Tag Archives: investing

Get rich in the stock market overnight. Myth or reality?

By Smart money, , , , ,

To be a successful investor it is essential to understand and overcome the biases that often lead to wrong investment decisions. A common misconception, especially among many new investors, is the belief that investing in the stock market can make them rich overnight.

The scenario seems real in that some investors end up making big gains at one point, but in this case, more often than not, the investment was made years ago.

Success is due to patience, emotional intelligence or vast experience rather than luck or a great trading opportunity that “struck” overnight. Financial literacy and staying up-to-date with the most important news and events are ingredients that also make the difference between investment success and failure.

The stock markets are constantly changing and it is not good to expect big and quick gains. This fact does not help you concretely, but, on the contrary, adds even more pressure on you.

That is why, before you actually enter the market, review the relevant information and be aware of the associated benefits and risks.

Perhaps along the way you will be pressed for time and this will make you want to “cut corners”, simplify complex decisions and thus become overconfident in your decision-making process. But keeping your expectations realistic not only gives you a balanced point of view, it also helps you be rational.

Moreover, because the decisions you make trigger certain processes, biases can actually prevent you from having an optimal approach (optimal does not mean perfect!).

At times when you seek to be perfect in this area, you begin to give too much importance to some things, leaving others on the outside.

With limited resources as an individual, it is better to seek an optimal and not a perfect allocation of them, because the inevitable errors will drain your energy and make you lose your focus.

You have to remember that in investing, you don’t aim for the impossible, you just have to eliminate the errors to become constantly better.

That is why, if you avoid major mistakes and have some understanding of the markets and the economy, the odds of becoming a successful investor are completely in your favor. But don’t think that this is the secret to becoming rich overnight.

Those who are extremely confident and also have the misfortune of having…luck in the beginning, believe themselves far above the level of those who have some experience and have also recorded losses among their gains.

But these lucky beginners will be the most shocked by the markets, and the return to the ground will be more painful for them.

By constantly learning about “investment psychology” you will know how to manage other emotional errors that can occur in any investor.

The most common prejudices and preconceptions that can lead to wrong investment decisions:

  1. Confirmation – some investors are overconfident in their decisions, focusing on data that seems to confirm, rather than disprove, this.
  2. Attraction to “sensational” information – as investors are bombarded with a plethora of information every day from financial commentators, newspapers and stockbrokers, it is difficult for them to filter it to focus on the relevant information.
  3. Aversion to potential losses – some investors refuse to sell losing investments in the hope that they will get their money back. But, in addition to money, they can also lose their self-confidence.
  4. Incentives – the power that earnings and incentives can have on human behavior often leads to exaggerated frenzy.
  5. The tendency to oversimplify – in seeking to understand complex matters, investors tend to want simpler explanations, but some matters are inherently difficult to explain and do not lend themselves to simple approaches.
  6. Hindsight – this state of mind prompts investors to eliminate objectivity in evaluating past investment decisions and inhibits their ability to learn from mistakes.
  7. Confidence Transfer – Speculative bubbles are usually the result of groupthink and “herd” mentality. This concept describes a certain kind of inner comfort that an investor can feel when they think that “others are doing the same”, even if their decision is not necessarily a good one.
  8. Neglecting probabilities – investors tend to ignore, overestimate, or underestimate the likelihood of outcomes other than those they have calculated. Most are inclined to oversimplify the process and allocate a single point estimate when making certain decisions.
  9. Anchoring in the past – represents the tendency of investors to rely too much on a reference or information heard in the past when making a decision.

To remember :

  • Understanding these biases can lead to better decision-making, which is fundamental to reducing risk and improving investment returns over time.
  • Shortcuts especially do not work in the financial capital markets. Make sure you follow a disciplined, rational and balanced approach to investing, always keeping in mind the long-term perspective, company fundamentals and market analysis of the sector concerned.
  • Investors who want to take shortcuts often end up losing their invested capital and blaming the markets for their own preconceived decision.
  • The reason our mind tends to simplify or make decisions based on trusting certain situational patterns without applying its own filters is because it wants to reduce energy. Thus, if you are just starting out and want to become a profitable investor, you need to make sure you have the mental energy and patience to avoid these prejudice traps.
  • Financial literacy is what makes the difference between investment success and failure. Invest in yourself first, in your education, to make sure your money starts working for you and not the other way around!

