IUVO is a marketplace for peer-to-peer lending that allows users to invest in loans granted from non-bank financial institutions (loan originators). The loan originators have 30 % skin in the game, Buyback Guarantee and operates in the areas of mortgage lending, consumer lending, business lending and secured car lending.
Last updated: May 5. 2020
Office location in Tallinn
Table of Contents
IUVO Group Pros & Cons
Characteristics of Loans
5% – 15%
14 days – 60 months
EUR, BGN, RON & PLN
Buy-back Guarantee ✔
Minimum Investment ⇙
Indirect Investment Structure
⇘ Assets as Collateral ⇙
Loans on IUVO
From loan type to loan score IUVO has a good overview of the different loans. The investment breakdown perfectly specifies the amount of loan originator shares and investor shares in the loan. Also, the collateral type and amount is clearly specified, and it is very useful that the buy-back guarantee is explained at the same page. This means that there is no need to search for the specific loan originator buy-back guarantee.
The borrower’s data is precise and easy to understand, but data such as education, occupation area and years of work experience is often missing. The income salary of the borrower and partner, age and location of the real estate used as collateral is available. The contract with the borrower’s signature is also available, which helps validate the authentication of the loan. However, the contract is only available in the language of the location of the loan, so it can be hard to understand for non-speakers of the given language.
Buyback Guarantee on IUVO
The loan originator buyback guarantee on IUVO is covering all loans on the platform. There are three things to be aware of:
- The buyback guarantee is different between loan originators in terms of days, the loan is paid back if the borrower is more than 30 or 60 days late
- The buyback guarantee only covers principal and no interest. So, if the loan is 30 or 60 days late, the missed interest in these days are not paid back when the loan is bought back by the originator.
- As with all buyback guarantees in the indirect investment structure the risk is removed from the borrower and the collateral to the loan originator and its existence as a company, but because of the risk of lost interest payments in 30 or 60 days the collateral is still of great value. In the end it depends on the loan originator, so make sure you understand their business and financials.
What Happens if a Loan Originator goes Bankrupt?
There are two different types of investment structures in P2P investing:
- The direct structure means you are buying a claim against the borrower directly.
- The indirect structure means you obtain exposure to a loan by investing in a loan issued by a platform company to the loan originator.
At iuvo group the investment structure is indirect. This basically means that you are lending money to the loan originator who then lends money to a borrower. The repayments depend on the borrower’s payments, but you will have a claim against the loan originator, not the borrower (the loan originator have the claim against the borrower). This means that your money will be lost if the loan originator goes bankrupt and essentially you are lending money to the loan originators and not the individual loans. However, the individual loan notes do have different repayments according to the real repayments the loan originators receive.
Assets as Collateral
IUVO loan originators have a large range of different loan types with assets to claim for the loan originator in case of default. First of all, every loan originator provides a buy-back guarantee on iuvo if the loan is not paid after 30 or 60 days according to the loan terms. If the loan originator defaults the buy-back guarantee payments may not be possible. This is when the assets to claim become important, because in the end every loan is defined by the secured asset (except on indirect loans). On the unsecured consumer loans, there will still be a claim against the borrower, but this borrower might not have any assets to liquidate to pay the loan back right away or ever. Note that if the loan originator you invested in on this platform goes bankrupt, your money will be lost – this means that the annual reports and the financial state of the loan originator in the end is extremely important to pay attention to. The three types of asset-backed loans with IUVO Group are:
- Cars (from secured car lending)
- Property/Real Estate (from personal mortgage lending)
- Business Assets such as stock in a warehouse, cash or receivables etc. (from business lending)
The primary market is simple and effective. It is generally easy to invest on IUVO and you have the possibility of sorting and filtering based on different preferences. Some of the important filter functions one could be interested in are loan type, loan originator, the credit rating of the borrower – also called “Score Class” – and the instalment type. There are many loans available in the primary market and as seen below the loans available counts up to 22,882 – enough to diversify across loan originators, loan types, score classes and different instalment types.
