Category Archives: Smart money

New Envestio project – Crypto-mining Container Phi200

Envestio logo

Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By launching the project “Crypto-mining Container Phi200” (Project ID EN018025), Envestio continues to expand the successful cooperation with the representatives of crypto-mining industry.

This loan is fully secured by mixed collateral and personal guarantee of the main beneficiary of Ostbin Group Ltd.

As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

Investment opportunity

  • High-yielding investment in crypto-mining sector, financing of a crypto-mining hardware assembling process.
  • Secured debt, 20,5% planned annual return.
  • Investment principal buyback is available at 5% penalty rate.

Project description

Ostbin Group is a company, established by IT professionals in order to conduct different operations on the crypto-mining market, such as assembling and selling crypto-mining hardware, direct crypto-mining using own hardware as well as management of crypto-mining facilities, owned by external parties.

The company is already known to Envestio participants by its fully-financed project “Crypto-mining Farm 130GTX1080ti”. Ostbin Group is constantly developing new approaches and works only with the newest hardware on the market in order to make mining process more efficient and achieve high and stable profitability even in volatile environment, which is observed on the crypto-mining market in 2018.

This time Ostbin Group is offering a “secured debt” type investment project.

Ostbin Group has recently received a new order and signed a contract with the end customer for assembling a modern crypto-mining unit of a larger scale. Now the company is looking forward to attract co-financing with help of Envestio participants in order to complete this project. The target amount is EUR 800,000 and investment horizon constitutes 9 months – term that is necessary for purchasing and delivering the hardware, assembling the mining unit, and receiving the final payment from the customer.

The mining hardware is going to be placed inside a standard 40-ft container, equipped with industrial-type automated cooling system, allowing it to operate within approximately 70 degrees wide temperature gap (-35oC to +35oC). The hardware filling of the mining unit is formed by 200 latest generation mining servers, built on basis of Intel Xeon Phi processors. This hardware is characterized by longer lifecycle, extraordinary operational flexibility, and higher effectiveness than most of the crypto-mining solutions that are available on the market in the second half of 2018. Consequently, this mobile mining unit is going to be one of the most powerful and efficient products of those offered on the global market.

Market

Cryptocurrency market currently experiences exponential growth with total capitalization exceeding EUR 215 billion in August, 2018. This is a rapid increase from beginning of the 2017, when gross capitalization amounted more than 10 times lower number, i.e. EUR 20 billion. The market remains highly volatile, however, the technology behind it is constantly developing and the involved number of important players is growing.

Bitcoin remains the leading currency on the market with around 47% of total capitalization value. It is followed by Etherium with 16% and Ripple on the third place with 6%.

An increasing number of traditional institutions such as central banks, stock exchanges, and even some governments are demonstrating increasing interest to the blockchain industry market.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

  • 08.09.2018 – EUR 17.41
  • 08.10.2018 – EUR 16.85
  • 08.11.2018 – EUR 17.41
  • 08.12.2018 – EUR 16.85
  • 08.01.2019 – EUR 17.41
  • 08.02.2019 – EUR 17.41
  • 08.03.2019 – EUR 15.73
  • 08.04.2019 – EUR 17.41
  • 08.05.2019 – EUR 1 016.85

Total expected return: EUR 1 153.33

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Why is diversification important when investing?

Diversification

When investing to loans or other traditional asset classes, we often meet a phrase ‘to diversify‘. You have probably also heard about the expressed by W. Buffet, one of the most famous investor in the world, comparison of diversification, stating that one should not keep many eggs in one basket.
Description of diversification is very elementary – using various ways. If, for example, you go on a sightseeing trip, it is always recommended to keep your own funds in at least several different places, in order during accident you would not lose all the intended for travel expenditure money.
Many experienced businessmen and investors follow this condition. Investors choose investments from different asset classes, business fields and countries of the world. This helps to ensure that losses, occurred as a result of any outcomes, do not interrupt the return of the entire portfolio.