How to effectively protect yourself from investment risks?

By Smart money, , , ,

Risk/Reward

 

Every time we think about the idea of making investments, the first thing that automatically comes to mind is the notion of risks.

This way of thinking is typical for the field of investments and is much less present in our normal, everyday life.

Or not…?

How present is the concept of “risk” in our lives?

Obviously, certain risks normally exist for us no matter what we do, only we don’t think about them all the time and we don’t worry too much.

Because they are quite small, and most of the time they are even EXTREMELY small.

For example, how many times do you happen to climb the stairs and fear that you might stumble and break a leg? Or how many times do you walk down the street with fear of having a serious accident?

Probably quite rare…

And yet, such accidents happen, because we hear about them many times and we even see them on TV.

However, they are very rare (thankfully!), So it would be abnormal to live our lives in constant fear of them, always thinking about these risks and everything that could happen.

In terms of investments, however, the way of thinking is exactly the REVERSE!

Every time we are interested in a certain investment, we must analyze very carefully the situations in which things could go exactly the opposite of how we hope.

What would happen in those cases, how we would react to an adverse scenario, how much we could lose – all this must be part of our plan from the beginning.

For the simple reason that sometimes these investment risks do occur, no matter how carefully and inspiringly our initial plan was made.

Therefore, the question we need to ask ourselves is not “IF” but, rather, “WHEN” the risks associated with each investment will occur.

It is very important to find out the answer to the question “HOW MUCH” can we lose if those risks occur. Because depending on this answer we know how to plan and manage our investment correctly from the beginning.

In any investment, the main concern related to risks is that, in case they occur and we have losses, they should be as limited as possible.

Because all investors, absolutely ALL, face these investment risks and therefore sometimes incur losses.

Even the famous Warren Buffett, probably the biggest investor of all time, constantly in the top of the richest people in the world, reported a significant loss a few years ago as a result of his investment in Tesco.

What is interesting is that, although in absolute terms this loss seems huge (being several hundred million dollars), in fact it represents only about 0.2% of the net value of the company run by Buffett (Berkshire Hathaway).

In fact, over the last 50 years, Berkshire Hathaway has once lost 2%, with the rest being less than 1% of its net worth. These impressive results confirm that the winning strategy is to keep the risks to a low level, and therefore the potential losses.

How can you effectively protect yourself from risk?

Self-knowledge and study are the most important elements when it comes to investing.

If you understand how you react to risks and potential losses, it will be much easier for you to build a portfolio that fits your risk profile and helps you achieve good long-term results.

Here are 4 things you should always think about BEFORE making a certain investment, so as not to expose yourself to too much risk:

1. How much can you afford to lose?

How much money do you have available for these investments? And, most importantly, how many of them could you lose without significantly affecting your portfolio (or even your standard of living)?

In addition to answering these questions, you need to think about whether you are comfortable with the fact that you will make those amounts unavailable for a certain period of time, specific to each investment.

2. What is your time frame?

The time frame for which you intend to invest is directly related to those risks that you are willing to accept.

The longer you invest for the longer term, the more chances you have of recovering from any declines, so you could take, at least theoretically, higher risks.

On the other hand, as you get closer to your goal (eg financial independence), you need to prepare your portfolio properly so that you decrease the total level of risk you take.

3. How well do you know the investment you want to make?

The main risk of an investment is the investor himself. Or, as Warren Buffett says, “Risk exists when you don’t know what you’re doing.”

So, before you embark on a particular investment, get seriously informed and try to really understand how that investment works.

What are the main risks? What might not be going well? What are the positive scenarios and what are the negative ones?

And, most importantly, what will YOU do in each of these scenarios?

Once you find the answers to these questions, it will be much easier for you to make a concrete plan, which you can implement when the situation demands it.

4. How do you deal with these risks emotionally?

Your emotional ability to cope with change, unforeseen and potentially dangerous situations is very important.

If riskier investments stress you out and affect your daily life, you should probably turn to lower risk instruments.

