Nectaro Review 2023: a New Regulated P2P Lending Platform
A fully licensed P2P lending platform with investment banking license
Quick Verdict
Nectaro is a fully licensed and regulated P2P lending platform that offers good yields around 13.5% annually. Backed by a large group and featuring an investment banking license, it provides additional transparency and stability with European compensation scheme coverage up to €20,000.
Try NectaroWhat 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 You Expect?
Real returns based on my investing experience
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 Nectaro Safe?
Key safety features and regulatory compliance
IBF License
Fully licensed with investment banking license, providing highest level of regulatory compliance and transparency
Buyback Guarantee
All loans come with buyback guarantee - if borrower defaults, loan originator buys back the loan and returns money to investors
EU Protection Scheme
Covered by European compensation scheme up to €20,000, protecting your investments in case something happens to the platform
Note Structure
Loans organized into financial notes that encapsulate several loans, providing more stable returns for investors
🛡️ Risks & Guarantees
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 & 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 on Nectaro
Create Account & Verify
Sign up and complete ID verification. The entire process takes under 5 minutes. You'll need to provide personal information and details about your financial situation due to EU regulations.
Deposit Funds
Transfer money to your Nectaro account via bank transfer. The process is straightforward and funds are typically available quickly.
Browse Available Notes
Review the available investment notes on the platform. Each note shows yield, maturity date, and remaining principal. Minimum investment is €50 per note.
Start Investing
Select notes that match your investment strategy and start earning returns around 13.5% annually. All investments are protected by buyback guarantee and European compensation scheme.
Pros & Cons
Pros
- ✓Fully licensed with an investment banking license (IBF)
- ✓European compensation scheme coverage up to €20,000
- ✓All loans come with buyback guarantee
- ✓Part of Dyninno Group, founded in 2004 and present in 50+ countries
- ✓Experienced management team from Mintos and Debitum
- ✓Easy signup and verification process (under 5 minutes)
- ✓Quick withdrawal processing (1 day)
- ✓Transparent platform with detailed loan originator information
- ✓Good yields around 13.5% annually
- ✓Loans organized into notes for more stable returns
Cons
- ✗Very new platform launched in 2023
- ✗Only one loan originator (EcoFinance) - limited diversification
- ✗Auto-invest function not yet available
- ✗Limited track record for long-term performance verification
My Results 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.
