What is the secondary market?
The secondary market is a place where investors can sell their current investments to other investors on Bondster. Bondster thus offers investors additional space for investment and portfolio diversification. Selling on the secondary market also helps investors achieve higher liquidity. If they need their money sooner, they can sell part or all of their investment portfolio there. When selling on the secondary market, it is possible to increase the price of the loan and thus earn more, or reduce the price of the loan and sell it to other investors faster. The secondary market offers buyers access to potentially interesting offers from sellers. The buyer can thus get to buy investments on more favourable terms or for interest rates that might not be available on the primary market at that time.
Is the principle of investing in loans secured by cryptocurrencies different from others?
As for the investment principle itself, it is the same as with other investments on Bondster. You simply choose one of the loans secured by cryptocurrency, choose the amount you wish to invest and look forward to the appreciation of your investment.
What is the Bondster platform?
Bondster is a Peer-to-Business (P2B) investment platform that offers an attractive opportunity for investors to place available funds. The principle of the operation is simple – investors can invest in loans to borrowers with a proven record of payment, offered by respective lenders of those loans.
Loan types may vary and they may be secured or unsecured – mortgages, leases, consumer loans, etc. Bondster operates as a marketplace where these loans are offered as investment opportunities and acts as an intermediary between investors and lenders.
How is the interest distributed between the seller and the buyer on the secondary market?
When you place your loan on the secondary market, nothing changes until it is sold. After the sale, you stop receiving interest on the loan. Conversely, when you buy an investment on the secondary market, you start receiving interest from the day of your purchase.
Do I need to understand the cryptocurrency market?
You do not need any deeper knowledge. The principle of investing is no different from other types of investments on Bondster.cz
Can I sell at a profit/loss on the secondary market?
When selling investments on the secondary market, you can do so at a profit, loss, or for their original purchase price. The original purchase price means that you sell a CZK 100 worth of investment to other investors exactly for CZK 100. You make a profit if you sell the CZK 100 investment for a higher price. For example: If the original price of the investment was CZK 100 and you want to make a 5% profit, you offer the investment on the secondary market for CZK 105. With a loss, it works exactly the other way around and the investment will be sold on the secondary market at a lower than the original price. For example: If the original investment was CZK 100 and the discount is 5%, you offer the investment on the secondary market for CZK 95. As a result, you will probably be able to get your money earlier or, for example, withdraw from an investment where there are delays in repayments by the borrower.
What are the advantages of investing in loans secured by cryptocurrencies?
They offer a high level of security and above-standard interest. From the security point of view, loans are secured by the buyback guarantee and in case of early termination of the investment, investors get back 100% of the invested funds including the interest earned for the whole period. Taking into account that these loans are well-secured, the interest rates offered are relatively high.
What is the difference between Bondster and other investment platforms?
Bondster offers a unique opportunity for easy, quick investments that allow investors portfolio diversification. It is also unique in that the investments are protected by collateral, which may include real estate, vehicles, etc. In contrast to other platforms, Bondster also offers a buy-back guarantee in case of loan default. All these protective measures considerably reduce investor risk. In addition, Bondster offers easy online management of your investment account.
How much in fees do I pay for using the secondary market?
For each loan sold on the secondary market, the investor pays a one-time fee of 0.5% of the value of the loan sold. It is not paid when placing the loan on the secondary market but only after the loan has been sold. The investor who buys the loan on the secondary market does not pay any fee.
Who is behind the Bondster project?
The BONDSTER investment portal is run by a team of professionals with experience in finance as well as P2B investments (ex.www.pujcmefirme.cz). We are aware of the lack of quality investment opportunities on the market, so we have created an innovative online investment site tailored to a wide range of investors. The investment process is very simple and doesn't require extensive knowledge of financial markets. Learn more in the About us section.
Bondster is owned by CEP Invest Private Equity. A main strategic partner of the project is ACEMA Credit Czech, a.s.
How can I offer a loan on the secondary market? How do I proceed?
