything else on the market.

P2P investing vs. Forex

Everybody knows that FX is the beast in the financial market world. It is the most dynamic market, providing the greatest liquidity possible. Nevertheless, all those benefits are making it the most volatile. And we know that volatility means significant risk. You can be on top of your game one moment and the next you are in the dead zone of the margin call. You lost everything. It is a typical picture. On the other hand, you have p2p investment platforms offering a high return on investment with percentages going up to 15% and the opportunity to secure your net investment with 100% buyback guarantee. It means that every single one of the credits listed on the primary market is ensured with this guarantee.  The risk of losing your investment is near zero. It is something that no FX broker can guarantee you.

On the other hand, you have p2p investing platforms offering a high return on investment with percentages going up to 15% and the opportunity to secure your net investment with 100% buyback guarantee. It means that every single one of the credits listed on the primary market is secured with this guarantee.  The risk of losing your investment is near zero. It is something that no FX broker can guarantee you.

P2P investing vs. Stocks Trading

Investing in the stock market is also one of the best-known methods to get a return and make a fortune. Every one of us is dreaming of being the Wolf of Wall Street or Gordon Gecko. Nevertheless, the stock market is one of the most complicated and volatile markets in the world. You have to be very skillful with the fundamental and technical analysis to get the best out of it. Also, you have to be more than familiar with the financial statement of every company you invest in and to be prepared to ride the speculators’ wave, always searching for any underwater reefs. It is a daily hassle, 24 hours, five days a week.

Peer-to-peer platforms offer you a way more relaxed “working day” if we can put it that way. With the auto-invest function on the platform you can set up your preferred strategy, allowing the software behind the platform to keep all your funds invested in the loans you think will generate the most profitability and the only thing you have to do is to check your return on investment from time to time. Now you have the freedom to enjoy your life as a successful investor.

P2P investing vs. Real Еstate

From the dawn of time, the real estate market is a place that everybody wants to be in.  To lead the glamorous life a real estate mogul, just like President Trump, you know. But before you go into your dream trip in penthouse apartments in Central Park, New York, let me just stop you right there. Investing in real estate has one tedious little setback. And this is the size and liquidity of the market; you will always be constrained by the demand and supply side of the market. One day the market may not have enough buyers, and you may be stuck with an investment that you do not need, or the market may be short on the seller, and you will not be able to invest your funds and generate profit.

The situation in the p2p investing world is different. You have the necessary liquidity you need. The loan originators are listing hundreds of loans every day, so the supply side of the market is no brainer.  On the other hand, you always have the opportunity to sell you investment on the secondary market and get your return right away, without any time delay.

P2P investing vs. Bank Deposits

Putting your savings into a bank institution and waiting patiently for your annual return is one of the most popular and well-known methods to invest your free capital. Unfortunately, banks these days cannot answer to the demand from the customer for high returns, and that is causing significant discomfort for the regular person, who seeks to have a stable income over the years. Peer-to-peer investment platforms are addressing this painful problem right at the heart of it. Investing in p2p platforms gives you the opportunity to generate up to 15% return yearly, which is a significant improvement over the standard profits from deposits.

All of the above is showing that our underdog has many advantages over the standard investment methods and this is no surprise. In the recent years, the p2p investing industry is showing tremendous growth with 3-digit growth rates and the trend is far from over. The financial revolution is here, and the only thing you have to do is join in.

The history of peer-to-peer lending platforms

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Peer-to-peer lending is a decentralized form of lending. There are two major business models on which P2P platforms work:

1. People (lenders, investors) give out loans to other people (borrowers)
2. Companies (originators) grant loans to their users (borrowers) in which other users (investors) can invest,

The first way of lending is also known as social lending. Although it has been a popular way of funding since the sixteenth century (people who have money to give money to people who need money), its real boom begins with the development of technology and the opportunities they provide at the beginning of the 21st century. One of the significant advantages of this model is its accessibility – virtually everyone can borrow from anyone who is willing to allocate funds.

The first platform that develops P2P lending and is the pioneer in the field is Zopa. It is a British platform and operates only for citizens of the UK by directly linking lenders with borrowers. At present, more than 2 billion pounds of loans have been made available through Zopa that have generated returns for their lenders and helped borrowers to realize their personal goals and desires.

A year later, in 2006, two of the most prominent P2P lending platforms – Lending Club and Prosper – appeared in the US. Gradually, the number of platforms is growing, both in the US and in Europe and China. Today there are hundreds of platforms that lend millions worth of loans.

In spite of the current boom, in the beginning, P2P lending is seen as something niche and specific, a service created for a small number of people reluctant to trust something that is entirely online and no one has ever heard of before.

With Leman Brothers bankruptcy in 2008, however, things are rapidly changing. Confidence in financial institutions falls sharply, investments are both uncertain and unattractive, and obtaining credit is far more difficult. Peer-to-peer lending naturally rises as an alternative to the current financial status quo.

Since 2008, peer-to-peer lending platforms have been developing at an extraordinary pace. The convenience and speed they offer are highly appreciated by borrowers as well as by investors. The lack of an intermediary allows this type of platforms to work efficiently with meager fees and the saved money return in the form of profits for investors and excellent conditions for borrowers.

The business model where platforms rely on loan originators is also hugely successful. When loans are lent by experienced and sound financial institutions, it gives investors a sense of calm that borrowers have gone through the processes and pre-approval checks that each lending company uses and develops.

On the other hand, this model allows loan originators who offer their credit on platforms to further develop their business using the resources they receive. These are relationships where everyone wins, and so more and more lenders are joining P2P lending platforms.

Different originators offer different types of loans, allowing investors to diversify their portfolio, as well as providing a wide choice of risk and return. Many of the originators also offer a buyback guarantee – buying back bad credit in which it is invested, and so the satisfaction of investors remains guaranteed.

It is important to note that in this industry, as in any other, there are some shocks. The TrustBuddy P2P platform announced bankruptcy in 2015, and the Lending Club had to cope with an extremely severe crisis when it turned out they had allowed themselves to manipulate the borrowers’ credit rating system in order to allocate more credits.

Despite these and a few cases of fraud in China, P2P lending marks phenomenal growth, and there are no plans to stop short. The increasing number of platforms gives more opportunities and, from an investors point of view, is an entirely positive trend. The popularity that they have made them transformed them from something unknown and niche into the most adequate and affordable solution for generating high returns over the last decade.

Start earning up to 12% with iuvo today!

The big goal – financial independence

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Is it possible to work for your money for the first half of your life and your money to work for you for the second half?

Sound financial literacy is crucial, not only for balanced finances in the present but for future stability that carries peace and perspectives with it.

It starts with learning basic concepts and rules which you can build upon on your way to the right money management and the big goal – financial independence.

Save money regularly

It seems obvious, but many do not follow that rule. You undoubtedly know people who manage to waste all they earn. However, if you’d like to invest and generate a return, you must learn to save money.

The instability of financial markets and economic turbulence that we witnessed in the past few decades made lots of people stop trusting the financial system and investments in particular.

Despite that, the truth is simple: if you want your money to work for you, firstly you have to have money. If you’re going to have money, saving must become a habit or a philosophy regardless of your earnings amount.

Make your money work for you

The intuitive decision on what to do with your savings is simple: save them in a bank account. The rational choice, however, is entirely different. The annual profit that can be generated with these deposits is meager – about 1% (in some cases the banks offer even negative interest rates). The deflation observed in Bulgaria and Europe for the past years indicates that interest rates can drop even more.

Then how can money work for you while remaining deposited in bank accounts? The answer is simple – they don’t.

For your money to work for you, you must generate a return or if we have to word it differently – you must not just save them but also invest them.

Investments are not territory reserved for a few chosen ones, financial experts or gurus. Making investments is for anyone who is willing to improve their financial culture and ready to use the benefits it can bring.

This is how your balance would look if you saved and invested 150 EUR each month with 7% annual return for ten years:


Plan your future

Think of your investments as a long path that you need to walk, however; you need to make the first step. Do not forget where you are going and what your final goal is: financial stability and independence. Often remind yourself this when you lose motivation, or your discipline weakens.

This exemplary table illustrates the potential that controls money well. If you start with 5 000 EUR and add 5 000 EUR each year, with a stable interest rate, the final results would look something like this:

Annually invested funds Annual return Funds after 10 years Funds after 20 years Funds after 40 years
5000 EUR 4% 69 832.98 EUR 165 801.62 EUR 518 137.78 EUR
5000 EUR 7% 83 753.75 EUR 238 674.31 EUR 1 142 920.14 EUR
5000 EUR 10% 100 624.55 EUR 348 650.00 EUR 2660 555.33 EUR

 

At first sight, the difference in the annual return seems minor. However, its reflection on long-term results is quite significant. If you start investing at the age of 35 with 5000 EUR yearly investment and a return of 7% annually, when you retire in 30 years (why not even earlier) you could easily have 543 426.48 EUR. Even if you withdraw yearly 4% of them while the rest of them continue generating a return, you would be able to add more than 20 000 EUR to the remainder of your earnings or pension.

If you manage your money correctly in the first half of your life, you can easily double your earnings in the second half of your life. Of course, there’s nothing secure and everything is possible. Investing is not a race, but rather a marathon that brings a reward worth the efforts. Start making your P2P investments with iuvo now!

3 negative myths about P2P investing

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Myths guide us in every aspect of life and investments are not an exception. Check out the three P2P investing myths that may have restrained you from making your first investments or may have prevented you from obtaining the maximum return that this kind of investment provides.

Myth#1 You have to start with a large sum

This deception can make any novice investor quit before he has even started investing. It disturbs plenty of investors that do not have to be millionaires to begin investing their funds adequately and to obtain their return.

One of the significant advantages of P2P platforms is precisely this – anyone can invest in them with a sum of their choice (the minimum investment threshold is defined individually by the platform)

In order to start investing in a single loan or a part of it at iuvo, you will need exactly 10 Bulgarian Levs or 10 Euros. It allows you to begin with smaller sums while familiarizing with the platform until you feel confident and calm enough when you are working with us and generating your return.

Myth #2 These are investments that require specific knowledge and skills and you won’t be able to handle them

There’s nothing new or complex in the business model of peer-to-peer platforms. They connect investors with borrowers who look for funding. Iuvo works with originators, non-banking financial institutions with long-standing experience, which list on the platform the loans they have lent. Investors can view details of every loan and invest in it if they want to.

These platforms are part of the fintech revolution, which completely altered the shape of financial services in the past few years and made them more accessible and flexible. That’s why investing in iuvo does not require any previous experience or a specific skill set. Of course, if you can obtain the maximum from the invested funds you will have to study the basics. You can read advice from top experts in the field here.

Myth #3 P2P investing are strongly insecure

Every P2P investing platform is different and utilizes different mechanisms to guarantee stability and predictability for its investors.

One of the methods that iuvo uses is the buyback guarantee that we have for all of our loans. It guarantees that the principal amount invested in each loan that has been delayed over sixty days will be refunded.

