Nibble Review

Nibble Overview

Nibble is a new P2P lending platform that launched in February 2020. The platform is registered in Estonia. However, the team operates from Barcelona, Spain. On Nibble, you can invest in consumer loans with annual interest between 8% and 12%. A buyback guarantee backs all loans. Don't invest in Nibble until you read our comprehensive review.

Investing in a P2P lending platform with no performance is always risky. Nibble was only founded a few months ago, and while its parent company has been around for a while, Nibble itself doesn’t have any track record.

Therefore, you should be extremely cautious.

As we write this Nibble review the number of loans funded is very small.

Nibble does not provide any dedicated statistics page as the platform does not have much data to date.

All the loans on Nibble are originated from Joymoney, a company owned by a Russian firm, IT Smart Finance holding group.

The audited financial report of IT Smart Finance doesn't give much information and Nibble couldn’t answer our questions regarding the profitability of individual loan originators either.

Nibble Requirements

In order to invest in Nibble, you need to be over 18 years old and reside in Europe. While Nibble doesn’t inform its users about the necessity of having a European bank account, we are quite certain that you need to have one to comply with the anti-money laundering laws.

No EUR bank account? No problem

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

In order to get access to all the functionalities of the platform, you need to pass their verification process.

Risk and Return

Investing in microloans on new platforms is connected to risks. You basically invest in unsecured payday loans backed by a buyback guarantee.

While Nibble emphasizes the “buyback guarantee”, which is provided by the loan originator, you should know that this concept is only as good as the financial situation of the loan originator - which Nibble doesn’t provide.

You should be fully aware that Nibble isn’t responsible for any losses that you might occur by investing in loans on the Nibble platform.

In fact, they aren’t even reliable for the legal information on their platform.

How come? Keep reading.

What’s our Opinion About Nibble?

After reviewing the website, we decided to not invest in Nibble.

Apart from the above-mentioned red flags we also didn’t find financial data of all loan originators.

Furthermore, the translation of the website is very poor and full of grammatical errors.

This certainly doesn’t improve the trust in Nibble’s services, regardless of who is backing it and how “well-performing” the parent group is. The poorly made voice-over of the video where Nibble’s founder Maxim Paschenko presents the company also doesn’t add any trust.

When reading the information on Nibble’s website you get the impression that you can invest at least in loans from Russia and Spain.

Currently, this isn’t true as you can only invest in loans from Joymoney in Spain.

This fact makes the financial overview of Joymoney in Russia, which you can find on Nibble’s website, rather irrelevant as you can currently only invest in Spanish loans for which there is no financial report available.

Nibble values transparency, professionalism, and innovation. According to our research, we cannot confirm any of these points.

The entire P2P platform feels like someone rushed to create a P2P platform to get quick access to capital without any plan or strategy to create some added value.

We have received many requests from Nibble to review their platform, however, after we have done so and sent them our questions to clarify certain information, no one got back to us.

We cannot give a positive recommendation about Nibble as there are plenty of more reliable platforms that you can choose from. Have a look at our list of the best P2P lending sites.

Still here?

Continue reading to find out more about Nibble.

Usability

When it comes to the usability aspect, you should keep your expectation for Nibble low, as the platform doesn’t offer anything better than what you would find on other platforms.

Investing on Nibble

Nibble uses a similar strategy to Robocash, you cannot invest in loans manually. This means that the only way to invest in loans is via Nibble’s Auto Invest.

For some of the platforms where the loan originator is the parent holding group, it doesn’t make sense to allow manual investments.

Using Auto Invest to invest in loans is common within the P2P lending space, especially when it comes to investing in payday loans.

However, in the case of Nibble, the Auto Invest product doesn’t provide any value.

Nibble’s Auto Invest

Nibble’s Auto Invest gives you three “seemingly” different Auto Invest strategies.

In reality, you are investing in the same short-term loans with a loan period of 30 days. The only difference between short-term and long-term investments is that you are reinvesting your interest and loan repayments.

In the P2P lending space, we typically define long-term investments in consumer loans, car loans, business loans, or real estate loans with a duration of 12 to 36 months. Investing in short-term loans for 36 months is certainly not a long-term investment by definition!

Loan Description and Settings

Nibble’s loan description doesn’t provide much information and the fact that payday loans are flagged as ‘for business’ is misleading.

The ‘amount of investment = not limited’ is also very unusual information that doesn’t provide any value.

If you click on the ‘About the lender’ tab you would expect some financial analysis, instead, you will find a paragraph saying that your investment is secured by a buyback guarantee.

The ’Documents and offer’ tab redirects you to the user terms instead of showing you the actual assignment agreement.

Another confusing feature is the Auto Invest settings. The fact that you need to have the option to invest in loan originators that aren’t even available on the platform is a mystery to us.

You should not invest in loan originators that aren’t even presented on the website and don’t publish individual financial reports, as this is extremely risky.

Why you need to choose between investing in the entire loan vs part of the loan is also something Nibble fails to explain.

Nibble’s Auto Invest isn’t something you should be comfortable using.

How Fast Can You Cash Out?

Wondering how fast you can withdraw money from Nibble?

Most of your portfolio should be accessible within 30 days which is the max. loan term for the loans listed on Nibble.

This period can be extended in cases where you invest in loans with a 90 days loan term.

In theory, your P2P investments on Nibble are more accessible as compared to real estate or P2B platforms.

Support

Nibble’s support doesn’t provide any value. If you are new to P2P lending, we would not suggest using any of Nibble’s services or relying on the information that the site provides. Many aspects of the website are misleading.

Nibble Review Summary

Nibble didn’t pass our due diligence process, which is why we can’t give a positive recommendation to you. We have spotted several major red flags which you should keep in mind.

Main takeaways from our Nibble review:

• Information on the platform is misleading
• Customer support doesn’t provide any value
• Grammatical errors on the website
• Several aspects of the terms and conditions are missing

If you want to start with P2P lending, there are several more established platforms that offer higher protection and overall a better product that you will enjoy.

Keen to try another platform?