You can get to the secondary market on the investment platform through the My investments section, where you can directly offer the loans in which you have invested. To add a loan to the sales cart, click the SELL button next to the loan you want to sell (you can sell one or more at a time). After adding it to the cart, you can set a discount/premium for each loan individually or in bulk. Then, in the second step, check that you agree with the conditions and click on OFFER FOR SALE.
How does it all work actually?
It all starts on a global cryptocurrency exchange that works on the principle of P2P (peer-to-peer). An individual or business takes up a loan from the lender, company ACEMA. Instead of personal property or real estate, the borrower pledges his cryptocurrencies. The lender then keeps the bitcoins as collateral for the entire period of the loan repayment. Such secured loans are then offered by ACEMA for investment on Bondster.
Are there additional ways of securing loans that are secured by cryptocurrencies?
Yes, there are. Investments in loans secured by cryptocurrencies are very well secured in general. Firstly, with the possibility of buyback (repurchase guaranteed by the provider, i.e. ACEMA). Secondly, investors are also protected in case the investment is terminated early, and they get back 100% of the invested funds including the interest earned for the whole period.
What is CEP Invest Private Equity?
CEP Invest PE focuses on investing in interesting projects that have the potential to deliver certain returns. The main investments in its portfolio include investments in stable, small and medium-sized businesses, real estate, IT startups and direct and indirect capital market investments. Some example investments from the portfolio include OneProve and Equinox. CEP Invest's investors are managers and lawyers with many years of experience, particularly in finance and the consumer sector.
What loans can I offer on the secondary market?
On the secondary market, you can offer for sale any loan excluding the ones that must be repaid immediately, are written off or terminated and is not delayed over 60 days.
What is LTV?
LTV (Loan-to-Value) indicates the ratio between the amount of the loan and the amount at which the pledged cryptocurrencies were valued at the time of the loan agreement. The lower the LTV, the more secured the investment is.
Is a loan with a higher LTV (e.g. 70%) less secured?
No, it is not. With higher LTV (combined with market volatility), it is more likely that a forced sale can be initiated. The investment may thus be terminated prematurely but the level of security is not affected, and the investor always receives the invested money back including the interest for the period.
What is Acema Credit Czech, a.s.?
ACEMA Credit Czech, a.s. has been operating on the Czech credit market since 2000. At present, ACEMA is one of the most important providers of non-bank secured loans on the Czech market.
Should I offer the loan at a premium, for the same price or at a discount?
It depends on your own decision and situation. If you don't need the money quickly, you can easily offer the loan at a premium - especially in a situation when such type of loan from a particular provider is no longer available on the primary market. If you are unable to sell the loan at a higher price on the secondary market, you can always try to offer it at a discount.
Will my money be safe with Bondster?
All payments Bondster receives are kept at their designated accounts. The funds on these accounts are separate from Bondster's own funds.
How long can I offer a loan on the secondary market for? What if nobody buys it?
You can offer a loan on the secondary market for sale for 90 days. If nobody buys it during that time, you can offer it again. While the loan is being offered for sale, you can remove it from the secondary market at any time and adjust the parameters (discount/premium) and offer it for sale again.
What if the value of the cryptocurrency that is used for securing the loan decreases?
The value of cryptocurrencies fluctuates and if it was to fall significantly, the borrower has the possibility to increase the value of the collateral and thus compensate for the decline. Should the value of cryptocurrency fall to the extent that the value of collateral reaches 90%, the exchange notifies the borrower of the commencement of a forced sale process and the assignment of the collateral to the lender, ACEMA. It then converts the cryptocurrency to euros and the investment ends prematurely with the investors receiving back 100% of their invested funds including interest for the whole period of the investment.
Are there risks connected with investing into Bondster?
On the Bondster platform, it is possible to invest primarily in secured loans. For selected unsecured loans, providers offer buy-back guarantees in the event of default by the borrower. These elements greatly increase the security of the investment. Remember that no investment is completely free of risk. That is why we strongly recommend that clients diversify their portfolio and, hence, their risk. To do this, it is advisable to invest in multiple loans.
