Everything you need to know about the future of BuyBack Guarantee

Dear clients, on the 23rd of September Grupeer, has made changes in the BuyBack Guarantee clause. More specifically, the BuyBack Guarantee will not be applicable to all future projects listed on the platform. We received many questions regarding this change and in this article, we gathered most frequently asked questions. You can read the answers below.

Which projects and deals are not protected by BuyBack guarantee (BBG)?

Currently, all development projects and loan deals are protected by BBG. The changes in Terms and Conditions were made as a provision for future loans that will be placed on Grupeer platform. When the first deal without the BBG will be placed on Grupeer platform, all our clients will be notified. And of course, you will receive a higher yield for such investment opportunity to compensate for the additional risk.

Why projects with no BuyBack are placed on the platform?

First of all, we have included this option due to the possibility of placing such projects on the platform. In the future, some loan originators might prefer not to offer BuyBack Guarantee, instead, they would like to offer a higher interest rate.

Secondly, the interest rate is the price of risk-taking. Some clients have a higher risk appetite than others and this option is a provision to offer a higher interest rate for those who want it.

What happens to old development projects and loan deals- are they affected?

Please do not worry, the old projects and loan deals are not affected by the edit in the terms. The same rules apply to the projects, that were active when you have invested in them. Even after Terms and Conditions changed, you will see the deals which are protected by BuyBack Guarantee (it will have a green “Shield” badge next to them). The ones that will not have a BBG, won’t have this badge next to them. Currently, only protected-by-BuyBack Guarantee projects are available on the platform.

Can I choose in Auto-invest NOT to invest in projects with no BuyBack Guarantee?

Currently, all projects are protected by BuyBack Guarantee and you don’t need to switch off your Auto-invest strategies. In a few days, our IT team will offer a solution to filter these criteria, when setting up an Auto-invest strategy. Currently, when the solution will become present, only “with BuyBack Guarantee” option will be available. As soon as the projects without BuyBack guarantee will be available on the platform, you will be able to update the filter according to your preferences, choosing only deals with BBG, without BBG or both. Therefore, Auto-invest will never invest in projects without BuyBack guarantee without your explicit choice.

Is BuyBack Guarantee related user agreement update connected to change of the jurisdiction to Ireland?

No, this is not connected to the move of our legal address. We are registered in Ireland and comply with Irish law. The sole purpose of BuyBack Guarantee-related changes is to provide the option in the future to offer Loan originators that may not be willing to provide BuyBack guarantee.

Are the changes to Terms and Conditions in effect without the client’s consent?

The clients are notified regarding the changes on our website and via email. If you accept the updated T&C, you don’t need to do anything. If you do not accept the conditions, you need to notify Grupeer via [email protected]. You have 30 calendar days to reject the updated terms. In the case you reject the updated terms, if there are relevant and valid Assignment Agreements or your outstanding obligations, we shall prohibit you from using our services, including to conclude new Assignment Agreements, but shall allow access to your posting account until all funds are withdrawn.

We hope that the details about the change in BuyBack Guarantee clause are clear now. If you have additional comments or questions, please feel free to contact us via [email protected] or comment here.

Your Grupeer team

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