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).
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.
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.
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.
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.
The basic terms, including the contractual documentation of each provider, can be found on the provider’s website.
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.
The purpose of the loan and other detailed information can always be found in the details of the selected loan.