How to ensure suitable diversification in loans market?

– When investing to loans for business, diversification is not of less importance. Although the provided in peer-to-peer lending platforms loans are protected by agreements including various protection measures (asset mortgage, personal warranty, guarantees of the third parties, insurance, etc.), however, there is a probability that a loan beneficiary will not be able to fulfill his financial obligations and will face difficulties when covering the loan balance. In such case, one should not urge to write off the investment as not repaid, however, it can take long months or even years until legal protection measures work out and the asset is finally recovered. For this reason, investors are recommended to invest in smaller amounts to as many as possible publicized loans, in order to eliminate the risk and reduce it to minimal. Excellent diversification can be ensured with a help of auto-investment function.
– In still developing market of crowdfunding, it is also recommended not only to suitably evaluate the platform, in which you are planning to invest, but to select at least several of them, which meet your needs. This way, you will reduce even more systematic risk that, in case of platform operator‘s bankruptcy, you will not incur the loss of the entire portfolio.
– One of the main P2P Marketplace’s advantages is supply of different loans operators. In such platforms, besides of choosing the loans of different loans operators, you can distribute your portfolio according to the country you like, types of loans, interest rate and terms. In case of bankruptcy of any loans operator, investors do not incur harmful losses as a result of suitably chosen diversification. This is a big advantage for investors, when comparing with traditional P2P lending platforms, representing themselves as one loans operator.
– The last, but not the worst advice is careful evaluation of own financial possibilities and capital distribution according to different investment instruments. Market of the 21st century is dynamic as ever before, more and more actions may cause market fluctuations, thus, it is recommended to arrange own investments portfolio according to the risk and return ratio that is acceptable to you. Investors may choose between investments to real estate, bonds, shares of companies, stock and many other alternative investments.

Source: Lenndy.com

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Get 1% cashback bonus for your investments on Fast Invest

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Fast Invest will give you 1% cashback for your investments made until the 31st of August. There are no minimum or maximum limitations for this proposal.

Here is what you need to do:

log in to your account or register
– add funds to your account
– pick loans from the loan list and start investing or
– create auto invest portfolio to invest these funds

The cashback proposal has its terms and conditions. Shortly:

– Cashback is applied only for funds added during the period from 16th of July till 31th of August.
– The bonus will be frozen for 12 months period. You need to keep your investments in FAST INVEST platform for at least for one year to get the bonus.
– If you are not able to hold your investments for twelve months, you will lose your bonus.
– The bonus will be automatically activated after twelve months investment period.
– This promotion cannot be used with other proposals.

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5 essential steps to invest buying a property

Real estate invest

The first steps as an investor in the real estate world can be risky and complicated. Like any new approach, there is a learning process and by allocating time and studying the problem, the results will be positive. Before you buy a property, here are some steps to keep in mind.

Prepare the advance and set the rates for the loan

Financing through a loan an investment in a property is not the same as the financing of your own home. If you decide to invest and buy a property, expect a fairly important advance. Get ready the advance and study bank lending offers. Funding conditions are very important.

Decide if you want to rent or sell the property

Renting or selling an investment involves different strategies, so it is important to know what method you intend to apply. If you bought a property and you want to sell it after you arrange it, it is a quick way to earn capital. Renting requires shorter repairs and smaller investments, but it has a much lower return. The gains accumulate over time and the investment is amortized over a long period of time. Rental properties involve long-term commitments to keep tenants, but provide a long-term secure income.

Understand the local economy

Studying the current situation may be helpful. If you intend to rent, it is important to think long-term. Is the city potentially economical, or is the local economy declining? You need an economy that attracts potential tenants who will pay for long-term rent or you can always find quality buyers. Researching this economic situation will take time. Nobody knows the situation better than a local. Create relationships to understand if it is advisable to rent or sell a property. You can start investing in real estate in an area that will be familiar, close to your resentment.

