What is Grupeer Platform?
Grupeer platform is an electronic trading place that provides an opportunity to invest your free funds in secured loans. The services offered by the Platform are the servicing of claim right acquisition deals, i.e. the Platform brings together two independent participants of the deal – the seller of the claim rights (credit company or investment company) and their buyer.
Is the activity of the Platform legal? What legislation are you regulated by?
Of course, it is absolutely legal. Grupeer Platform operates in the jurisdiction of the Republic of Latvia.
In Latvia, no unified normative regulation of mutual loans or financing with a pool is developed, therefore the services of the Platform are not subject to control of a single normative act, but are subject to a set of laws and regulations of the Republic of Latvia and directives of the European Union.
The Civil Law of the Republic of Latvia does not prohibit the holder of a debt claim from selling a part of it to another person. Moreover, the holder of the debt claim has the right not only to sell the entire debt claim in the whole, but also to assign/sell a part of it.
The Platform does not carry out activities falling under the definition of a credit institution or payment system in terms of Latvian and European legislation.
What are the necessary steps to start making deals on the Platform?
For this purpose, you need to pass registration on the Platform home page, to get access to your posting account (login and password), as well as to credit funds to Platform bank account.
How is the safety of funds transferred to Platform bank account ensured?
The Platform bank account is segregated from Platform’s property, and the funds in this account are not involved in maintenance of economic activities of the Platform.
What is investing in loans?
Grupeer Platform provides an opportunity to invest in loans issued by credit market professionals - credit institutions and investment funds. For all loans, the borrower’s solvency has been assessed, and appropriate scoring and compliance procedures have been carried out.
A Platform user acquires a claim right to the borrower, thereby becoming a joint claim right holder. The credit company by means of such deals refinances a part of its loan portfolio, getting resources for further development.
The credit institution continues to administrate the loan, including receiving borrower’s payments, while paying to the investors their joint share in accordance with the amount of their claim right the borrower they acquired.
What kind of loans can I invest funds in?
On the Platform two types of loans are offered: loans issued by credit institutions to individuals, and loans issued to enterprises. The loans, related to development projects, issued to companies specializing in real estate development projects, stand as a separate category. In all cases, despite the sale of part of the claim right (the so-called “investment in a loan”), the credit company remains the holder of the main debt claim, thus it is interested in following the payment schedule and repaying the loan by the borrower.
For each loan offered on the Platform, specific information is provided, including the purpose and amount of the loan, maturity date, type of payment schedule and availability of collateral. The user independently evaluates and decides which loan to invest in.
What are investments in development?
Investments in development objects offered by Grupeer Platform are also executed through already issued loans, by means of acquiring a claim right, and from legal point of view they do not differ from investing in other loans. A classic example is the situation when a loan issued to developer for acquiring a land plot (bringing communications, developing a technical project, etc.) is refinanced in this manner. In practice, these loans have the nature of interim financing (so-called bridge loans), with a 1-2-year term – usually this period is required to complete the “zero cycle” of construction, after which the object, having at this stage a much higher market value, is refinanced by the bank and partly – by real estate buyers through pre-sales in case of a residential project. Such a model is typical for many EU countries, for example, Germany.
What is an assignment? What are the assignor and the assign?
Within the meaning of the Civil Law, assignment is conveyance of claim rights. In the context of deals that are closed on Grupeer Platform, assignment implies the sale of a claim right resulting from loan agreement, or a part thereof.
The assignor is the owner of the claim right, which, according to assignment agreement, transfers the claim right or a part of it to another person (the assign).
The assign is the person that acquires the claim right or a part thereof from the assignor.
How will the deal I conclude be confirmed legally?
The deal of claim right sale is executed by an assignment agreement, which specifies the amount of the claim rights and the conditions it is acquired on.
The assignment agreement stipulates all terms of the deal, including the principal and maturity date of the loan, as well as the interest rate. Before signing the agreement you will be given the opportunity to fully familiarize with the terms of the deal.
The agreement is concluded remotely, i.e. without signatures of the parties, but has full legal force.
The assignment agreement is deemed to be concluded and enters into force from the moment when the assign has confirmed the acquisition of the claim right in its user profile. The assign enters into the claim right from the moment of acquisition.
The conclusion of agreements remotely in electronic form in the order that it takes place on the Platform is fully in line with the legal norms, and the legal force of such agreements is absolutely equivalent to their paper original.
Who has a right to close deals on the Platform?
Persons that have reached the age of 18 years and are residents of the countries of the European Economic Area or Switzerland and have an account with a licensed credit institution of one of these countries.
