Grupeer peer-to-peer lending marketplace overview

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Grupeer platform is an electronic trading place that provides an opportunity to invest your free funds in secured loans. The services offered by the Platform are the servicing of claim right acquisition deals, i.e. the Platform brings together two independent participants of the deal – the  seller of the claim rights (credit company or investment company) and their buyer.

Grupeer Platform operates in the jurisdiction of the Republic of Latvia.

In Latvia, no unified normative regulation of mutual loans or financing with a pool is developed, therefore the services of the Platform are not subject to control of a single normative act, but are subject to a set of laws and regulations of the Republic of Latvia and directives of the European Union.

The Civil Law of the Republic of Latvia does not prohibit the holder of a debt claim from selling a part of it to another person. Moreover, the holder of the debt claim has the right not only to sell the entire debt claim in the whole, but also to assign/sell a part of it.

The Platform does not carry out activities falling under the definition of a credit institution or payment system in terms of Latvian and European legislation.

Who is eligible to invest?

Both private investors and legal entities that wish to receive passive income from their investments will be able to achieve annual profits of up to 15%.

In accordance with AML (Anti Money Laundering) legal requirements Grupeer accept money transfers from accounts opened with licensed credit institutions in the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. Accordingly, citizens / residents of these countries can register and make investments through the Grupeer Platform. In order to register and close deals, you need to be an adult capable person with a bank account.

The credit company, which issued a certain loan, remains interested in repayment and payment schedule compliance because this organization is the holder of the main debt claim.

Each registered Platform user can see all the information on a particular loan: the amount and purpose of the loan, the availability of collateral, the maturity date and the payment schedule. You independently analyze the information and decide how to direct your capital investment.

For example, you can repurchase the whole loan from the chosen creditor or only a certain part of it. All the time while payments on this loan are received the investor receives his profit, which is proportional to his investment share. At the same time, you can distribute your capital between several credit organizations – to invest in various types of loans, in different countries and for different borrowers.

In what currencies can investments be made?

The Platform makes settlements in euros (EUR). If the base currency of your current account is another currency, then before making a payment, you need to convert it into euro. In case of receiving funds in another currency, the Platform is entitled to return such a payment, retaining the commission in accordance with the bank’s tariffs, or convert them into euros at the current exchange rate of its bank.

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How can funds be transfered?

The only possible means of payment at the moment is bank transfer. This is due to AML (Anti Money Laundering) legislation requirements. Grupeer accept money transfers from accounts opened with licensed credit institutions of the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. For security purposes, withdrawal of funds is possible only to a confirmed bank account, i.e. the account which you transferred funds from to Platform bank account and which your user identification number is associated with.

Investing

Grupeer Platform provides an opportunity to invest in loans issued by credit market professionals – credit institutions and investment funds. For all loans, the borrower’s solvency has been assessed, and appropriate scoring and compliance procedures have been carried out.

A Platform user acquires a claim right to the borrower, thereby becoming a joint claim right holder. The credit company by means of such deals refinances a part of its loan portfolio, getting resources for further development.

The credit institution continues to administrate the loan, including receiving borrower’s payments, while paying to the investors their joint share in accordance with the amount of their claim right the borrower they acquired.

On the Platform two types of loans are offered: loans issued by credit institutions to individuals, and loans issued to enterprises. The loans, related to development projects, issued to companies specializing in real estate development projects, stand as a separate category. In all cases, despite the sale of part of the claim right (the so-called “investment in a loan”), the credit company remains the holder of the main debt claim, thus it is interested in following the payment schedule and repaying the loan by the borrower.

For each loan offered on the Platform, specific information is provided, including the purpose and amount of the loan, maturity date, type of payment schedule and availability of collateral. The user independently evaluates and decides which loan to invest in.

Investments in development objects offered by Grupeer Platform are also executed through already issued loans, by means of acquiring a claim right, and from legal point of view they do not differ from investing in other loans. A classic example is the situation when a loan issued to developer for acquiring a land plot (bringing communications, developing a technical project, etc.) is refinanced in this manner. In practice, these loans have the nature of interim financing (so-called bridge loans), with a 1-2-year term – usually this period is required to complete the “zero cycle” of construction, after which the object, having at this stage a much higher market value, is refinanced by the bank and partly – by real estate buyers through pre-sales in case of a residential project. Such a model is typical for many EU countries, for example, Germany.

To begin work on the Platform, you need to transfer an amount which is not less than the minimum investment amount (10 euros).

At the moment, the limit of incoming payments from a registered Grupeer user to Platform bank account is 50,000 euros per month. If you wish to invest a larger amount, you will need to provide the bank with additional information.

 

 

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