Study the market

If you like a building, look for similar properties on the market. It is helpful to orient yourself according to the market price. Make a comparative study to see at what price you could rent your property, compared to other similar properties. Do not focus only on pricing. Verify if certain properties are for long available for sale on the market, then there are reasons why they are not leased. If real estate agents offer discounts, this indicates a market with few buyers. If the prices are high and few properties are available then the market is weak in quality offers and there are many buyers, that is, you have to compete.

Find out the costs for repair and maintenance

When buying a property, you also have to estimate the costs for repairs and improvements so that it is suitable for rent or later sale. Call a specialist who can find hidden building defects. If you intend to resell, evaluate correctly what costs are involved in the arrangement of the building. External repairs, painting, overhauling are much cheaper as structural defects or electrical network reconfiguration. Take into account not only repairs but also maintenance costs. If you want to resell, then you have to include these expenses in your plans, so you will not to lose. If you want to rent, avoid major repairs and renovations. Renting will bring long-term income, and the investment should not involve large expense.

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Real estate projects – unused potential of investments in the Baltic States

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In Envestio portfolio you will find some projects wich are located in Baltic States. Is it safe to invest in these projects? First of all it depends on economic growth and economic growth forecasts in these countries.

What are forecasts of economic development of the Baltic States?

Estonia, Latvia and Lithuania as open economies gain profit from rapid cyclic acceleration and growth of world trade. Based on the IMF World Economy report, it is expected that annual growth both in 2018 and in 2019 will achieve record of seven years or 3.9%. Global recovery currently happens much more steadily and has solidified all over the world, besides global entrepreneurship confidence level is record high, which respectively affects further rise of the internal demand an d improves the labour market.
Only geopolitical tension and risk of political uncertainty are two factors that may cause potentially negative effect on total positive external demand of the Baltic States. Despite strong prospective of growth, Europe is directly affected by Brexit. However, direct influence of the United Kingdom’s trade links on the Baltic States still remains limited. Speaking about risks, conflicts about trade can also decrease record high level of economic optimism and global trade.

Unusually powerful rise is forecasted for the Baltic States, providing that the growth rate will only normalize starting from 2019.

On the favourable external background, in the last year Estonia and Latvia achieved growth rate of over 4% (4.9 % and 4.5 % compared to the previous year, respectively), and Lithuania showed stable annual growth of GDP – 3.8 %. Similarly to other countries of the Eurozone, cyclic recovery has gained speed, and it is forecasted that the biggest contribution to the growth of countries in the next year will be provided by the domestic demand.
Eurozone annual growth in 2018 will be 2.3%, it supports the growth rate in the Baltic States that will be above the maintained long-term rate, however it will gradually slow down due to basic effects and exhausting of yet unused reserves of resources. It is expected that export growth from the initial powerful acceleration will come to the normal level and will include both products and services, providing that increased growth will take place exactly in sector of services. Growth restrictions will first be reflected in the labour market, while lack of qualified labour grows.

Economic bases of the Baltic States are still stable, finances of the countries are almost balanced and public debt levels are the lowest in the whole Eurozone. Estonian, Latvian and Lithuanian main future challenges mostly are of structural nature and are related to challenges in acceleration of productivity and growth of added value.

Baltic States will still be ones of the most rapidly growing Eurozone countries, with shrinking significant income difference compared to the European trade partners.

In this long-term adventure we must avoid temptations in respect of excessive domestic stimuli. Quite the other way, long-term growth is based upon complex choices, for instance, in the smart specialization, development of innovations and technologies, in order to promote export and profit. Increase of research and development (R&D) expenses in the private sector, strengthening of the ecosystem of small and medium companies and new companies and especially investments in human capital are examples of modern solutions that must be further used, in order to gain maximum benefit from the next decade’s global technological and digital bull race. Revenue of sectors of globalized technologies will still exceed forecasts.