Even if it is said that high profits are usually brought by investments with higher risks, you should know that there are enough profitable options to invest with medium or even low risks, so that, in the long run, you do not end up ruining your life and the health.

IN CONCLUSION, you can reduce the risks of your investments by investing:

– in a diversified portfolio, with investments that you understand

– which is adapted to your risk profile

– long-term and very long-term

– investing regularly, amounts with which you are comfortable.

This way you will be able to build an investment plan to help you get good profits, in conditions of limited risks.

How to invest: 5 basic tips for beginner investors in stocks

By Smart money, , , , , ,

Investments for beginners

The development of technology has increasingly paved the way for ordinary people to global financial markets. But easy access for individual investors to international markets comes with the need to be educated about them and to understand the risks they take.

1. Do your homework

Once you have decided on which platform you want to invest, you have to do your homework. Investing means more than choosing a few random shares, with the hope that everything will go well on its own. A familiar example would be that when you buy a house you do not choose one at random from advertisements, but you will go to visit it. And to determine if it has a fair price, you look at the neighborhood, the real estate market in general and then you make a decision.

Similarly, before you start investing in stocks or any other asset class, you need to research the market to understand what you are investing in. Read about each asset and invest only when you feel comfortable that you can make a well-informed decision.

Thanks to the internet, nowadays it is easy to access information about listed companies. You can see what their income and history are, you can read their news and recommendations for investors. Sector or market information or even political news is also important – for example, we can now see how airlines, even the best performing ones, are affected by Covid-19 travel restrictions or how incentive packages economically affects markets. Being up to date with things that happen in the media helps you better understand the evolutions of stocks and trends in the markets.

2. Define your financial goals

Before you invest your money, you need to have a clear idea of what you want to achieve and how you will do it. You need to understand your personal goals as an investor. Do you plan to invest in the long term (10 years for example) or in the short term? What types of investments will help you achieve your goals? What are you ready to risk?

Investors should be encouraged to define an investment strategy that suits their needs, including their risk attitude. To mitigate risk, they should diversify their portfolio, adopt a long-term attitude and invest only in financial instruments with which they are familiar and for which they understand the risks they take.

3. Invest the money you don’t need in the next five years

Risk appetite should always be linked to investment objectives. Evaluate your current financial situation to understand if you can take the risk and always invest with money you will not need in the next five years. Never invest more than you can afford to lose!
You need to have a long enough time horizon for the investments you make to avoid market fluctuations. If you have an amount at your disposal, but you know that you will need this capital in the next 12 months, then the recommendation is to invest in a less volatile asset class, such as bonds.

Over time, stock markets have provided excellent returns to long-term investors. For example, since the establishment of the S&P 500 index (stock index composed of the top 500 American companies) in 1926, it has increased by an average of 10% annually. This is a much higher return than those generated by other assets, such as government bonds. You can also start investing in shares with a relatively small amount of money using a commission-free platform, as commissions can affect your profit margins.

One of the factors that discourages people from investing online is cost. The idea is still widespread that you need a lot of money to start investing. Moreover, equity investments are often perceived as an extremely complex process, involving technical knowledge and attracting expensive commissions. This is no longer the case. A number of online investment platforms, conduct transactions with shares without commissions, as well as fractional shares – you can actually buy a part of a share, a percentage of it, expressed in dollars. This offers the opportunity to invest $ 50 in high-value stocks, such as those of Amazon (which trades at about $ 3,000 per share), Tesla (over $ 700) or Alphabet (Google) – whose shares would cost about $ 2,000 a piece.

4. Practice before you start investing

Start with small amounts of money or practice with a virtual demo account, while learning the markets and defining your strategy.
Demo accounts of several online platforms allow you to practice without risk. Every user who registers receives access to a demo account, credited with virtual money, so that they can practice their strategies, learning to work with the platform before investing with real money.

5. Diversify your portfolio

Diversification is a risk management strategy and the proverb “don’t put all your eggs in one basket” explains the concept very well. In other words, invest in different assets or market shares to limit your exposure to a certain class of assets or financial instruments.
The purpose of diversification is not to achieve very high returns, but to manage risks. Think about what it would have been like if you had invested all your savings in the shares of an airline company just before the pandemic, which made travel difficult. You don’t want to be completely dependent on the performance of a single company or a single sector, maybe even the economy of a single country or continent.