How is my money protected? Is all data backed up?
We are aware that data security is a cornerstone of the investment platform, and therefore we use the technology services of the world leaders in the field. The data is stored on the Amazon data solution and is regularly backed up. Investors' funds are held in the Czech bank Komerční Banka's accounts.
How does Bondster handle my personal information?
The Bondster Platform strictly complies with applicable Czech legislation. We treat all the information you submit to us with the utmost care and consider it strictly confidential.
Is it legal to invest in third party loans?
The share of the loan and all the claims arising from it are transferred to you by way of assignment of the claim. This process is fully in line with the legislation of the European Union.
Is my investment return taxed?
It is not. Investors are legally obliged to declare their revenues for tax purposes. You can find the documentation for processing the tax return in your profile in the Transaction Summary. Just download the listing for the selected period. However local legislation for taxes may vary in different countries.
Who can register for Bondster as an investor?
Adult citizens of the Czech Republic, adult citizens of other European Union countries and selected countries outside the EU, as well as legal entities with a registered office in the European Union, can register. A condition for successful registration and the possibility to invest is a bank account held in the name of a registered company within the EU, which is one of the important aspects for verification of identity.
How do I create an account?
Opening your account is simple and intuitive - it does not take more than five minutes
You can check out our video tutorial or read the instructions below:
- First, click on CREATE ACCOUNT button and enter the verification email address.
- Log in to the mailbox and confirm with BONDSTER the COMPLETE REGISTRATION button.
- The form in which you enter your name, phone, access password will appear. Click on CONTINUE.
- You will gain access to your account. If you want to invest and transfer money to an investor account, you need to conclude the Investor Agreement - the link is in the top bar, please click on I WANT TO INVEST.
- Add personal details (citizenship, residence, ID, date of birth and place). Here you have the possibility to upload the documents, which are a necessary condition for the identification according to the AML Act (253/2008 Coll.). The documents do not need to be uploaded during registration, however they will need to be updated later.
- In the last registration step, you will check the data you have filled in and, if necessary, you can edit it. For signing the contract, it is necessary to grant consent to the wording of the contract and the Bondster Business Terms. Click on ENTER INTO THE AGREEMENT.
- Sign your contract by entering the SMS code that was sent to you on your mobile number and click again on ENTER INTO THE AGREEMENT.
- The contract has been concluded, which we will confirm by e-mail in which you will find its full text. You can also find the agreement in the settings in your User Profile by clicking on your name in the top right corner.
- The last step - to transfer money to the specified investor account. We will inform you again by e-mail about the money transfer.
I forgot my password, what should I do?
To change your password, simply click on the link FORGOT PASSWORD. All necessary instructions will be sent to your email registered on Bondster.
How do I change my password and other information I entered during my registration?
Once you have signed in to your Bondster account, you click on your name in the upper right corner - User Profile. Here you can easily change your password and other personal information.
How do I upload documents? What do I have to prepare?
You can upload the required documents at any time in the User Profile. If you are EU citizen, we will require you to upload your documents when you send funds from a different account than that listed under your name. We will also need documents and your ID when you transfer funds from your investor account back to your private bank account, or if the amount of funds on your investor account is greater than € 15,000.
If you are a citizen of a country outside of the European Union, we will ask you to prove your identity and the origin of the funds after registration. We will need a copy of your ID, passport or driving license and a document confirming the ownership of your bank account you want to register on the Bondster platform.
What documents do you require?
We will require the following documents:
- A copy of both sides of your ID card, or a copy of your passport, or a copy of another identity document (driving license, firearm license, birth certificate or other document proving the identity of the investor).
- A document confirming the ownership of your bank account (contract for the establishment of the bank account, bank statement of ownership of the bank account, or a bank statement not older than 3 months).
Is my investment public?
Investing is fully anonymous. Bondster DOES NOT share your data with anyone.