The fairly short loan durations will quickly make the repayments/cashflow rather large resulting in investors having to re-investments a lot. This might require spending much time if manually investing, which makes the “Auto Invest” feature on IUVO quite handy. This feature allows investors to configure automatic investing defined by the same range of parameters as available in manual investing and to set a premium/discount on the loan.
Most secondary marketplaces in the peer-to-peer lending markets are free for both sellers and buyers. At iuvo the secondary market is associated with a fee of 1 % for the seller, resulting in lower transaction volumes. This makes the secondary market less effective, but it is still useful in case of wanting to liquidate the loans faster than the interest and down payments allow.
Nice to Know for Investors
Registering at iuvo is very simple and easy to do. Creating an account as an individual requires just name, email and password. As of writing, IUVO do not comply with KYC (Know Your Customer) and you therefore do not need to provide any identification document to register as an investor.
Deposit & Withdrawal Process
Depositing funds to your investor account is done in three steps:
- Transferring money into the iuvo account with any of the below listed funding methods.
- Your funds will be available for investment within the day of confirmed arrival to iuvo (usually 1-3 banking days).
- After the funds are received and added to the account, you will receive an e-mail confirmation.
Withdrawing funds is the simplest process of the two only requiring you to click “withdraw funds”, enter the amount you want to withdraw and wait the 1-3 business days. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds. Remember – depending on your own banks fee structure, they might charge fees for handling the transaction or exchanging currency.
Iuvo features the usual account statement page with easily accessible summarized information for all the movements in your investor account sorted by transaction type. You can see detailed information about all deposits, invested funds and earnings received for a selected period.
It is possible to access a more detailed profit statement to better analyze your investments. With this report you can better calculate the annual profit on the platform – compared to the “expected annual return” showed on the dashboard, which rather misleadingly is not your actual return, but a calculated expected return based on your portfolios interest rates.
IUVO Group Tax
The generated profit from the platform is taxed according to the law in the investor’s country of residence. The platform does not form a Tax report for the investors but will gladly cooperate with the needed information and reports about the generated income. File your Tax report to the local tax authorities according to the order of the country you live in.
IUVO Group FAQ “How is the generated from the investors profit being taxed?”
Iuvo has a chat function in the right corner of the website allowing visitors to ask questions and chat with a customer support employee right away after providing name and email. In normal business hours they usually answer within a short time, but the quality of the support is not the best. We tried to get a precise answer to several questions not answered on the website FAQ and it took some mails back and forth with different persons to get the answers. However, in the end we got the answer we were looking for.
IUVO Group Competitors
Who can invest?
Iuvo is a platform that is open to individuals and companies.
The individuals must be at least 18 years old, and they need to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU.
For the companies it is required to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU. Their data and funds origin, according to the Anti-money laundering and Financial Terrorism policies and regulations mentioned above. (AML/CFT).
IUVO Group FAQ “Who can make an investment with iuvo?”
Is IUVO Regulated?
IUVO Group Statistics
|Total investments:||+118 million|
|Total available investments:||+255 million|
|Number of Investors:||+ 19 thousand|
|Monthly Loans Originated:||+ 50 thousand|
|Percentage of 6 – 12 month loans:||42.5%|
|Percentage of 3 – 6 month loans:||40.4%|
|Latest Financial Report:||2018 (PDF)|
Is IUVO a Scam? Is it Safe?
The IUVO Group P2P lending platform is one of the more transparent and safe alternatives in the market for loan originator lending which at times can lack transparency. They claim to do careful due diligence before on-boarding an originator and as one of the few platforms they provide an individual page for every loan originator selling loans on the IUVO platform. On the originator page it is possible to find key information about the company and find their annual report. Most of the originators provide a buyback guarantee and has good financials. Whether the platform is a scam or not is in its nature hard to provide a direct answer to, but it is one of the more transparent platforms and it is owned by a large finance company called Easy Asset Management.
Please note that this overview may contain affiliate links. It means that a commission is earned if you decide to invest after using the link – of course without additional costs to you. The information on this site does not constitute investment advice and is solely to give you a simple an easy overview of the platform. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.