The persons that have a bank account in another country need to receive an additional confirmation from the Platform that we are ready to accept a payment from the jurisdiction they offer.
The citizens of which countries can register and close deals on the Platform?
In accordance with AML (Anti Money Laundering) legal requirements we accept money transfers from accounts opened with licensed credit institutions in the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. Accordingly, citizens / residents of these countries can register and make investments through the Grupeer Platform. In order to register and close deals, you need to be an adult capable person with a bank account.
Can I register as a legal entity?
Yes, both natural and legal persons can register and make investments on Grupeer Platform. The requirement to have a bank account in one of the licensed credit institutions of the countries of the European Economic Area or Switzerland is applicable to legal persons as well. When registering a legal entity, it is mandatory to indicate the data of the official representative. Additionally, the Platform has a right to request a document confirming the legal basis for such representation.
What is user identification number?
It is a unique combination of capital letters ID and numbers assigned by the Platform to the user at the time of registration and allowing to identify him or her during the implementation of any transactions through the Platform. The identification number must be indicated each time when making a wire transfer to Platform bank account.
What is user’s posting account?
Posting account is an individual accounting system that provides the user with a service for accounting the deals closed using the Platform. Posting account is not an individual stand-alone account in the terms of banking services or payment system services.
How to activate my profile?
The user profile is activated automatically upon completion of registration on the Platform. The confirmation of registration will be sent to your email address, after which you can enter your user profile using the login and password specified during registration. However, in order to start closing deals on the Platform, you need to confirm your bank account. For this purpose, you need to transfer any amount in euros to Platform bank account, specifying your identification number in the field “payment purpose”.
What is the minimum amount necessary to start work on the Platform?
To begin work on the Platform, you need to transfer an amount which is not less than the minimum investment amount (10 euros).
Should I provide information on the origin of funds?
What information or documents do I need to provide to the Platform for identification and KYC purposes?
The Platform keeps and processes the personal data of the clients in accordance with our Personal Data Protection Policy.
What are the possible ways of money transfer?
The only possible means of payment at the moment is bank transfer. This is due to AML (Anti Money Laundering) legislation requirements. We accept money transfers from accounts opened with licensed credit institutions of the countries of the European Economic Area (all EU Member States, Norway, Iceland and Liechtenstein), as well as Switzerland. For security purposes, withdrawal of funds is possible only to a confirmed bank account, i.e. the account which you transferred funds from to Platform bank account and which your user identification number is associated with.
Can I transfer money to the Platform via an electronic wallet?
No, you can’t. The only possible means of payment at the moment is bank transfer. This is due to AML (Anti Money Laundering) legal requirements.
Can a third party transfer funds from its account to Platform bank account in my favor, provided that my identification number is specified?
No. The user can transfer money to Platform bank only from his own bank account.
I lost my password. What should I do?
If you forgot your password, you have the option to restore it via the Platform homepage by making an appropriate request. A new (temporary) password will be sent to your email. For security reasons, we strongly recommend that you immediately use the temporary password and change it.
I have suspicions that someone is using my account on your Platform. How can I secure my data?
In this case, first of all, you should immediately change the password from the user profile. If for any reason this is impossible, please contact our Technical Support Service at email@example.com, and our specialists will temporarily block your profile.
I made a wire transfer to Platform bank account. When will the funds appear on my posting account?
Grupeer banking system distributes the funds of registered users once a day for the prevoious working day. This is due to security requirements – before distribution, the user’s identification number and its correspondence to the bank account number are verified. Thus, the funds will be reflected on the user’s posting account on the next day after they are received on Platform Bank account. As regards the interbank transfer, i.e. funds transfer from the user’s bank account to Platform bank account, we cannot guarantee the timing, as it depends on the specifics of the work of a particular bank, including the number of clearings, correspondent banks, etc. However, within the European Union an interbank transfer in euros within the SEPA system most often takes no more than 2-3 working days.
Is there a limitation of the minimum amount of money transfers?
There are no limitations of the minimum amount of money transfer to Platform bank account or the withdrawal of funds, however, one should take into account that the minimum investment in the deals offered on the Platform is 10 euros.
Is there a limitation of the maximum amount of money transfers?
At the moment, the limit of incoming payments from a registered Grupeer user to Platform bank account is 50,000 euros per month. If you wish to invest a larger amount, you will need to provide the bank with additional information.
What is the currency of payments?
The Platform makes settlements in euros (EUR). If the base currency of your current account is another currency, then before making a payment, you need to convert it into euro. In case of receiving funds in another currency, the Platform is entitled to return such a payment, retaining the commission in accordance with the bank’s tariffs, or convert them into euros at the current exchange rate of its bank.
