Nibble Finance review 2025
Read this Nibble Finance review to discover the ins and outs of the P2P lending platform. You will get a detailed assessment of the platform, its features, and any potential drawbacks. Get a quick overview of our analysis of Nibble below:
Nibble Finance
Pros
Cons
Nibble Finance review summary:
Nibble Finance is a new P2P lending platform that focuses on consumer loans. The platform itself is very user-friendly, and simple to navigate and the platform allows you to invest passively with one of the auto-invest strategies. One of the major downsides of Nibble Finance is the fact that the platform charges a high fee for an early exit from the platform if you want to sell your loans if you find better investment opportunities elsewhere. Nibble Finance is owned by IT Smart Finance which is a profitable loan business. All the loans on the platform come from Joymoney, a loan brand also owned by IT Smart Finance, which means that it can be hard to get proper diversification using only this platform. Based on the current Trustpilot reviews, investors seem to only have good experiences with Nibble Finance.
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Introduction to our Nibble Finance review
We researched Nibble Finance to provide our own perspective, covering its benefits, drawbacks, and alternative options. Browse specific sections below or read through the entire Nibble Finance review. Remember, this is our own opinion and should not be taken as financial advice.
Learn about the following in our Nibble Finance review:
- What is Nibble Finance?
- What is the return on Nibble Finance?
- Is it safe to invest on Nibble Finance?
- Who can invest on Nibble Finance?
- How to invest on Nibble Finance?
- How to withdraw money from Nibble Finance?
- What are the best Nibble Finance alternatives?
- Conclusion of our Nibble Finance review
What is Nibble Finance?
Nibble Finance is a peer-to-peer (P2P) lending platform registered in Estonia and operating from Barcelona, Spain. It launched in February 2020 and offers advertised annual returns of up to 19% on pre-funded consumer loans.
Nibble Finance works by connecting investors with pre-funded consumer loans, primarily provided by the loan originator Joymoney. Joymoney is owned by IT Smart Finance, the parent company of Nibble. Investors lend money through the platform to borrowers and earn interest in return.
The platform has over 8,500 investors who have collectively funded more than €2,000,000 in consumer loans.
Nibble ITSF OÜ is not regulated, as it is not required in the jurisdiction in which it operates.
Nibble Finance statistics:
| Launched: | 2020 |
| Investors: | 8,500 + |
| Interest rate: | 9.7-19 % |
| Loan period: | 1 – 60 months |
| Loan type: | Consumer |
| Loans funded: | € 2,000,000 + |
| Min. investment: | € 10 |
| Max. investment: | Unlimited |
Nibble Finance Trustpilot rating
Nibble Finance has received a TrustScore of 1.9/5 based on 18 reviews on Trustpilot. Some investors praise the platform’s short-term investment options and regular interest payouts, while others raise concerns about unexpected charges, complicated withdrawals, and unclear terms of service. Despite these issues, satisfied users appreciate its straightforward interface and the consistent returns it provides.
What is the return on Nibble Finance?
Nibble Finance’s average annual investment return is 12%. This positions the platform around the mid-range compared to other P2P lenders, some of which offer rates exceeding 15%. While it may not promise the highest returns in the market, this level of return can be considered moderately competitive given the variety of auto-invest strategies available.
The interest rates on Nibble Finance ranges from 8% to 14.5%, depending on the chosen investment strategy. Your expected return will depend on which auto-invest strategy you choose:
- Classic strategy: 8% fixed annual interest rate
- Balanced strategy: 12-12,5% annual interest rate
- Legal strategy: 11-14,5% annual interest rate
Higher potential returns naturally indicate higher associated risk, while the more conservative strategies yield lower but steadier rates.
Time-limited welcome bonus
Readers of this Nibble review are eligible for a 2% cashback bonus on all investments for 90 days. To unlock this time-limited offer, new investors must sign up using the button below and invest at least €10. No Nibble promo code is required.
Is it safe to invest on Nibble Finance?
Nibble Finance is not considered one of the safest P2P lending platforms due to limited transparency. However, it seems to have been operating reliably since 2020, with no capital loss reported for investors.
While Nibble ITSF OÜ is not regulated, the platform is owned by the profitable IT Smart Finance group. This ownership indicates that Nibble Finance is likely legitimate and not a scam. Nevertheless, investors should be aware of the platform’s lower transparency compared to other P2P lending platforms in Europe.
No external loan originators
Nibble Finance only offers loans that come from Joymoney which like Nibble Finance is an IT Smart Finance company. In this way, IT Smart Finance has full insight into the loans that are on the platform which can make it easier for the company to manage the risks.
Nibble Finance seems to have no plans to offer loans from other loan originators – something that other platforms like PeerBerry, Mintos, and FAST INVEST do.
Nibble Finance BuyBack guarantee
On Nibble Finance, all loans under the Classic Strategy are covered by a 60-day buyback guarantee. This means that if a borrower is more than 60 days late with repayments, the loan originator automatically repurchases the loan from the investor along with accrued interest.
The Nibble Finance buyback guarantee has a duration of 60 days, which is the industry standard. This is longer compared to Robocash and Loanch, which offer the shortest buyback duration on the market at 30 days.
Investors should keep in mind that the reliability of the Nibble Finance buyback obligation depends on the financial stability of the loan originators. If the loan originators are unable to buy back the loans, the buyback guarantee becomes worthless.
How solid is the company?
