Irish Times "4 reasons why Investabill beats having your savings on deposit"

Brendan Burgess

Brendan Burgess

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https://www.irishtimes.com/sponsored/investabill

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There are no details. No link to a website.

The ad in the newspaper at least points out that it is unregulated.

Brendan
 
Here is the website

https://www.investabill.com/risk

  • Historical data may not be a reliable indication for the future
  • Risk category shown is not guaranteed and may shift over time
  • The lowest category does not mean ‘risk free’
  • Investabill™ ETR are in this category due to low volatility and consistent performance
  • Safeguard on Investor funds uses 4-Tier Capital Protection
Risk & Reward indicator does not adequately capture:
  • Counterparty risk of AIG failure, or refusal, to settle insurance claims
  • Investments in Advance ETR/c-ETR purchased by Credebt Exchange on its own account
  • Operational risk relating to the safekeeping of assets or funds
  • SRRI Value based on 2-Years’ data only

ETR ARE NEITHER A FINANCIAL INSTRUMENT NOR AN INVESTMENT INSTRUMENT AND CREDEBT EXCHANGE IS NOT REGULATED BY THE CENTRAL BANK OF IRELAND AS A RESULT OF OPERATING THE EXCHANGE AND PROVIDING THE EXCHANGE SERVICES
 
Hi Gordon

Why is it misleading? The comparison with deposits?

I have looked at the two Irish Times ads and the website, and I am no better informed as to what the product is.

Brendan
 
Brendan Burgess said:
Hi Gordon

Why is it misleading? The comparison with deposits?

I have looked at the two Irish Times ads and the website, and I am no better informed as to what the product is.

Brendan
Click to expand...

It’s invoice discounting, Brendan.

You give me your money, I give it to companies with poor cashflow and a high level of debtors. They pay me 10% and I give you 2%.
 
Gordon Gekko said:
It’s invoice discounting
Click to expand...
Even worse. It's invoice discounting that tries to hide the fact it's invoice discounting.

All this talk of "4 Tier capital protections", and AIG insurance. Smoke and mirrors stuff.

They made up their risk classification. Sorry, calculated themselves, based on return over 2 years. There's no representation of the real risk involved. On the same basis property investment would be currently risk free.
 
I know that this is an old thread but wondering if anyone has any up to date information on this investment.
A friend asked today if I know anything about it because a broker put some of his funds into them without their knowledge,
TIA.
 
They still seem to be going anyway.

Home Page - Investabill - Official website for Investabill

Investabill® is a unique investment platform. It provides investors with an excellent rate of return on secure and liquid investments. Investments generate
www.investabill.com www.investabill.com
What sort of broker and what sort of latitude/autonomy did your friend give them with regards to their finances?
Did your friend lose or gain on the venture?
 
I believe it was an ARF that was in place elsewhere for years that had been transferred to this company,
I was concerned to see that they are unregulated.
 
Aurora said:
I believe it was an ARF that was in place elsewhere for years that had been transferred to this company,
I was concerned to see that they are unregulated.
Click to expand...
I repeat...
ClubMan said:
What sort of broker and what sort of latitude/autonomy did your friend give them with regards to their finances?
Did your friend lose or gain on the venture?
Click to expand...
Whatever about this particular company/product, investing an ARF, from which is likely that 4-5% p.a. will be taken, at potentially slight better than deposit rates seems questionable on the face of it and might possibly end up with the ARF being exhausted prematurely.

Perhaps your friend needs to deal with a better advisor and maybe review this properly? (Having said that, we don't have a lot of detail to go on so far).
 
Sorry for not being able to provide more detail but I did ask about auutonomy and he said he did sign something once giving the broker authority to make choices on his behalf, Its only been a few months since the transfer so too soon to tell if it will turn out to be a good or bad move.
 
Putting one's ARF in an unregulated investment, if that's the case here, is bonkers. And, as I've already said, putting an ARF in a slightly better than deposit rate vehicle is arguably bad even if it is regulated.
 
Thank you for your help with this. Much appreciated. I haven't passed on the information yet.
Trying to break it gently.
 
If this person's pension is in a deposit class investment which is possibly unregulated then they should act sooner rather than later to rectify this!
 
I spoke with a gentleman today, in his 80s, who invested substantial portions of his life savings on the recommendations of a broker, in Solar 21 and this Credebt Exchange business. I have deep reservations about the motivations of the broker but that's not the point of this.

My gut tells me that he should get out of Credebt Exchange and put the money on deposit. In his own telling, he's risk-averse. But he also tells me that he's been dealing with Credebt Exchange for over a decade, has received a return somewhat higher than deposits, rolled over his investments every few years and been pleased with the service from the business.

I know little or nothing about this business beyond their own website, a couple of topics here on AAM and a couple of pieces from newspapers which were pretty much rehashed press releases. I also know nothing about their business model, other than they take money from investors and lend it out to businesses, taking a margin on the interest rate in the middle. They make a big deal about being insured by AIG but I don't know about the terms and conditions of what AIG do for them.

I'm aware of what can go right - he's received a rate of return higher than deposits for years. Can anyone who understands this business give me examples of what can go wrong?
 
Investabill is lending to companies at 10%.
We have had a relatively benign economy for some years, so these companies are repaying their loans.

When we hit a downturn, a lot of companies will go bust and won't be able to repay their loans.

So Investabill will not be able to pay the interest and will probably not be able to return the original amount invested.
 
Company A has sold goods or services on credit, likely 30 or 90 days payment terms, to company B. Company A need cash more quickly, so they sell their debtors to Investabill for, say, 90% of their value. Investabill then receive the payment from company B. Their profit is the 10%, less the cost of funds. Their funds come from investors like the ARF funds or the 80-something's life savings, who get a percentage point or so more than a deposit rate in return.

As Brendan points out, it just takes a downturn for invoices to go unpaid and for investors to get smaller returns and then actual losses.

As for AIG's involvement, I presume they offer insurance against bad debts. I actually know a few people who work in that field but I've never been interested enough to want to hear then talk about it.
 
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