Nectaro Review Summary
Nectaro is an intriguing platform, offering investments in lending portfolios from Romania and Moldova with attractive yields ranging from 12% to 14% annually. All loans come with a buyback obligation, providing an additional layer of security for investors.
Key Takeaways from Our Nectaro Review:
- Competitive interest rates
- Easy-to-use platform
- Quick and smooth onboarding process
- Longer loan terms
If you're looking to boost your returns from P2P lending, Nectaro could be a promising option for you.
What is Nectaro?
Nectaro is a regulated investment firm based in Latvia, offering opportunities to invest in loans from Moldova and Romania. Investors can expect annual returns ranging between 12% and 14%, with loan terms of up to 4 years.
Nectaro provides access to loans from EcoFinance, a part of the DYNINNO Group—a large corporation involved in multiple sectors, including financial services, entertainment, and travel. This connection to a well-established group adds an additional level of credibility to the platform's offerings.
Pros
- Regulated platform
- User-friendly investment dashboard
- High yields of up to 14%
- High cashback bonuses
- No cash drag
Cons
- Limited diversification
- No secondary market
- Ecofinance’s lender in Russia owns money to investors on Mintos
- No group guarantee
Our Opinion On Nectaro
Nectaro is a regulated platform with a relatively short track record compared to some of the larger players in the P2P lending industry.
The underlying lenders from Moldova and Romania have demonstrated solid financial results, making exposure to their loan books potentially appealing. According to information from Nectaro, these two lenders rank among the top five non-banking lenders in their respective regions and regularly publish financial reports.
Their financials appear capable of supporting the buyback obligations offered, which provides some security for investors. Additionally, the longer loan terms suggest that the Ecofinance lending companies are less likely to be affected by regulatory restrictions that typically target short-term lenders.
Experienced investors may find profitable opportunities in the loan books of Nectaro's business partners. However, there are areas for improvement. Nectaro itself does not publish key statistical data, such as assets under management, which would enhance transparency for investors looking to monitor portfolio performance.
Moreover, Ecofinance does not offer a group guarantee, unlike platforms such as PeerBerry, Robocash, Lonvest, or Fintown. This absence of a group guarantee means that in the event of a force majeure, other companies within the Ecofinance group will not cover debts owed to investors.
This includes the lending portfolio in Russia, which remains unrepaid due to government-imposed restrictions.
While Nectaro offers useful features and a user-friendly interface, investors should carefully evaluate the current situation and consider potential future outcomes.
Nectaro Bonus
New investors on Nectaro can earn a 1% cashback bonus on their investments made within the first 30 days of registration.
The bonus will be credited to your account within five business days after the campaign period ends, with a maximum bonus cap of €1,000. Note that there is no requirement to type in the Nectaro referral code during your registration.
Nectaro Cashback Campaign
Nectaro launched a new campaign rewarding investors who grow and maintain their portfolios. From October 9 to November 3, 2024, investors can receive 1% Cashback for investments below €15,000 or 2% for investments above €15,000.
By maintaining or increasing their portfolios from November 4, 2024 to January 5, 2025, investors can unlock additional Cashback, with a total reward of up to 5% for those committed to long-term growth.
Requirements
The registration process on Nectaro is simple and efficient.
First, you'll need to verify your email and provide personal details such as your residential address, tax information, and financial situation.
You'll also be required to upload a picture of yourself along with a valid identification document. Additionally, you'll need to complete an investor questionnaire, which assesses your knowledge of investing in regulated Notes.
The entire sign-up process takes less than 10 minutes. Once you've submitted your information, the Nectaro team will verify your data and unlock the platform's features. In our experience, this verification took around 3 hours, after which we were able to deposit funds.
To top up your account, simply click on "Add funds" in the left menu and follow the on-screen instructions. Be sure to include your investor ID when transferring funds, so Nectaro can correctly allocate the payment to your account.
Please note that you can only transfer funds from a bank account within the EU/EEA that is registered in your name. In our experience, the bank transfer from a European account was completed within a few hours.
Risk & Return
Investing in Nectaro comes with certain risks. As the platform only launched in October 2023, its track record is still relatively limited.
Although you are investing in loans that are packaged into Notes on Nectaro, you remain exposed to the risks associated with the underlying lenders.
Loan Originators
Nectaro’s primary goal is to finance the lending portfolios of EcoFinance lenders, which are part of the DYNINNO Group—also the parent company of Nectaro. This structure makes Nectaro more of a direct P2P lending platform, similar to TWINO or Robocash, where investors fund in-house lenders.