What are the conditions for sending the first post-signup payment?
To complete the registration successfully and to invest in the portal, you need to send the first payment from an account listed under your name. If we receive the first payment from a non-registered account, we will require you to provide proof of account ownership and one identity document. In the absence of verification, the money will be returned to you immediately and will not be invested.
How do I send money to a Bondster investor’s account?
Once you have completed your registration, you need only transfer funds through internet banking. You can find all the data under the DEPOSIT FUNDS link in your profile or on the home page. Please follow the instructions there.
Who can deposit money to my account?
The investor can send money only to their own account and from the bank account listed under their name. However, if we receive funds from a different account than that registered in your name, we are obligated to require proof of ownership of the account and proof of your identity. If you do not provide this information, then, in this case, we will send the money back. The first payment on investor account must be always from an account held in the name of the investor account owner.
Where is my money deposited?
You can see your account balance by signing into Bondster. These funds are recorded on a separate account at the Czech bank Komerční Banka.
How and under what conditions can I withdraw money from my investor account back to my personal account?
Whenever you want. If you have free funds on the Bondster account you can transfer them back to your bank account. You can do so via a payment order – link WITHDRAW FUNDS at your profile. The condition for the transaction is the provision of all required identity documents. In this case, we require a copy of the identity card (both sides) or copy of another identity document (driving license or passport) and proof of ownership of the account (bank account contract, account statement etc.).
How much can I withdraw from my investment account? Is there a transaction charge?
The amount is not limited. For a transaction, Bondster does not charge a fee - but consider that you may face bank charges.
When I send my money to my investor account, when will it be available?
You will be credited to the investor account on the day after we receive your funds. Payment from your bank usually takes one business day within the same country or 2-4 days in case of international transfer.
Can I change the bank account from which I send money to Bondster?
Yes, you have this option. To change your account, simply send funds from your new account to your investment account and prove that the account is yours (contract of establishment or account statement).
Can Bondster access the funds on my investor account?
Bondster cannot access your funds without your instruction.
When I withdraw money, when will I receive it to my bank account?
Payment to your bank usually takes one business day within the same country or 2-4 days in case of international transfer.
What bank account can I send my funds to?
Money can only be sent to an account that the investor has registered on the Bondster platform. In this case, a registered account is considered to be an account from which we received an investor’s payment and that has been verified as the property of the investor.
What happens if I send the first payment from a different account than the account listed under my name?
In that case, we will require proof of ownership of the account and one identity document. If it is not possible to prove the ownership of your account by you, the funds will be sent back to the account from which we received the funds.
Can I send money from an account in the Czech currency from abroad?
Yes, it is possible. We support SEPA payments for sending money from abroad. When sending your first payment we require you to use your bank account registered in Bondster platform. Additional payments can then be sent through exchange and money transfer service providers with the license for these services.
What happens when I send my money to a CZK account in a currency other than Czech Koruna?
Funds sent in this way will be automatically converted to CZK in accordance with our bank's conversion rate.
What fees will I pay if I send money in a different currency than in CZK or EUR?
In the case of sending money from abroad, the investor pays the bank's costs associated with the transfer.
What exchange rate will be used to send money to an investor account in a different currency than CZK or EUR?
In this case, the recipient's bank rate will be used, and the investor needs to accept their bank´s costs associated with the exchange.
Can I send money abroad to an account in a different currency than in CZK or EUR?
Yes. The investor needs to accept the costs associated with the transfer.
How is money sent to an account in a currency other than CZK or EUR?
After the order for funds withdrawal, funds are sent from BONDSTER Marketplace s.r.o. account to the registered investor's bank account.
Which rate will be used when withdrawing money in CZK or EUR and sending it to an account in another currency?
The payment service provider is used for sending payments in a currency other than CZK or EUR. The rate of Transferwise rate is used to exchange currency.
Can I use a third party to send money in a currency other than Czech Koruna?