Where can I get information about the transactions I have made and the amount of available funds?
Detailed information is available in your user profile. For the convenience of users, all transactions made and all movements of funds in posting account are displayed in the form of a table, where the date, the amount and the essence of the transaction, as well as its registration number are indicated. You can view the transaction history at any time for any specified calendar period from the moment of your registration, as well as to make the necessary printouts or transfer the data to an electronic format and save it in your computer. If you have any questions or need more information, please contact our support team at firstname.lastname@example.org.
How do I get money back to my bank account?
In your user profile, you make an order for the withdraw of your currently available funds in the required amount for a refund. The Platform is obliged to execute this order within 3 working days.
Can I get money to another bank account? Can I operate multiple accounts?
You can use only the bank account that is identified in the Platform system as your account. The user can have several approved accounts - for this purpose, from any bank account you wish to approve, you need to transfer any amount of money to Platform account, specifying your identification number.
How long does the Platform process an order for money withdrawal?
According to the User Agreement, which is concluded in the process of registration of the user, the Platform shall process the order and transfer the funds to the user within 3 working days. In practice, the orders are processed on daily basis, and upon verification and approval of the order by the Platform the funds will be transferred immediately.
Can I withdraw all my money from the Platform?
Yes, you can do it at any time. Under the Civil Law, the funds received by the Platform from the user are an advance payment necessary for the conduct of business. You have the right to request a withdrawal of the funds that are currently not involved in transactions on the Platform (your free balance of funds).
Is the income from deals concluded through Grupeer Platform subject to taxation? If so, what is the applicable tax rate?
According to the legislation of the European Union, the place of conclusion of a deal when purchasing a product or service is the location of the acquirer. Accordingly, the income receival jurisdiction is the country of your residence, or registration. When you withdraw money from the Platform account to your personal bank account, you pay the tax in accordance with the laws of your tax jurisdiction.
What is the security used for the loans I acquire?
In the description of each deal the security interest of the loan issued is specified. It an include, for example, real estate objects, cars, company assets or shares, personal guarantee, third party guarantees, etc. An additional guarantee for the purchaser of the claim right is Buyback guarantee, or claim right buyback obligation, provided by the credit company.
Can I know who is the borrower?
Personal data of the borrower are protected by law and are not subject to disclosure, except for the situation when the acquirer of the claim rights (Platform user) has grounds for a direct claim to the Borrower. This is possible only in case of default both of the borrower and of the company that issued the loan.
How is borrower’s solvency assessed?
Initially, borrower’s solvency is assessed by the credit institution before the loan is issued. For loans issued to legal entities, Grupeer Platform attached the results of such an assessment, or scoring, to the description of the deal. Before placing a proposal for investing in a loan on the Platform, the Platform specialists conduct their own independent evaluation, based on results of which the decision to place the deal in full or in part is taken.
What is an approximate percentage of delayed loans out of total loans offered on the Platform?
At the moment, all loans sold through Grupeer Platform are current, i.e. do not have payment delays. In case of delay of payments for 60 days or more, the Buyback guarantee comes into force.
What are the risks when investing through the Platform?
All commercial deals are to some extent exposed to risk, the assessment of which is often subjective and depends on a number of factors. However, we take maximum efforts to minimize the risks for the users of the Platform:
- all loans offered on the Platform have been issued by lending market professionals, and relevant procedures to assess the borrower’s solvency have been conducted;
- experts of the Platform conduct additional, their own assessment of the deals;
- credit organizations that place their offers on the Platform have undergone an independent evaluation, provided by companies specializing in financial analysis, risk management and audit services;
- at the moment all deals offered on the Platform are secured with Buyback guarantee.
What is Buyback guarantee?
The existence of Buyback guarantee for a particular loan means that in case the borrower delays the current payment for the loan for a period exceeding 60 calendar days, the credit company that issued this loan is obliged to immediately buy back both your share in the loan and the shares of the rest of the investors in the amount of outstanding principal of the claim and accrued, but not paid interest.
Buyback guarantee is stipulated in the agreements between the Platform and credit organizations. The existence of such a guarantee for a particular deal offered on the Platform is specified in its description, as well as in the description of the acquired claim right during the conclusion of assignment agreement.
At the moment all deals offered on the Platform are secured with Buyback guarantee.
Can I cancel my investment?
No. The Platform system exchanges information with credit companies in automatic mode. Once you have purchased a part of the loan, the credit company considers it to be sold, and the Patform’s obligation to pay an according amount to the credit company comes into effect.