Besides the buyback guarantee, originators keep a part of each loan for themselves that has been listed on the platform (i.e., the loan is not funded a hundred percent by the investors). That guarantees their engagement anytime throughout the entire process while the loan is being paid out.

P2P investing platforms are becoming a more popular and accessible method to make your money work for you. Depending on the risk profile, you may use them as an alternative to a bank deposit while investing in low-risk loans with a small but stable return, or to generate high annual return while building your portfolio with appropriate loans.

Start investing today!

FinTech – hybrid between technology and financial services

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A new financial-technological industry grows globally, and it’s called FinTech. FinTech is a hybrid form of finance and technology, and its emergence is predefined by the altered user requirements towards how they would like to perform various banking activities, such as paying, managing their funds and insurance. What is hidden between the lines of FinTech’s meaning? It’s a segment of the dynamic financial technologies, which are focused on proposing innovative products and services, traditionally perceived as a trademark of the authoritative financial institutions. According to The Pulse of Fintech, Q1 2016, research conducted by KPMG and CBinsights, the FinTech industry has doubled the size of its funding up to 12.2 billion dollars, whereas last year its funding calculated to 5.6 billion.

The research also states that due to the high levels of funding, the industry is developing at a higher pace. However, the new technologically-orientated industry carries an invocation for a change, not only towards the method banks manage their business, but also towards the remaining sectors, such as insurance and asset management. According to the research, FinTech will directly compete with up to 28% of the banks and their payment transactions business as well as with up to 22% of the asset management and insurance companies.

FinTech changes banks and the traditional methods of banking. With its arrival, Fintech initially focused on the traditional banking services. There are fully digitized banks and opening a bank account doesn’t require walking into their offices anymore, and everything is present online. Moreover, some of these banks offer interest rates on deposits much higher than the traditional financial institutions, at times reaching up to 4%, whereas interest rates nowadays are incredibly small. With the creation of unique platforms for lending from peer to another peer, e.g., peer-to-peer lending, clients and firms have started receiving and giving loans to each other.

These platforms turned towards different sources of information and lending models, as well as towards robust risk-evaluating systems to minimize their risk exposure. Also, P2P platforms are powerful instruments extremely oriented towards the specific needs of every user. They work at extremely low operating costs and that allows them to drop the price of loans. Both, borrowers, who have received loans with convenient terms, and lender-investors, who have received higher return rate are satisfied. An additional convenience is an easy and comprehensive process that does not require physical presence and queueing at the bank offices to fill and submit documents, saving valuable time to clients and users, which is a time waste. According to BI Intelligence’s data, last year P2P lending platforms in the US have listed loans that amount to 6.6 billion, which marks an annual increase of 128%.

FinTech changed the methods of money transferring. In regards to fund transfers, people are looking for two main components – instant and secure transfers and lower rates. The new FinTech industry provides exactly that, and at the moment it is picking its first fruits. Money transfers to and from abroad have never been easier and cheaper, and it all happens with a few touches on a smartphone.

Currently, the second wave of Fintech evolution within the financial industry is being observed, and it is being directed at the insurance companies and the asset management sector. Approximately 74% of the insurance companies are worried that FinTech will cause an imbalance in their industry within the next five years. According to BI Intelligence, 51% of the asset management organizations have expressed the same opinion. The good news is that deploying enough information for the tendencies and development of the financial industry, companies within the sector can respond adequately. Instead of being indifferent, leaders in various financial areas can join and utilize the new trends. One of the options is to cooperate with the already existing FinTech companies or to create new ones, which respond to the new customer needs.

How crowdfunding changes the world

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We live in a world where we share everything. We share automobiles, offices, flats, and as of recently capital. The crowdfunding concept is not entirely new, although it has developed massively during the past years. Practically, for the first case of crowdfunding can be pinpointed the historical moment Paris donated the Liberty Statue to New York, but without foundation to place it on it. The citizens of New York decided to take actions, and after the newspapers published advertisements for collecting money, they build a foundation where to place the symbol of freedom. The advantage of such capital-generating practices goes beyond the transparent money collection. By accessing new investors, the popularity of products and services increases and that’s how the project gets evaluated by the users real-time.

What is shared funding/crowdfunding? Crowdfunding is the method of financing a project or initiative by collecting relatively small amounts of funds from large groups of people. Nowadays this is achieved by specialized internet platforms, but it can be attained by employing other untraditional methods, for example, by organizing special events or even e-mails. There are two main types of crowdfunding. The primary one is based on ‘award for funding,’ where users fund the specific initiative, and in return, they receive particular products or services (this method is employed by popular platforms like Kickstarter).

The other method is funding and receiving a part of the capital in return (shares). The crowdfunding industry is relatively new in Europe. Even though we are using contemporary terms like “crowdfunding” and “shared investments,” they still do not hold a clear and definitive meaning, as well as a legislative regulation. Despite that, the industry of alternative funding is developing at a breakneck pace.

Thanks to this industry, plenty of good ideas receive publicity and access to more significant capitals when necessary. The success of a project that is being evaluated by the public depends predominantly on how much its creator believes in his or her idea. It also depends to what extent it is inclined to stand up in front of the main audience and stand for its views while overcoming its many difficulties and answer the criticism.

Being placed in the middle of a tremendous competition, only the excellent products and ideas that are presented well to investors and with the full concept of future development are the ones that succeed. The crowd itself can distinguish accurately the right projects that will reach peaks.

The audience also has a strong sense of self-regulation by swiftly uncovering and punishing ‘fraudsters’ and ‘unfair’ ones among them. Crowdfunding gives funders access to plenty of different ideas, including new opportunities from the developing markets. Any entrepreneur will try to convince people with capital that his or her idea is the best and that it holds great potential. Entrepreneurs are aware that if they would like to their project to succeed, they must be good at convincing.

Peer-to-peer is the most popular type of crowdfunding. How did it come to life? After the culmination of the financial crisis in 2008, borrowers began looking out for access to loans with lower interest rates. On the other hand, lenders were looking for a higher return rate of their investments.

Meanwhile, due to the strict regulations, banks faced significant difficulties to meet the increasing demands of the market. It conducted a substantial vacuum for lending that P2P platforms managed to fulfill.

On the one hand, this allowed for borrowers to obtain cheaper loans. On the contrary, it provided an opportunity for funders to earn more for their capital. These platforms work as a mediator for both ends where on one side are lenders or investors, and on the other are the borrowers or the people looking for funding for their projects or goals. The P2P lending industry marked a vast increase, particularly in developed countries with advanced financial markets. These platforms have lent 6.6 billion loans with a rise of 128% in the USA alone for the past year.

It makes the USA the largest market in the world regarding its volume. The trend of developing alternative online funding did not miss Europe. According to latest market researchers, the undisputed leader of the lending volume is the United Kingdom, followed by France, Germany, Switzerland, and the Netherlands.

 

What are the risks in p2p investing

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Almost every investment is associated with some level of risk. As an investor, it is essential for you to take it into account so your investment decisions can be most informed once. We believe that what each investor should focus on is the risk-to-profit ratio. Find out the risks you are taking by investing in a p2p investing platform:

Default of the loan you invested in

As an investor, you earn when the part of a loan you buy is paid off. If the borrower ceases to pay his/hers installments, the credit defaults. At iuvo, we reduce the risk for your investment to a minimum with our buy-back guarantee. A buy-back guarantee is a contract between you and the loan originator, who is obliged to buy back your initial investment in a loan that didn’t receive installment for 60 days. Nevertheless, the risk of loan default still exists, and you need to take into account because when the buy-back guarantee is activated, you will not receive a return. This event may affect your investment strategy.

Poorly diversified portfolio

The best way to minimize the risk of losing is to diversify your portfolio. It means allocating a small amount of money among many credits instead of investing one larger amount into a small number of credits. By investing small amounts in a large number of credits, you guarantee that even some of them will deflate, this will not seriously affect your total investment and its return.

Bankruptcy of the P2P platform

Although unlikely, it is still possible. Platforms that have no originators but lend themselves develop their backup plans in the event of bankruptcy. As iuvo works with originators – well-established non-bank financial institutions, the invested funds are distributed in separate bank accounts, and each purchase agreement to buy a part of a loan is concluded between the investor and the respective originator and is not influenced by the platform.

Regulatory changes

P2P investing is a relatively new industry and as such is not yet regulated harmoniously. Potential interference could bring changes in the way platforms work in different countries and in the return they offer, but there are currently no indications that this could happen soon.

The annual return that iuvo offers can reach up to 12%, and you can start earning money as soon as you’ve deposited funds into your account and created your portfolio!

P2P lending – high return and controlled risk

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Where to invest our money? It is a frequently asked question in times of low-interest rates on deposits, high fees of a large part of the mutual funds and also low liquidity on the Bulgarian Stock Exchange.

P2P lending is one answer to this question – an online platform that offers to you the opportunity to invest with a sum of your choice, free of charge for all registered investors and high returns at a controlled risk.

Iuvo is a peer-to-peer lending market that meets investors looking for high returns with creditors from the non-banking financial sector (originators). In iuvo, you will be able to invest in different types of credits from various loan originators and countries. You will also be able to determine the portfolio yourself, the desired return and risk levels. Peer-to-peer investment is a service that has been running for years on the European financial market.

You should bear in mind that all creditors, also called loan originators, are duly registered non-bank financial institutions operating in the EU. They undergo a thorough analysis of their portfolio and processes to offer reliable and diverse loans to our investors. Iuvo platform is registered in Estonia, which is known as one of the most advanced European markets in this type of investment and a high level of use of Internet technologies. The platform does not offer loans, but an investment service – each of us has the opportunity to invest in the loans provided by the non-bank financial institutions with which the platform operates.

Iuvo can invest both physical and legal entities. The only requirements for this are: Individuals must be over 18 years old, have a valid bank account on their behalf within the EU and their identity is confirmed by iuvo. Legal entities must also have a valid bank account on their behalf within the EU. Their data and source of funds will also be audited by iuvo, by the abovementioned regulations on money laundering and terrorist financing (AML / CFT).

What is peer-to-peer lending and why it’s so attractive

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The alternative financing is becoming more and more popular on the global financial stage. At the same time, it is gating significant traction in Europe as well. Alternative financing may have many forms, but the most popular and with the most prominent stake is the peer-to-peer lending.

What is peer-to-peer lending?

Peer-to-peer lending is the practice to borrow funds through an online platform, which connect you directly with individual lenders or investors as many platforms refer to their lenders. The companies offering such loans are operation entirely online, with lower operational costs in comparison with traditional financial institutions. It allows borrows to have more flexible interest on their loans and allows the investors to have more attractive returns.

On the other hand, the p2p lending companies get for being an intermediary between borrowers and lenders a percentage of every funded loan through the platform. It’s their primary job. The most of those loans are not secure with collaterals and are issued to fund business operations.

The lenders determine the interest on the issued loans in many cases on reverse auctions basis or biding for the lowest interest offered. Another way to fund the credits is with fixed interest, based on the individual credit rating of the borrower. Some platforms to mitigate the risk of “bad loans” offer to their lenders to decide whether to fund a particular borrower or nor to do it.

