Although launched in 2016, Monestro reshaped its platform in 2020 with a key promise: Focusing on stable and high quality loan originators while providing above market-average returns to investors. We see four key measures how Monestro wants to achieve its objectives and convince investors. First, the platform mainly offers consumer loans. Occassionally, you can also find credit line, refinancing and transport pledge loans. Monestro currently wants to build expertise in this market segment and avoid overload itself with complexities from other asset classes. Second, the platform partners with loan originators exclusively from the European Economic Area. This is part of their wider strategy to operate in markets considered stable, regulated and secure. Currently, there are four loan originators offering invetment opportunities: Credit Consulting Services, Fresh Finance Group and DSA Invest are operating in the Baltics. However, NÚNÚ LÁN is operating in Iceland – a country worthwile mentioning because loans from the far North are not easy to find European P2P lending platforms. Third, according to the platform, the due diligence process towards loan originators is carried out by third-party lawyers and also in-house. Loan originators have skin in the game and are obliged to buyback claims in case loans are running late more than 60 days. Fourth point worth noting: The platform builds up a strategic reserve fund. On a regular basis, the platform saves pays 0,35-0,55% funds relative to its outstanding loan portfolio as a backup. The funds are held in a separate account. The platform says that funds are used to compensate investors in case a loan originator would not comply with buyback obligations. Compensation may happen in form of buying claims from investors or to make pay-outs to investors. All in all, Monestro strikes an interesting balance in the market focusing on quality over quantity. Although, so far we have not reviewed the annual report of the company. We believe its worth trying out if you want to complement your P2P portfolio with a quality-first platform.
|Investment Structures||Marketplace (peer-to-business)|
|Originator Types||Loan Originators|
|Investing Into||Consumer Loans|
|Interest Rates||12.00% – 13.00%|
|Number of Originators||4|
|Number of Countries||4|
|Minimum Investment||10 EUR|
|Average Net Return||n/a|
|Total Loans Funded||n/a|
|Loans Outstanding||131,318 EUR|
|Loans 1 To 15 Days Late||n/a|
|Loans 16 To 30 Days Late||n/a|
|Loans 31 To 60 Days Late||n/a|
|Loans 60 Plus Days Late||n/a|
|Loans Defaulted (In Recovery)||n/a|
|Loans Defaulted (Recovered)||n/a|
|Loans Defaulted (Written Off)||n/a|
|Average Amount Per Investor||n/a|
|Late Fees Earned||n/a|
Available as: Buyback Obligation
Loans are offered with buyback obligation. If a loan runs late more than 60 days, the loan originating company is required to buy it back.
Monestro applies a financial risk rating scoring.
|Skin in the Game|
Monestro loan originators have usually 10-20% of skin in the game. We consider this relatively high numbers as many loan originators on other platforms have around 10% skin in the game.
|Maximum Loan To Value (LTV)||n/a|