What happens if loan originator fails

Is it safe to invest with Grupeer and what guarantees does the investor has?

Our investors can be sure the investing with Grupeer is safe because they receive three-step-security in respect of their investments.

Firstly, we want to highlight that Grupeer is providing a platform ensuring the legal base, transaction control as well as the due diligence procedures by our highly skilled analyst team.

We conduct research and financial analysis of the Partners (loan originators). It is our work to identify partners with real assets. To choose the best opportunities for you our analysts go through the credit companies’ legal documents, financials, loan portfolio, and lending policy. This allows us to include in our offering and publish only the best investment opportunities for you and reject risky loans. Given that our clients (investors) never had a delayed payment, means that we are working in the right direction. If you invest in the loan listed on our platform, you should have a peace of mind and know that the money is in a safe place.

Secondly, investments are secured with BuyBack Guarantee. This means that if the borrower goes bust or defaults on a loan, our partner- the loan originator is required to BuyBack the defaulted loan and ensure the repayment of the principal and interest in full amount. Our clients are notified beforehand, that this situation has happened.

And finally, another very unlikely risk that investors may encounter is the bankruptcy of the loan originator. In this improbable scenario (as all our partners get checked by our analysts), the claiming rights will belong to investors, not the Grupeer. However, this doesn’t mean that you will be left alone vis-à-vis the borrower. All investors who have been affected by failing loan originator will be represented as a group by highly qualified lawyers appointed by Grupeer for this matter. The clients will get introduced to a lawyer, who will be their point of contact in this matter. The lawyers will communicate with the liquidator of the loan originator company and will ensure that the claimed rights of Grupeer investors are satisfied. Grupeer will be managing all issues connected to this process and will ensure investors’ interests are satisfied and handled in the best possible manner and invested amounts are returned in full.

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