Interview with Ivaylo Ivanov, CEO of Iuvo.

What is the mission of Iuvo?

Iuvo strives to deliver a superior experience (singular form) for investors through its vast listed credit portfolio by trusted originators and outstanding platform simplicity. We give numerous opportunities for progressive investing and freedom of choice while focusing on continually accelerating customer experience, high investment returns, and security.
Iuvo is a Latin word that means “to help,” “to save” and that is precisely what we want to do – help our clients invest successfully and gain long-term profitability.

Can you describe Iuvo in numbers?

IUVO launched a year ago, we have listed over 18 000 credits so far, almost 5 000 000 EUR invested through the platform, more than 2300 investors all over the globe.

Is Iuvo a platform for different p2p loans providers?

Iuvo is a p2p marketplace where loan originators and investors meet. Loan originators are non-banking financial institutions that are regulated by their respective national financial regulators. These entities give out loans using their funds, unlike banks who use money attracted through deposits. Loan originators that list loans on iuvo are companies with solid reputation and history which have proven processes for loan management, risk assessment, and collection.

How is the buyback guarantee, guaranteed?

All funds invested through iuvo are secured with buy-back guarantee by the loan originator. It means that the investments in each loan that is more than 60 days delinquent will be repaid 100% to the investor. Committing to this guarantee is a central point in our contracts with loan originators, and we insist on it. The interest that the originator is ready to pay for financing through the platform is more attractive than the interest (and all other fees, collaterals, covenants, etc.) that they would have to pay if they finance themselves through a bank loan or by issuing bonds to the public.

Committing to this guarantee is a central point in our contracts with loan originators, and we insist on it. The interest that the originator is ready to pay for financing through the platform is more attractive than the interest (and all other fees, collaterals, covenants, etc.) that they would have to pay if they finance themselves through a bank loan or by issuing bonds to the public.

This is the reason why the loan originators have the incentive to keep clear and positive relations with the investors on the platform, including covering the risks of bad loans through buy-back guarantee, because in this way they maintain their source of funding which helps them to develop their business further.

Is Iuvo audited and will the audit reports be published? 

Yes, we are audited, and the statements will be published when we complete our first financial year at the end of 2017.

What is the process for checking the creditworthiness of loans listed on Iuvo platform?

Before being accepted on iuvo, each loan originator goes through our extensive due diligence process. We check licenses, transparency of ownership, financial stability of the company, lending criteria and risk assessment practices. Once our partners have passed this check and start listing their loans on iuvo, we continue with ongoing periodical checks of the reported loan default rates to see if they correspond to the reality.

If there are any deviations, we impose sanctions that may reach exclusion from the marketplace. Our investors are our real asset, and we go to all lengths to protect their interests. In this regard, we are the strictest platform on the market. We make the loan originators on the platform keep a significant portion of each listed loan – at least 30% to minimize the incentive of dumping bad credits on the platform. In all other players on the p2p market, this percentage is below 5%.

What are the loan attributes of loans offered at this time?

Currently, we offer personal loans lasting between three months and a year (duration). The repayment schedules vary from one-week, two-week to one-month installments. As I said before, the buyback guarantee is available for all credits listed on the platform.

What currencies are loans available in?

In BGN and EUR. Soon there will be other currencies.

How do you see the BG/EUR exchange rate in the future?

The BGN and EUR are pledged by a currency board. The exchange rate has been fixed at 1.95583 BGN for 1 EUR since 1997, and there are no perspectives of this changing.

Is Iuvo open to international investors?

Yes, all investors must be at least 18 years old, have a bank account in the European Union (or third countries that are having equivalent AML/CFT systems to the EU).

What is the fee structure for investors?

There are no fees for investing through iuvo on our primary market.

he only fee on iuvo is a 1% commission from all deals on the secondary market. The seller of the loan is charged with the fee.

Why is it interesting for Euro-based investors to invest in BG?

Bulgaria has a favorable foreign investment regime, including low and flat corporate and income taxes. Promising sectors for foreign investors include information technology, telecommunications, environmental technology, healthcare, agriculture, etc. Bulgaria’s workforce is well-educated, and the cost of labor is the lowest in the EU.

At present, there are no restrictions on foreign investments in Bulgaria. International firms are enjoining national treatment, and there are no significant reports of discrimination against foreign investors.

The country’s geographic position places it at the crossroads of Europe, the Middle East, and the former Soviet Union. Bulgaria is a member of NATO, the EU, and the WTO.
Sound economic performance and relative political stability have enabled Bulgaria to attract leading foreign investors. Gradual convergence with the EU common market, fiscal prudence, and a national currency pegged to the Euro have provided stability and incentives for increased trade and investment.

What have been the main events for Iuvo, since its creation?

Iuvo launched in August 2016, and since then we’ve demonstrated a tremendous growth of 68% on monthly average. We’ve attracted over 2200 investors from over 60 countries, and we’ve generated over 4.8m EUR investments. We connected two loan originators on the platform – Easy Credit and Vivacredit – leaders on the market in Bulgaria. Easy Credit is one of the biggest lenders in the Balkan region.

This summer we obtained a Credit intermediary license from the Estonian Financial Supervision Authority which gives us the right to intermediate borrowing through the platform. It is something we have in our pipeline for the future as well.
For the past year, we were featured in publications in some of the most significant business media in Bulgaria and the region, and we were nominated for Startup of the year by Forbes magazine.

What are Iuvo’s plans for the next 18 months?

New originators, new loan products – mortgage loans, car loans, new markets.

In your opinion what should investors look for when selecting a p2p platform?

Guaranteed deposits, attractive profitability, the privacy of the personal data, transparency, and simplicity of the platform website.

What role does p2p lending have in an investors portfolio?

What is clear is that the investors can generate more returns from the existing corpus of funds. High, fixed and regular income – in some cases, it is the ultimate source of passive income that people are looking for.

By diversifying your portfolio, you can accomplish a very stable and predictable return, well above what you will earn in other income investments, bank deposits for instance. There are also services you can use to improve your overall returns while better managing your risk – auto invest, a handy tool which is available on the platform.

P2P lending (IUVO) offers a compelling option where investors get three essential benefits – high returns, regular payouts and safety of their investments.

for more information please visit: https://www.iuvo-group.com/en/

We thank Ivaylo Ivanov for the interview.