How was peer-to-peer lending born?

After the financial crises of 2008 many borrowers started to seek access to loans with lower interest rates and more flexible conditions. On the other hand, investors began to look for a better return on their investments. The banks were in tough economic conditions and were unable to answer the demands of the customers. It created a severe gap in the lending industry., which was filled by the p2p lending platforms. Those platforms have the advantage of a minor regulatory frame, allowing them to be more flexible than their bigger rivals from the traditional lending industry. In the recent years, the peer-to-peer lending industry has gained significant traction and growth in the well-developed countries with active financial markets.

In the US though peer-to-peer lending platforms were funded more than 6,6 Billion Dollars in loans or a growth of 128% in the past year. The country is the biggest market in volume, according to research conducted by BIntelligence. In regards to an individual loan issued UK is surpassing the US, with 78%. Many researchers believe the Europe is the next market that will have a significant growth surge.

Alternative finance markets in Europe has reached nearly 3 Billion EUR in 2014, which is 144% yearly growth, according to Business Insider. In France, for example, the relevantly small p2p lending market has grown by 4000% in the past year, to 8.2 million euros. The peer-to-peer lending is getting traction in Germany, Sweden, and Netherlands.

What is the process in peer-to-peer lending?

The customer applies for a loan on the website of the selected platform. The platform determines his/hers “credit rating” and its solvency. If approved, the platform sett ups the conditions, including the interest rate. The platform presents the borrower’s profile to potential investors whose requirements are covered by the borrower. An investor or group of investors agree to provide all or part of the amount requested by the borrower. A third party, a partner bank, effectively issues the actual amount and supplied to the borrower, which removes the legal obstacles associated with mandatory provisioning requirements.

Investors give the platform funds to buy it from the bank. The borrower pays to the platform the due amounts, which are returned to the investors respectively. It should be clear that P2P lending platforms are only intermediaries in linking the interests of creditors and borrowers. They do not carry any risk associated with bad credit and thus manage to maintain low operating costs and therefore provide more favorable interest rates.

Where the ‘smart money’ goes

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Ivaylo Ivanov, Operations Director at iuvo, sat with ‘Manager’ magazine and talked ‘smart money,’ iuvo and the future of peer-to-peer investments.

Mr. Ivanov, what kind of financial technology stands behind iuvo?

Iuvo is a platform for online shared investments (peer-to-peer) that allows users to buy loan parts lent by registered non-banking financial institutions (loan originators). We give our investors the opportunity to realize a high return, whereas our originators get the chance to use the benefits of the P2P model to further develop their business.

After a long cultivation of the business model and technical development of iuvo, we launched the project in July 2016. Just four months after its official start we managed to attract over 650 users from two continents and more than 600 thousand EUR investments.

P2P is part of the global trend of sharing economy, which created the online platform business model of companies like Kickstarter, Uber, and Airbnb. They connect people who have resources that are in demand (money, automobiles, homes, etc.) with people who need it.

The global economy that is in a cycle of excessive liquidity and low-interest rates on bank deposits contributed to forcing ‘smart money’ to look for alternative forms of investment that bring high return – iuvo offers exactly this.

What educational background and preliminary preparation are necessary to use the platform?

Iuvo works in an extremely simplified way. Users buy parts of loans and get returns corresponding with the investment size and interest rate of the relevant loan. Payments are being made according to the loan’s repayment schedule. If the loan is delayed over 60 days, the originator will buy back the investments and will refund 100% of the sum to the user. All loan details are indicated on the platform. Iuvo is a tool for contemporary people who want to improve their financial culture and let their money work for them.

What kind of return can be earned and what does the net profit depend on?

It depends on the individual portfolio of bought loans at iuvo. Currently, the annual interest on loans with different class grades on the market is between 5 and 12%, whereas a balanced portfolio may generate our users an annual return of 7-10%. The first investment principle and our primary advice for our users is to allocate their funds between a maximum number of various positions, to diversify their portfolio as much as possible and to ensure their return.

Is crowdfunding expected to boom in 2017 or is the average Bulgarian going to remain precautious toward the alternative financial tools?

The business of crowdfunding platforms in Europe grew by three-digit percentages for the past 5 years, and there was no way for Bulgaria to remain isolated. However, our focus is not only on the Bulgarian and Estonian markets. We have planned a launch in 10 European markets for 2017, as well as adding at least 5 new originators to ensure a wider diversity of loans. In the long run, we would like to turn iuvo into one of the top five leading peer-to-peer platforms for investments in Europe.

 

Source: ‘Manager’ magazine (December 2016)

 

News

Work with us as Business Support Expert

News

We are looking for Business Support Expert with German language.

The Business Support Expert uses email, chat, and telephone, in order to respond to inquiries about our platform, assists clients in navigating our website and initiates calls to resolve user issues. The expert is responsible for the client account verification process.

Responsibilities:

∙ Provides telephone, chat and email support to customers;
∙ Organizes, investigates and resolves issues in a timely and efficient manner;
∙ Works through data processing and validation issues with the support team;
∙ Provides best practices in how to use the platform to clients as needed;
∙ Provides quick, on-the-spot tutorials to clients as required;
∙ Answers direct client calls;
∙ Informs users about new features, promotions, products on the platform, etc.
∙ Interfaces with other departments to ensure platform maintenance and troubleshooting;
∙ Adheres to established procedures of documenting support cases;
∙ Maintains and updates internal reports;
∙ Actively participates and contributes to internal processes improvements.

Requirements:

∙ Fluency in German – both written and spoken;
∙ 1+ year in customer service;
∙ A professional, helpful and friendly attitude;
∙ Ability to listen, teach and elicit information effectively;
∙ Ability to work independently with a minimum direction and control;
∙ Service orientation with a genuine interest in addressing customer needs;
∙ Proficient in Microsoft Office.

Benefits:

∙ Ongoing training and development programs;
∙ Competitive starting remuneration.

To apply, please send your CV or link to your LinkedIn profile to [email protected] and include “Business Support Expert with German” in the subject field. We look forward to hearing from you!

Iuvo with award from Forbes Business Awards 2017

News

We are delighted, to announce that we were awarded the third place in the “Best Starting Business” category on the Forbes Business Awards 2017. For the second consecutive year we are among the finalists in the category and deservedly took our place in the top three.

Our CEO, Ivaylo Ivanov, was the one who received the award, thanked all investors, originators, team members who are continually working on the support and development of the platform. Furthermore, Ivaylo Ivanov shared with the public, about the great happiness and enthusiasm with which we are developing our company and reminded all entrepreneurs not to forget to have fun while they are starting and growing their businesses.

The Forbes Business Awards was held for the 7th consecutive year. It aims to promote entrepreneurial spirit and sound business practices. The jury had the difficult task of assessing the applications of dozens of the best companies in Bulgaria, divided into eight categories.

We proudly can say that we would be able to achieve those high results with you – our investors, who were supporting us from the very begging of the company and you continue to trust us every day. This award marks one fantastic year with many successful events and milestones for the company. We were able to forge a partnership with our third originator – iCredit enables us to diversify our loan portfolio on the platform further. Iuvo became part of the public-private cluster Finance Estonia and was licensed as a credit intermediary form EFSA (Estonian Financial Supervision Authority). We are delighted to receive this recognition from Forbes, which will be the begging of many more awards and success moments.

In the end, we would like to share with you one saying, that the success can be only the appreciated when shared with others. We believe that together we will continue to build a sustainable investment service to help more people make their own financial decisions and give them the opportunity to reach their financial independence.

Thank you!

forbes 2017 team selfie

iCredit – our third loan originator on the platform

News

We are delighted to announce that iCredit Romania will join our platform as a third loan originator. With the other two originators, iCredit will allow us to diversify further our loan portfolio adding more lucidity on the platform and giving more investment opportunities for our clients.

The total loan portfolio iCredit is estimated to be around 18M EUR. The company has loans between 400 – 6000 RON (85 -1300 EUR) from its main products – consumer loans, staff loans and pension loans. The maturity of the loans is between 3 and 15 months depending on the product. iCredit is obliged to retain 30% of the sum of every listed credit, mitigating the risk for investors. All loans are coming with 100% buy-back guarantee. Investors will be able to invest in credits in Euro and Romanian Leu. The investors can expect a maximum return on the platform of 14,88%.

To obtain exposure to loans issued in Romania, investors will be able to invest in loans issued by IUVO Credit (a daughter legal entity of IUVO Group in Estonia) to iCredit, where repayments depend on the final borrower’s payments. Each loan issued by IUVO Credit will be pegged to a respective loan issued by iCredit to the final borrower.

iCredit is operational since 2011 in Romania, and three years later it starts to operate in Poland as well. As to 2017, the number of offices in Romania and Poland exceeds 130 in more than 105 cities, and the employees of the company are around 1700. iCredit is a leading employer in the financial sector in Romania.

The success of the companies lies in its core principle to offer financial independence to all its customers.

You can find the full financial statements for 2016 of the company here.

Register now and take a look the listed portfolio of iCredit and start investing.

Refer-a-friend program vol.2

News

We have the pleasure to announce that we will be restarting our Refer-a-friend program as of 05.10 2017. If you are an investor with iuvo and you refer a friend to join our platform both of you get a bonus of 30 EUR in your accounts.

Three easy steps to join the program!

Step 1. Register and make a deposit, if you have not already done it.
You can participate in the Refer-a-Friend Program if you have an account and investments of at least 1000 EUR.

Step 2. Fill in the Forms to let us know the friends you want to refer.
The Referred party (your friend) must Register and invest at least 1000 EUR.

Step3. Check your iuvo account for the bonus.
The bonus of 30 EUR (depending on the currency of your last deposit) will be added to your (and your friend’s) accounts within two working days.

Furthermore, if your referred friend increases in the next two month after the registration the invested sum up to 2500 EUR, both of you will receive a bonus of 60 EUR in your iuvo accounts.

Full Terms and Conditions of the Program can be found here!

Iuvo is regulated credit intermediary in Estonia

News

We are proud to announce that iuvo has been granted a credit intermediary license by the Estonian Financial Supervision Authority (FSA). The license will allow us to make the next steps in our development — not only to give investors the opportunity to invest but to allow borrowers to get loans directly from the p2p lending platform.

The FSA is regulating the financial sector in Estonia — banks, insurance companies, investment and credit intermediaries, pension funds, etc. The decision to grant a credit license to the company was based on our great due diligence with legal requirements in Estonia.

“We are delighted and proud with the given trust from the Estonian regulator. It validates our business model once more and allows us to continue our development in new directions. The license will give us the opportunity to add more services in our portfolio. The next step is to be able to issue loans directly to borrowers or in partnership with our originators. Now, the options for iuvo are limitless.”, said Ivaylo Ivanov CEO of iuvo.

Since August 2016, more than 2000 investors from 57 countries gave their trust to the platform and invested more than 4M EUR with an annual return up to 15%.

