Total Funded: €760,646

Historical return: Launch*

Total Funded

€760,646

Historical Return

Launch*

Monethera is a recently launched (June 2019) business & real estate lending P2P Platform by the high-quality private equity firm with the same name. Monethera is now decentralizing its business model by launching this crowdinvesting platform, allowing investors to join in at as low as 100 euro. All loans are collateral backed and usually with personal guarantees from the directors of the businesses borrowing. Even though the platform just launched it already have four projects running in Riga, Latvia, active with a total of 1.150.000 EUR.

Last updated: August 8, 2019

P2P Business Area:

Founded:

Founders:

Country of Origin:

IPO Status:

Countries of Operation:

Number of Investors:

Business Lending & Real Estate lending

2017 (platform launched 2019)

Andis Taubergs & Andrei Bogdanov

Estonia

Private

Estonia & Latvia

400+ (just launched)

Monethera - Overview

P2P Business Area:
Business Lending & Real Estate Lending

Founded:
2017 (platform launched 2019)

Founders:
Andis Taubergs & Andrei Bogdanov

Country of Origin:
Estonia

IPO Status:
Private

Countries of Operation:
Estonia & Latvia

Number of investors:
400+ (just launched)

Monethera - Pros & Cons

Pros

  • High interest rates
  • All loans are collateral backed
  • Possibility to exit investment early by selling it back
  • Only direct investment structure
  • Already running private equity portfolio with growth
  • Experienced analytics team

Cons

  • High risk
  • New platform - short crowdinvesting track record
  • No secondary market yet
  • No automatic investment yet

Characteristics of Loans

Interest Rates

18,2 % - 18,9 %

Loan Durations

6 - 12 months

Currencies

EURO

Buyback Guarantee

Minimum Investment

0

Direct Investment Structure

Loans on Monethera

The platform Monethera has a simple yet informative single-page overview of the active loans available for investing. Under the menu “Projects” you will find projects displayed as in the image below, providing the most basic informative details: The interest rate, funding target, duration of the loan, the industry and a short text describing what the money will be used for. A further elaboration on the spending and securities are available when clicking through to the project.

The private equity fund and now crowdinvesting platform Monthera provides loans to businesses and real estate. So far all loans are collateral backed by commercial assets such as equipment or property and a personal guarantee of the director together with the option of selling back the loan to the platform at a 5% fee in case you want/need to exit the project before the final installment. In the detailed description the company behind the project and its operation, assets, future plans as well as how and when the borrowed money will be used and put in full effect.

The platform rates the risk level of this project as low, which is probably based on a comparison to other such overall fairly high risk projects and rated on whether available and necessary steps have been taking to ensure as low a risk as possible. However, with an 18%+ annual return, compared to stock markets at roughly 7% over a 10 year period, it is as with all other alternative investments (including p2p lending platforms) by default a high risk asset. As the saying goes, there is no free lunch in the money markets and with no risk, comes no reward.

Monethera Business Loans

An example of a business loan on Monethera is displayed in the image above. SIA STURCAV located in Riga, Latvia, is seeking 300.000 euro as partial financing to increase the number of hangars with each new having capacity to produce and harvest up to 1 ton of caviar annually. The security of this loan is in the pledge of company assets covering the loan and the personal guarantee of the director, while the platform is collateral agent holding the assets on behalf of the lenders to secure payments from borrowers and distribution of installments on the 1st day of each month. The platform is offering to buyback the loan at 5% discount and evaluates it as being low risk.

Monethera Real Estate Loans

An example of a real estate loan on Monethera is displayed in the image above. SIA RIVER PARADISE from Riga, Latvia, owns a piece of land in Jelgava where it intends to begin construction of a guest complex taking up to two years to complete. The real estate developer will seek financing in several stages and this loan is in stage one, involving the renovation of an old building amounting to eight luxury rooms, a banquet hall, restaurant and SPA center, starting July 2019 and taking up to 12 months before completion. This loan is also secured by the developer’s assets and a personal guarantee of the director. The platform is handling the collateral in case payments are missed and will distribute installments every 1st day of each month. While offering to buy back the loan at 5%, Monethera is evaluating the risks for lenders as being low.

The Monethera Buyback Guarantee & Reserve Fund

To better secure the lenders against unexpected losses and unwillingly being kept within a specific project, Monethera has both a Buyback Guarantee and a Reserve Fund.

The Buyback Guarantee is a promise to buy back any given loan at a discount displayed in the investor cabinet (usually 5%) so any investor in want or need can exit the investment early.

The Reserve Fund is an extra security for lenders on the platform, guaranteeing them 35% of the principal instantly if a borrower defaults, while the remaining up to 65% will be returned according to court decision and collateral realized. 