This can be advantageous for investors, as Nectaro’s management should have real-time access to the performance of the loans listed on the platform. However, there is a lack of transparency regarding detailed information about its lending partners' loan books.
As of now, we only have access to outdated financial reports from 2022. There is no up-to-date information about the loan books' performance, their current size, or the total funded amount through Nectaro, which indicates the level of leverage the lenders are using.
Furthermore, the information about Nectaro’s loan originators on its website is limited. Nectaro primarily funds unsecured installment loans from CreditPrime in Romania and CreditPrime in Moldova. Loan terms in Romania typically range between 11 and 24 months, while in Moldova, they are significantly longer, usually between 4 and 5 years.
According to the financial statements, both CreditPrime lenders have been profitable since 2021.
In addition to personal loans, you can also invest in a business loan from SIA Abele Finance, a company established in June 2024 to provide funding directly to businesses owned by the DYNINNO Group. This business loan offers a lower interest rate of 11% with a shorter loan term of up to 8 months.
Nectaro incentivizes investors who are willing to commit their funds for longer loan terms. Since the platform does not offer a secondary market, you should expect an illiquidity premium in the form of higher interest rates to compensate for the lack of liquidity.
Buyback Obligation
If you choose to invest on Nectaro, your investments are protected by a 60-day early repayment obligation. This means that if any loans are delayed for more than 60 days, the lender is obligated to repurchase your investments.
However, it’s important to note that EcoFinance, Nectaro’s main lender, does not provide a group guarantee for its loans. In the event of a force majeure, other companies within the EcoFinance group will not step in to repay the investments for those who invested in Nectaro’s lenders.
EcoFinance Russia
The financial group behind Nectaro’s lenders in Moldova and Romania, EcoFinance, was also active in Russia. Although this information isn’t available on their official website, EcoFinance used the Mintos platform to finance its Russian loan book.
EcoFinance RU was suspended on Mintos on June 13, 2022, with a principal exposure of €4 million and interest in recovery of approximately €84,000. According to Mintos' statistical data on overdue loans, the marketplace expects a 50% to 75% recovery rate from EcoFinance.
Since the suspension, EcoFinance RU has repaid €536,732 in principal, but only €2,244 in recovered interest over the past two and a half years. As of September 2024, €3,607,703 of investors' funds remain at risk. To date, EcoFinance RU has repaid only about 11% of the outstanding loans to investors (source).
€20,000 Protection Scheme
Nectaro is an authorized investment firm and a member of the national investor compensation scheme in accordance with Directive 97/9/EC. This scheme provides protection to investors by offering compensation in the event that Nectaro is unable to return financial instruments or investor funds.
It’s important to note that the maximum compensation under this scheme is 90% of the investor's net loss, with a cap of €20,000. However, this compensation does not cover typical investment risks, such as poor performance of underlying loans, borrower defaults, or defaults by lending companies.
Taxes
When individuals invest in Notes with Nectaro, a withholding tax is deducted from their interest income as required by law. Here’s a summary of the process:
- You invest in Notes.
- The borrower or lending company makes an interest payment.
- Nectaro credits the full interest amount to your account.
- A portion of the interest is automatically withheld as tax, based on the applicable rate.
You can usually offset this withheld amount against your tax liability in your country, avoiding double taxation. The withheld tax will appear separately in your account statement and tax report. Note: Legal entities are not subject to this withholding tax.
For EU/EEA tax residents, Nectaro deducts a standard withholding tax rate of 5% from interest income, unless a double tax treaty applies—such as in Lithuania, where the rate is 0%.
Is Nectaro Safe?
When investing on any P2P lending marketplace or platform, it's important to consider the management team and their prior experience, as this can significantly influence both your potential returns and the level of risk involved.
A well-experienced management team may be better equipped to navigate challenges, optimize platform performance, and ensure more stable outcomes for investors.
Who Leads The Team?
The platform is led by Sigita Kotlere, who serves as both CEO and Board Member. She has been the "face" of the company since 2022. Prior to joining Nectaro, Sigita worked at Mintos as a Partnership Executive and has additional experience in the banking sector.
However, Nectaro was founded by Dmitry Tsymber, who is also the founder of the EcoFinance group, the lending institution listing loans on Nectaro. Dmitry’s extensive background in lending adds depth to the platform's leadership.
Who Owns Nectaro?
Nectaro is owned by DYNNINO Fintech Holding in Cyprus, which is part of the DYNINNO Group, a U.S.-based corporation operating across various industries.
Are There Any Suspicious Terms and Conditions?
Before investing on any platform, it's important to review the terms and conditions to understand the legal framework in which the platform operates.