Yes. It can be used by companies licensed for this purpose within the EU. However, in order to be able to send payments to these entities, it is a condition of sending the first payment from an account listed under your name and proof of two identity documents.
How can I start investing?
After registering, agreeing to the business terms, and signing the investor contract, send funds to your Bondster account. Once the Bondster payment has been accepted and verified, you can start investing immediately. It usually takes one day, depending on the speed of bank transfer.
How much time does investing take?
It depends on how much time you spend on investing. If your time is limited, you can use the autoinvest service, which regularly invests according to your preset criteria. Setting it up only takes a few minutes. You are informed about the development of your investments with regular emails including an overview of your assets. For more about autoinvest options, see autoinvest.
What is the minimum and maximum amount of the investment?
You can start investing from 5 EUR (or an approximate equivalent in other currencies). The maximum limit of the total investment is not limited.
How long do I have to hold the investment?
The length of your investment depends on you and on the Bondster loan offer. This means that we offer loans due in several months, but also ones due in several years. In the case of annuity repayments, the loan is repaid on a continuous basis, so your funds are not tied to the investment for the entire maturity date. This way, you can use them for other investments or transfer them to your account.
How often will I receive payouts?
You earn according to the investment conditions. It is most common to receive them monthly, but depends on how regular payments are paid and on the type of loan you have invested in. Repayments may also be made on a short-term or long-term basis, and they could also include a gradual repayment of principal. But you can also invest in a one-time repayment loan where the principal is repaid only at the maturity date of the loan and the interest payments are usually paid on a regular basis over the life of the loan.
How can I invest in published loans?
After signing in to your profile, click INVESTMENT OFFER. By clicking on a particular loan, you will see its details. With the INVEST button, you will be able to choose the amount you want to invest into the loan on the right side of the screen. The system itself monitors the minimum and maximum investment that you can also apply with respect to the current balance on your Bondster investor account. You confirm the contract documentation and after entering your password your investment is completed.
What contractual documents can I expect after an investment?
For each investment made, you will receive a Contract for the Assignment of a Claim, which includes an overview of receivables with the parameters of the investment.
How can I track the return on investment?
You can find all the details of the transaction in the Transactions Overview section. You can also use the filter to get the specific details you are looking for.
What happens when the debtor is in default?
In the My Investments section of your profile, you can see a detailed repayment schedule, detailing the payment history of the loan, and when further repayments are due. The provider, as the loan administrator, is in contact with the original debtor and takes all steps to make sure the installment is paid. If this does not happen, either a buyback or redemption of the loan and subsequent recovery will occur, and we will inform investors in detail.
Am I entitled to default interest?
If the payment is overdue, you are entitled, as an investor, to interest earnings for the period of delay if the loan has a buyback guarantee. If there is no guarantee, you are entitled to penalty charges. The amount is determined within the parameters of the loan.
What are the ways to repay loans?
- Annuity repayments have a fixed monthly installment. During the repayment, the absolute amount of the principal repayment is gradually increased, and the absolute amount of the interest paid is reduced.
- Linear repayment occurs by repayment of a fixed principal amount (i.e. the same proportion) throughout the investment. The value of the absolute amount of interest paid decreases continuously.
- One-off repayment. Only interest is repaid over the maturity of the loan, and the principal is repaid with a single payment at the end of the maturity of the loan. The value of the absolute amount of interest paid is the same for the entire duration of the loan.
Will my identity or the amount of my investment be published in any way?
As an investor, your username or nickname is never shown, so other investors cannot see who has invested in the loan. You can only view how many investors put their money into the loan and how much their total stake in the loan is.
Can I cancel my investment?
If a Guarantee of Liquidity is offered, you can withdraw from the investment at any time during the course of the investment for a predefined fee. If the loan offers periodic exit points from the investment, it can be withdrawn from the investment after this predetermined period of time (weekly, monthly, quarterly, half-yearly, yearly). In justified cases, an investor can ask the loan provider to process the redemption with the conditions under which the loan will be redeemed.