Get 1% cashback bonus from Lendermarket

By News, , , , , , ,

Lendermarket logo

 

Lendermarket informed that a new cashback opportunity is available at the platform to all new registered participants.

Every new investor who register through this link at Lendermarket receives a bonus of 1% of the Net Deposited Funds during the first 60 days after the registration is successfully validated (Net Amount Deposited: amount of money deposited minus the amount of money withdrawn).

About Lendermaket

Lanched in june 2019 in Ireland, Lendermarket is a sister company of Creditstar Group AS, which is the parent company of Creditstar’s operational subsidiaries. The loans listed on the platform are issued in: Poland, Spain and Czech Republic.

Ragistration and investing

Both individuals and companies can register and invest. Individual investors are required to be at least 18 years old, be residents in the European Economic Area (or Switzerland) and have a bank account in such area.
Companies must have a bank account in a bank located in the EEA (or Switzerland).

Sign-up process: 2 steps: Registration and identity verification.

The minimum investment is 10 euros at 12% interest rate.

All loans at Lendermarket come with a Buyback Guarantee. Creditstar will buy back the loans that are more than 60 days overdue from their original due date at the nominal value of outstanding principal, plus accrued interest income and late payment fees.

The repayment depends on the term of the loan. If the term is 30 days or less, there will be 1 single payment at the end of the term. If there are two installments (60 days) or 3 installments (90 days), then the investor will receive 2 or 3 payments respectively. This is beneficial for investors that value more liquidity.

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

Get 15 EURO cashback bonus from EvoEstate

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EvoEstate logo

 

UPDATE: The 15 EUR offer is no longer valid. The new offer for new registered participants is 0.5% cashback for 6 months after the first investment. You can register here for the new offer.

EvoEstate informed that a new cashback opportunity is available at the platform to all new registered participants.

Every new investor who register through this link at EvoEstate and invests 50€ (or more) will get a 15 EURO cashback bonus on their EvoEstate account.

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

 

EVOEstate makes it easy for investors to access a variety of real estate investments with a relatively small amount of capital. The minimum amount for investment is €50, which enables investors to create a diversified portfolio. All loans are secured with a mortgage.

EVOEstate does not give out loans directly to the developers and it sources deals from other project originators, this enables to provide a many different types of deals in multiple countries. Consequently, EVOEstate founding team invests into deals theirselves and has skin in the game on deals they provide.

Iuvo peer-to-peer investment platform overview

By Peer-to-Peer Lending, , , , ,

Iuvo is a p2p platform based in Tallinn, Estonia, which allows its users to invest in loans, granted from Originators (nonbank financial institutions – Easy Credit, Viva Credit, iCredit, BBG , Fast Finance). The Investors can make a motivational profit, and the Originators benefit by the extra funds to help them expand their business.
After the loan is granted by the Originator, it is uploaded on iuvo, where the Investors can see it and choose to invest in it. The Investor receives their profit from the principal with interest after the installment is payed off.
In case the Borrower stops paying the loan, the buy-back guarantee activates immediately and the Investor gets their investment back.

Iuvo Group OŰ is a company, licensed by the Financial Supervision Commission of Estonia, according to Decision № 4.1-1/133 of the Management board of the Commission. Iuvo Group OŰ is regulated credit intermediary from the Estonian Financial Commission.

IUVO strives to provide investors with a world-class user experience through its diversified credit portfolio of trusted originators, as well as superior platform simplicity.

Iuvo is a Latin word that means “to help”, “to save”.

Who can invest at Iuvo?

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).

How can funds be deposited to the investor account at Iuvo?

You can make a deposit to your iuvo account by some of the following methods:
– a bank transfer from your bank account with a payment order or by using your online banking;
– at the cash register of a bank;
– a transfer, made by using electronic money services such as: Paysera, ePay, Transferwise, Currency Cloud, Revolut, etc.
Please, bare in mind that there is no minimum or maximum amount of money you can deposit.

You can find our bank details on you account–>”Deposit“. Please, follow the instructions.

