Deal Partner presence on Grupeer

Dear investors,

Grupeer uses an indirect structure when working with personal loan providers. This means that Grupeer uses its SPV (Special Purpose Vehicle) company Finsputnik Platforma SIA as the “middleman” between the Loan Originator and the Grupeer investor.

The role of Finsputnik

Finsputnik gives the loan to the micro financial organization (MFO), which in turn uses the funds to redistribute funds among its clients and issue future loans. When Grupeer has implemented this structure in the beginning, we decided to show both deal partners on our website. So, the investor could see both: Finsputnik Platforma and the Loan Originator. This set up has raised many questions and appeared to be not user-friendly.

Deal Partners

After multiple requests from investors, we decided to remove the Deal Partner visual set up on our website and are working on improving the usability of our website. The change didn’t happen yet, but we have given notice on the loan deal description page. To show more transparency investors will see the structure of the deals- direct or indirect.

The BuyBack guarantee  

The terms of BuyBack guarantee on all existing and issued loans are not changed. The change will affect the future deals only and it will be announced beforehand.

How it is now (before the announcement)

The BuyBack Guarantee is covered by Finsputnik Platforma.

How it will be (when announced changes will come into effect for new loans only)

In the future, the BuyBack Guarantee will be on the final Loan Originator (the MFO). The personal loan provider (final loan originator) will be solely responsible for the BuyBack guarantee. This means that MFO provides Finsputnik Platforma with various collaterals that can be used in case of the default of the loan. Collateral includes personal shareholder’s guarantee, bank guarantee, physical or financial assets.

BuyBack guarantee is and will remain on Grupeer for all loans, only responsible party will change. Grupeer is constantly auditing its loan originators that might raise or change their rating. The change is not going to affect our business or the security of the investments. This change is aimed at raising transparency and only affects legal set up.

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2 Comments

  1. Thank you for your transparency about this.

    Just to clarify, when there are two deal partners, for example Finsputnik Platforma and Lion Lender.. it is Finsputnik Platforma who will cover the buyback guarantee for loans prior to this particular date of this blog post (4 March 2020). Is this correct?

    It is only for loans issued after the date of this blog post that the buyback will be covered by Lion Lender. Is this correct?

    Thanks

    • Hello, yes you are right. Currently, Finsputnik is liable for the BuyBack Guarantee. After we make changes and announce beforehand, the end borrower will be liable for a BuyBack.

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