It is not without a reason why we decided to register iuvo in Estonia — a country with one of the most advanced and developed p2p lending markets. In the past years, Estonia is recognized as one of the countries with high penetration of internet technologies. All the above makes Estonia a state with one of the best regulatory practices in the p2p lending market. All companies comply with the best practices in the industry and the rules that guarantee the clients accurate information when investing.

More than 3M EUR invested through iuvo in one year

News

Last month the p2p lending platform iuvo had its first anniversary. We I launched in 2016, and for that short period, we were able to secure more than 3 000 000 EUR in investments and 1800 investors. One of the main achievements of the past year was that the company was able to offer to all its investors up to 15% annual returns, which makes the platform one of the top choices in the p2p lending industry.

At the present moment, we are working with two of the top originators in Bulgaria (Easy Credit and Viva Credit). We expect new originators to list their loans on the platform by the end of 2017. Iuvo is partnering with some of the most innovative and successful companies in Europe. That is a great recognition of the potential of the p2p lending industry.

“We are witnessing an impressive growth in the past year, in which we were able to educate the market and the customers that p2p lending is a secure and profitable, alternative financial instrument. I believe that we can present what is the future of the financial sector and how the new business model of p2p lending can work and bring benefit to all”, comments Ivaylo Ivanov, CEO of the company.

In the past year, Ivanov took part of many financial events and forums. He also gave interviews for a couple of economic televisions in Bulgaria. In June iuvo became part of Finance Estonia, where many fin-tech companies, banks, and other p2p platforms are also participating.

“Our future goal is to become one of the most innovative and thriving p2p lending platforms in Europe and to gain the trust of more and more investors and originators. In September I will be participating in one of the most relevant industry forums in Athens, where many important issues will be discussed”, comments Ivanov.

Iuvo becomes part of FinanceEstonia

News

We are pleased to announce that we are the newest member of FinanceEstonia after the organization decided to make us part of the group. In FinanceEstonia participate fin-tech companies, banks, p2p lending platforms.

FinanceEstonia is an organization working in the public and private finance sector to support the Estonian economy. It actively supports the internationalization of the financial sector, the innovations, capital increase, etc.

FinanceEstonia aims to raise awareness of the benefits of the financial sector in Estonia in two main areas: capital markets and the export of services. It actively works in six other priority niches: financial markets, crowdfunding, credit providers, financial technology, investment services and international private banking.

Iuvo became a member of FinanceEstonia on the “Crowdfunding” section. Each member company in this niche strictly adheres to “Best Practices for Shared Financing.” At the core of the practices is the “Observe or Explain” principle. According to him, every platform in FinanceEstonia is committed to “Observe” the prescribed practices and to “Explain” publicly if it deviates from them.

Best Practices for Shared Finance are summarized in Eleven Core Points that we observe and apply as a member of FinanceEstonia.

1. Investors’ Funds – Each platform, without exception, is required to keep the funds of investors separately from other assets and to provide timely information to investors on each investor.

2. Data Protection – The collection of personal data must be following all legal requirements. The platform should provide complete information on these processes to all users on its website.

3. Compliance with Measures to Prevent Money Laundering and the Application of International Standards and Rules – The Platform applies appropriate steps to identify its users and prevent money laundering.

4. Quality of Information and Communication – The Supplier undertakes to provide correct and unambiguous information to all its users. Otherwise, it is obliged to return the funds to the investors.

5. Risk warnings – The platform must provide its users with full information about all possible risks in a public place so that each investor depends on his / her economic situation and consult with the relevant specialist before deciding to invest.

6. Consumer protection and advertising – When offering its services, the platform must comply with the relevant legal acts, invite its users to familiarize themselves with the general conditions and ensure that the messages are correct and true, etc.

7. Avoiding Conflicts of Interest – The Provider is required to treat all of its users equally, to identify potential conflicts of interest and to provide sufficient information on its site for their resolution and prevention.

8. Sustainable development – The platform is required to develop emergency plans. For example, a Priority Communication Plan that would help with a technical, legal, or financial risk to the platform. The goal is to prevent an adverse impact on the platform and its users.

9. Accountability – Within two calendar months after the end of each calendar year, the provider is required to provide a review of economic performance on its website.

10. Dispute Resolution – The Provider provides on its website an annual overview of the complaints lodged against it, the measures were taken and the results of its examination.

11. Joining and Matching Best Practices – If a platform joins “Best Practices,” FinanceEstonia issues a certificate that it can use on its website and in its marketing materials. Finance Estonia verifies compliance with the practices and issues a new certificate every year.

FinanceEstonia is an international organization and for our entire team membership is a recognition of a well-done job. With satisfaction, we will continue to follow good practices in shared funding and set ourselves ever higher goals.
Iuvo is now alongside members like Deloitte Advisory AS. The company unites companies from around the world to provide quality services in financial consulting, risk management, taxes, and more. Deloitte Clients are mainly businesses in the fields of banking, insurance, manufacturing, infrastructure, energy, real estate, services, wholesale and retail, as well as the public sector.

Another member of the “Crowdfunding” section is Ernst & Young Baltic AS, the world leader in insurance, tax and advisory services. With a team of over 167,000 people, Ernst & Young Baltic’s goal is to inspire and give the right guidance to its customers.

In 2016, Platforms such as Bondora, Crowdestate, Estateguru, Fundwise and Investly Holding have also been awarded Best Practices in Shared Finance.

Refer-a-friend program

News

We, at iuvo, have the pleasure to present to you our Refer-a-friend program. If you are an investor with iuvo and you refer a friend to join our platform both of you get a bonus of 50 BGN / 25 EUR in your accounts.

Three easy steps to join the program!

Step 1. Register and make a deposit, if you have not already done one.
You can participate in the Refer-a-Friend Program if you have an account and investments of at least 100 BGN or 50 EUR.

Step 2. Fill in the Forms to let us know the friends you want to refer.
The Referred party (your friend) must Register, have their account verified and invest at least 100 BGN or 50 EUR.

Step3. Check your iuvo account for the bonus.
The bonus of 50 BGN or 25 EUR (depending on the currency of your last deposit) will be added to your (and your friend’s) accounts within two working days.

Full Terms and Conditions of the Program can be found here!

Thank you for being part of iuvo. In the recent months, we are making huge leaps forward and have been achieving steady growth. Our success would be impossible without you – our investors.

What’s new at iuvo

News

We at iuvo strive to ensure comfort, security and flawless user experience to all our investors.  It is the main reason why we continuously improve everything connected with iuvo, including our platform.

In March, we introduced a couple of new features, which will make investing and managing your account much more accessible and intuitive. Let’s dive into some of them in this blog post.

– Cart – When you select the loans in which you would like to invest in you can add them to a “Cart.” It is a great feature which enables you to manage and add additional loans before your final approval.

– Loan details pop-up window – On click, every single loan now opens in a new window on the same page. For more convenience, we also added a quick “Invest” button in the pop-up.

The primary goal of the new platform features is to deliver flawless experience and comfort when you use them.

How they work and why they are useful?

– Cart

The cart is a proven useful feature for the primary market, that can help you manage your investments.

When you choose a loan to invest in and the sum you would like to invest, your selection of loans will go into the “Cart.” You can add loans multiple times and set different investment criteria using a variety of filter combinations. All investments will be saved in your “Cart” and sorted by currency. Even if you log out from the platform your investment will continue to be saved in your “Cart,” and you will be able to invest in them at a later moment.

The “Cart” also gives you the opportunity to manage your investments. You can increase or decrease the investment amount, you can add or remove loans, and you can sort them by currency.

A good strategy would be to save in your cart loans in which you are interested in investing in and then periodically check their status to decide if you would like to invest in them. Keep in mind that when you add loans to your investment cart, it does not mean that you are reserving the investment amount. Other investors will be able to invest in a loan that you’ve put in your cart.

– Loan details pop-up window

If you want to check the loan details (Borrower and Collateral, Payment Schedule and Investment Breakdown) by clicking on Loan ID, the details will appear in a pop-up window. The option is beneficial for investors who prefer to use Filters as the pop up helps in selecting the appropriate credits and in choosing those that best suit investor preferences.

Borrower and Collateral, Payment Schedule and Investment Breakdown is information which defines each investor’s strategy and the quick access to it will help you to adequately considerate and compare loans. Moreover, the Invest button within the pop-up window will help you to invest quickly and will shorten the required steps on the investor’s end.

– New indication

To help you in your investor journey we have also added a new indication in the form of a blue dot next to the “Invest” button on our primary and secondary markets. The blue dot indicates that you have invested in this particular loan. The indication helps you identify your investments quickly, and you do not need to set additional filters or check “My investments” to find the loans in which you’ve invested. Regular servicing of the loan and good profitability are some of the main reasons to reinvest in the same loan. The new indication makes this possible without prior examination of all loans.

The new features at iuvo give you more detailed and quick access to all loans on the platform. They optimize the investing process and create more opportunities for short-term investment planning.

To view the new features and generate a return of up to 15%, register now

New loan originator in iuvo

News

We are happy to inform you that Viva Credit, one of the most popular non-banking financial institutions in Bulgaria, has joined iuvo as a new loan originator. The company has been operating on the Bulgarian market since 2012.

On the first stage, Viva Credit will list on the platform loans of its portfolio up to the amount of BGN 1,500 and which are not collateralized, and it will subsequently start listing loans secured by mortgages as well. The company will be required to retain at least 30% of the amount of each loan listed on iuvo.

Viva Credit is specialized in small loans, and its speed and convenience provided in applying for and utilization of its products are among the most serious market advantages of the company. Customers may apply for the products online, by telephone or in any of the 60 offices of the company within the country, and they may choose how to utilize their money – online, by bank transfer, in an office or at a cash desk of Easy Pay or Fast Pay, or in any office of the partners of Viva Credit.

Our decision to become the second loan originator on the iuvo platform is crucial in the history of the company’s development and it happens on the eve of our fifth anniversary as a financial institution in the country. Our plans are to gradually enrich the loan portfolio, which will list on iuvo, starting from small consumer loans to loans for a greater amount secured by a mortgage. We believe that with this innovative step we will be able to contribute to the expansion of our business model, as well as the provision of a variety of products and services to our customers,’ said Desislava Dimitrova, Executive Director of Viva Credit.

 

Financial data for 2015:

(In EUR thousand)
Net interest income 3 806
Net profit 618
Total assets 3 148
Loans granted to customers 7 587

The full financial statements for 2015 of the company can be found here.

Register now and see the credits of Viva Credit in which you can invest!

Easy Credit – the first loan originator in iuvo

News

Easy Credit, our first loan originator, is the most prominent fast-lending company in Bulgaria. It was created in 2005, and for more than 10 years it has proved as an indisputable leader in personal lending.

Since its launching, the company has allocated more than 1M loans to more than 500K customers. The company clients are of different social status and origin and use Easy Credit products for various purposes – payment bills, repairs, medical expenses, vacations, etc.

An essential distinction of the company is the personal approach of the lending. The core of its business is more than 6,000 credit consultants who visit customers where and when convenient, shortening the distance between the company and the people and creating personal and long-lasting relationships.

