The abbreviation LTV is derived from the initial letters of Loan To Value. This parameter expresses the percentage of the loan value to the value of its collateral (real estate, cryptocurrency, etc.). The lower the LTV, the higher the security of the investment.

Standard interest rates on credit cards of most domestic banks, for example, are around 20%. Even higher rates can charged on loans with very short repayment periods (e.g. up to one month). Investing in loans carries risk just like any other investment. It is then priced into the investment environment by the interest rate. Providers take the same approach to lending and the rates at which they offer loans reflect the risk profile of the borrower. Providers also often achieve higher returns for investors when financing entrepreneurs who have, for example, appropriate collateral but are unable to demonstrate sufficient history and creditworthiness to the bank. The interest rate then reflects their risk profile. However, thanks to their entrepreneurial spirit, they are often able to pay a higher interest rate.

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.

Recovery of outstanding loans is carried out by the provider according to its internal processes. Providers, as credit managers, make every effort to recover the money owed. However, once the acceleration clause is activated, providers incur additional costs associated with the recovery process and therefore apply a 15% fee from the recovered amount to cover these costs.

It is essential for providers that borrowers make regular repayments. If they don’t, then the provider has to recover the amount owed. If the loan provider offered the buyback guarantee for the loan, in the event of a delay in repayments for more than 60 days, the provider is obliged to return investors the entire principal owed and pay interest (note: for some loans, the buyback period may be shorter). If a loan is offered without the buyback guarantee, the acceleration clause is activated and the process of recovery by the provider is initiated. Investors’ claims are then satisfied from the recovered amount.

Investors can withdraw their investment after a predetermined period. Withdrawals can be made if this option is offered by the loan provider. You can find information about the possibility of using a regular withdrawal in the section My investments/investment details. By using this service, the amount of the unpaid principal is returned to the investor, reduced by the fee for withdrawing the investment. Once the withdrawal is confirmed, the amount in question is immediately credited to the investor’s account.

Regular withdrawal allows investors to get back the remaining unpaid loan principal at regular intervals after the investment has been made for a pre-defined fee. Providers may offer regular withdrawals such as weekly, monthly, quarterly, semi-annually and annually. Conditions for regular withdrawals are described HERE. Loans for which a regular withdrawal from the investment is offered can be recognized in the Investments offer list by this icon /insert icon/.

The liquidity guarantee offers investors the possibility to withdraw the invested amount at any time and immediately during the investment period for a predefined fee. The return of the remaining principal takes place immediately upon confirmation. Investors can recognize a loan with the liquidity guarantee by this /icon/ or by the GL designation under the loan details regarding the withdrawal from the investment.

Buyback occurs when the borrower defaults on their obligations (i.e. the loan they have taken). The buyback is automatically activated after the expiration of the period specified in the loan parameters (note: usually 60 days, can be shorter for certain loans). The provider (i.e. the company that offered the claim on the BONDSTER market, and which also manages the loan) then buys the entire unpaid part of the principal from investors and pays them the owed interest instalments.

Fulfilling the buyback guarantee is the responsibility of the loan provider who offers loans on the BONDSTER platform. This guarantee ensures that the remaining outstanding principal and unpaid interest payments are returned to investors in the event of default. Loans featuring the buyback guarantee can be identified in the Investments offer list by this icon /insert icon/.

On the BONDSTER market, you will most often find loans secured by a lien on real estate or movable property (e.g. an automobile). We are the only platform that offers investments in loans secured by cryptocurrency (note: Bitcoin).

For selected loans, providers offer a buyback guarantee in case of default, a liquidity guarantee or the possibility to regularly withdraw from an investment after a predetermined period of time has elapsed since the investment was made (note: weekly, monthly, quarterly, semi-annually, annually). The loan provider is solely responsible for fulfilling the provided buyback guarantee.

The investment platform BONDSTER is unique in that it offers a range of secured loans where the borrower pledges their own real estate or movable property. Investors can therefore be sure that if the borrower is unable to repay the loan, there is collateral the value of which they know.