You can invest in three different currencies at the same time: BGN, EUR, and RON. It is necessary to make a bank transfer to the corresponding account.
Please, bare in mind that right now Iuvo do not offer currency conversion.

You have two investing options in iuvo – manual and automatic.
The manual investing includes: credit details review; choosing which particular credit to invest in, adding to your Cart and confirming the investments.
The Auto-Investing option includes: creating a portfolio, where you can apply certain filters. After you start Auto-Investing, the software invests in loans that fit your criteria.

The minimum amount you can invest in the Primary Market is as follows: 10 BGN, 10 EUR, 25 RON. There is no minimum amount for investing on the Secondary Market.

Iuvo fees

The platform does not have any charges for investing, making a deposit, or withdrawal. The only charge that may apply is when you sell a loan on the Secondary Market – 1% of the amount.
Please, bare in mind that this does not include any charges that your bank may apply.

The credit rate scores

One of the methods by which the originators control the risk, is using a credit rate score system. This is a procedure of classifying every credit in different categories, based on the default probability (the probability the borrower to stop paying off their loan).
All loans in iuvo have a score rate. This is needed so the credits from different originators can be compared.

The credit score rates in iuvo are:
A 0 – 4% default probability
B 4 – 10% default probability
C 10 – 18% default probability
D 18 – 25% default probability
E 25 – 35% default probability
HR above 35% default probability

All loans listed on the platform have the so called buy-back guarantee. This means that the Originator is obligated to buy back the credit from the investor at its nominal value in case the borrower stops paying off their loan. The Originator will restore the investment back to your iuvo account.
The buy-back guarantee activates on the 61-st day, counted from the date of the first unpaid installment.

Withdrawals

In order to request a withdrawal, you need to verify your identity and address. You can do that by applying the following documents:
*for Individuals
– ID Card – both sides of your ID Card or Passport;
– current utility bill, addressed to you or
– official document from the Authorities or
– other documents, confirming your address;
*for Companies
– ID Card of the account’s owner – both sides or Passport;
– A current status certificate or Commercial register extract;
– A document from the Authorities that is addressed to the company (confirming the address);

You can attach your documents through the platform in the “Documents” section.

Regarding the Anti-money laundering policy of the European Union, you need to verify your address in order to withdraw money from your iuvo account.
You can request a withdrawal at any given time from the “Withdraw” button. You can only withdraw the funds that are not invested at the moment.

You can cancel your withdrawal request from “Withdraw” button -> “Withdraw History.

All withdrawals from the platform are processed within two working days.
*Please, bare in mind that the bank transfer can take more time, depending on the bank’s conditions.

You can only transfer funds to a bank account that you have deposited from. If you have transfered money from more than one bank account, you will have the opportunity to choose which one to transfer the funds to.

 

Monethera peer-to-peer crowdinvesting platform overview

By Peer-to-Peer Lending, , , , , ,

Monethera, based in Tallinn, Estonia, started as a private investment fund in 2017, and as of now has become one of the leading platforms in the industry of “Finance 2.0”, which offers investors from all over the world high-level investment opportunities via crowdinvesting marketplace.

With Monethera it is very easy to become an investor. All you need is to register on the website and choose one or several investment projects online. Monethera platform makes it easy and comfortable to start investing in high- tech, energy, real estate or other projects with help of background information, situational analysis, development prospects, market overview, repayment schedules and other important data attached to each project by the Monethera team.

If you invest for the first time at Monethera don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first 180 days, more details HERE.

With start of the Age of Information and growing power of crowd-investing online marketplaces such as Monethera, investing has become easy and painless. You don’t have to be a professional in financial sphere or have a significant amount of money to make profitable investments in various projects. To diversify your investment portfolio, you’ll need as much as 100 EUR as a minimum investment.

Who is eligible to invest?

Private investors can use platform and start investing without any verification, but in order to withdraw profits they have to provide documents and undergo verification process.

Monethera is more focused on European projects, that is why all the investment accounts are offered in EUR only. Payment in other currencies will undergo conversion to EUR at our bank’s rate. Please note that investors can only make payments from their own private bank accounts.