In what currencies does Bondster invest?
You can invest in Czech crowns or Euros.
What exchange rate is used for transfers if I send money in EUR but want to invest in CZK loans?
This is always the bank's current rate on the day the transaction takes place. If you convert the currency to our CZK account, conversion is made to Czech crowns in the receiving bank, i.e. in Komerční Banka. If you make a payment in crowns from a EUR account, the conversion is made at your bank. As such, Bondster does not carry out such a transfer, nor does it charge any fees. For transfers where conversion occurs, we recommend using payment service providers services where the cost of conversion is significantly lower than at a standard bank. The first payment after creating a new Bondster user account must always be, for regulatory reasons, from an account that is listed on your behalf.
What does LTV mean?
Simply it means “Loan-to-value” ratio. It is the ratio of the value of the loan to the value of the collateral. The lower the LTV figure, the more secure the loan is.
What is a buyback?
A buyback ensures that the investor is returned the outstanding principal and unpaid interest payments in the event of a default. Loans that include a buyback can be identified by the “buyback” icon in the Investment Offer list.
How exactly does the buyback take place?
A buyback occurs when a debtor fails to honor his obligations. The buyback is automatically activated after the period specified in the loan parameters (usually 30 or 60 days) and the protection period of 7 days, which is applied due to payments handover process. The Provider then repurchases the outstanding loan and pays the unpaid interest repayments to the investor.
What is a secured loan?
The Bondster portal is unique in offering secured loans guaranteed by the debtor through immovable and movable property. The investor has the assurance that if the debtor is not able to pay, there is real collateral with an established value.
What is a guarantee of exit from the investment?
This feature allows the investor to recover the outstanding principal for a certain period of time after the investment has been executed, for a pre-arranged fee.
What does Guarantee of Liquidity (GL) mean?
This feature offers investors the opportunity to withdraw the invested amount immediately, at any time during the investment for a predefined fee. The remaining principal is refunded immediately upon confirmation. You can identify these loans with the related icon under the Investment Offer section or under the details of the loan where the line entitled “Exit” will show the letters “GL”.
How does a regular exit from the investment take place?
The investor may withdraw from the investment after a certain, predetermined time. Withdrawal can be made if it is offered on the selected loan. Information on the possibility of using the regular exit can be found in the section My investments / investment details. In the case of using this service, the investor is refunded the amount of unpaid principal reduced by the fee for the implementation of withdrawal from the investment. After confirmation of the exit, the amount is immediately credited to the investor's account.
Can the debtor repay the loan prematurely? What impact will it have on my investment?
Yes they can. Your investment will be repaid in full, and you will receive the outstanding principal and interest payments you have on your early repayment date.
Can the provider buy a loan back?
Yes. The provider can buy the loan back at any time, even without investor consent. The investor receives the value of the principal and the interest that he is entitled to on the date the loan is repaid.
What happens if a loan is repaid?
It is essential for the provider that the debtor repays regularly. If this is not the case, they are doing everything in their power to recover the amount owed. In the event that the borrower is late in repaying, there will be either a repurchase or repayment of the loan and subsequent recovery.
How is the recovery of a loan performed?
Recovery is performed by the provider according to its internal processes. Providers, such as loan administrators, make every effort to get the money back. However, in the case of repayment of the loan, it is necessary to incur additional costs which are provided to the providers in the form of a 15% fee on the amount due.
Can I find out who is the original debtor?
With regard to the protection of the debtor, this information is not passed on. The loan is managed by the provider and he takes all necessary steps to get money back. An investor can find all important information in the detail of each loan.
Why do the loans offered on Bondster have returns around 15%? Why do the debtors have such high interest rates compared to commonly offered interest, for example on a mortgage?
By comparison the standard interest rate is around 20% for credit cards of most domestic banks. When investing in loans, there is a risk like any other investment. This is reflected by the interest rate in the investment environment. The rates for which providers offer loans correspond to the debtor's risk profile. Thanks to new regulatory measures, the whole process is more transparent for consumers and guarantees a fair approach by providers to borrowers. Loans cannot be provided by law to heavily indebted borrowers. Providers are required to be able to verify borrowers and, if there is a risk of future default, they must not provide the loan.
