How are loan providers selected?
All providers who are interested in co-operation are thoroughly verifying the creditworthiness and lending process. Bondster focuses on customer ethics. Only partners those can offer our investors interesting conditions for investing are chosen. The main focus is on financial stability, reputation and ethical approach to lending. The contract and other terms of cooperation defined with the Providers are defined in such a way that the investor is maximally protected.
For what purpose were the loans provided to applicants?
The purpose of the loan and other detailed information can always be found in the details of the selected loan.
How are the providers who offer their loans on the Bondster market checked?
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.
Do not I support usury by my investment?
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, which are under strict Czech National Bank regulation, remained on the market, that control the fair and ethical behavior of all subjects.
Why do providers offer Bondster investment loans?
Providers acquire flexibility in the Bondster market about cash flow management and also obtain cheaper financial resources for further development. Funds raised from investors are used to finance other future loans.
What happens if the provider goes into bankrup?
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.
What can be the hedging instruments of individual loans?
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).
Under what conditions do non-bank borrowers provide loans?
The basic terms, including the contractual documentation of each provider, can be found on the provider's website.