Viainvest is Latvian a peer to peer lending platform launched in 2016. The loans available on the platform originate from the VIA SMS group of companies. The VIA SMS group is present in Latvia, Sweden, Czech Republic, Poland, and Spain, they employ more than 150 employees. There are more than 7,000 investors on the platform.
The average interest rate is 10.9% (as of Dec 2019). The platform has the standard p2p functionality with these expectations. Taxes are paid at source unless a tax certificate is provided and there is no secondary market.
Anyone above 18 years old who has an EU bank account can register, the standard KYC/AML checks are also performed upon registration/withdrawal. I have read some reports that when investing over a certain amount on ViaInvest, investors are asked for documents to certify the source of funds.
Via invest offers three types of loans
- Short-term loan or payday loans – terms for the borrower 700 Euros for 90 days.
- Credit line – The credit line is a loan offered on the Sava Card with credit of 1500 available.
- Instalment loan – loans of up to 1500 for 12 months
More information on loan types is provided on the ViaInvest Loan originator page. All loan applications are processed within 15 minutes.
Viainvest passive income stream.
ViaInvest is a platform that can provide a stream of passive income. The Auto investor can invest automatically both any capital deposited and any interest generated. This creates a cycle of compounding interest, where the interest is used to buy more loans which in turn generate more interest. On the one hand, reinvesting capital in this platform increases the final stream of passive income, on the other hand, the risk is being concentrated on this particular platform. Deal flow (the number of loans available) on the platform has been good, this is good because there is less cash drag. Cash drag is when cash is sitting idle in the account not generating any interest or passive income. Learn more: What is Passive Income? and The Pros and Cons of Passive Income.
The ViaInvest Buyback Guarantee, states that as long as the platform is operating and the borrower has not made a payment within 30 days, then ViaInvest will pay both the invested principal and the interest due.
ViaInvest Tax Certificates
Viainvezst differs from other platforms because they charge tax at source. This is the only p2p platform that I know of that does this. The tax rate varies according to where the loans were issued. There are two systems of paying taxes; the first is taxes at source, ( Viainvest deducting the taxes automatically) the second is tax self-declaration. To be eligible for self-declaration the investor needs to provide a tax certificate. This system of tax payments is done according to ViaInvests interpretation of current tax laws. Via Inves provides a TAX FAQ with more information.
ViaInvest Room for improvement
Things that can be improved on ViaInvest are the individual reporting functions that could include searching by loan expiry dates, default rates and proving subtotals for each of these categories. The secondary market would increase liquidity for investors who want to exit a loan early.
P2p platforms have both advantages and risks. The p2p industry has not yet suffered from 2008 like a crisis, the buyback guarantee systems have not been tested in these conditions, wise investors take that into account when investing on these platforms.