Storage of Funds
Investors on Nectaro do not have individual IBAN accounts, but funds are kept separate from Nectaro's own funds through segregated accounts, providing an extra layer of security.
Amendments
Nectaro informs investors 30 days in advance of any changes to its terms and conditions. However, the platform reserves the right to make immediate changes if they are in the investor’s favor.
Loan Agreements
You can easily download the legal document for your specific Note investment directly from your portfolio overview by clicking the file icon on the right.
Potential Red Flags
As of the time of writing, we have not spotted any red flags that would indicate a contractual breach from Nectaro’s end.
Usability
Nectaro is a highly user-friendly platform, making it easy to navigate regardless of your prior experience in the P2P lending industry.
Upon logging in, you'll find a clear overview of your investments, complete with a chart displaying the status of your loans. Additionally, you'll be able to view your available funds and your average annual return, ensuring a smooth and intuitive experience for investors.
Nectaro’s dashboard is intuitive and easy to navigate. The platform also features a primary market, allowing you to manually invest in loans according to your specific preferences and requirements, making it accessible for both new and experienced investors.
In the "Manual Investments" view, you can filter available loans by country and loan term to find options that match your investment criteria. Once you've selected suitable loans, simply enter your desired investment amount and click "invest." Upon confirmation, your funds will be allocated to the chosen Notes.
While Nectaro does not yet offer an Auto Invest feature, the platform provides a Smart-Reinvest tool that allows you to automatically reinvest your funds, ensuring they continue working for you efficiently.
Smart-Reinvest
The Smart-Reinvest tool is designed to automatically reinvest your received principal if a borrower repays their loan before the end of the term. When activated, the system reinvests your funds into the same batch of Notes.
If no investment opportunities are available in that specific series of Notes, the repaid principal will simply be credited back to your Nectaro account, ready for your next investment decision.
You invest €50 in a series of Notes, which consists of five loans, with your investment evenly distributed across them. Over time, you receive repayments on two of these loans—one in full and the other partially. These repayments include both the principal (the original amount you invested) and the interest (your earnings).
The Smart-Reinvest tool then evaluates the repaid principal and automatically reinvests it into other available loans within the same series of Notes. In this example, your €15 is redistributed among the open loans. Any interest you earn from these loans is directly credited to your Nectaro account.
The key advantage of the Smart-Reinvest tool is that you don't need to actively monitor your account balance, which does not generate interest. Smart-Reinvest ensures that your available capital is continuously deployed to maximize your returns.
By default, Smart-Reinvest is turned off, but you can easily activate it within your investment account settings.
Liquidity
Nectaro does not offer a secondary market or a tool for exiting investments before the end of the loan term. This means that once you commit your funds for a specific period, you should not expect to access your money until the loan matures.
If liquidity is a priority for you, it may be worth considering platforms with a secondary market. However, if you're comfortable committing your funds for a longer period, Nectaro could offer a high-yielding opportunity without the common issue of cash drag that many investors experience on more established platforms like PeerBerry, Esketit, or Robocash.
Moreover, due to the nature of the credit line lending product, investors typically receive up to 40% of their initial investment back within the first six months, providing a partial return of capital even during longer-term investments.
Support
Nectaro is a smaller platform with limited resources, which means the support may not be as responsive as on larger platforms. You shouldn’t expect immediate answers. If you need to get in touch with Nectaro, it's best to reach out via email at support@nectaro.eu.
Alternatively, you can also join Nectaro’s official Telegram channel for updates and to engage with the community.
Nectaro Alternatives
While Nectaro can appeal to investors with a higher risk appetite, savvy investors understand the importance of diversification to protect their portfolios. If you're looking to spread your investments, consider exploring these Nectaro alternatives:
Indemo
Indemo is a regulated investment platform that offers some of the highest yields in the industry. On Indemo, you can invest in discounted, defaulted mortgage-backed loans from Spain, with an average expected return of 15.1% per year. Although the platform doesn’t offer a secondary market, it has generated impressive returns for investors so far. Learn more in our Indemo review.
Fintown
Fintown is a Czech platform offering investments in rental units. Operated and owned by the Vihorev Group, a renowned real estate developer in Prague, Fintown provides attractive returns backed by operational rental units. This structure lowers the risk compared to investing in personal or payday loans from other countries. For more details, read our Fintown review.
Income Marketplace
To diversify your P2P lending portfolio further, consider investing through Income Marketplace. This Estonian-based platform offers high-yielding loans from countries such as Estonia, Bulgaria, Indonesia, and Spain. Find out how it works in our Income Marketplace review.
