In Depth P2P Lending Review
If you are thinking of investing in Viventor, then learning about this platform is a step in the right direction. This Viventor review will help you understand what the platform is all about, how it operates, its features, and some of the risks found in the platform.
What is Viventor?
Viventor is a peer-to-peer crowdlending platform that connects borrowers and investors across Europe. The company is based in Latvia and has been in operations since 2015. Viventor currently has 7205 investors, and it has managed to crowd lend up to €117,376,800. It is important to note that all the loans on Viventor are pre-funded by the originators, and they are required to keep 5% of the loan amount to show commitment.
Currently, Viventor works with seventeen loan originators across Europe. The platform has high-interest rates that go up to 16% and high returns of about 13.50% to the investors.
How does Viventor work?
Viventor has a simple operating protocol. The loan originators list pre-funded loans that they have issued to their borrowers on Viventor’s primary markets. Investors can then select the type of loan they would like to invest in and what amount they are willing to spend. It is important to note that different loans found in the primary market have different return rates and maturity terms. Additionally, each loan has its unique repayment schedule that’s provided on the loan details.
Investors have the option to either invest manually or use the auto-invest tool to finance different loans according to their preferences.
Loan types issued on Viventor
Currently, Viventor offers five major types of loans. They include:
- Mortgage-backed loans which have an annual return of between 6-10%, and a loan term of between one and sixty months depending on the originator.
- Consumer loans– these are the most popular loans, and they have a 10-12% annual return on investment. The loan term here lies between seven days and forty-eight months.
- Invoice financing– they have interest rates of between six and fourteen percent annually, with a loan term not exceeding four months.
- Business loans– these loans have an average return of about 7-12% with a loan term of 6-60 months.
- Line of credit– this loan has a fixed annual return rate of 12%. Its loan term is quite flexible but mostly takes up to 48 months.
Features of the Viventor p2p platform
Viventor offers some of the best rates across Europe, with some loans having up to 16% annual returns.
There are no trading fees charged on the Viventor platform.
Viventor’s liquidity is quite stable, and investors can either buy loan shares from the primary or secondary market. Currently, there are about 3797 loans available in the primary market and about 1855 loans in the secondary market. A good number of loans require vast amounts, which makes it possible to invest heavily in them.
Most loans on the platform are covered with a buyback guarantee, which ensures that the loan originator repays the investor if the borrowers default loan payment. The repayment amount includes the remaining amount of the invested money and any unpaid interest that has accumulated. All the loans that have a buyback guarantee have a tag to show that.
For those investors that do not have the time to invest in the loans available on Viventor manually, there is an auto-invest tool that they can use. You can configure the tool to invest according to your preferences, and the process is quite easy.
Investors on Viventor can sell their loan rights on a secondary market to other investors. It enables them to get an early exit and promotes liquidity on the platform.
Viventor has a good customer support system. There is a live chat option on their website where you can talk to a representative during working hours. Investors can also contact Viventor through the contact details provided on the website’s home page, and through their social media platforms.
Risks associated with Viventor
You can but loan rights from the various originators in Viventor. However, this exposes you to risk if the originator is not able to stay in business anymore and closes operations. To protect its customers, Viventor carries out due diligence on the originators before listing them on the platform. Viventor also tracks the performance of the loan originators, which helps to know when a company is not doing well financially and may close down operations.
To mitigate this risk, you are advised to invest in several types of loans from different originators.
There is also a risk of Viventor itself going out of business. If that ever happens, Viventor has set up an insolvency administrator to ensure the smooth settlement of any outstanding payments. However, it is essential to point out that Viventor has enough resources to ensure that it remains in business in the long-run.
This risk can be lowered by investing in different platforms.
This risk occurs when invests all their money in one asset class. Doing so exposes you to high risk if the asset class is affected by fluctuations in the economy. You should diversify your investment portfolio across different asset classes if you want to diminish this risk.
As already stated, the loans listed on Viventor are in Euros, and this exposes foreign investors to currency rate fluctuations when depositing or withdrawing from the platform. The fluctuations can either bring more profits or losses.
It is important to note that loan terms can change in some loans, which reduces the investor’s liquidity. You can avoid this risk by first analyzing whether or not you can hold the investment without any difficulty if the loan term is extended.
Pro & Cons of Viventor
Since it began business, Viventor has exhibited a good performance. As an investor that wants to put your money where you can be assured of getting returns, Viventor provides you that opportunity. If you are interested, the company has a neat and easy to use website where you can register and begin your p2p lending investment journey today