Real estate projects – unused potential of investments in the Baltic States

Today we can say with confidence that investments in real estates of the Baltic region are the most profitable and efficient way to not only keep, but also multiply cash assets.
Situation in Europe also slowly improves. Stress caused by the refugee crisis decreases, besides economic factors of the European countries also slowly improve. Since main investors in the Baltic States come from the EU countries, their opinion of further growth prospective has increased and optimism slowly grows. In truth the United Kingdom’s departure from the EU is still ahead. However, it will probably cause investors to look for new places to invest money and create new companies in the EU. And one of the most prospective opportunities is the Baltic region.
Latvia still has many unused opportunities to invest in housing – Luminor bank has expressed its opinion at the conference “How will real estate market develop in Latvia?”.

Approximately 85% of homes in Latvia are not encumbered with credits, this means that opportunities to borrow for investments in housing are wide. Compare – for instance, in the Netherlands all homes have mortgage liabilities. In the Eurozone average proportion of mortgage loans to the gross domestic product is 40%, and in the Baltic States – just 16%. In turn, ability of the Baltic residents to purchase homes is assessed as good.

Housing market in Estonia and Lithuania is currently close to maturity, while in Latvia activity in the housing market is still quite slack. In turn, crediting cycle is relatively new and will only gain speed.
The whole Baltic Sea region currently sees rapid growth, and from the point of view economics this is a good time to invest in the Baltic region’s projects and gain from it guaranteed profit.

Find profitable investment projects in Baltics with Envestio

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Get 0.5% cashback bonus for your investments made on EstateGuru

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EstateGuru now offers a 0.5% cashback bonus for your investments made during the first 3 months from the registration.

How the program works?

In order to get the bonus you first must register by following THIS LINK.

The investor who completed a registration will get a 0.5% cashback bonus for the investments made in the first 3 months. Calculated bonus amounts are transferred to the investment account of the EstateGuru investor.

For other bonuses visit our Cash-back & Bonuses page.

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5 good reasons for business to borrow money

Money

Small and medium-sized businesses drive the economy across Europe. According to the data of the European Investment Bank (EIB), small and medium-sized businesses account for 99% of businesses in European Union and employ two thirds of the labor force. Thus, small business financing has always been a priority for various financial institutions or at least it should have been.

Many entrepreneurs in the Baltic States still face deep-rooted fear of borrowing and the idea that borrowing reduces the credibility of the business. However, contemporary entrepreneurs challenge the status quo and understand that debt is essential in order to grow a company. Therefore, today we will share 5 key reasons why businesses (should) borrow additional capital.

     Seed capital (to start a new business)

Ingenious idea is rarely enough to establish a successful business. A company can grow when there is a developed concept to show, whether it is a product or a service. However, it is often difficult to get to such point as it might require specific tools, technology, office or manufacturing premises, website, communication devices and other things for which a significant starting capital is needed.

     Additional working capital

In order to earn profit, you need to invest working capital first. When company is growing quickly, there is a need for more employees, tools, office or manufacturing space, therefore, more capital. Usually businesses have three main ways to get additional capital – more equity capital from shareholders, profit from operations, and debt. Quite often shareholders pour most of their money into business to kick it off in the beginning and do not have additional capital for further funding. Lots of companies are not even profitable for the first couple of years. Therefore, company should consider taking on debt to grow the company as long as this debt is healthy.

     Purchase of long-term assets

Long-term assets like buildings, land plots, machinery are usualy important to successful growth and expansion of ther company. Businesses often purchase such assets using leverage from lending companies in order to save working capital for operations.

     Delayed payments 

Businesses constantly juggle between accounting credit and debit. Working capital is like blood that keeps the company going. Nowadays, there is tendency that once products are are delivered to the buyer, payment might be delayed for up to three months. Expanding businesses cannot wait so long without additional capital injection to move forward. Therefore, invoice financing solutions are getting more and more popular among small growing businesses.

     Refinancing 

Terms and condition for loans today are not like they used to be 5 years ago. Sometimes interest rate or other conditions might worsen, however, if they become more attractive, it might be wise to refinance existing loan and get better terms. This solution helps businesses save a lot of money that can be used elsewhere.

