EvenFi Review

EvenFi Review Summary

EvenFi is certainly a suitable P2B lending platform for more experienced investors who are looking for exposure in Italian and Spanish businesses. The low minimum investment amount of just €20 and the skin in the game are two unique features that set the platform apart from the competition.

Main Takeaways From Our EvenFi Review:

If you believe that EvenFi is a good fit for you, you can sign up with the link below and get a €10 welcome bonus and 1% cashback bonus on your investments over €1,000 during the first four months.

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What Is EvenFi?

EvenFi is a crowdfunding platform that offers investment opportunities in business loans with interest between 8% and 11% per year.

You can start investing from just €20 which means that everyone can start earning interest on EvenFi, regardless of the investment amount. Learn more about this unique platform in our in-depth EvenFi review.

EvenFi Requirements

In order to earn interest on EvenFi, you have to fulfill certain requirements such as:

No EUR bank account? No problem

• 💳 Open a free N26 bank account
• 💳 Open a free Wise bank account

EvenFi is a regulated crowdfunding platform with an Electronic Money Institution Licence. The platform is partnered with MangoPay to keep your uninvested money safe and separated from EvenFi’s operational bank accounts.

Risk and Return

When investing on various crowdfunding platforms, you should always evaluate the risk and return of the listed investments.

A good practice is to ensure you check the legitimacy of the founders and the management of the company.

If the platform is regulated, as is the case with EvenFi, this has already been done by the regulators.

If the platform is not regulated, you have to do your own due diligence to avoid investing on a platform where the owners are just funding their own projects like on Crowdestor.

How are the loans secured?

P2B lending is risky as you are basically funding underbanked small and medium-sized companies.

In most cases, EvenFi lists loans that are used as working capital. Some of them include a guarantee from borrowers, but we haven’t spotted any that come with collateral or a mortgage, which increases the risk for investors.

Skin in the Game

One point that is rather unique in the crowdfunding space is that EvenFi’s co-founders and C-level executives invest their own funds into every single project listed on the platform.

This means that every new loan comes with a 3% to 5% skin in the game. That way, the platform, and its management team is also interested in recovering the debt from the borrowers.

Risk Evaluation

The performance of the loans on EvenFi are directly related to the risk assessment and monitoring of the borrowers.

Every loan on EvenFi is rated from A (low risk) to D (high risk).

The platform shared with us that the rating takes into account the size of the company and its key performance indicators such as the revenue amount, EBITDA, profitability, equity, leverage, external credit ratings, and access to financing.

Our Opinion of EvenFi

EvenFi is a platform that allows investors to support small and medium-sized businesses in Spain and Italy, offering a net interest rate of 6.33% per year.

The platform provides some attractive features, including auto-invest, a secondary market with 0% fees, a low minimum investment amount, and a responsive support team. EvenFi also offers transparency by sharing statistical data, publishing financial reports, and having co-founders who invest their own capital into each project.

EvenFi is regulated, which helps reduce the risk of any questionable practices. However, despite these positive aspects, there is a significant concern: the default rate on EvenFi is currently too high to justify an investment. 

While the platform's focus on loans in Italy and Spain could be appealing to investors seeking to avoid Eastern European markets, we believe that, due to the elevated default risk, EvenFi is more suitable for experienced investors who can tolerate higher risks and are willing to commit a larger investment amount.

It’s important to note that we do not regularly monitor this platform, so readers are strongly encouraged to verify all information directly with EvenFi before making any investment decisions.

Usability

The crowdfunding platform is as user-friendly as most other crowdfunding platforms in Europe. You have access to Auto Invest, which enables you to automate your investment strategy based on a few criteria.

Auto Invest

As you can see on the image above, you have the option to define the interest rate, loan type, ratings, loan term, and country.

Currently, EvenFi only offers loans in Italy and Spain.

EvenFi Projects

If you are just starting out investing in loans on EvenFi, we suggest you review every single project to get a sense of the loan types that EvenFi lists on its platform.

Right off the bat, you are able to review some key loan characteristics such as the loan amount, loan term, and interest rate.

By selecting one of the available loan offers, you can review additional information such as the loan repayment type and loan purpose.

Every loan comes with additional documentation which is useful if you want to verify the validity of the offered investment project.

What’s slightly different from other European platforms is that you won’t be able to find any information about how the loan is secured.

Several crowdfunding platforms in Europe offer business loans that are backed by some type of collateral or a mortgage. This isn’t the case on EvenFi as you fund a different types of business loans.

Apart from the auto invest and manual investment options on EvenFi, the platform also offers the possibility to download an account statement which will be handy when you report your earnings and pay taxes.

On top of that, EvenFi also offers a 2FA which increases the security of your account.

Liquidity

When investing in business loans, you should decrease your expectation about the liquidity of your portfolio. At the end of the day, you are funding loans with a loan duration of up to 30 months.

EvenFi should certainly not be compared to savings accounts or products like Bondora's Go & Grow, where you have access to your funds almost instantly.

Secondary Market

If you ever experience a situation where you need to withdraw funds from EvenFi, you have the option to sell your investments on the secondary market at no extra cost. .

According to the information that we were able to retrieve directly from EvenFi, the secondary market is very liquid with a transaction volume of more than €5.6 M since December 2020.

The CFO shared with us that recently one investors who was looking to liquidate his loans, managed to exit a €13,000 portfolio within two weeks.

If you wish to participate on the secondary market, you can buy and sell loans starting from just €20.

Support

The support of the platform is quite decent. While the response time is not the fastest, the quality of the answers to our questions was sufficient. The platform has also provided the latest financial information in Italian, which you will find in the statistics section of our EvenFi review.