Higher returns for an investor are also often provided when financing entrepreneurs who have, for example, appropriate collateral, but are unable to provide their bank with sufficient history and creditworthiness. The interest rate then reflects their risk profile. Thanks to their business, they are also able to pay more interest.
What happens if the provider goes into bankruptcy?
We carefully choose our partners, and we are convinced that this situation will not happen. If the situation does arise, Bondster will fully take on all the loans that are invested in the Bondster market. It will also provides income from debtors and distribution of investors' share of their Bondster accounts.
What is autoinvest?
It is a unique tool that allows you to invest in selected loans based on predefined parameters. This feature saves time. Investments are automatically executed according to the set requirements for maximum and minimum volume when free funds are available for investing. Autoinvest will ensure that your money will always be invested and will not lie on the account. Autoinvest also saves investors’ time with an investment choice.
How do I set up autoinvest?
After logging in to your account in the autoinvest section.
What can I invest in with autoinvest?
With autoinvest you can invest in any loan based on your chosen parameters. These may include, for example, the type of loan, the provider, the type of guarantee, the minimum interest rate etc.
Can I have more than one autoinvestment?
Yes, you may have an unlimited number of autoinvestments. Each one can be set up with your investment strategy.
What does the minimum account balance after autoinvest mean?
The amount of money invested with autoinvest is up to you. You'll always set the minimum balance on your account when setting up autoinvest. The minimum balance so set will always remain in your account and autoinvest will not use these free funds. They will remain on your account at your disposal.
How much money will my autoinvest use?
The amount of money invested by individual autoinvests is entirely up to you. When setting your autoinvests, you can choose how much money any single autoinvest can use by setting the amount to be invested based on your investment parameters (Target amount). Next, you choose whether you would like your principal and interest payments received to be reinvested or not. If you select the option to reinvest your payments received, the autoinvest will keep the set amount invested. If you select the option not to reinvest your payments received, the autoinvest will stop investing once it has reached the set target amount..
How much money does autoinvest use in one investment?
You set the amount of your individual investment when you set up autoinvest and its amount is at your choice. The amount of the investment can be set at the value of the maximum stake in one loan when setting up autoinvest. The set value considers the investments you have made in the past and does not invest more than this set value. It may happen that the total investment in one loan before setting autoinvest will be lower than the set maximum value of a single loan. In this case, autoinvest can also invest in this loan, but up to the amount set.
How can I stop my autoinvestment?
You can turn autoinvests off or remove autoinvests in the Autoinvest section at any time.
Can I still invest manually when I am using an autoinvest?
Yes, in the autoinvest section, you can choose what percentage of your funds you want to invest with autoinvest. You can always invest your funds manually.
Does the autoinvest function cost anything?
Autoinvest is free.
Why did autoinvest not invest in loans?
Depending on the autoinvest parameters set, it can happen that there are no loans available for the autoinvest to invest in. You can easily check whether there are loans in the marketplace in the autoinvest settings where the number of active loans matching your parameters is shown.
How often does autoinvest invest?
The autoinvest checks investments available based on the parameters set every hour. Subsequently, it also starts when new loans or loan originators´ repayments are added to the system. If you have an autoinvest in place, it increases your chances of getting a loan with an attractive interest rate.
Can autoinvest be edited after it has been set up?
Yes. The autoinvest can be edited anytime or can be deleted and replaced with a new one.
What does the reinvest principal and interest option mean?
Within each autoinvest, you can choose whether you want your principal and interest payments received to be reinvested or not. If you select the YES option, the autoinvest will maintain your set volume of investments (the Target amount value in the autoinvest settings). If you select the NO option, the autoinvest will only invest the originally set amount for investments and then it will stop.
What is the diversification by loan originators for?
