Marco Schwartz
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Nectaro Review 2023: a New Regulated P2P Lending Platform

Last Update: Wed, Mar 13 2024

I love to diversify my Peer-to-Peer lending investments on as many great platforms as possible, which is why I continuously review new platforms & share my experiences with those platforms on my site. In this article, I will review the Peer-to-Peer lending platform Nectaro, which I added to my portfolio in 2024. Nectaro is a platform that actually launched with an investment banking license, which makes it really interesting.

In the article, I will tell you what I think are the biggest strengths (and weaknesses) of the platform, how to start using it, and what you can expect from investing on the platform. Let's start!

What is Nectaro?

As for all Peer-to-Peer lending platforms, Nectaro is a financial platform that allows investors to invest in loans, along with other investors in order to get interests payments over time. Nectaro is a really new platform, as it was launched in 2023. The company is incorporated in Latvia.

What I really like about this platform is they are fully licensed with an investment banking license (IBF), which provides additional transparency and stability to the platform, compared to platforms that are not licensed. We'll dive more into this license later in the review, but for example it also means you are covered by the the European compensation scheme in case something happens to the platform.

They also focus on complete safety for investors, as well as providing complete automatisation of the investment process & high yields, which is of course something I will verify in this review.

Whereas the platform itself is quite new, they are also part of a larger group called Dyninno, which was founded in 2004 and is present in over 50 countries. I like when that is the case for a platform, as it provides more stability to the platform.

What returns can I expect from investing on Nectaro?

The returns you can expect on Nectaro will of course depend on which notes you invest in. Currently, with the information from their loan originators listed on the platform you can get up around 13.5% of annual returns.

This is good as it is the average you can get on several similar platforms in the field, and I will of course verify that when I talking about how to get started on the platform.

Is it safe to invest on Nectaro?

The question of the safety of the investors funds is central when investing on a Peer-to-Peer lending platform, as they will be managing all the money that you deposit on the platform and invest it in the loans. When reviewing a new platform before adding it to my portfolio, I look at three things: what the platforms offers in terms of guarantees, the company itself (and their team), and finally the source of the projects present on the platform.

Risks & guarantees on Nectaro

On Nectaro, all loans present on the platform are coming with a buyback guarantee - meaning that if someone doesn't pay back his loan, after a period of time the loan will be automatically bought back by the loan originator and the money returned to the investors. This is now a standard on most platforms, but it is definitely something good to have for the security of your investments.

As I mentioned earlier, the platform is fully licensed with an IBF license, meaning the platform has to follow strict rules and be completely in compliance with EU regulations. This is the highest license you can get for such a platform, and it's actually the first platform I saw that actually launched with this license.

It also means investments on the platform are guaranteed by the European protection scheme, up to 20,000 Euros.

Loans on Nectaro are also organised into notes (due to the IBF license), which are financial instruments that encapsulate several loans, which provides more stable returns for investors.

The company & the team

As I mentioned earlier, the company is incorporated in Latvia. As for all platforms I add to my portfolio I checked if the company was officially registered in Latvia, and it is indeed.

It was also very easy to find information about their team, which is something I really like to see on such a platform.

As for all the platforms I invest on, I checked the profiles of the management team of the platform to see their experience in the field. Especially here, as they put the experience of their team as a strong argument for the performance and reliability of the platform.

And indeed, they do have a really strong team. Their CEO for example, Sigita Kotlere, has a strong experience in the field of finance and P2P lending:

You can see for example that she worked at Mintos for 3 years, which is another P2P lending platform that has a license and that I trust for many years now.

The rest of their team is composed of really experience people as well, for example their CCO Anna Berezovska who has over 10 years of experience as a lawyer working for companies, for example for Debitum, another licensed platform that I have in my portfolio for several years.

So definitely a strong team of professionals, with a lot of experience in the P2P lending field at other platforms that I trust.

Loan originators

I always checked where the loans are coming from on a platform, as this is really important for the security of your investments. For example, they are responsible for paying the buyback guarantee that I mentioned earlier.

In the case of Nectaro, all the loans are coming from one loan originator called EcoFinance, which is a large group founded in 2015, and that issues nearly 100 million Dollars worth of loans in 2022.

It was also really easy to find more information about this loan originator on their site:

They offer loans with average yields around 13% in Romania and Moldova, which are mostly personal loans.

Overall, I like the fact that a large group is the loan originator on Nectaro, but I would have liked to see more loan originators here to have some diversification on the platform.

Getting started with Nectaro

It is actually really easy to get started with Nectaro and have your money start generating interests on the platform.

The first step is to open an account and get verified. This was done really quickly, and including the ID verification part it was all done in under 5 minutes.

You will also have to provide some personal information during the signup process, as well as provide some information about your financial situation & financial knowledge. This is due to their license and is a requirement from EU regulations, but overall it was really quick to fill as well.

Next, you will have to deposit funds in your account to start investing in loans and generate interests. This is also really to do with Nectaro as you can do it via a bank transfer.

Once this is done, you can actually start investing in notes on the platform. Here are some of the notes that were available on the platform when I signed up:

You can then click on each note to see the details about this note, like the yield, maturity date, and remaining principal:

About yields, I can confirm that most notes were in the 13.5% range. You can invest a minimum of 50 Euros in each note, which is similar to other licensed platforms in the field.

Note that an auto-invest function should be available in the future, but it was not available yet when I started to invest. As for all the platforms I review, I also tried to withdraw money, and the money was back on my account in just 1 day.

My Results so far with Nectaro

With the settings that I used on Nectaro, I should get returns of around 13.5% annually. It is of course too early to talk about long-term yields on the platform, but I can say that so far everything went smoothly and I will definitely invest more on the platform in the future.

Should you invest on Nectaro?

I can definitely say that I enjoy using Nectaro as an investment platform. It is a fully licensed and regulated platform, has good yields, and is also backed by a large group. They are a really transparent platform as well, and their interface is really easy to use. I would have liked to see more loan originators, as well as an auto-invest function, but those will most probably come in a close future. For all those reasons, I can really recommend having Nectaro in any investment portfolio.

This article is not a substitute for professional financial advice. This article does is not a solicitation to offer financial advice, and only represents my own opinion and experience with the financial platforms mentioned in the article.