Businesses should not be afraid of debt. On the contrary, when company borrows responsibly it can achieve sustainable growth and expand to new markets which would be unreachable otherwise.

 

Source: Lenddy.com

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Bondora today launched its “Go & Grow” program for all users

Bondora logo

Bondora today launched its “Go & Grow” program for all users on the platform and for new users, offering a return of over 6% per year and the ability to liquidate the investment instantly, thus providing a new tool that has never been met at any  peer-to-peer platform, to have almost instant access to the investments made and a much higher return than the bank deposits (similar to the liquidity of this investment facility).

Go & Grow is an incredibly simple and automated service that allows you to earn 6.75%* p.a. on your investment and take your cash out at any time. This is for the people who want low risk and ‘no-hassle’ investing with a predictable net return.

The main benefits of Go & Grow is that you can withdraw your funds at any time. You can set up a new account and call it a unique name, whether you’re using Go & Grow for your new dream home, your emergency fund or enev for that trip to Asia you’ve always wanted to do.

You can share acces to your Go & Grow account with someone you trust. Once you have created your own account, simply select “Invite to Go & Grow” then add their name and email address. You also have the option to give this person the authority to withdraw from the account, but this is not mandatory.

What are the benefits?

  • 6.75%* yield
  • Instant liquidity
  • Low risk –  A diversified portfolio of investments supported by advanced and reliable technology
  • You only pay tax when you make a withdrawal over your capital amount invested

Additional benefits?

  • Transfer your existing Bondora investment portfolio to Go & Grow
  • You can set up an auto-transfer from your existing portfolio to Go & Grow
  • A flat €1 withdrawal fee, no matter the size of the account
  • Great for beginners
  • No annual management fees
  • Share access to your Go & Grow account with the people you trust

How to transfer the existing Bondora investment portfolio to Go & Grow?

All you need to do is create a new Go & Grow account, then click on the small settings icon an click on “Add existing investments”. Then you will receive an offer from Bondora to liquiidate your existing portfolio based on the current portfolio value, however, it may be at lower amount. If you accespt, Bodora will transfer your portfolio to Go & Grow.

Is the rate of 6.75% guaranteed?

The rate is not guaranteed, however, the average net return on the Bondora platform is much higher than this. With this and our 10-year track record in mind, we’re confident the rate of 6.75%* is achievable with the benefit of instant liquidity to investors.

The net return is capped at 6.75%* – all excess returns over this percentage are reinvested to ensure you can earn the rate of 6.75%* going forward, despite there being no guarantee in place.

How investors will be taxed for this?  

You only pay tax on the money you withdraw which is over the total amount you have paid in. For example, if you invest €1,000 then anything you withdraw up to €1,000 is considered as a principal withdrawal, anything above €1,000 is considered as interest.

All payments made to your Go & Grow account are regarded as one investment, although the funds have been used to acquire individual claims. This is irrespective of when and in how many parts you paid cash into your Go & Grow account.

Bondora “Go & Grow”, announced a long time ago, was reserved for a number of existing investors. There’s been a huge amount of excitement around this product within the P2P community. As it stands, approximately 1,000 investors have deposited an average of € 1,000 each in their Go & Grow account.

The best part? You do not need any prior experience in investing or P2P to use Go & Grow, so whether you’re a retiree living in the Estonian countryside or an 18-year-old student in Berlin who’s new to the world of investing, Go & Grow is for you.

What’s more, you can invite someone you trust to join your Go & Grow account with you so you can invest for a shared goal, like a trip around the world, a wedding or even your child’s future.

 

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What is inflation and why is it an intensely debated economic phenomenon?

Inflation

Inflation is considered by most specialists as one of the most serious macroeconomic imbalances that jeopardize the development and economic progress of a country, but “What is inflation?”
The most widespread definition in literature is that “inflation is a process of cumulative and self-sustaining growth in overall price levels and declining money-buying power.” Taking a look at the above image, we can see that we can buy different quantities of products over the years. If today you can buy 1kg of tomatoes with 2 EUR, in a few years you will buy a smaller amount of tomatoes with the same amount of money because inflation has increased and purchasing power has dropped.

