Business talk am Kuddam invites another member of the team Monestro, Olga Jakson, the relationship manager at Monetro. This conversation was based on the relationship with Loan Originators and ways to find the best partners for the business. Olga dives deep into explaining the security criteria adopted by Monestro with its partners.
The following aspects were covered in the interview.
How does Monestro platform works?
Monestro operates as a middleman between the Loan Originating companies and the investors. At the moment, they are taking the LOs from European Economic Area. These LOs publish their loans on the platform that is accessible for the investors and thus, they choose from the listed loans and LOs.
The fun thing about investing at Monestro is that it allows the investors to start investing from €10 or even less. The Loan Originators offer different interest rates because their loans have different costs, this is the main deciding factor for most of the investors.
When a loan is matured, the investment amount with guarantee interest comes to investors investments account. However, if the borrower has any problems paying back his obligations on time, then the Loan Originator has the buy-back obligation. The invested amount is returned to the investors along with the earned interest from the current cash flow. Also, the risk is divided between investors and the LOs which is named as “skin in the game”.
How does Monestro ensure the quality of the offered loans?
Before publishing any of the loans from the Loan Originators, Monestro performs thorough due diligence. It also includes a portfolio review where LOs historical repayments classification, default rate and validation of loans are analyzed.
In addition to that, Monestro does a financial analysis of the financial position and ability of the Loan Originator to perform buy-back obligation because all loans are secured with this buy-back guarantee.
What is the process of onboarding the Loan Originators at Monestro?
Before choosing a partner with whom the investors can entrust their money, Monestro conducts detailed background checks of the company’s performance over the last 2 years. Monestro prefers companies with a low rate of bad loans. The screening process takes time but we do not rush in order to take the best for our investors. Monestro is very keen on onboarding the companies that are growing and stable.
What key factors should the investor keep in mind before investing their money?
As every individual is different, so is every investor. It’s quite difficult to pick one from the other. Monestro has listed the key features of each loan originator on its website, it is at the investor’s discretion to choose. Some of the main features available on the website are:
- Loan type
- Loan originator risk rate
- Interest rate for investment
- Total cost
- Total loan portfolio
A message for the new investors
Monestro has all the information on its website. We recommend that new and potential investors go through the website in order to check the offers and features available on the platform.
It is a good idea to start investing with a small amount to explore and learn investing rules. Remember an expert today was once a beginner.
Watch complete interview.