Investing

Investing at Monethera is very simple: create an account, choose one of the selected investment opportunities and the amount of money you want to invest. The entire investment process takes place online and requires just a few minutes of your time. According to established schedule, you will be receiving fixed interest payments. The minimum investment is just 1 EUR per project.

At Monethera you can create diversified investment portfolio without having to invest large amount of money. All you need is as little as 1 EUR invested in a single project to start your investment journey. Later on you will be able to reinvest your income from successful investments in other projects to make your portfolio more diversified.

The minimum funding deposit is 100 EUR.

Investors who use platforms with shared IBANs (like Transferwise and some others) must send Monethera a payment proof in order of being identified.

As of now, credit cards as a mean of adding funds to investment account are not supported by Monethera. It is also not possible to use Western Union, crypto-currency or other ways of money transfer. Monethera doesn’t accept any third party funds. All funds must come from the bank accounts of registered investors.

How does the buyback guarantee work?

The buyback guarantee means that any Monethera participant can reclaim invested money from any of his or her invested projects and instantly receive it. Cost of performing a buyback is shown in the project description.
It should be noted that in some cases the cost of buyback makes a considerable percentage of the invested assets.
All interest payments transferred to participant’s investment account prior to buyback operation remain in possession of the investor.

 

 

 

Why you should consider investing in Bondora Go and Grow

By Peer-to-Peer Lending, , , , ,
Bondora Go&Grow

Bondora Go And Grow

Bondora was founded in 2008 and is one of the oldest and most trusted peer-to-peer platforms on the market. Until a couple of months ago, the only way to invest your money with Bondora was by investing in consumer loans directly through Portfolio Pro or their Portfolio Manager.

In May 2018, Bondora released Go & Grow. The big advantage of Go & Grow compared to other crowdlending offers is that you can access your money at any time, which is not possible if you’re lending your money out on other platforms (although you might be able to sell loans on the secondary market). Bondora automatically invests your money into a well-diversified bucket of tens of thousands of different loans across all credit ratings (AA-HR).

If you invest for the first time at Bondora don’t forget that you can get € 5  signup bonus for your first investment, more details HERE.

What is Go & Grow?

Go & Grow works as easily as (if not easier than) traditional investment methods whilst giving you an impressive return of 6.75% p. a. You simply add money to the account, then you can view and track your return on a daily basis. What’s more, there is no minimum term to hold your investment— meaning you can liquidate your account with ease.

A fundamental difference between Go & Grow and the products of other peer-to-peer lending platforms is the liquidity. If you’re looking for a short-term product in which you can liquidate your investment quickly, this is difficult to do with other existing platforms.

Reasons to use Go & Grow

The P2P industry has gained enormous popularity over the past few years. However, some investors have felt excluded from the incredible opportunity due to thinking they lack enough experience. No matter your experience level, Go & Grow offers market-leading benefits for all:

  • 6.75% p.a. return
  • Faster liquidity, meaning you can cash out your investment with minimal effort
  • Lower risk than other existing products, achieved via a diversified portfolio of investments backed by advanced and reliable technology
  • You only pay taxes when you make a withdrawal over your initial capital investment
  • There is a flat withdrawal fee of €1, regardless of the size of the account
  • No annual management fees
  • Share your account access and invest with people you trust to achieve a common goal
  • Ideal for beginners, as no previous investment experience is necessary
  • Automated features

A very important aspect for Bondora Go & Grow and which is not explained very clearly is that INTEREST is added DAILY to your account, so you do not have to wait a certain amount of time to benefit from the growth. This way, within a short period of time, you can clearly see the progress you are making towards your goal and how much Bondora has contributed to your total progress.

Other features of Bondora’s Go&Grow

  • Invite the people you trust: you can invest in cooperation with your friends and family members. To add authorized users to your Go & Grow account, click on the blue arrow in the upper right-hand corner of your account next to the settings wheel. You will then see the option “Invite to Go & Grow” appear. Once you click on this, enter the name and e-mail address of the person with whom you want to start investing. You can also select whether you want to grant this person the authority to withdraw from the account. You should only enable this feature for the people you trust.
  • Sub-accounts: you can create multiple accounts within Go & Grow (or “sub-accounts”) which will be independent of one another.
  • Setting goals: you can set goals for each sub-account within Go & Grow. You enter your starting capital amount, the amount you plan to invest monthly, and the duration of time for which you plan to invest. Bondora then combine this with the offered return rate to give you the “potential gain” figure.