It is always the current exchange rate of the bank on the day on which the given transaction takes place. If you transfer euros to our CZK account, the conversion to CZK will take place at the receiving bank, i.e. at Komerční banka. If you make a payment in crowns from a euro account, the conversion will be done in your bank. The BONDSTER platform does not perform any such transfers, nor it charges fees for it. For transfers where conversion applies, we recommend using third-party services – a payment service provider specialising in cross-border transfers, where the costs of transfer and conversion are significantly lower than standard bank fees. For regulatory reasons, the first payment following the opening of an account with BONDSTER must always be made from an account in your name. Currency conversion is clearly explained in our tutorial video Money Deposits and Withdrawals, Currency Conversion.

It is possible to invest in Czech crowns and euros on the BONDSTER marketplace. Any currency conversion can be done easily after logging into your investor account. In the upper right part of the page, simply click on the currency symbols and then select CURRENCY CONVERSION. A page will appear where you will enter the parameters of the desired exchange.

If a liquidity guarantee is offered for the loan, you can withdraw your investment at any time during the term of the loan for a pre-defined fee. If the loan features the possibility of regular withdrawal from the investment, it is possible to withdraw from the investment after a certain, predetermined period of time after its execution (e.g. weekly, monthly, quarterly, semi-annually, annually). In justified cases, the provider can be asked to buy it back, which means that the provider will set conditions under which they will buy the claim back.

It won’t. As an investor, you do not appear under a username or nickname, which is why other investors cannot see who invested in the loan in question. You will only find out how many investors have already allocated their funds to the loan and what the total share on the loan is.

For each investment made, you will receive a Claim Assignment Agreement which includes a claim note stating the investment parameters.

After logging into your investor account, click on the INVESTMENTS OFFER tab. This will bring up a list of investments that are currently being offered. After clicking on a specific loan, its details will be displayed. If you decide to invest in that loan, click the INVEST button. In the right part of the screen, you will choose the amount you want to invest. The system itself will take care of the minimum and maximum investment amounts you can make, while also considering the current balance of your investor account. Next, you confirm the contract documentation and after entering the password you can make a BINDING INVESTMENT.

Manual selection of portfolio investments can be time-consuming for many investors, which is why we recommend using automated investment strategies. There are several preset investment strategies available. If you prefer to have your own rules for selecting investments, you can set your own strategy. It is even possible to have several such strategies.

The minimum investment period shows the investor the shortest possible investment holding period based on the withdrawal options. This period differs from the total maturity of a loan, which can be longer. If a withdrawal is offered for the loan, the investor has the option to withdraw from the investment after a specified period of time (e.g. week, month, quarter, half a year, year). Investors can check the deadline for withdrawing from an investment under the MY INVESTMENTS tab, and during the withdrawal period (5 days), they can manually withdraw from an investment, which means that the remaining principal is immediately credited to their account.

The length of investment is entirely up to you but it also depends on the offer of loans on the BONDSTER market. Your investment horizon needs to be taken into account when choosing loans as well. On the BONDSTER platform, there are loans with maturities ranging from one month to several years.

In the case of annuity repayment, the loan is repaid continuously (i.e. part of the principal and interest income is paid at regular intervals), so your funds are not tied up in the investment for the entire maturity period and you can use them for another investment (i.e. reinvest) or transfer them to your bank account. You can also plan to withdraw from an investment using the available liquidity tools – liquidity guarantee and regular withdrawals.

The minimum amount you can invest in individual loans is CZK 100 or EUR 5. To achieve appropriate diversification, we recommend allocating the total invested amount to many loans from several different providers. The total maximum amount you can invest on the platform is not limited.

It is solely up to you how much time you will devote to investing. If you are short on time and unwilling to select individual loans manually, you can use pre-set investment strategies or set up your own strategies. Free funds on the investor account will be automatically invested according to the criteria you set. Setting up the strategies is a matter of minutes. You will be informed about the development of your investments by regular e-mails including an overview of your portfolio.

After registering, agreeing to the Terms and Conditions and concluding the User Account Agreement, you can send your free funds to your BONDSTER investor account. Once the payment has been received and verified by BONDSTER, you can start investing immediately.