Naturally, when taking part in an investment platform, users might wonder whether there is a possibility of loan not being paid back, whether there is any time limit for it or what one would do if a borrower decides not to pay back?
There is always a possibility that the business that took out the loan will not pay back. However, this does not happen often. There is a time limit given to the borrower - a 15 day grace period, where the interest is still ongoing and we are waiting for the business to pay back. Afterwards we proceed to generate a penalty fee, meaning that the borrower will have to pay back a bigger amount than the original loan + interest. The assets that you have invested in have guarantees, which means that if the businesses cannot or refuse to repay, we have underlying assets that cover the cases of non-repayment (you can find the details of those under each asset, screenshots below). If the asset would not have guarantees, then we would employ debt collectors to collect all of the possible funds. There is also a buyback feature available for some of the loans, which means that the broker will buy back the asset in case of non-payment.