Monethera First Impressions & Review
WARNING: High Risk & Speculative Investment!
Last Update (01.01.2020)
Coldbrook Services LTD Questions
Let’s explain. During December Monethera presented for funding Coldbrook Services LTD, a UK company looking for funding for “Cloud computing services” project. But when you search for the address, you realize that it matches hundreds of different companies. Even worst, the nature of the registered business is confusing:
Nature of business (SIC)
10890 – Manufacture of other food products not elsewhere classifiedCOLDBROOK SERVICES LIMITED, Company number 09157902
46190 – Agents involved in the sale of a variety of goods
46380 – Wholesale of other food, including fish, crustaceans and molluscs
47290 – Other retail sale of food in specialised stores
When you research the company owner, more questions arise: The company is owned by Renars Bumanis, that had an active LinkedIn profile before this process. For some reason, I’m not able to find it and share now…
I didn’t invest in this project. Monethera was my top P2P platform choice from 2019, but this type of project raises concerns and questions.
Monethera: Blackmail Victim?
“Before going forward, we are disappointed to share really sad news. Together with reasonable questions, we have received threats. We were blackmailed by publishing trumped-up information if we did not pay a certain amount of money.”All you wanted to know about Coldbrook Services LTD Monethera Blog Post
In light of all stress around the Kuetzal debacle, investors are especially prone to nervous reactions to any type of bad information. I don’t know what to think about the statement presented above by Monethera, but I think all P2P crowdinvesting platforms could benefit from higher transparency on their communications with investors.
On this blog post, Monethera justifies how they can present such high-interest rates, but you cannot find a single piece of information that can offer additional clarity. I would like to read the information on the following topics:
- Additional information and details about the fund prior to the platform creation;
- Financial statements of project borrowers;
- Concrete and detailed explanation about how the monthly interest repayments are paid.
This would be much more valuable than simple write empty blog posts like the one they publish.
Monethera: BuyBack Guarantee from Third-party Organization from Hong Kong
This for me is problematic. Just read the notes from Roasted PeerDuck on the subject:
“Ok, something about Monethera and their mysterious RICHLY PACIFIC INTERNATIONAL LIMITED fund.
1. The company has zero history in the Web. For the financial company, with high-level lawyers, dealing with bankruptcy cases it is impossible. Minimum, you will find traces in Linkedin, normally – press publication on major deals.
2. All “funds” are the subject of regulation in HK – there is no such fund
3. HK companies are easy to buy, both fresh and with history. Usually HK shelf companies contain generic word name both to avoid trademark claims and be cross-industry flexible. Like ATLANTIC GOLD INVESTMENT LIMITED. Or similar.
4. There is no logical point for real HK company, located in other part of the world and operated under British-type legislation to mess with the bankrupted companies in the Baltic, which is not even in the scope of chinese interests (unlike Russia, Poland or Belarus).
5. They state that collector will buy out 95% of investments. This is something out of the real-world financial machinery. The rates in case of bad debt buyouts are RARELY higher than 30%. Usually – 10-20%. As usually one of four will be reclaimed and the legal effort is huge.
Striking off – the whole Monethera text is hip-hazard bullshit, however it is not indicating that they are scammers or similar. Just the fact that the person who made up all joke about HK collector is far away from finance. Opposite the story would be at least more realistic.”Roasted PeerDuck Twitter Publication
This is a true bad signal from Monethera. I believe they need to actively answer these questions in a clear manner. Again, I really like the platform, but I cannot close my eyes to the reality that these questions good answers.
UPDATE: On January 24th I received a contact from Paul Chu sharing his research on the subject, confirming the concerns presented above. You can read the information here.
Monethera is among the most recent players to join the P2P business lending ecosystem. You can invest in real estate projects, business loans, green energy, logistics or technology companies and earn up to 22% per year in interest. The minimum deposit is €100 and the minimum investment required is €1.
