stevio
Member of DD Central
Posts: 2,065
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Post by stevio on Jun 28, 2016 11:58:09 GMT
Hi collateralI'm considering investing and would like to know how you might alleviated the following risks - Default of individual loans - eg quality of asset valuation, Buy back garantees etc - Fraud within you platform - both borrower and employee of Collateral - Collapse and closure of your platform - eg how are the borrower agreements written If anyone else see's other risks, please feel free to add and hopefully Collateral may reply Thanks!
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Post by Collateral Rep on Jun 28, 2016 16:17:15 GMT
Hi stevio , Section 10.1 of our T&C’s covers off your concerns regarding a third party taking on the obligations of the Company -“If Collateral or Collateral Security Holdings cease trading, a third party back up service provider will take on the service obligations.” There are different routes for the exit of the loans in default. For example, we have a property receiver in place to work alongside Collateral in the event of default on property loans, this receiver would work alongside a 3rd party administrator that would be appointed in the event of Collateral ceasing to trade. The administrator would also work in conjunction with our other exit partners such as jewellery retailers/dealers, vehicle traders etc that have underwritten the value of each of the loans in their respective asset classes. We are continually working with our legal and compliance advisors to ensure that we cover off every legal and compliance requirement to protect both the lenders and borrowers positions. Hope this helps, Gordon
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