Investment - FAQ
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.
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.
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.
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.
You can start investing from 5 EUR (or an approximate equivalent in other currencies). The maximum limit of the total investment is not limited.
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”.
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.
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.
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.
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.
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.
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.
For each investment you make, you receive an Assignment of Claim Agreement with an overview of the claim and details of the investment.
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.
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.
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.
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.
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.
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.
LTV (Loan To Value) is a ratio that shows the percentage share of the loan value to the value of its collateral (real estate, cryptocurrency). The lower the LTV, the more secured the investment is.