 

New high-yield Envestio project – Biomass fuel – factoring 8

By News, , , , ,

Envestio logo

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

By introducing the project “Biomass fuel – factoring 8”, Envestio continues the successful cooperation with the representatives of the environmental-friendly energy industry.

This loan is fully secured by commercial pledge and personal guarantee of the main beneficiary of RIETUMU ENERGIJA SIA.

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 energy sector, factoring-type financing for a woodchips trading company.
  • Secured debt, 17% planned annual return.
  • Investment principal buyback is available at 5% penalty rate.

Project description

The company RIETUMU ENERGIA SIA is a venture that successfully works on the market of production and sale of woodchips. Woodchips are being used as raw material for a big number of cogeneration-type power plants across the Baltic region. This type of produced heat and electric energy is considered to be one of the most environment-friendly, as it does not create excessive pollution and ensures full utilization of timber, processed by woodworking factories.

Founded in 2013, RIETUMU ENERGIA SIA is cooperating with an established pool of buyers that ensures necessary and stable demand for woodchips. This pool is formed by several small and medium cogeneration power plants and Tukums city municipal company that provides heating to the city.

On the supply side RIETUMU ENERGIA SIA cooperates with big Latvian woodworking factories SIA Stiga RM un AS Latvijas Finieris, processes own timber as well as purchases imported raw materials.

The need for additional funds is justified by current situation on the Latvian woodchips market that is characterized by high seasonality and continuously growing demand for this type of raw materials. Summer season is characterized by lower prices at which woodchips are available for purchase from the bigger suppliers, however, up to 6 months payment delay from the final customer has to be faced in that case.

Covering this gap with the help of Envestio financing will allow getting extra profits during the winter season, when the price of woodchips reaches its maximum, and repay the investment principal to Envestio participants.

Market

During the last years Latvian market for woodchips was characterized by increasing demand for the qualitative product. The size of Latvian woodworking industry, which is the main internal supplier of raw woodchips for further processing, remains relatively stable; at the same time, the number of customers has been increasing almost exponentially. Cogeneration power plants and producers of wooden pellets are looking to purchase growing amounts of the raw materials. Given the constant supply and increasing number of foreign customers from countries like Estonia, Lithuania, and Poland this logically results in price increase and even product shortage on the market.

Besides the increasing demand the market also faces extreme seasonality. Woodchips can be purchased at cheaper price during the summer, at the same time, during the winter not all customers can handle the price growth (and still there is an excessive demand). In these conditions, a company that can purchase the woodchips during the low season, store it, and sell during the period of higher prices may achieve extra profits.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

  • 25.03.2019 – EUR 13.04
  • 25.04.2019 – EUR 14.44
  • 25.05.2019 – EUR 13.97
  • 25.06.2019 – EUR 14.44
  • 25.07.2019 – EUR 13.97
  • 25.08.2019 – EUR 1014.44

Total expected return: EUR 1 084.30

New high-yield Envestio project – Oil product terminal rent – tier 2

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Envestio logo

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

The project is presented by the new Investment Project Owner – Latvian venture “Rietumu Nafta” SIA that is successfully working in the market of auto fuel trade since 1998. Currently, the company is the biggest fuel wholesaler in the Kurzeme region of Latvia (Western part of the country) and one of the noticeable players in the country market. By investing in the project “Oil product terminal rent – tier 2” it is possible to participate in the financing of rent costs and other expenses of using oil product terminal facilities that will allow “Rietumu Nafta” SIA to ensure year-round supply, storage, and timely delivery to the customers of necessary amount of diesel and other fuel products.

Total project value is EUR 1,000,000.

The loan is fully secured by commercial pledge and personal guarantee of the main beneficiaries of “Rietumu Nafta” SIA.