Direct Investment Structure

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.

Monethera is a traditional lending-based crowdfunding platform and every loan is structured in a direct investment structure with the platform just handling the transactions and collateral in case of missed installments. Compared to the indirect structure, having only two parties (and a third handling the administration) makes things simpler and easier to better evaluate the risks involved since you know that you are lending directly to the company/owner of the property. However, it can still be hard to understand the risks involved with lending to specific projects.

Platform Features

Manual Investing

Even though Monethera is a new platform yet the number of available loans is great – already 4 loans are active on the marketplace. This might be because Monethera has already been running a private equity fund with business loans for years before launching their crowdinvesting platform. When new platforms launch it is hard to say if there will be a big cash drag for the investors, but on this platform, it seems quite opposite: In time there will most likely be enough good projects available for the lenders to be able to satisfy even the most liquid user. However, it is never possible to tell if a new platform will be able to keep up the good, but Monethera’s website is so far simple and easy to use.

Below is an image of how browsing manually investing projects works. Scrolling down the “Projects” page will reveal all active projects available for investment. When looking at the available projects you get a short overview of the most basic information such as interest rate, funding target, loan term and industry.

Automatic Investing & Secondary Market

Monethera does not yet offer the option of selling loan shares on a secondary market, but since the platform has just launched there is barely anything to be sold. However, it is said that they will open a secondary market in the future. As is common with direct business lending platforms, manual investing is so far the only feature available for investors since automatic investing is also not available on Monethera. It will be a great plus that lenders will be able to sell and exit their investments early in times of need when the secondary market becomes available. So far lenders will have to wait until the borrowers have paid back their loans according to the duration and payment terms, which usually involves monthly interest and installments on annuity loans.

Monethera Private Fund Untill Now

What Client Segments have they served so far?

What Financial Instruments do they have experience with?

Loan & Venture Capital Portfolio by Industry

Nice to Know for Investors

Monethera Registration Process

Registering at Monethera is simple and easy to do. Whether you’re an individual investor or investing as a company, creating an account requires some basic information such as name, country of residence, email and password. The platform complies with KYC (Know Your Customer) and you, therefore, need to provide an identification document and additional information to be able to withdraw money from the platform. Thus, you can create an account and invest, but you will have to complete the KYC before unlocking withdrawing.

Deposit & Withdrawal Process

Depositing funds to your investor account is done in three steps:

  1. Transfer money to your Monethera account from your bank with traditional bank transfer or TransferWise.
  2. Your funds will be available for investment within the day of confirmed arrival (usually 1-3 banking days).
  3. After the funds are received and added to the account, you will receive an e-mail confirmation.

Withdrawing funds is very simple if you are already KYC validated. You just click the “withdraw funds”, enter the desired amount and wait the 1 to 3 business days before the requested amount will land in your account. There is no minimum withdrawal restrictions and no further additional fees or commission for withdrawing the funds – except maybe from your own bank. Depending on your own bank’s fee structure, they might charge fees for handling the transaction or exchanging currency.

Funding Method

Reporting

The portfolio overview is as with most new platforms not that developed. Monethera does not yet provide a cashflow analysis or any useful statistics on your invested projects. The portfolio statement overview will probably being improved as more and more projects are funded on the platform.

Monethera Tax

Investments with Monethera platform are usually structured as a loan from the participant to a legal entity. Therefore, all returns are acquired and taxed as an interest income from a loan and are subject to personal tax rate of the participant. Monethera does not guarantee the above stated information on taxes is fully accurate.

Monethera FAQ: “Are profits from the investment taxed and how?”

Support

Monethera does not have a chat function on the website but reply on email to whatever questions you might have. They usually answer within a few business days. Even though it is a new platform they were qualified to answer the questions we had, were straightforward and did not seem to try to avoid any sort of questions.

Monethera Competitors

Who Can Invest?

As Monethera is focused on European projects all our investment accounts are opened in EUR currency. Moreover, there are no restrictions. You can participate and invest your money from every corner of the world (except the USA, China and sanctioned counties and entities by the European Union) are able to invest with Monethera. The only requirement for private investors is that the payment can be issued only from their own bank account. In the case of corporate investors, it is obligatory that the billing details of the legal entity coincide with the account name in our platform.

Monethera FAQ: “Monethera has no borders. Monethera is global.”

Disclosure

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 and easy overview of the platform. Always conduct your own due diligence and consult your financial advisor before making any investment decisions.

* Historical return is not a guarantee of future return. Monethera is a new platform and we evaluate that the short track record will give a misleading historical return, which might also be why the platform does not display it on their website monethera.com at the day of this article: August 6. 2019

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