We would like to inform you that in the following weeks there might be delays in transferring payments arising from the repayments or buybacks to your Investors' accounts due to a slowdown in cash flows from the providers caused directly or indirectly by the spread of coronavirus.
We apologize for the inconvenience on behalf of Bondster and on behalf of our cooperating providers. We are working intensively on the remedy.
1. How can the delay in repayments or Buyback occur?
Transfer of the Debtors’ repayments to the Investors and realization of Buybacks is an obligation of the Provider. In the event that the Provider's Virtual Account maintained on the Bondster Portal shows an insufficient balance, it is not possible to make payments through it, including realization of Buybacks and transferring the Debtors’ repayments to Investors' Virtual Accounts. Everything depends on Provider’s timely fulfillment of its obligations, which in this case means ensuring a sufficient balance in its Virtual Account. If the Provider does not have sufficient funds in the Virtual Account, it is unfortunately not possible to make respective payments.
2. What is the function of the Virtual Account of the Provider?
Virtual Account is a technical account that every Provider uses on our Portal for the settlements of the Users´ Payments between him and the Investors. Providers transfer to this Virtual Account Debtors’ repayments, which are then transferred to Investors based on their share in each particular loan (the value of a Claim), or pay the price of Buybacks through it. Investors, on the other hand, pay to this Virtual account the price for the purchase of the Claim into which they invest.
3. What causes the insufficient balance on the Provider’s Virtual Account?
It is usually a combination of multiple factors. Bondster thoroughly assesses the quality and credibility of the Providers so that they normally maintain a sufficient balance in their Virtual Accounts. However, during the current extraordinary circumstances, there may be some delays in the transfer of funds to the Provider's Virtual Accounts and thus short term shortage of funds in their Virtual Accounts.
Author: Jana Mücková, CEO