Viventor, a platform to invest in Spanish & Swedish p2p loans.

Viventor is a peer to peer loan platform which provides opportunities to invest in p2p mortgage loans and p2p payday loans in both Spain and Sweden. Its function is to match loan providers with investors. As of the time of writing, Viventor has four loan providers. Viventor’s parent firm is Prestamos Prima which was established in November 2013. A p2p platform lists loans from multiple loan providers; investors can buy part of the loan and in return earn part of the interest.

Overview: 

The site offers a combination of Mortgage-backed loans and Payday loans from both Spain and Sweden.

Mortgage-backed loans:

Providers: Primor, Seymoure, based in Spain.
Guarantee:
1)   Real estate.
2)    Buy back guarantee from the loan provider.

Unsecured Short-term consumer loans (Payday loans):

Providers:
Twinero: Based in Spain. Established in January 2012. Offers loans of up to 12% return p.a.
ViaConto: Based in Sweden. Loans range from 50 to 1200 €. Interest on loans: 12% return p.a.

Strengths

• Free for investors.
• Regulated by the appropriate legislative acts of The Republic of Latvia.
• Loans are pre-funded by the loan originators; this means your money will be earning interest on the day it is invested. In some other platforms, you need the loan to be fully funded before you start earning interest.
• Resale of loans is possible on the secondary market.
• Loan originators keep a stake of 5% in all issued loans.
• Currency risk is reduced on the Swedish loans as loans are denominated in euros.
• Buyback guarantee is offered by the loan originators. This reduces risk because it spreads it among the loan originators, rather than Viventor.
• The buy back guarantee is activated if a loan payment is 60 days late.
• Interest is paid monthly.
• The system is easy and user-friendly to use.
• You can use auto invest, to “set it and forget it”.

Weaknesses

• A focus on Spain, for some this, might be considered an advantage as this market is not tapped by many p2p loan providers.
• Loan interest  on mortgage-backed loans is (usually) less than 8%. However, the interest rate is a measure of the risk involved. In my (non expert) opinion, these are some of the most secure investments in the p2p market.
• There is more demand that supply for loans from ViaConto.
• In the future, I would hope that Viventor adds more loan providers and diversifies into other currencies such as the dollar and the yuan. This would give investors diversification opportunities outside the Europe and the Euro.

Opportunities

• Viventor strategy seems to want to become a marketplace for p2p marketplaces. This adds more opportunity for diversification both regarding platforms but also geographically and in different economies.
• Spain is currently without a government. It seems that this is having a positive impact on the economy!

Threats

As with any other investment, there are macro-economic and micro-economics factors.

Micro Threats:

• Borrowers Failing to pay. This is mitigated by the buyback guarantee scheme. However, the buyback guarantee depends on the solvency of the loan originator.
• Viventor default:
  A business continuity plan is in place. The firm Sandra Dzerele & Partners regularly receive all the company data. This is done to make sure that loans are processed even in the unlikely case of Viventor failing.

Macro Threats:

Interest Rates:

• Interest Rates as set by central banks (ECB) could rise. If this happens, it could be that future loans on Viventor would have higher interest rates. If you are locked in long term loans, you will miss out on loans with higher interest rates.

Spain:

• The ability to pay back loans depends partially on the individual situations. However, the macro-economic situation also plays a role. Spanish GDP has been trending lower.
  source: tradingeconomics.com
• The risk mentioned above needs to be taken into the context of the short term payday loans, and their low amounts, and the low LTV with the mortgage-backed payments.
• At the very far end of the risk spectrum, there is the possible impact of Catalonia declaring independence. There are three significant risks here. First Catalonia is forced to leave the EU, even if they do not want to Spain would probably force them. Catalonia could also be obliged to adopt a new currency and loans originating from Catalonia would need to be denominated in another currency. Probably this will never happen, but it is worth mentioning: the conflict between Catalonia and the Spanish central government could extend beyond just words.

Swedish loans:

• ViaConto lends money and receives payments in Swedish Kroner while it finances the loans in Euros. Exchange rates fluctuate. An example is the British Sterling, losing value after the Brexit referendum. It could be the case that ViaConto could face losses or profits from a sudden fluctuation in exchange rates. However given the loan periods are short this is a limited risk.

Conclusion

Viventor.com is an excellent platform that facilitates investments in Spanish & Swedish mortgage and payday p2p loans. The p2p industry is relatively new and that carries risks. The industry has not been tested in times of economic crisis. Viventor is a promising startup which has the backing of companies with a legacy, but at the moment it is an up and coming startup. Make a reasoned decision before investing in Spanish p2p paydayloans & mortgage and Swedish p2p payday loans.