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 operations of diesel fuel wholesale and retail trading company.
  • 15% planned annual return.
  • Investment principal buyback is available at 5% penalty fee

Project description

Latvian venture “Rietumu Nafta” SIA is successfully working on the market of auto fuel trade since 1998. Currently, the company is the biggest fuel wholesaler in the Kurzeme region of Latvia (Western part of the country) and one of the noticeable players in the country market. Client-oriented business approach combined with almost 20 years’ experience in the market helps “Rietumu Nafta” SIA in maintaining the leading positions in the industry.

Since the year 2013 “Rietumu Nafta” SIA is a member of Latvian TOP 500 company list, published by major Latvian business newspaper “Dienas Bizness” with annual turnover averaging to EUR 50 mln.

The biggest share of the company’s business is constituted by fuel wholesale operations. “Rietumu Nafta” SIA offers to its clients all different types of diesel fuel of highest quality, produced according to official European Union standards. It includes also fuel for agricultural needs and marked diesel fuel that should be traded following special procedures as per Latvian legislation.

Many company’s clients have concluded long-term purchase and delivery contracts. Delivery is ensured across the whole territory of Latvia using company’s 6 modern fuel trucks that are equipped with fuel volume, temperature, and density controlling features, showing the exact parameters of purchased fuel to the customer.

Besides wholesale and delivery operations “Rietumu Nafta” SIA operates also two gas stations located in the cities of Kuldiga and Liepaja. Gas stations sell to retail customers petrol, diesel fuel, diesel fuel for agricultural needs as well as car biogas (sold at station in Kuldiga).

“Rietumu Nafta” SIA is looking to attract a total amount of EUR 1,000,000 for 12 months in order to finance rent cost and other expenses of using oil product terminal facilities in the one of commercial harbors of Kurzeme region that will allow to ensure year-round supply, storage, and timely delivery to the customers of necessary amount of diesel and other fuel products.

Market

During the first eight months of 2018, Latvian gasoline imports dropped 4% from the respective period a year ago, while diesel fuel imports fell 11.3%, according to the Central Statistical Bureau, writes LETA.

During the first eight months of this year, Latvia imported 186.247 mln liters of gasoline and 826,800 tons of diesel fuel.

The value of gasoline imports rose 8.5 % year-on-year to EUR 78.483 mln in January-August 2018, and the value of diesel fuel imports increased 6.4% to EUR 438.043 mln.

Lithuania was the main supplier of gasoline and diesel fuel to Latvia.

In the eight months, Latvia imported 116.598 mln liters of gasoline from Lithuania, or 62.6% of total gasoline imports (64.6% in January-August 2017) while 65.064 mln liters, or 34.9%, were imported from Finland. Compared to January-August 2017, gasoline imports from Lithuania declined 6.9% and gasoline imports from Finland rose 0.9%.

In January-August 2018, Lithuania also supplied 468,900 tons of diesel fuel to Latvia or 56.7 % of total diesel fuel imports (61.1% in January-August 2017). Diesel fuel imports from Lithuania fell 18.6% against January-August 2017. Diesel fuel imports from Finland increased 4.7% y-o-y to 248,000 tons or 30% of total diesel imports in January-August this year. Latvia also imported 86,200 tons of diesel fuel from Belarus in January-August 2018 or 7.2% more than in January-August 2017.

In the first eight months of this year, Latvia also imported 464 tons of fuel oil, down 46.9% from the same period a year ago. Fuel oil imports from Estonia reached 433 tons or 93.2%, and the value was EUR 221,000.

In January-August 2017, Latvia imported 193.983 mln liters of gasoline, 942,600 tons of diesel fuel and 875 tons of fuel oil.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

  • 28.02.2019 – EUR 12.74
  • 28.03.2019 – EUR 11.51
  • 28.04.2019 – EUR 12.74
  • 28.05.2019 – EUR 12.33
  • 28.06.2019 – EUR 12.74
  • 28.07.2019 – EUR 12.33
  • 28.08.2019 – EUR 12.74
  • 28.09.2019 – EUR 12.74
  • 28.10.2019 – EUR 12.33
  • 28.11.2019 – EUR 12.74
  • 28.12.2019 – EUR 12.33
  • 28.01.2020 – EUR 1012.74

Total expected return: EUR 1 150.01

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