But what are the causes of inflation?

– the injection of money into the economy (the state is printing money without cover, the action leads to rising prices and imbalance MV = PT where: M = Money supply V = Currency circulation rate P = General price level T = Volume of transactions)
– demand for goods and services is higher than supply and hence supply-demand imbalance. (increase the incomes of the population and, implicitly, the purchasing power, take the consumer loans and reduce the inclination towards saving)
– rising production prices (increasing production costs, falling production and increasing prices)
– rising prices for imported goods / assets (increasing the price on materials, raw materials, etc.)
– High prices that are not related to the drop in supply or increased demand
The most popular forms of inflation: trap / quiet (rising prices up to 3%), rapid (annual growth rate approaching 10%), galloping (annual price increase exceeds 10%) and hyperinflation (monthly price increase
over 50%
<What’s really going on?
The population is affected as the purchasing power decreases, there is a redistribution of income and wealth, confidence in the local currency is lost and the interest in saving is lost.
Companies are forced to reduce production capacity and are more concerned with asset protection against inflationary erosion.
If economic inflation benefits borrowers (who contract loans in the national currency at a certain purchasing power and return them in other inflationary conditions, to a lower buying power) and the interest rate is influenced by the inflation rate.

The inflationist phenomenon is one of the most serious macroeconomic imbalances but I recommend you take a look at hyperinflationary cases.

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Why smart people do stupid things with money?

Smart people

It’s a pretty good question, is not it? How do intelligent people manage to do things with money and after a while become totally disappointed with their “successes”?

I suggest you think a little bit!

And here I do not mean people without financial education or any other kind of education.

Let’s think of intelligent people who have completed a faculty or a master and who have obtained a job because of their competencies or who have developed a start-up that has become a “small profitable money machine”. How do they become totally disappointed with their own financial situations, even though they have earned a lot of money over the years?

Here are three of the most common reasons:

  • They have a disastrous financial behavior. Although there are people who have extraordinary professional, social or family behavior when it comes to financial behavior, they completely ignore it!

          They are implusive consumers, meaning “perfect” for traders. Buy anything at any price. If they like something, they put in a basket without considering how much money they have available until the next salary. “I even withdraw money from my credit card if I do not have any money left in my salary account”. You’ve heard of such people, right?

         The first step in changing financial behavior is definitely analyzing your own behavior. If it’s not one you can be proud of, you can change it. Instead, if you go like a ostrich – just put your head in the ground and deny your own financial situation – it takes only a short while until the frustrations and shortcomings will arise.

  • They omit the financial planning activity. They do not have financial goals, they have no clearly defined plans to follow, and this is why they do not take into account the financial planning activity. Surprisingly, all people know that without a plan whatever it is financial or any other type, the chances of success tend towards zero.
    To increase your chances of succeeding in what you propose, take a pen and a sheet, write down your short, medium, and long-term financial goals, make plans for action, and set up tight financial targets.

          If you want a house, set the amount of money you need, the detailed plan to get that amount, the intermediate targets delimited by clear terms and get to work. Without action, the results are always zero!

  • They do not have information, skills or financial skills. The result of not very profitable investments is often the lack of understanding of financial products and services and business investment in areas that they do not know.

          I’m sure you’ve heard questions like “I have 10,000 euros and I do not know what to invest in.” Or “What are the most profitable businesses?” Often, those who ask for such questions are people who lose money because of their lack of skills and entrepreneurial experience.

         Lack of understanding of financial products and services such as savings accounts, deposits, investment funds, shares or the Forex market can also cause a small amount of trouble if you do not understand how they work.

       Developing a “healthy” thinking, how the most important financial products and services work, and developing entrepreneurial skills can help you increase your personal income.

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