Part of the company’s financial results for 2015:

EURO
Annual turnover 38 860
Profit before tax 4 943
Total assets/em> 37 670
Total assets 30 272
Retained earnings 17 306

 

The company offers buyback guarantee for each credit listed on the platform, and it is obligated to redeem the credits which entered more than 60 days delayed.

Easy Credit, like any other originator on the platform, is required to keep at least 30% of the value of each credit, the so-called “skin in the game.” This ensures that the interests of both investors and originators are always the same.

Say ‘hello’ to iuvo

News

Iuvo is one of the latest peer-to-peer investinvesting platforms in Europe. We are based in Estonia, and we launched in August 2016.

Since we managed to generate investments worth approximately 1 000 000 EUR for six months, we continue to develop while focusing on what we always considered essential for us: strong security and high return on investments.

At iuvo investors will discover an opportunity to diversify their portfolio of loans with an annual return up to 12% provided by the biggest Bulgarian loan originator – Easy Credit.

At the moment all loans on the platform have buyback guarantee, whereas the whole investment process is extremely simplified with our Auto invest tool.

A few new originators are about to be added to the platform and to implement new features that will make the investment process easier and quicker.

Register now, generate a high return and be the first to discover new features on the platform!

A quarter of a million investment in iuvo in less than two months

News

What have we achieved?

Seven weeks after our official start, we are ready to offer you the first data to show who we are and what the opportunities we provide to our users.

For the short time, we are on the Bulgarian peer-to-peer lending market, we have been able to attract investments totaling more than a quarter million leva. The share of purchases in euro, which are 65% and those in BGN, predominate – 35%. More than 300 investors from four countries have already trusted us and took credit exposures of nearly BGN 2 million, including 617,000 euros.

We expect to offer our current and future customers average returns of up to 12% per year.

We are a peer-to-peer lending platform, where the interests of consumers (investors), seeking high returns and lenders from the non-bank financial sector (so-called ” loan originators”) meet.

In iuvo, you can buy different types of loans from a variety of “originators” and countries. The high level of control we provide allows you to determine the portfolio of credits you buy, the desired return, and the level of risk that suits your preferences.

We strive to maximize the risk control for all our investors through the buyback guarantee we offer. It ensures that the loan originator (the creditor) undertakes to redeem the loan from the investor at par value in case the borrower stops servicing his obligations.

By the end of the year, we plan many new investment opportunities. Get to know the platform and start investing today.

Tutorials

Investing in P2P Lending – Beginner`s Guide Vol. 2

Tutorials

In the previous article, you learned how to choose a P2P investing platform, how to create your account at iuvo, what we require from you to pass due diligence, and how to filter loans in the Primary market. It’s time to dig a little deeper and show you a trick on how to make smart investments, without missing out on excellent loan opportunities.

Auto-Invest feature in iuvo

The Auto-Invest feature is here to save you time and help you take advantage of all loans that match your investment criteria, even when you’re not logged into the platform. It allows you to build your investment portfolio, by enabling you to craft your loan preferences and save them. Once you set up this feature, the platform will browse for all published loans that match your filter and will invest in them on your behalf.

Auto-Invest doesn’t stop you from doing manual operations through iuvo. If anything, it enhances your investment opportunities.

How do I set it up?

The easiest way to set up the Auto-Invest feature is to replicate the work you’ve done when filtering loans on the Primary market. Since you’ve already browsed through different sizes and types of loans, you’ve probably decided which ones you’d rather invest in. You can set up filters like score class, expected returns, the number of outstanding payments, loan status, etc. – everything you consider important.

Be smart when choosing your preferences, because from now on the platform will only select loans that match them, and it will filter out all other loans.

How much should I invest?

To take full advantage of the platform’s benefits, we recommend that you enter a larger amount than the actual funds available in your account. When you do that, the platform will start automatically reinvesting all your returns, subsequently bringing you more earnings from the compound interest.

Can I stop the Auto-Invest feature? How?

There is nothing mandatory at iuvo, and Auto-Invest makes no difference to that rule. You can stop or resume using the feature at any moment. Once you have created a custom portfolio, you can simply hit the “Pause” button, and Iuvo will stop investing in that filter until you resume.

You can save multiple filters and experiment with investing in various types of loans. If you find that one of your portfolios isn’t bringing you good returns, you can press “Cancel” and delete it altogether.

Okay, I see my returns growing! What do I do now?

Undoubtedly, the best part about investing is getting to see your success, and having your Account Statement full of earnings! You have two possible choices about what to do with these funds. The first option is, of course, to reinvest them back into new loans. You can either do that manually or use Auto-Invest – you know the deal by now.

The second option is to withdraw some of your free funds and have them transferred to your bank account.

How do I withdraw?

When it comes to withdrawals, we have separate rules for individuals and companies.

If you’re an individual, you have to pass due diligence at this point, by sending us your ID and address details. You can verify your address by sending us a scan of a suitable document, such as your latest utility bill. Once complete this step, withdrawing is simple – just go to your Dashboard, and click on “Withdraw.”

If you’re a company, you’ve already passed the ID verification step when you registered your account. At this point, you will need to confirm your address.

There are no restrictions on how much you can withdraw at once – the only limit is the amount of available free funds. And by free, we mean funds that aren’t currently invested in loans.

How much does it cost to withdraw, and when will I see the money in my bank account?

Iuvo doesn’t charge you any withdrawal fees, but please note that the bank transfer might cost you a small fee, depending on whether your bank charges for incoming transfers.

Your withdraw request will be processed within two business days, however, with some banks, it might take a little longer than that.

Conclusion

We hope this article will make it easier for you to get around iuvo, and build your investment strategy. If you feel like you need to read more about specific topics, don’t forget to check out our previous blog posts! We’re sure they will set the right foundation for you!

Investing in P2P Lending – Beginner`s Guide Vol. 1

Tutorials

Nowadays more and more people are exploring investment opportunities for their free funds. There are so many options that it all gets too overwhelming and beginners don’t know how and where to start. If you’re considering investing in P2P lending and are wondering how to do it – here is a brief step-by-step guide for you!

 

Choose a P2P lending platform

Before choosing your P2P lending platform, there are some key factors you should consider. In short, you should look for high returns, liquidity, and a buy-back guarantee. Probably sounds easy but you might be wondering what those things actually mean.

If a platform has a high return rate, that means you can earn a substantial profit – provided you develop a good strategy and are consistent and smart with your moves. Liquidity means that you will be able to invest your funds straight away, without worrying about frequently changing asset prices and possible financial losses. And finally, the buy-back guarantee assures you that the loan originator will repay the invested principal, in the event of loan default.

Iuvo proudly covers all three of these essential factors. The most impressive part is undoubtedly our returns rate, which can get as high as 15,22%! Our loan portfolio is more than €30M up to date, with more than 16 000 loans available for investment.

 

Open an account and pass due diligence

Opening an account with Iuvo is easy as 1,2,3. Just register and verify your e-mail – your account is created!

If you are an individual, you can start investing straight away. You could pass due diligence at this point if you prefer to. However, it’s not mandatory until you decide to withdraw funds. We’ll address this in Vol. 2 of this guide, so stay tuned!

If you’re a legal entity, however, you’ll need to get verified before you can invest with Iuvo. The required documents are: scanned copy of your passport or both sides of your ID card; certificate of current legal status – translated in English; information for UBO / actual owners– translated in English; and company’s articles of association– translated in English.

You might be wondering – why do I need to pass this step? Since this is an investment platform and we operate with real loans and real money, we need to follow specific verification practices, called KYC and AML. KYC stands for “Know Your Customer,” and AML stands for “Anti-Money Laundering.” These practices help us prevent malicious actions from being done through our platform, such as: identity fraud, credit card details theft, and money laundering.

 

Deposit your funds

You can deposit in EUR, BGN, and RON. Make sure to do your research and make a final decision, because you can’t change your currency setting later on. Once you have chosen your preferred currency, go to your Dashboard, and click on “Add Funds.” You will see a detailed explanation of every step onward. Note that the general deposit method at Iuvo is via bank transfer – we have accounts in Allianz and Swedbank. Of course, there’s an option for intra-bank transfer, so you don’t need to have an account in either of those banks. For further information on deposits, check our article, called Depositing And Withdrawing Funds.

 

How do I start investing?

Iuvo has two main investment channels – the Primary market, and the Secondary market. The Primary market is a list of all loans coming from our originators. Before you invest, it’s a good idea to get acquainted with the Primary market specifics and browse through a couple of published loans. This will give you a good idea of what to take into consideration when investing.

First of all, loans have specific attributes that help you decide whether you want to invest in them. These attributes include loan class, borrower demographics, return rate, currency, and of course – repayment plan (how many installments have already been paid, and how many are due).

The loan class is marked with letters (A-E, HR) and shows the level of risk for each particular loan – how likely is the borrower to delay it, or not pay it all. The lowest risk rate is in A class loans. To further try and estimate the risk yourself, you can also check the demographics of each borrower such as age, education, income, etc.

If you want to see only certain kinds of loans, use the provided filters. You can filter by status, for example, and see only current or delayed loans. Another preferred filter is by expected return.

Now that you’re familiar with the Primary market, it’s time to create you auto-investment portfolio. To learn more about the auto-investment feature, how to set it up, get returns and withdraw your funds, stay tuned for the next article!

Loan Score Class and How to Use It

Tutorials

What is the Loan Score Class?

The loan score class is iuvo’s credit risk rating mark. It helps you determine the probability of a particular loan going default. Typically, each originator measures credit risk using its framework. However, for centralization, we had to develop a way to make credits from different originators comparable within iuvo. This is why we implemented the loan risk class – our own rating system.

The credit ratings at iuvo are:
Class A: 0 – 2% default probability
Class B: 2 – 10% default probability
Class C: 10 – 18% default probability
Class D: 18 – 25% default probability
Class E: 25 – 35% default probability
Class HR: above 35% default probability

How does the score class affect my profit?

People have a natural inclination to seek stability and avoid risk. With investments, however, the risk isn’t a bad thing, as long as you’re smart and strategic about it. When investing in a high-risk asset, you should be aware of the possible losses versus the amount of profit you can make.

Taking risks pays off in the long run, or in our language: investing in lower score class loans should ultimately bring you bigger returns. Here’s how it looks:

Class A: 5.03% – 6.31% return
Class B: 6.07% – 7.21% return
Class C: 6.96% – 8.13% return
Class D: 7.87% – 9.05% return
Class E: 10% – 12.34% return
Class HR: 11.87% – 15.22 return

This data is based on loans from December 2017. It can vary slightly between months and periods, however, what’s important is the trend: annual returns grow in reverse proportion to the loan score class. To maintain a healthy risk level in your investment portfolio, always keep in mind both the default probability and the expected return rate, and try to find your perfect balance between the two.

I’m trying to build my own investment strategy. Should I only look at the score class?

It’s never a good idea to follow only one attribute of the assets you’re investing in. When it comes to P2P lending, you can enhance your strategy by monitoring both the loan score class and the borrower`s details.

