If a repayment is overdue, investors are entitled to interest income for the period of default if the loan features the buyback guarantee. If it does not come with the guarantee, investors are entitled to penalty fees, the amount of which is set out in the parameters of the loan in question.

There have always been and will always be people who need to fund their immediate consumption and those who want to invest (borrow) their cash. The current Czech legislation sets out the conditions to ensure that the whole process of lending in the Czech Republic is transparent. It also ensures that providers are fair in their approach to borrowers and that loans are not granted to high-risk borrowers. Providers are legally obliged to screen potential borrowers and if there is a high risk of future default, the loan may not be granted. Only financially strong companies are now left on the market, and they are under strict regulation by the Czech Central Bank, which oversees the fair and ethical conduct of all entities.

BONDSTER makes sure to handle all investor funds with due care and in a safe manner. Strict internal rules are aimed at eliminating internal risks while all investor funds are kept in separate bank accounts at reputable financial institutions, specifically at Komerční banka. As one might expect, accounts for investors’ deposits are separated from the company’s accounts used for financing its operations.

On the BONDSTER market, you can invest primarily in secured loans. Loans secured by real estate are among the safest. If a loan is not properly repaid, it is either refinanced or the mortgaged property is sold, and the investors’ claims are satisfied from the proceeds of this operation. In addition to real estate, loans secured by other tangible assets (e.g. cars, machinery, etc.), promissory notes or cryptocurrency are also available on the platform. For selected unsecured loans, providers offer a buyback guarantee as protection in case a borrower defaults on the loan. The above-mentioned elements thus significantly increase the security of the investment. However, it should be noted that no investment is completely risk-free which is why we strongly recommend investors diversify their portfolios accordingly. To reduce the overall risk, it is recommended to include a higher number of loans from different providers in the portfolio (note: at least 100 loans from 7 providers) and to combine different types of loans (i.e. secured by real estate, cryptocurrency, with a buyback guarantee, etc.).

Yes, you can. To do that, you only need to send the funds from the new account to your investor account and provide proof that the account is yours (bank account agreement or account statement).

To protect the borrower’s personal data, this information is not shared. The loan is managed by the provider, who takes all the necessary steps to recover the money. Investors can learn all important information in the details of each loan.

When you sell your investments on the Secondary Market you can sell them at a profit, at a loss or at the same price. At the same price simply means that you will offer an investment worth CZK 100 to other investors for exactly CZK 100. At a profit, you will sell the CZK 100 investment at a higher price. For example: If the original value of the investment is CZK 100 and you want a profit of 5%, you will offer the investment on the Secondary Market for CZK 105. With a loss, the opposite is true and the investment will be sold on the Secondary Market for a lower price than the original one. For example: if the original value is CZK 100 and the discount is 5%, you will offer the investment on the Secondary Market for CZK 95. This will allow you to get your invested money back early, or perhaps withdraw from an investment where the borrower is in default.

Yes, you can use third-party money exchange and money transfer services to send money from abroad. These third parties must be licensed within the EU for this purpose. The first time you make a payment to your virtual account, you will need to verify that the account is indeed in your name. This includes identifying yourself and providing an identity document.

Yes, it is possible to send money from abroad to an account in CZK. We primarily support SEPA payments for sending money from abroad. When sending the first payment, it is required to send the payment from an account in your name. Subsequent payments may be sent via a money exchange and money transfer service providers licensed as payment service providers or electronic money providers within the EU.

Yes, they can. Your investment will be repaid in full and you will receive the outstanding principal and interest payments that are due to you on the date of early repayment.

Yes, they can. Providers can buy back the loan they have offered to investors at any time, even without their consent. Investors will then receive the amount of the principal and interest due to them on the day the loan was bought back.

No deeper understanding is required. The method of investing is the same as with other types of investments on BONDSTER. You can read more about investing in Bitcoin-secured loans here.