Neo Finance is a Lithuanian peer-to-peer lending company. Started in 2014, the company has attracted more than €285k from venture capitalists. This makes it one of the best-known fintech company from Lithuania. In this complete review, we will look at how to invest in Neo Finance, how it works, and the benefits.
Quick Facts About Neo Finance
- Started in 2014 to offer peer-to-peer lending and borrowing services.
- Has more than 9,400 investors.
- Neo Finance investors have invested more than €43 million.
- The average annual return is 15%.
- Neo Finance has an auto invest feature.
- Neo Finance is in the process of having an initial public offering (IPO).
What is Neo Finance?
Neo Finance is a fintech company that offers online peer-to-peer services. The company is part of a global industry that is seeing impressive growth in the past few years. Millions of people from around the world are investing in these types of loans for several reasons.
First, interest rates are at historic lows. This means that bank yields have waned. Second, P2P is a fast-growing industry and many people want to participate. Third, the industry has proven to be safe and resilient.
Neo Finance works in a very simple way. The company receives loan requests from people who want money. The company does due diligence on these requests. The company provides a rating for these loans. A loan can be rated as A, B, or C. It then lists the loans on the platform where people can invest in these loans.
How to Invest in Neo Finance
Investing in Neo Finance is very easy. However, we recommend that you do a lot of due diligence before you invest. Take time and go through the website and see the details. If you believe that you want to invest, go to the sign up page and create your account. You will need to have your details verified first. After this, deposit money using your bank account or card details.
Next, you need to go online and select the loans you want to invest. Alternatively, you can use the auto invest feature. You do this by specifying the types of loans you want invested, the amount of money you want to invest in each loan, and the durations you want to invest in. In total, the process of investing can take less than an hour.
How to Make Money in Neo Finance
In the previous sections, we have looked at what Neo Finance is and how you can invest in it. Here, we will look at how you can make money in Neo Finance.
- Diversify. Don’t put all your money in one loan. Diversify across several loans.
- Reinvest. Reinvest the interest money you receive. This will help you compound your returns.
- Invest money you can afford to lose. There are risks of investing in Neo Finance. Therefore, invest money that you can afford to lose.
Advantages of Investing in Neo Finance
There are many benefits that you get for investing in Neo Finance. Here are some of the main pros of investing in Neo Finance:
- Superior returns. The average annual returns in Neo Finance is 12%. This is better than what many investments yield.
- Easy to invest. The process of investing in Neo Finance is relatively easy. It takes less than a hour from start to finish.
- Buyback and provision fund. Neo Finance has a buyback and a provision fund that gives investors a peace of mind.
- Personal IBAN account. Neo Finance Customers get a free IBAN account.
- Diversify. You can diversify your returns by investing in Neo Finance.
Is Neo Finance a scam? What are the Risks?
These two are common questions. In our review of peer to peer companies, we looked at the risks that come with investing in P2P companies. Here are the main risks that come with investing in Neo Finance.
- Security risks. There is a risk that Neo Finance website could be hacked. This would lead to losses and privacy risks.
- Company risks. There are risks that the company could run out of business.
- Default risks. There are risks that the company’s customers will default or delay. This would lead to losses.
- Currency risks. Neo Finance accepts euros. There is a risk that the euro could weaken.
- Inflation risks. There is a risk that inflation would reduce value of the invested capital.
Countries Accepted by Neo Finance
Neo Finance accepts customers from the European Union. Most of the loans on the platform are from Lithuania.
What are Neo Finance Contacts
Neo Finance Summary
Neo Finance is a leading fintech company in Lithuania. The company has made good progress and is in the process of going public. If you are interested in investing in Neo Finance, we recommend that you use the tips that we mentioned above. Understand the risks. Therefore, set aside more money to invest in other assets like stocks, bonds, Bitcoin and in index funds.
Crispus is a finance professional with more than a decade experience in the industry. Over the years, Crispus has written in-depth articles on leading platforms like CCN, Marketwatch, and Seeking Alpha. He also runs a Forex education and managed account company called WestEndFx.