Once logged in, go to the Primary market, and click on any loan’s ID – this will reveal the loan’s attributes. Check the Borrower and Collateral section. There you can see insightful data about each borrower’s profile. All the information in this section is provided by the loan originator and isn’t edited or altered by iuvo.

The borrower profile includes: sex, age, education, occupation, salary level, and partner’s salary level (unless the borrower is single/unmarried). Based on these details, as well as other factors (such as personal credit history) originators evaluate a borrower’s solvency, and thus – the credit default probability.

Due to confidentiality restraints, iuvo doesn’t have access to borrowers’ personal information such as name, ID number, and credit history.

How is the borrower`s profile connected to the loan score class?
By going through borrower profiles and considering their loans’ score class, you can narrow down your own criteria and start targeting a certain type of “borrower persona” in the platform. E.g., you could decide that a reliable borrower for you means someone within a certain age group, whose earnings exceed a certain amount, and who has a certain education level.

Before you design your final strategy, make sure to experiment a bit with different borrower profiles and loan score classes – this will help you assess what risk level works best for you

What if I fail in my judgment?

Don’t forget about the Buy-back guarantee! In case a loan goes default, the Buy-back guarantee covers the full unpaid principal for the remainder of the loan. Read more about it here: What is Buy-back guarantee and how to control your investment risk.

Need more info? Check out the FAQ, as well other posts from the Tutorials section in our blog!

All the returns you can receive with iuvo

Tutorials

The most rewarding part about investing at iuvo is, of course, the moment you get to see your returns. As satisfying as it is to look at your account balance growing, you shouldn’t settle for just making sure that you’re earning something. It’s a good idea to regularly go through your Dashboard and your Account Statement for insight on how much you’re earning, and where it’s coming from. Keeping track of your returns’ size and origin can help you build your future investment strategies. Furthermore, collecting this information (and being precise about it) is especially important once you have to calculate and declare your income taxes.

What, where, how?

You can see an overview of your returns by going to your Dashboard. It represents a summary of all payments you receive, sorted by currency type. For a detailed breakdown of all incoming transactions, you can check your Account Statement. Payments you receive are calculated with an accuracy of 10 digits after the decimal point. However, for tidiness’ sake, we only display two digits after the decimal point.

We understand that the Account Statement might look a little confusing at first, but once you get the gist of it – it becomes effortless to analyze. To make it even simpler for you, we’ve prepared an overview of what kinds of payments you can expect to see.

Returns from loans you’ve invested in

When you invest in a loan from the primary market, your return flow depends on specific vital factors, such as:
– The agreed payment plan;
– What percentage of the loan you’ve invested in;
– Whether the borrower is keeping up with payments (or being late… or paying at all);
– Whether the borrower decides to make an early payment.

Regardless of the scenario, some rules always apply. For example, you get paid as soon as the originator receives a payment from the borrower, i.e., with each scheduled installment. Also, you will always get your returns from the interest and your returns from the principal, as two separate payments.

To illustrate your returns payments, let’s take an exemplary loan with duration of 12 months, and a 30-day installment plan. There are three possible scenarios:

A/ The borrower pays on time each month
In this case, you get paid once a month for twelve months. In your account statement, you will see two incoming transactions, as mentioned above.

B/ The borrower is late with their payment or doesn’t pay at all
Each originator charges borrowers a fee once their payment is overdue with more than 20 days. These fees vary in size and accrual period between originators. Your returns will directly depend on the percentage you hold from each loan.

If the borrower fails to make a payment, you are protected by the Buy-back guarantee. Once this guarantee is activated, you will be refunded with the remainder of the unpaid principal. These funds will go straight back to your account. The Buy-back guarantee does not cover the rest of the outstanding interest.

C/ The borrower decides to do an early repayment
Let’s say three months have passed, and the borrower chooses to pay the remaining nine installments all at once. In this scenario, you will receive the remainder of the unpaid principal, split into nine separate monthly payments per the pre-set installment schedule.

You will also receive a one-off payment for the current installment’s interest. Since we’re talking about an early repayment case, no interest will be accumulated anymore. That means you will stop getting interest rate for this loan – you will only get returns from the unpaid principal.

Returns from selling and buying loans on the secondary market

In the secondary market, you can get two types of returns:

A/ Selling loans for a higher value than what you invested
If you feel like a certain loan in your portfolio might be attractive for other investors, you can sell it at a higher price than your original investment. Having done that, you will receive two payments – one equal to the nominal value of the loan, and one equal to the premium/discount amount.

B/ Buying loans at a discounted price
In this case, you will start receiving payments according to the agreed installment plan for each loan. Again, you will see two payments in your account statement – one for the principal, and one for the interest.

Conclusion

This overview should help you better understand your returns size and origin. If you need further information, you can always check our FAQ section or contact our Customer Support associates at [email protected] Invest away!

Depositing and Withdrawing Funds

Tutorials

At iuvo, we pay utmost attention to the convenience of our users and always make sure that each step of the investment process is quick and easy. This is also true for the depositing and withdrawing of funds. We`ve made the processes intuitive and easy to follow, but with this article, we`d like to make sure that everything is clear and guide you through the specifics of the process.

Making a Deposit

Making a deposit is an easy process, but there are some things you need to consider depending on the currency you`d like to deposit in and other variables concerning your bank account.

Currently, you can deposit funds in EUR, BGN, and RON, so you need to decide which one works best for you as you won`t be able to change it later on.

To make a deposit first, you need to click on the “Add Funds” button, located conveniently in the upper right corner of your “Dashboard” page. After that the corresponding steps are explicitly listed, explaining in detail exactly what you need to do.

Depositing Specifics

The general deposit method for funds in EUR and BGN is via a bank transfer to one of our accounts at Allianz or Swedbank

You can use the following types of bank transfer:

– Inter-bank transfer

– Intra-bank transfer (if you have an account at the corresponding bank)

– Depositing location at a bank branch

It is important to note that bank taxes may be on the higher side when depositing EUR and furthermore, some banks might have additional fees for incoming deposits.

If you`d like your account to be in a currency different than EUR or BGN you have to use an external service. All details regarding this step are listed in the “Add Funds” page. Also, have in mind that to start investing you`ll have to verify your account by uploading a copy of an identification document.

If you are planning to deposit RON you should consider the following:

Thanks to our partnership with the Romanian originator iCredit, we are now also able to provide excellent investment opportunities in RON. For that purpose, any user who wants to deposit RON must add funds by using an external service instead of bank transfer.

For that purpose, we recommend using Pay Sera, an efficient, low-cost service which enables you to make payments in different currencies. Creating an account is very easy and takes no time at all. We recommend the service even if you want to deposit EUR or BGN, but it`s also useful for making all sorts of payments.

When depositing RON via Pay Sera, you should state “IUVO” as the basis for making the payment and also provide the following information:

IUVO Investment Number: – EVP6210002572095

ID: XXXX (Provide your account number here)

Other similar services which you can use, and we recommend are Transferwise, Revolut, and Currencyfair. The benefit of depositing using such a method is that you avoid the high taxes related to bank transfers. Furthermore, once you have an account at one of the abovementioned services you can deposit funds anytime, at your convenience.

It is a general requirement for any investor to provide a bank account of his own and for that reason, certain verification is required. Any user who wishes to deposit funds using a non-bank transfer should provide the appropriate documentation, proving that he is the actual owner of a personal bank account.

Such documentation can be either of the following, as long as your name and IBAN are visible:

– Bank statement

– Payment order

– E-Banking Screenshot

To upload a verification document, you should go to the profile menu, click on the “Documents” button, located in the upper left corner and attach the necessary documents.

After completing the depositing procedure, you should receive an e-mail signaling that funds have been added to your account. All you need to do after that is verify your account, and you`re all set to start investing.

Withdrawing Funds

Withdrawing funds is an essential process associated with investing, and it can even be said that it is the final goal of the process. Compared to making a deposit, withdrawing is a lot simpler and can be done at any point in time for any funds that are not currently invested in loans.

To make a withdrawal, you simply need to go to the “Dashboard” page and click on the “Withdraw” button located in the upper right corner, right next to the “Add Funds” button. There you need to fill in the required information and submit the request.

Note that to be able to withdraw funds you will have to verify your address by providing an appropriate document such as a utility bill.

All other details regarding the withdrawing of funds, such as withdrawal amounts, fees and processing time are fully described in the dedicated FAQ section.

In case you have any additional questions please take a look at the FAQ or send us a message: [email protected]

Top 3 auto-invest strategies for p2p investing

Tutorials

When you start investing in iuvo for the first time, we recommend starting with automatic investing. It is suitable for investors with little experience or those who do not have the time to select any credit they want to buy manually. The various filter combinations offered by iuvo allow you to build a portfolio that is specifically tailored to your profile and fit within your investment style. The iuvo auto investment option can be reached by logging in with your platform profile and navigating to Invest -> Automatic Investing.

Conservative Investor

If you qualify as a conservative investor – stability and security are essential to you. You are investing not so much for high returns as for protection against inflation and sustainable, slow growth of your funds.

The appropriate filters for you to create your portfolio are those that will allow you to feel comfortable and quiet without taking any serious risks.

The next step is to create your portfolio by clicking the “Create new portfolio” button and give it a name. Select the currency you want to invest in and the portfolio size – the maximum amount you want to invest using this automatic portfolio.

You can narrow your criteria even more by choosing the number of remaining payouts. The small number of remaining contributions means that the bulk of the loan is already paid and suggests a fair payout, making it a more secure investment.

In the box “Remaining balance” you can choose how many free (unpaid) funds you want the credits you invest in to have. The smaller the remaining balance, the more it is bought from the loan from other investors. Keep in mind that if you filter too many criteria, it is possible to significantly reduce the number of credits that match them and your portfolio to become too low.

Choose credits with a buy-back guarantee, which will provide you with a refund of your invested amount in case the loan falls into default for more than 60 days and Current loan status so that you can only invest in credits that are paid on a regular basis. The portfolio thus created ensures stable yield at the minimum possible risk.

Aggressive Investor

Aggressive investors have a high-risk tolerance and are looking for a higher and shorter-than-conservative return on return. In an example of an auto-investing portfolio for a similar type of investors, returns would have much more weight than the other factors.

Aggressive investors can afford a higher investment for each position and a higher value for the portfolio, for example, $ 20 per position and $ 2,000 total portfolio size.

Credit ratings that would be suitable for aggressive investors are D, E, and HR. Their yield is typically about 14%, but the probability of deflating is logically higher than that of other ratings. Diversification is especially important to ensure that the risk is best distributed.

Being an aggressive investor, you can take advantage of the higher yields that the deferred credits offer, by selecting and investing in. The short installment period allows for more dynamic cash flow, quick returns, quick reinvestment of new funds and, ultimately, a higher yield.

For now, all iuvo credits have a buy-back guarantee. In the future, however, we also envisage those who will not have a guarantee but will be able to offer higher returns. Buying such credits would be right for you if you are an aggressive investor.

