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Post by extremis on Aug 7, 2016 20:57:47 GMT
I am considering to invest on Investly, but first i need some information:
1) Is it (or planning to get) regulated by a financial authority?
2) Where can i find the financial data for Investly?
3) Are there any provisions made for the case of Investly folding? (e.g. any third party that will make sure that active invoices will be paid back to investors even after Investly's default).
4) What will Investly do with an investor's funds in case there is account inactivity for a prolonged period (e.g. investor's neglect or even death)?
5) Is there any invoice recourse and/or personal guarantee offered with invoices? What is the procedure followed in case of a borrower's default? What is the expected rate of recovery and time needed for recovery?
Thanks in advance for any info.
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Post by kristjan on Aug 8, 2016 10:49:32 GMT
1) Is it (or planning to get) regulated by a financial authority?
Invoice discounting is not a regulated activity neither in UK or Estonia. Hence, the financing activity is not regulated. However, we have registered for AML/KYC compliance with the FCA
2) Where can i find the financial data for Investly?
Annual reports for all Estonian companies are available on the Centre of Registers and Information Systems website rik.ee. Investly Ltd is consolidated under Investly Holding OÜ. I will upload a copy or a link to it today.
3) Are there any provisions made for the case of Investly folding? (e.g. any third party that will make sure that active invoices will be paid back to investors even after Investly's default).
We have partnerships in place with several collection agencies in Estonia and UK to continue debt collection should Investly seize operations.
4) What will Investly do with an investor's funds in case there is account inactivity for a prolonged period (e.g. investor's neglect or even death)?
Issues like this will be handled on a case by case basis.
5) Is there any invoice recourse and/or personal guarantee offered with invoices? What is the procedure followed in case of a borrower's default? What is the expected rate of recovery and time needed for recovery?
In the case of debtor insolvency, we will ask the seller of the invoice to repurchase the invoice in full (principal + interest + any overdue fees). So far we haven’t had any defaults. The seller company director also provides a personal guaranty.
The recovery rate very much depends on the profiles of the seller and the debtor. We have rejected a number of potential customers due to the financial weakness of their clients (the debtors) to protect investors from undue risks. The companies that we do accept are not homogeneous and as such, will have different recovery rates in case of default. We display credit ratings next to each company (both the seller and the debtor) to provide investors a chance to make an educated decision. The ratings are provided by trustworthy sources (Experian and DueDil in the UK, Krediidiinfo in Estonia). The better the rating, the lower your risk of losses.
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Post by extremis on Aug 8, 2016 18:52:18 GMT
Thank you very much kristjan for the information. I am waiting for the annual financial report. Regarding your partnerships with several collection agencies in Estonia and UK in order to continue debt collection should Investly seize operations, could you be more specific? Who are they, may i ask, and have you set aside any funds to enable them to continue debt collection if ever Investly defaults? Platform default risk is a very serious concern for all of us, investors, as the recent (unfortunate) example of Trustbuddy has shown. Also, i would certainly feel more secure if you had made provisions for the case of prolonged account inactivity. Let's say something (bad) happens to me; i would like to be sure that my family will get all of my funds. IMHO, you could make a rule that if no funds are invested for a long period time (e.g. more than a year) and no login has been made for this period of time, all funds are transferred back to the investor's bank account. Finally, how many investors do you currently have and what is the total amount invested? Thanks again for your support. |
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Post by kristjan on Aug 9, 2016 12:35:27 GMT
1) We have several partners. The specific agency that will handle the payments will be determined based on the situation. It would be premature of me to provide a specific name when in fact a different agency might be chosen. 2) We monitor account activity on all accounts and will take action if needed. As I said, it is a case by case approach. We've already had a case where one of our investors passed on and we have the necessary processes in place to deal with such occurrences. 3) Currently we have close to 700 investors. The total amount of invested funds stands at £46,000 in the UK and €550,000 in Estonia. 4) Annual Report: Investly Holding AR 2015.pdf (36.78 KB) |
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