Which moment is my interest on the closed deal calculated from?
It is calculated, starting frrom the moment of acquisition of the claim right.
How shall be the loan payments received?
The loan company that issued the loan, within the frame of which you purchased the claim right, continues to administer this loan. Upon receipt of payments from the borrower, the company transfers money to the account of the Platform. The Platform distributes the funds received between the investors in accordance with the size of their share.
What is the schedule of payments? Will I be repaid principal on monthly basis, or just interest?
You can see in the description of the deal both the planned schedule of loan repayment and the history of previous payments. For each deal the schedule can be set individually, depending on the terms of the loan agreement. However, in practice, the following two main types of payments are used the most often:
- with a monthly payment of interest on the loan and repayment of principal on maturity day - this type of payment schedule is typical in case the borrower is a legal entity;
- with gradual amortization of principal, or so-called annuity schedule, when equal monthly installments include repayment of a part of principal and interest on the outstanding principal – this type of schedule is usually applied to individual borrowers.
How is the claim right exercised in case of default or cessation of existence of the credit company?
In the territory of the Republic of Latvia, the jurisdiction of Grupeer Platform, an advocate bureau holds all agreements with the borrowers, and the Platform regularly provides information on all transactions closed deals thereto as well. In case of default or cessation of existence of the credit company, the bureau will represent your interests and will provide maximum assistance in debt recovery.
Can I close my posting account and my user profile and delete my transaction history from the Platform?
Based on security requirements, as well as AML (Anti Money Laundering) legislation requirements, the Platform does not have the right to delete your data, as well as transaction history. However, user profile and posting account can be deactivated or closed for use by our technical service at user’s request. In addition, the Platform is entitled to close posting account if the user profile has not been in use for more than 12 months.
What is cashback?
This is a part of the bonus program of Grupeer Platform, applied to separate offers, placed on the Platform. Within the framework of this program, the users on the conditions stipulated by the Platform will receive a special bonus in the form of an increase in the amount of funds displayed on posting account. These funds can be fully used to work on the Platform.
Cashback is calculated from the amount of the deal (usually 1%) and applied to the deals closed within a certain period of time when this bonus program is in force. Cashback can be subject to additional conditions and is not applied automatically to all deals closed on the Platform.
Does Grupeer Platform have a referral system?
Yes, Grupeer Platform offers a referral system, i.e. an opportunity to earn extra (passive) income, regardless of whether you close other deals. This feature is available for registered users.
When you enter your user profile in the section “Deposit / Withdraw” you will find the referral link generated by the Platform – an individual link, by means of which you can invite other Internet users to use the services of the Platform. Your referral income will be calculated as a percentage of the deal amount (from 0.5% to 1.25% depending on the term) for all deals closed made by the user who registered on Grupeer Platform following the referral link.
You will find a more detailed description of the referral system in your profile. In addition, through the user profile you can track the number of users who used your referral link, and see the amount of deals they closed.
Where can I place the referral link?
What risks can I face when purchasing claim rights within the loans issued?
1) Risk of default on obligations of the borrower. If your deal was secured with a Buyback guarantee, then in case the borrower delays payments for more than 60 days, the credit company is obliged to pay you the full amount, including the accrued interest.
In case the deal is not provided with such guarantees, the payment will be made to you after the procedural actions on debt recovery and sale of collateral in accordance with the legislation of the country where the loan was issued.
At the moment all deals offered on the Platform are secured with Buyback guarantee.
2) Risk of early repayment of the loan. Shall the borrower make an early repayment of the loan, the invested funds will also be returned to you earlier, which can reduce the expected profit from a particular loan. Also, the credit company has the right to terminate the assignment agreement, buying back the claim right from you at its residual value. However, in both cases your funds will be released earlier, and you will be able to invest them in a new deal.
How much do the services of the Platform cost?
For Platform users its services are provided free of charge. The Platform reserves the right to introduce a commission for the use of its services in the future, notifying the users about it. However, even if such a fee is introduced, it will not be extended to the services received at a time when this fee was not applicable.
Are my personal data protected?
Yes. Your personal data are protected in accordance with the current legislation of the Republic of Latvia.
I still have questions. How can I contact you?
Email us at email@example.com. Grupeer Technical Support Service makes every effort to respond to user requests as soon as possible. If your question is highly specialized, legal or financial, Grupeer Technical Support can forward it to the appropriate specialist of the company to provide quality and comprehensive information. In this case, it may take several days for the answer to be received.