What is Kuetzal?
Kuetzal is a business crowdfunding platform based in Estonia, and that was funded in 2018. They focus on funding business projects with high returns, usually around 15%. They also propose a buyback guarantee on some of their projects, which is quite unique for a platform with such high returns.
What Returns Can I Expect From Kuetzal?
Kuetzal advertises returns up to 21% on their site, with loans available on the platform having returns ranging from 10 to 21%.
Having started to invest in the platform in August 2019, it is way too early for me to confirm the announced yield at this stage, but the early repayments from projects I invested in were exactly what was expected. With the projects I invested in so far, my overall yield Kuetzal should be around 14.5%. I will of course update this section once I receive more results from Kuetzal.
Is it Safe to Invest on Kuetzal?
As for all business crowdfunding platforms with such high returns, investing in projects on Kuetzal comes with some level of risk. However, they have two mechanisms that are there to lower the amount of risk you take when investing in business projects on the platform.
The first one, and which is quite unique about a platform like this, is that they propose a buyback guarantee on some of the projects they have on the platform. The buyback is actually guaranteed & would be paid by Kuetzal, and not by any third party. They also guarantee to pay it back within 2 months maximum, with an expected payback time between 1 and 2 weeks.
The second mechanism that they provide to help investors is called Kuetzal Care, which is active on all projects on the platform at the time this article was written. With Kuetzal Care, in case a project you invested in doesn't reach its funding goal, they basically guarantee that they will put the difference themselves so you basically don't lose your time in projects that don't get funded (and that would, therefore, lower your overall yield). They do that with the help of partners like banks & private investors that can bridge this gap if the funding goal is not met on some projects.
You can also invest in each project on the platform from 100 Euros, which is in line compared to other similar platforms in Europe. I would like to see that minimum being a bit lower, but it still makes it easy to diversify your investments on Kuetzal, therefore reducing the overall level of risk on your portfolio on the platform.
How to Start Investing on Kuetzal?
It is really easy to create an account and start investing on Kuetzal. The whole process of creating the account took me less than 5 minutes. They will also ask for a piece of identification (passport, ID card), as well as for proof of residence (I submitted a simple bank statement). The whole process was also very fast, and my account was verified within one hour.
After that, it is also really easy to deposit money on Kuetzal, as they will provide all the required bank account data to make a transfer. I did my first transfer from Revolut, and the money was there within 1 day.
Once your account is created, you can then browse deals on the platform:
As you can tell from this picture, projects on the platform usually have a term of 2 years, with interest rates between 10 and 21%. There is also a lot of diversity on the offered projects, going from pure business projects (like financing a transport company) to real estate projects and even mobile applications.
You can, of course, get more details about each project on the platform:
On each of those projects pages, you will find all the details about the project, for example, who is the company wanting to borrow money, and why they need the money for. You will also find all the financial details of the project. It's also on this page that you can actually invest, by simply entering how much you want to invest in the project (starting from 100 Euros) and confirm your investment.
My Results so Far With Kuetzal
I started to invest with Kuetzal in August 2019, with a sum of about 200 Euros as I usually do on most platforms I try out. Here is a screenshot from my latest account overview:
I basically split my initial investment into two projects: one real estate project, and one transportation company. On average this should get me a yield of 14.5% from this initial investment. Here are the repayments I received so far:
As you can see, at the time this article was written I received repayments from all projects, and they were all on time and exactly the expected amount. It is of course way too early at this stage of my portfolio on this platform to state about Kuetzal Care or about the buyback guarantee, so I will definitely update this section as I get more results from Kuetzal. But so far I can say the platform is delivering results as expected.
Should You Invest On Kuetzal?
So far, I can say that I am really happy with Kuetzal. The platform offers business crowdfunding projects that offer have great returns, and some of them also come with a buyback guarantee, which is really nice for investors. It is too early at this stage of my investments on the platform to state about the actual yield I am getting or about the buyback guarantee, but early results are very promising. Therefore, I really recommend trying out Kuetzal as part of an existing Peer-to-Peer lending portfolio.