Nibble Finance is a platform owned by IT Smart Finance. This company has been profitable for multiple years in a row which indicates that the company is fairly solid.
You can find the annual reports here.
Two-factor authentication
Nibble Finance offers two-factor authentication (2FA) to strengthen account security. This feature generates unique, time-based passcodes to protect investor funds from unauthorized access. Since hackers have targeted P2P lending platforms in the past, enabling 2FA is strongly recommended.
Who can invest on Nibble Finance?
To be able to invest with Nibble Finance, you must at least be 18 years old, have a bank account in a European bank, or have an EAA (EU, Switzerland, Norway, and Liechtenstein) residence/citizenship, and be able to pass the identity verification process on the platform.
If you don’t have a bank account in the Eurozone, it is often possible to sign up with a few extra steps, as this will require an additional personal AML check, where each case is considered individually. You can find the contact info for this at https://nibble.finance/.
How to invest on Nibble Finance?
Before you can start investing on Nibble Finance, you must complete the following steps:
- Sign up on the Nibble website.
- Verify your identity.
- Complete the KYC questionnaire.
- Deposit funds into your account.
The entire registration process usually takes about 5-10 minutes, including signing up, verifying your identity, filling out any required questionnaires, and making your first deposit.
You can deposit money into your Nibble Finance account using SEPA transfers. The minimum deposit is €0.01, and funds typically arrive within 1-3 business days. It is only possible to deposit funds in Euros (EUR).
Once you have funded your account, you can start investing in P2P loans on the platform. Nibble Finance supports only automatic investing. Unlike competitors such as PeerBerry and Mintos, it does not offer the option to invest manually.
Nibble Finance auto-invest strategies
A great thing about Nibble Finance is its easy-to-use auto-invest strategies.
By using this function, you can easily get started investing in loans, without having to spend time cherry-picking loans on an ongoing basis.
To set up an auto-invest strategy at Nibble Finance, follow the steps below:
- Go to their website
- Add funds to your account
- Choose your auto-invest strategy
You can choose between the following 3 strategies:
- Classic Strategy (used by 22% of investors)
- Balanced Strategy (used by 65% of investors)
- Legal Strategy (used by 13% of investors)
You can see what the three strategies look like below:
Classic Strategy
The Classic Strategy is the strategy at Nibble that carries the least risk, assessed based on the classification of the loans.
When investing with the Classic Strategy, your loans are covered by a BuyBack Guarantee, meaning that the loan originator will have to buy back your loans plus accrued interest, if the borrower is unable to fulfill their obligations.
Balanced Strategy
The Balanced Strategy is the most popular investment strategy on Nibble and around 65% of all investors on the platform choose to invest this way. This strategy has slightly more risk but also comes with a higher rate of return.
Legal Strategy
With Legal Strategy, you buy into a loan portfolio of overdue debt. This significantly increases your risk, but you also have the opportunity to achieve a high return, as risk and return typically go hand in hand. The return potential is up to 14.5% per year.
The loans that are up for collection are administered through Boostr, which is an experienced debt collection company. They buy overdue loans at a discount of 85% and automate the recovery process, including extrajudicial and legal procedures.
You should keep in mind that there are risks associated with investing in overdue loans, such as long recovery processes and uncertainties. The investment strategy also has a minimum investment period of 6 to 12 months.
According to Nibble, you are guaranteed a minimum return of 8% per year, but investors should be aware that situations may still arise where the guarantee cannot be met, for example, if the issuer of the guarantee defaults.
How to withdraw money from Nibble Finance?
You can withdraw your uninvested funds from Nibble Finance at any time using the withdrawal section of your investor account. The minimum withdrawal amount is €50 and it usually takes 1-5 business days for your funds to arrive in your bank account.
Nibble Finance does not charge any fees for withdrawing funds from your account, but your bank may charge fees for receiving international transfers.
To exit Nibble Finance, you must first turn off all auto-invest strategies, wait for any outstanding loans to mature, or request an early termination of the investment agreement. If you hold non-performing loans, the platform must first recover the underlying debt before allowing withdrawals, which can negatively affect your liquidity.
No secondary market
Nibble Finance does not offer a secondary market, but you can request early termination of your investment agreement before its expiry date. Once you submit the request, Nibble will seek another investor to purchase your entire portfolio in the primary market. The portfolio can be resold only as a whole, which is a disadvantage if your investment is large. If no investor is found within 60 calendar days, Nibble will pay out your principal and accrued interest from its reserve fund on the following day, minus a 3% commission on the total amount.
Compared to platforms like Mintos and Bondora, which provide secondary markets for improved liquidity, the absence of a secondary market on Nibble Finance is a significant drawback.
What are the best Nibble Finance alternatives?
Some of the best alternatives to Nibble Finance are Mintos, Hive5 and Loanch.
Conclusion of our Nibble Finance review
Nibble Finance is a small and easy-to-use P2P lending platform. The platform sets itself apart from competitors by operating as part of a profitable parent company, IT Smart Finance, which focuses on a single loan provider to maintain an integrated lending structure.
While Nibble Finance offers user-friendly auto-invest strategies, a buyback guarantee on certain loans, and no upfront investment fees, it lacks meaningful diversification options, provides no secondary market, and charges a steep fee for early exit.
Nibble Finance may not be worth it if you prioritize more stable track records or regulated environments. It could be suitable for investors who can tolerate higher risk in pursuit of moderately competitive returns. Individuals seeking regulated platforms or broader diversification might prefer to explore other P2P lending sites.