Nothing wrong in following the example of other platforms well-liked among the community. After what I imagine was a lot of angry messages from the community complaining about this fact, the Monethera team quickly updated texts and the information available. I must highlight the capacity to listen that the Monethera team showed since the very first email exchange. It seems that they are available to listen and to implement changes based on actual feedback.
You can read my additional observations about Monethera after the account update below.
Monethera Account Update
Investment Start Date: July 2019
Total Deposits: 7.574,90€ (Dec 2019)
Asset Value: 8.000,00€ (Dec 2019)
Monethera Platform Quick Review
Monethera offers among the best interest rates in the business with buyback guarantee. If you sign up and invest through my referral link, you will get €5 and 0.5% cashback from all investments you make within the first 180 days. Check this page for additional bónus and promotions.
Since I started investing at Monethera in July 2019 I was impressed with the platform, projects, and returns. It is hard to believe that there is a possibility to invest in projects with higher than 20% annual returns and offering a buyback guarantee.
Creating a Monethera investor account only took a few minutes. Registration is extremely simple and the platform is very easy to navigate. Since the number of investors is still growing there is no need to keep money drag. The projects are kept open for a significant period of time, but you receive interest since the moment you invest.
|Analysis Topic||Personal Take|
|Real Estate | Business|
|Yes (5% fee)|
|Not available yet|
|Yes, you choose|
|No (5% fee for early exits)|
|3 months to 1 year|
|If you sign up and invest through my referral link, you will get €5 and a 0,5% cashback from all investments you make within the first 180 days|
SPECIAL CASHBACK BONUS: in case you use the promo code: savings4freedom, you will get cashback for 270 days instead of 180 days. This is a limited offer! Only the first 25 accounts to add this promo code enjoy this cashback bonus.
My Monethera Account
Monethera Income Graph
Monethera Asset Value Graph
The first question to answer with any new crowdlending player is who they are and where they came from. Monethera only launched their peer to peer lending operations in June 2019, but in reality, the team behind the company has been running a private investment fund since 2017. Its management team presents credentials and was willing to share the financial statements from the fund to establish credibility.
Monethera Team: Andis, Kristine and Viktors
The website introduces three people as the key platform team members: Andis Taubers, CEO; Kristine Romanova, Investment Advisor; and Viktors Mirosnicenko, Financial Analyst & Risk Specialist. All three worked at Monethera since the beginning as a private fund.
During my communication with Kristine, she shared that the key stakeholders of the company are Andrei Bogdanov, a businessman and Andis Taubergs, the company CEO.
Monethera Financial Track Record
As of 31 December 2018, the private fund held a portfolio of financial instruments for the total value of EUR 6.2 million (gross) issued for 36 projects. You can check the available information on the image below.
Project Default Levels
Based on Kristine reply to my emails, the level of default from the private fund projects does not exceed 5%, but she stated that the Monethera team works diligently to keep this figure to a minimum. From the 36 projects invested projects, only one presented problems. They received all the funds from the defaulted project with interest after 6 months of litigation. The key factors for the repayment process were the pledged assets and personal guarantees of the project director.
Monethera Due Diligence
Monethera Project Selection Due Diligence
Monethera shared the following rules to select projects for the platform:
- Check the accuracy of financial and other inside information;
- Find confirmation of the estimates/assumptions laid down in the business plan;
- Make sure that all documents are properly executed in terms of their compliance with the laws and internal company rules;
- Operational analysis (analysis of business organization), in which the main areas of study are: the historical development of the company, organizational structure, management, personnel, sales, procurement, strengths and weaknesses, constraints;
- Financial analysis provides an opinion on the company’s ability to generate income;
- Legal expertise determines the activities of the company in accordance with applicable regulations in the field of civil, labor, corporate law;
- Analysis of the situation on the market in order to determine the company’s position in the competitive environment, the potential and prospects of market development, as well as the assessment of the company’s development opportunities in accordance with the market dynamics;
- Additional legal and financial diligences to sign the contract…
Monethera has a contract with SIA Doma Audits for conducting external project Due Diligence. But Viktor Mirosnicenko, Monethera Financial Analyst & Risk Specialist is the person responsible for the final decision and risk management of loans available on the platform.
