Nibble Review 2024: a Promising P2P Lending Platform

I love to diversify my Peer-to-Peer lending investments on as many great platforms as possible. In this article, I will review the Peer-to-Peer lending platform Nibble, which I first added to my portfolio in 2021. There have been a significant amount of changes to the platform since I first started investing, which I go over in details in the article.

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 Nibble?

As for all Peer-to-Peer lending platforms, Nibble is a financial platform that matches borrowers with investors, that will lend money on the platform in exchange of interests on loans. Nibble is now already a platform that has been around for awhile, as it was founded in 2020. They are based in Estonia, with offices in Barcelona. 

The platform is actually developed by their parent company IT Smart Finance - which has been in operation for a much longer amount of time and has developed a lot of products & solutions in the financial space.

They currently have over over 8,000 registered investors, with over 2 Millions Euros already invested on the platform.

What returns can I expect from investing on Nibble?

The returns you can expect on Nibble mostly depend on what investment term you choose, which I will tell you more about when we'll see how to use the platform. Their core offering is called the Legal Strategy, which is a completely automated strategy that is available on their platform.

 Currently, returns you can expect on the platform are 12.5% on average on the platform, as they advertise on their main page. You can expect up to 14.5% returns on loans, and also a minimum return of 8% thanks to their buyback guarantee - which I'll cover more in details in the next section. Overall, definitely a platform that is the higher range of returns compared to other similar platforms in the field. 

Is it safe to invest on Nibble?

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 loans. When checking a new platform, I look at three things: what the platforms offers in terms of guarantees, the company itself (and their team), and finally the loan originators.

Risks & guarantees on Nibble

On Nibble, there is now a single strategy available called the Legal Strategy, and it's completely automated, and also comes with a buyback guarantee covering all the loans you will invest in through the platform.

On Nibble, you basically invest in debt portfolios - meaning you the money you invest on Nibble is invested via a collection agency into the debt portfolios, as illustrated in the graph below:

This strategy comes with the deposit back guarantee that I mentioned earlier – which is the obligation of the collection agency to return the full investment amount at the end of the investment period and ensure a minimum yield of 8% per annum. This means that with this strategy, even in the worst case possible you will still get 8% on your investments, which is great compared to other platforms where your money basically doesn't generate any returns if it is stuck in the buyback process.

Regarding regulations, Nibble is currently operating as a crowdfunding service provider in Estonia, and they confirmed to me that they will apply for the European crowdfunding provider license during the year.

The company & the team

As I mentioned earlier, the company is operating from Estonia, and is also in the process of obtaining an FSA license, which is a really good sign for a platform in the space. Even if they only have been operating since 2020, their parent company IT Smart Finance have a much longer track record in the financial space, which is also a very good sign.

They also are completely transparent about their team on their website, with a complete description of the role of each person in the team, which is also something I appreciate seeing on a platform.

Loan originators

I also always have a close look at loan originators that a platform uses, as this is usually where a platform will fall short if anything bad happens like a financial crisis. Here, for their legal strategy they use a company called Boostr Finance, which is a company that have been active for 5 years and has a strong experience in the field. They work in partnership with debt collection agencies, who specialise on the debt recovery of European loans.

Getting started with Nibble

It is actually really easy to get started with Nibble 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.

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 Nibble, as you can do it via credit/debit card (which is the way I chose), or via a bank transfer.

Finally, you will need to choose a strategy to invest on the platform. It is currently not possible to invest manually on loans on the platform, but I always recommend to use auto-invest functions anyway. On Nibble, you currently have 2 choices to invest via the Legal Strategy I mentioned before:

As you can see, both have high returns and come with a buyback guarantee, the only difference is the terms of your investment (6 months or 12 months), and the returns are slightly higher if you decide for the longer investment term.

Once you selected and activated a strategy, you are basically done: Nibble will automatically invest the funds for you, and your portfolio will start generating interests.

As for all the platforms I review, I also tried to withdraw money, and the money was back on my account in just 2 days.

Should you invest on Nibble?

I spend a lot of time choosing high-quality platforms to invest on, and Nibble definitely meets all my criteria in terms of returns, safety, and general usability of the platform. I like the fact that they are transparent about their originators, that they have good returns & a buyback guarantee, as well as that they are on their way to get a license in Estonia.

The only thing I liked a little less is the fact that they don't offer more variety on their investment strategies, with only 2 settings to choose from. However, that will definitely be great for most investors as the goal on those platforms is to create completely passive investments anyway.

Overall, Nibble is definitely a solid player in the Peer-to-Peer lending space and a platform worth trying for any investment portfolio.