Aggressive investment, of course, does not mean irresponsible investment. Even if you have a high tolerance for the risk you are taking, you should still follow the good practices in creating a portfolio so that you can make the most of the opportunities iuvo offers.

Balanced investor

As the name suggests, this type of investor is a combination of the two above. They are aware of the risks that exist, but they are exploring well the opportunities and take a position that is not ending either in the desire for high returns or in taking risks. For such a type of investor, a suitable portfolio would be one that includes a variety of positions and does not bump into extremes.

Credit ratings B and C are the right choices when a balance is what’s important to you. They offer returns of about 8% with a probability of deflation between 2 and 18%.

We recommend that the investment in one position be the minimum – 10 leva, but the overall size of the portfolio may be larger than that of the conservative investors. Balanced investors can combine credits with and without a buy-back guarantee by controlling credit risk without a buy-back guarantee through credit rating and yield. Balanced investors can afford to add to regularly paid loans and loans with little delay.

While iuvo is currently offering consumer credit only, when new originators join the platform, credit types will increase. Then, for more balanced investors, additional opportunities could be opened, such as investing in business loans with a more extended repayment period and stable returns.

A suitable scenario for balanced investors involves creating more than one outsourced portfolio with different levels of profitability, analyzing and tracking the performance of each option will displace too conservative or too risky portfolios to leave the most balanced ones.

No matter what type of investor you are, iuvo offers a variety of options to suit your needs. The platform provides a real alternative for your funds, which can bring you an average annual yield of up to 12%.

Sign up and let the smart money start working for you today!

* These three scenarios are exemplary and subjective and aim to illustrate possible approaches to creating an auto investment portfolio in iuvo, depending on the investor’s attitude

Secondary market and the benefits it carries

Tutorials

What is the secondary market exactly?

The secondary market is the place where investors can buy or sell parts of loans from and to other investors on the platform. The main advantage of this kind of trade is that it gives investors the opportunity to liquidate their investments. Other benefits from trading on the secondary market are:

– Opportunity to obtain return faster than the corresponding repayment schedule.

–  Possibility to generate even higher return if they manage to sell their investments for a higher price than the nominal one (premium price) or to buy at a cost lower than the nominal (discount price)

– Opportunity to invest in loans that are not available on the primary market

Purchasing loans at iuvo’s secondary market

Iuvo offers a secondary market to all its investors. Once you log into your profile, you can access the secondary market via the ‘Invest’ menu and by selecting the ‘Secondary market’ tab.

Use filters to view only loans that respond to your specific requirements or check out every credit listed on the secondary market and its features from the list under the filters.

Every loan has an ‘Invest’ button, and after clicking for one or more loans, you can pick the sum you want to invest, and you can confirm with the ‘Invest in selected’ button. That’s how the loans become a part of your portfolio, and they start generating a return for you.

Selling loans on iuvo’s secondary market

Every investor can list for sale loans or parts of loans from their portfolio on the secondary market.

In the ‘Invest’ menu, the ‘My investments’ tab shows all the loans you have invested in.

With the button ‘Sell’ and confirmation you can offer each of your loans for sale on the secondary market, whereas you fix the price you’d like to sell it for. It can be higher (premium price) or lower (discount rate) than the nominal.

Trading on the secondary market is a method that can seriously increase the return on your investments. The opportunity for quick liquidity is significant for investors, especially when it comes to investments in long-term loans. It turns the secondary market into a valuable tool, which can increase the maximum return on your investments.

Investing in Primary Market – Video tutorial

Tutorials

This short video will introduce all of the processes step by step when investing in a loan.

It explains all that you will need to do on the platform – from logging onto the platform to successfully investing in your first loan!

New videos are coming soon on auto invest, buying and selling loans on the secondary market, iuvo’s new features and many more.

Iuvo’s ‘Auto Invest’ feature is now active

Tutorials

Iuvo has launched a new function that aims to make investments on a large scale easier and reliable. It is suitable for investors who do not have enough time to manually select each loan they’d like to invest in and to exert precise control over the way their funds are invested.

Our new feature allows users to create custom filters and invests their funds in loans according to their criteria automatically.

The ‘Auto Invest’ feature allows the allocation and minimization of risk by selecting specific criteria for your preferred loans: risk rating, repayment term, installment type, number of remaining payments and much more.

Apart from selecting specific criteria for loans, in each of your Auto Invest portfolios, you can set the maximum overall investment sum that cannot be exceeded and additionally set the maximum amount you’d like to invest in each single loan. It assures that your funds will be spread efficiently without any manual work.

The portfolio can consist of hundreds, even thousands of loans and the returns are being automatically reinvested, which eliminates “cash drag” and maximizes your profits.

The feature can be activated/deactivated at any time, and you can also set a minimum amount that you want to always have available in your account so that the Auto Invest never goes over this limit.

The automated investment does not interfere with the manual investing in any way – you can use both options in your investment strategy. There is a video coming soon on our website where we will demonstrate step-by-step how to work with our Auto Invest feature.

 

Strategies

Seven investment gifts from the iuvo team

Strategies

Christmas is just around the corner, and the iuvo team has a few presents for our dear users. It`s something that can help compensate for all the money you’ve spent on presents, cards and fancy wrappings, but it will serve you even better in the long run. However, for the gift to be useful, you still have to use it wisely and get into an investment kind of mindset. Our gift to you is this article of seven valuable investment tips from each member of the iuvo team. The tips provide brief information on each member and present his unique perception on the p2p investment field, providing insights that can make your investments even more profitable.

So, get comfortable, pour yourself a nice hot cup of cocoa and read on.

1. “Try to regularly allocate a separate portion of your salary that won`t affect your monthly budget. By doing so, you will have a savings budget that can help you make a trip or realize another dream in the future.”

From Nikolina Ivanova – an integral part of our support team. She`s always dedicated to providing the best services to our clients and likes taking on new challenges. Nikolina is a fan of good the cinema and literature.

2. “Automate! The easiest way to achieve your short and long-term financial goals, if they are defined, is to automate the investment process. By using the automatic investment feature on the Iuvo platform you save up a lot of time by not re-investing your funds by yourself, but you also keep your portfolio diversified to achieve optimal profitability. This functionality enables you to manage your investment strategy in a quick, easy and efficient way. After that, you can simply relax and watch your money do all the work for you!”

From Miroslav Metodiev – the latest addition to our team and the person responsible for the well-being of the whole project. Miroslav has extensive experience in bank and nonbank financial institutions and is interested in anything related to financial markets.

3. “Fully utilize the opportunities we present to you. Try out new strategies with different currencies, originators and loan rating classes. Always benchmark your results and draw conclusions.”

From Vladimira Lulova – the person who manages our customer support team and makes sure, that each of our clients gets the information he needs. She has over seven years of experience in developing support teams and believes that work develops positive qualities in a person.

4. “Don’t hesitate to invest in loans that have a “late” status. By doing so, you can capitalize on the lucrative expiration taxes and achieve great profitability.”

From Daniela Yordanova – a vital part of the iuvo team who`s been with us for over a year. She likes reading books, doing sports and getting to know new people.

5. “Reinvest! You should always, immediately reinvest any funds available in your account, regardless of whether you use the automatic investment feature or invest manually on the Primary market. Reinvesting is the best approach for achieving high profitability and the shortest path to unlocking the potential of compound interest.”

From Ivan Milev – a member of the team since the very beginning. Ivan is the person responsible for improving the overall user experience on the platform and integrating useful new functionalities. He has extensive experience in many business-related fields and has worked with internationally acclaimed companies and institutions.

6. “Use iuvo to diversify your investment basket. Don`t forget that a good long-term investment is achieved through a well-diversified investment portfolio. Iuvo offers you exactly that, a secure option that brings high profitability. Of course, you can invest in volatile instruments such as currencies, shares or stocks, or you can also follow the speculative wave of investing in cryptocurrencies. I will always be a fan of speculative trading on financial markets, but that doesn`t mean you shouldn`t hedge the risk. In my opinion, any speculative profit should be reinvested in iuvo, where you get a high return, and your investment is secure.”

From Hristo Andreev – the person responsible for all marketing related tasks at iuvo. He has extensive professional experience in both financial companies and start-ups. In his free time, Hristo likes to snowboard and get lost in the woods.

7. “Use the full potential of the platform by experimenting with the auto-invest filters. For example, you can create a quick liquidity filter by setting your portfolio to invest only in weekly credits that have four payments left until they`re paid off. You can stop the filter and all profit on related investments will be regained in 4 weeks, which can be a great help in time of financial need. You can also implement this approach with biweekly or monthly loans.”

From Ivaylo Ivanov – the CEO of the company. Ivaylo has deep faith in the value of iuvo as a platform that can help its users regain control over their finances and enable them to make the best decisions regarding their financial stability. He is a passionate fin- tech expert with extensive experience in business development, consultation and project management.

We hope that you`ve found these gifts useful and apply them to your investment process. With that being said, we`d like to wish you very happy holidays and a celebration filled with laughter and festive spirit. Let 2018 be a year during which you achieve all your financial goals and dreams!

Happy Holidays

Explore new P2P investing strategies with iuvo

Strategies

P2P investing presents a myriad of different approaches for being successful and profitable in the long run. There are many possible combinations depending on the originator, currency, risk-level of the loan, your experience, the investment amount and many other factors. Any combination of these factors will yield different results, and there is no way to tell which one will be more efficient unless you try it out. As we`ve mentioned before, one of the beautiful things about investing in P2P investing is the small amount you need to start. Furthermore, you can be brave in trying out a new strategy because you have the buy-back guarantee protecting your funds. It is also important to mention that every investor should craft his plan based on his own experience. Even if you emulate somebody else`s approach, it may not yield the same results. Luckily, you have the freedom to mix things up and see what works best for you.

New Originator = New opportunities

We recently introduced a new partner – the Romanian originator iCredit, which enabled us to provide new investment opportunities to our customers. Being able to invest in loans that are in Romanian Leu has expanded the possible combinations of factors that make up your portfolio. It means that these loans are subject to variables that are entirely different than the ones affecting loans in Bulgarian Lev or Euro. How you craft and structure your portfolio of investments affects your profitability and overall performance.

By presenting you with a broader selection of loans we are giving you more freedom and flexibility. When you go to the “Primary market” dashboard on the platform and open the filters menu you, will notice that there is an option for selecting a country. You can quickly select “Romania” and browse the wide selection of loans, look at their specifics and determine what kind of opportunities they might present as compared to Bulgarian ones. Perhaps you might notice that the average loan amount is different or that there are more loans with a specific score class, interest rates might also differ. All these little insights are factors which you can incorporate into your strategy. We recommend that you try out different combinations and see which one works best.

Trying Out Different P2P Investing Strategies

Iuvo currently partners with two Bulgarian and one Romanian originator, which all differ in terms of loan portfolio size and while the type of information provided on each borrower is the same, the data itself differs and presents unique insights about the loan. For example, if you compare two C score loans, one from Romania and one from Bulgaria, you will see that the borrower`s salary is provided for both, but the amount will differ. One might be earning 200 Euro a month, while the other can be earning 400 Euro a month. By considering this, you can make a decision about which loan to invest in.

