Monethera started as a private investor firm in 2017, however switched to P2P lending platform recently, in June 2019 and therefore is one of the newest platforms in the space. It does not offer a long track record, therefore at this point I am testing the waters with a few amounts and let them sit and work until a few projects are fully funded successfully. So be aware of the risks before you jump into it.
In the beginning, there was an issue and investors pointed it out that all the terms were copied and pasted from Envestio. It was later revealed that the same lawyer who worked on the terms for Envestio has also worked for Monethera and was quickly fixed. That shows that as a company they are ready to listen to their investors, however, it was a red flag to start with.
Though being a new and young platform they offer really exciting projects with high returns. To some degree its another copycat of Envestio and Crowdestor in terms of projects offered. They offer business loans, retail loans, energy production and transportation loans. Project durations have all been around 3, 6, 8 and 9 months. Interest payments are always done on the first day of the month. So its been nice so far to get lump sums on day 1 of the month.
- €0 fees for opening account
- €5 free when opening an account with a referral link.
- €0 fees for investing
- €1 as a minimum investment amount per project
- Avg interest rates of 16%-21% (depending on project)
If for any reason you would like to suspend in advance the financing of your current investment project, Monethera has a perfect solution for you. At any time you can sell us your investment. In your dashboard > buyback page, you can choose to sell your loand and once the operation is processed you will receive your money back on your Monethera balance. This comes with a fee of course and which is stated in the page; The BuyBack amount = Invested money – 0,5% of cashback (if it was applied) – % of penalty fee*. Penalty fees vary based on the project so make sure you note that before investing.
Monethera offers secured debt on all loans published so far. I have not yet seen a project not secured. This means that the borrower has provided additional legal insurance such as a mortgage, mixed collateral or personal guarantee, as well as other essential agreements.
When choosing a project to invest in, always be sure under guarantees you have something like: Pledged commercial assets and personal guarantees of the director.
This was taken from a past interview done with the CEO, from another blog – and quoting him, he said the company is always looking for any possible investment risks in the selected project/borrower. If any risks are identified by the risk analysts, they have to be ranked. After such a process they look for a way to get rid of them. If previous steps are passed succussfully then the company concludes a loan agreement with the borrower.
No auto-invest feature so far, however its a feature they are working on and willing to publish at some point in 2019.
Monethera has guaranteed reserve fund to cover investors in a case of any default that can happen with projects represented on the platform. If a project defaults, all the investors will receive reimbursement of 35% of their investments within a month. The remaining 65% and interest will be issued when Monethera collects the entire debt from the project owners through legal proceedings. Based on judicial practice, this process may take up to one and a half years, however, all the money invested is secured.
This makes it trickier and riskier than other platforms who have a bigger fund and pays a bigger percentage straight away. Make sure you invest the money you are comfortable to take a risk with and diversify on multiple projects. Never put all the eggs in one basket.
We do not have any control over market risks. However, take note that during an economic meltdown, the small and medium enterprises are the first to fall. If the economy hits a rough patch, your p2p lending portfolio will suffer on any platform you’ve invested in.
Monethera has a different approach to other P2P lending platforms when it comes to paying out interests. The payment schedule happens on time and always on the first day of the month. So expect a lump sum of all your investments on day 1 of every month which is nice. That way you only need to check the platform ones a month.
My Personal Experience
I started in Monethera on August 2, 2019, with a few hundred and made sure to invest in the shortest project loans possible. This is because I want to see the first project successfully funded and completely paid out. The website UI is very modern and it’s easy to navigate through which makes the whole experience a really positive one. Earning €5 straight away just for opening an account makes it really worth it to try out, as you can invest it straight away in a project. Even if you don’t want to deposit any money. In terms of risk, I believe it is high and I don’t like the idea that if a project defaults only 35% of your investments are covered straight away. I’m hoping that the platform continues to improve, listens to feedback and add more exciting projects