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Kuetzal, what a weird name I first thought. So I asked them why they branded them like this. See the answer from Alberts, CEO and Cofounder:
“Initially we wanted to name the platform Quetzal. It is a rare bird which Aztec and Maya tribes considered as sacred. The bird is associated with trust, magnificence, brilliance and we decided to use this name. Another reason is we wanted to differ from competitors which have a lot of invest, lend, crowd in their names. The market is overloaded with such names so we decided to bring freshness. We just made a change from Quetzal to Kuetzal as we believe it will be more Europe-oriented name.“
Well, I guess the differentiation was successful 😉 The platform’s headquarters is in Talinn, Estonia and was founded by three young entrepreneurs. Interest rates vary from project to project and top at 22 percent. Kuetzal offers some special features, which I would like to discuss a bit further.
Kuetzal Care and the Buyback
Most new platforms have a hard time getting their first loans funded, which is in turn a pain for new investors, as their money is on the platform not earning interest. This is different with Kuetzal, as interest accrues from the moment the investment is made into a project (minimal investment 100 Euro per loan, monthly interest payments). This is part one of Kuetzal Care. Second part makes sure that every project will be funded completely. Creditline with banks and money from Angel Investors makes this possible. The buyback feature is not included in every project, it is mentionned in the summary table of each project. If buyback is available on a loan, you can instantly sell your loan part to the platform directly, but they only refund 90 percent. So you basically lose 10 percent of your initial investment as a penalty. This means that you can sell a 20 percent yielding project after 6 months and make no loss (as the monthly interest payments covered it), should you need money before maturity. We know this functionality already from Envestio.
You see, this marketplace has its own and very different approach. This should not be seen as bad news. What I don’t like is their lack of focus. They focus on ideas and not sectors or segments. Comforting on the other hand is, that they got funding approved from banks and angel investors. Something which you don’t secure without a deep due dilligence by them. These institutions do not throw their money at a project easily. As per today no project has matured, so no assessment can really be done at the moment. Take for granted that these are risky investments (like Envestio or Crowdestor). As expected I got all my due interest payments on time and I am hopeing this will continue. Follow me to Kuetzal.