In the autoinvest settings, you can choose the percentage of your allocated funds which will be invested in individual loan originators. If you select the NO option, the autoinvest will invest your funds at random in all originators or in the originators you choose, depending on the autoinvest parameters set and current investments offer. If you select the YES option, the system will automatically set equal diversification percentages, or you will be able to choose the percentage shares of allocated funds invested in any given originator yourself. You can change the diversification by originator settings at will.
What is the target amount?
The target amount allows you to set the maximum amount the autoinvest can use for investments or hold - in case you have selected the reinvest principal and interest option.
What does the held value mean?
The held value shows you the remaining sum of principals your autoinvest have invested and which are currently held by you.
Loans found - what does this value mean?
The loans found value shows you the current number of loans from the investments offer which meet your investment parameters. If the number of loans found is zero, consider reviewing and editing your search parameters.
Is it necessary to edit my autoinvest when a new originator is added?
You only need to edit your autoinvest if your diversification is set by loan originators and you want to invest in the new originator too. If you are not using the diversification by loan originators, your autoinvest will invest in the new originator automatically, hence you don´t need to change anything.
My autoinvest has stopped, but the amount held is lower than the target amount?
The reason for this is that you haven´t selected the reinvest principal and interest option. The autoinvest has already invested the amount you have set. If you want to, you can turn the autoinvest on again or you can select the option to reinvest principal and interest payments received in the autoinvest settings.
How are our loan providers selected?
All providers who are interested in co-operation are thoroughly vetted for their creditworthiness and lending process. Bondster focuses on customer ethics. Only those partners who can offer our investors suitable conditions for investing are chosen. The main focus is on financial stability, reputation and an ethical approach to lending. The contract and other terms of cooperation with the Providers are defined in such a way that the investor is maximally protected.
For what purpose were the loans provided to applicants?
The purpose of the loan and other detailed information can always be found in the details of the selected loan.
How are the providers who offer their loans on the Bondster market checked?
Loan originators provide Bondster with detailed information on the provided loans that are offered for Bondster funding. At the same time, they provide on a regular basis all the information on installments and other information regarding market lending. Bondster checks on a regular basis also the financial health of providers and monitors their activities in the loan market.
Am I supporting unethical lenders by investing?
There have always been and will be people who need money for their needs. Similarly, there are always those who can invest (borrow) cash. The new legislation has introduced conditions to make sure that the lending process is now significantly more transparent. It provides a fair approach to lenders to borrowers, and also that loans are not provided to heavily indebted borrowers. Providers are legally obliged to examine debtors and, if there is a risk of non-compliance, they cannot provide the loan. In addition, only financially strong companies under strict Czech National Bank regulation, remain on the market, and ensure the fair and ethical behaviour of all subjects.
Why do providers offer Bondster investment loans?
Providers acquire flexibility in the Bondster market in terms of cash flow management and obtaining cheaper financial resources for further development. Funds raised from investors are used to finance other future loans.
What happens if the provider goes into bankrup?
Bondster carefully chooses the partners, and therefore this situation will not happen. If that were the case, however, Bondster fully takes over all the loans that are invested in the Bondster market. It also provides income from borrowers and the distribution of investors' shares in their Bondster accounts.
What are the hedging options for individual loans?
In the Bondster market you will most likely find mortgage-backed securities or movable property. For selected loans, the buyer is offered a redemption guarantee in case of default, a liquidity guarantee or the possibility to withdraw from the investment on a regular basis after the expiry of the pre-determined period from the investment (weekly, monthly, quarterly, half-yearly, yearly).
Under what conditions do non-bank borrowers provide loans?
The basic terms, including the contractual documentation of each provider, can be found on the provider's website.
Does the investor pay a fee for Bondster services in connection with his investment?
Bondster does not charge investors a fee for investing in euros. For investments in the Czech crown, we charge investors a fee of 1% per year of the amount invested. The fee is calculated daily from the currently invested amount (1%/365) and is always charged on the last day of the month.