Monethera Buyback Guarantee
Monethera guarantees your investment buyback even in case of default of the project.
There are two buyback options:
First – Loan repurchase before the due date (5% fee):
• You have invested 100 EUR in one of the projects on Monethera.
• If you want to exit earlier, you will get back 95€ and no additional profit. The buyback system is already available on the platform.
Second – Loan default:
Monethera keeps a reserve fund to cover Investors in the case of loan default. If any project is unsuccessful, all investors receive immediately 35% of their investment back. The remaining 65% and interest will be repaid when Monethera collects the entire debt from the project owners. The term depends on the speed of the judicial process, that based on prior experience may take up to one and a half years.
Monethera Repayment Schedule
From the moment you invest in a Monethera project, you immediately start receiving interest. Monethera presents a unique approach among the P2P platforms I know: all investors receive interest payments on the first day of each month. This allows you to reinvest interest right away at the beginning of the month. The principal amount, only at the end of the implementation period returns to your account.
Monethera offers multiple types of projects:
The projects offer interest rates from 18.2% to 21.1%. The loan terms range from 3 to 12 months and the minimum investment on each of them is 1€. All projects available come with a buyback guarantee (at a 5% fee). It’s similar to what Envestio offers on their available projects. As with Envestio, they don’t have a secondary market where you could sell your investment before term, so the buyback guarantee is your only early exit.
Before investing, you can see the details of the project on the project page (they have increased the information and description in a significant manner after feedback from early investors) and in case you decide to invest, all details on your investment and future returns become available on the dashboard.
Monethera Skin in the Game
In case a project gets at least 80% of the required investment, Monethera adds the missing amount to start its implementation.
Monethera: How to Start
To start investing within Monethera you need to set up an account, choose one of the available investment projects and the amount of money you would like to invest. It will take only a few minutes.
As Monethera is focused on European projects all the investment accounts are in EUR currency. Only USA, China and sanctioned countries and entities by the European Union are not able to open Monethera accounts.
Here is a step by step instruction:
- Login or Register an investor account. Don’t forget to use the promo code savings4freedom to extend your initial cashback period;
- Upload documents for personal verification process;
- Top-up your account with funds;
- Choose the project to invest;
- As soon as you confirm your investment during the next 90 days you will get 0.5% on cashback;
- Interest will be counted from the project’s starting date (can be seen in each project description).
In order to guarantee security, transparency, and reliability Monethera only accepts payments directly to the bank account. The name you have used for registration in Monethera must be identical to the name at your associated bank account.
My experience joining Monethera
It took me less than 5 minutes to register on the website, upload a copy of my national card ID and a utility bill. Then I had to wait a few hours for my profile to be verified.
I’ve funded my account through my N26 account, and the funds became available to invest a few hours later.
As soon as I received the funds, Monethera added 5€ to my balance. In addition, all investments made were rewarded with a 0.5% cashback that you can also benefit by using my referral link to open your account.
Monethera: Platform Future Steps
One of the questions I presented to the Monethera team was about the expected next steps. The answer was clear:
- First, they state to have sufficient flow of projects to feed the platform for the near future;
- Want to improve the feature that allows investors to sell their investments back to Monethera;
- A different plan is to make available a blog to the community;
- A feature that is in the development pipeline with priority is the auto-invest tool;
- Finally, they are considering in the future, the development of a secondary market.
After an initial mixed reaction with the first release of the Monethera website, I am now among the investors that believe Monethera can successfully bring value to my P2P portfolio. I’m looking forward to additional projects and follow the success of the initial projects after repayment.
Monethera is joining my Top 10 list.
Do you want to Invest?
Check among the P2P crowdlending opportunities available on Savings4Freedom, always taking into consideration that all information is entirely based on my personal experience.