If you want to get into the depth of P2P investing borrower information is of vital importance. While the auto-invest feature negates the need for looking into the borrower on a more detailed level it is necessary if you want to craft a comprehensive strategy with higher than average profitability.

This is the next level of investing where you really delve into the details and consider which loans have higher return percentages based on analysis and critical thinking. You can expect well above average returns if you manage to create a strategy based on concrete data. When you look into the loan details, you will notice all the available information about the borrower, which enables you to take into consideration factors like salary, education and occupation area which are all directly related to the loan`s rating and return.

The availability of more information gives you more significant control over your portfolio and allows you to be flexible in case things don`t go according to your predictions. For example, if you see that a specific set of similar loans is yielding unsatisfactory results, you can deduce that a collection of opposing credits might have a higher chance of performing better. Even if some loans have very close ratings and returns, if the originators are different you can expect that the results will most likely also be different. It`s all about combining the right loans and making adjustments based on the outcome.

Iuvo presents investment opportunities in three currencies – EUR, RON and BGN, and all originators offer the option to invest in Euro. Investing in Romanian Leu loans is an especially lucrative opportunity due to their recent introduction to the platform. Loans provided by our Romanian originator are relatively newer and thus more exclusive – there are smaller competition and a significantly high return, up to 14.88%, which turns it into another great opportunity.

What You Should Test

In case you`re still feeling a bit confused about trying out different p2p investing strategies, here are three specific ones that you can try out. See which approach works best for you and structure your investments around it.

1. You can create different portfolios with each originator and invest in loans that have a similar interest rate. For example, try and invest in loans with 10% interest rate, but diversify your funds in a different originator. Track the performance of each portfolio and see which one does best. For best results keep the investment amounts the same.

2. You can invest in loans that have the same or similar score class but have a different country of origin and track how they differ in terms of performance. Maybe you will decide to invest only in score classes E and HR, but iCredit or Viva Credit may give you different returns. You can try a similar strategy with the various currencies on the platform. Create a separate portfolio in each currency and see how it will perform.

3. Try investing in loans that are very similar to each other – same or similar score class, interest rate and country of origin. Then track performance by looking more deeply into criteria such as salary, education and how they differ among the borrowers.

Conclusion

Although many of the loans offered by our originators might seem similar on the surface, many subtle differences distinguish these investments. You have the freedom to craft your investment portfolio as you wish and explore different bold strategies based on all the information, variables and factors. It is testing time, do not hesitate to try to find the best solution for your funds.

How to create an action plan for p2p investing

Strategies

Our investors’ satisfaction has always been the top priority of iuvo. All improvements that we make on a daily basis are based on the feedback and experience of our clients on the platform.

Our development team is processing and classifying all of the received recommendations and comments. The frequently asked questions are ‘How much will I earn?’, ‘Would the profit be enough for the spent time and money?’, ‘The risk is low but getting out of investment takes time.’, ‘How can I calculate my profitability?’. We will give you answers to those questions by making an action plan for p2p investing and put the specific ultimate goal.

Make a plan for action!

Accurate, reliable and timely information is essential for making an action plan. If you are already familiar with the P2P lending, you can get acquainted with our profitability, guarantees, taxes, average deposit, how to get out of investment, etc. If you’re just getting into the P2P investing world, it will be helpful to read our blog postshow iuvo operates, what are the returns, risks, etc.

Set Up Conditions!

Before you start investing you need to define your criteria and budget for all of the investing strategies and functionalities, you want to test. Iuvo offers two options for investing – Auto Invest feature and Manual Investing.

When implementing new strategies or using different functionalities, you must set a budget and approximately the same conditions. This way it will be easier for you to measure the results. When planning, it is essential to set a preliminary period, after which you will review and evaluate the achieved results. Then select credits which match to the chosen period.

Ultimate goal!

The ultimate goal is high profitability. You can earn an annual return of up to 15% on your investments. To select the most convenient and appropriate way to invest your funds, take a look at our Auto invest and Strategies materials.

Apply – Invest!

No matter if you decide to invest manually or automatically you can add filters to your criteria – terms (number of installments), credit status – current/delay, rating class, etc. Stick to you pre-made plan. Changing the plan will affect the results, therefore make sure you will apply the changes after you measured the outcome.

Evaluate – Balance time!

The most enjoyable part of the whole process is getting the profitability. Use the account options for analyzing your achievements – extract the data from ‘My Investments’ and ‘Account Statements.’

Difference between the action plan and the realized return?

Make sure you have included all the changes to the results calculations – different taxes which you pay or receive, premium/discount of the secondary market, withdraw or add funds, etc.

Make your plan and become a part of iuvo!

What is Buy-back guarantee and how to control your investment risk

Strategies

When you choose a peer-to-peer lending platform where you want to invest, you should take into account two major factors – the return on investment and the undertaken risk for the invested capital. As we know, there is no investment without risk. Nevertheless, you can control your risk exposure with our buy-back guarantee. At the moment all loans listed on the platform are in the scope of this protection scheme.

Every loan you invest on the iuvo platform is listed by registered non-banking financial institution (originator) which the primary business function is credit lending.  It guarantees that every loan listed on the platforms was taken through a strict due diligence procedure reducing the risk of default to a minimum level. In the unlikely event of default, your investment risk is taken care of by our 100% buy-back guarantee. It means that the originator of the loan is obliged to pay back the invested sum to you. That way your net capital is adequately protected by iuvo.

Buy-back guarantee is not the only way to manage your risk and take it to zero levels. You should create a rich portfolio of investments, allocating your capital between many loans. Differentiating the portfolio helps you to minimize the risk and even if one of the loan defaults, you will still generate profit from your other investments. Every loan on the iuvo platform has a credit rating indicating the default possibility. This way you can always take an informed decision when you invest your capital.

The combination of those two risk management tools minimizes the investment risk. You can check our originators and the loans they offer so you can start investing and generate high returns.

How to exit from your investment

Strategies

The natural way to exit of investment is by waiting for the full maturity of all the credits you invested in. Currently, iuvo features loans with a short payout period, which means that even if you decide to exit your investment, it can be done in a short time while you are generating profitability in the meantime. Once the credits in which you invested are repaid, you can withdraw your funds from the platform – check out the “Free Funds” field on your Dashboard.

Sometimes, whether due to personal circumstances or for any other reason, you may wish to withdraw your investment from the platform as a matter of urgency to use it for something else. Let’s say you’ve already funded your iuvo account, build your portfolio, generated some returns, and you want to withdraw funds urgently.

Iuvo provides the necessary liquidity with its secondary market. Each investor can list one, several or all of their loans for sale. So he will not have to wait for the full maturity of all the loans in his portfolio to withdraw his funds.

According to the individual investor, the speed with which he wants to sell, as well as the current market situation, on the secondary market a credit may be put up for sale at a price above or below its nominal value. So even when you exit an investment, you can generate additional returns – it all depends on the market: demand and supply.

The iuvo Secondary Market can be reached once you log in, click on the “Invest” button and navigate to the Secondary Market tab. If you want to sell on a secondary market, go to the “My Investments” tab, where all your credits are listed, select which you estimate (or all) and click the “Sell Selected” button. Your credits will go to a secondary market where other investors will be able to buy them and start generating returns from them.

7 tips for p2p investing from the experts

Strategies

If P2P investing is something relatively new to you, you probably have a lot of questions. We were looking forward to gathering the advice of some of the top experts in the field to help you not only start your investments but also start generating steady returns.

Tip #1

Take a look at the business model of the platform and see how it matches your expectations and expectations about the risk-to-profit ratio. For example, business lending is often seen as riskier but with higher returns. Some platforms have “safeguards” that provide additional protection against bad credit. Giles Andrews, Co-Founder & amp; CEO of Zopa

Tip #2

Automate. The best platforms provide reliable data, powerful analytics, and automated investment tools. The key to achieving a maximum return is reinvesting both the principal and the interest you receive. Sometimes, if you do not use the option, this can mean manual credit selection hours. Charles Moldow, General Partner at Foundation Capital

Tip #3

Be aware of what type of investor you are and what your tolerance is to risk. If you just want to save on a slightly higher yield, A-rated loans and an annual return of 6% are a better choice for you than HR credit with an annual return of 22%. If, however, you are looking for the maximum possible return, then a credit with HR rating is more suited to you, along with the risks of deflation that it brings. Stu Lustman, Editor-in-Chief at p2plendingexpert.com

Tip #4

Do not save yourself a proper check. No matter how good historical data or collateral is, any investment risks losing some or all of the funds invested. Check all documentation and all the data you can find. If you have a question about any aspect of the investment, do not invest until you have a response that suits you. If you do not get your answers answered, take it as a red flag. Jason Fritton, CEO & amp; Co-Founder of PatchofLand.com

Tip #5

Write your homework. Not all platforms are the same, not all credit ratings are alike. Credit rating A is not necessarily better than B or C and credit rating A on one platform is not necessarily the same to another. Explain in detail and understand what you invest in. Don Davis, Managing Partner of Prime Meridian Capital Management

Tip #6

Diversify. Once you’ve determined the amount you want to invest, start determining your earnings based on your investor profile. Diversify as many as possible: in a different number of credits, different types of loans, different repayment periods, different credit ratings. Charles Moldow, General Partner at Foundation Capital

Tip #7

Keep in mind that the return of the invested funds takes time and the liquidity is still quite limited, so do not invest funds you may need in the next few months, at least until there is a way for a portfolio to be automatically liquidated. Emmanuel Marot, CEO, and Co-Founder at LendingRobot.

Source: http://thelendingmag.com/peer-to-peer-lending/

How much should I invest in p2p lending platform?

Strategies

Regardless of whether you are an experienced investor or just a beginner in the p2p lending field, the one question that always stands out is how much your initial investment should be.

How much should I invest?

The amount you might want to invest in is your personal choice. It depends on your financial capabilities as well as on your judgment about the potential benefits and returns on your investment. The minimum account balance to get you started at iuvo is 10 BGN/EUR, which amount can be invested in a single loan only.

A well-diversified portfolio is a key to maximize the return on your investment. Therefore, it is best to invest an amount that allows you to create such a well-diversified portfolio.

Why?

With the increase in portfolio size, returns are stabilizing and becoming more predictable, as the risk of volatility decreases as the number of loans increases. Thus, each investment reduces its impact on the portfolio. Quite often, investors who have a negative experience with p2p investing miss out precisely this crucial point in understanding processes and managing funds.

Realizing profitability

Thanks to our buy-back warranty, the risk of loss in iuvo is minimized. The ultimate goal of any investment is to achieve profitability. That’s why, even if you start with a small amount, it’s good with time and with the platform to learn to increase and reinvest it so that you can get the maximum return on your funds.

In case you do not have the opportunity to monitor your money regularly and reinvest your incoming funds, you can take advantage of the Auto Invest option to make sure that your money is always generating returns!