Bondster puts high priority on the security and liquidity of investors´ funds.
Bondster is unique that the investments are protected by the loans´ collaterals, which can be real estate or other movable property. In case of loan default by the debtor, this loans´ collateral is sold. From the return on sale the investors´ claims are fulfilled.
The buyback guarantee is an another form of security. The loan originator guarantees the investors the return of the outstanding principal and unpaid interest payments in the event of debtor´s default.
These forms of security, together with portfolio diversification, greatly reduce the risks of investing.
When investing on Bondster marketplace you are provided with a variety of tools to determine when your invested funds are set to become available.
With the choice of the specific loan you invest in, you also choose the length of maturity. Bondster offers loans with a maturity of one year or longer.
For selected loans, loan providers allow premature termination of the investment.
Guaranty of Liquidity offers the possibility to withdraw the invested amount immediately at any time.
Periodic withdrawal offers the opportunity to terminate the investment at regular intervals, usually monthly, quarterly, or annually.
Early termination may incur a charge.