P2P Notes

faq

Invest and grow your savings

Before you invest in Symfonie P2P Notes you should consider the risks of investing and your own personal and financial circumstances. If you’re unsure whether P2P lending is right for you, you should seek independent financial advice before you start. Remember, as you’re lending to businesses your capital is at risk.

We’ve prepared some answers to questions our clients often act.  We strongly recommend you to read Investment  Terms and Conditions prior to making any investment.  If you have any questions, please feel free to contact us by e-mail or by telephone.

What is a Note?

A Note is a loan. When you purchase a Note you are lending money to the Note Issuer.

Who is the Issuer?

Symfonie P2P Lending Trust is the issuer of the Notes.

Symfonie P2P Lending Trust is a special purpose Trust legally established under the laws of Delaware, USA.  The only business the Trust can conduct is investing in P2P loans, bonds and other fixed income instruments.

How does the Trust work?

The Trust borrows money from investors. The Trust invests that money into P2P loans, bonds and other fixed income instruments. The principal and interest the Trust receives from its investments is used to pay principal and interest to the Noteholders.

Does the Trust use leverage?

The Trust can only invest its equity capital plus the loan proceeds from the Noteholders.

How is my investment protected?

All the assets in the Trust are legally the property of the Trust and held for the benefit of the Noteholders.  The money cannot be used for any other purpose than to invest in P2P loans, bonds and other fixed income instruments and to repay Noteholders.

Symfonie Capital, LLC, manages the investments of the Trust.  Symfonie Capital, LLC is registered with the US Securities and Exchange Commission as an investment advisor.

Is my investment insured?

No. There is no guarantee or insurance.

Can I lose money I invest in the Trust?

Yes. If the loans in which the Trust invests are not repaid the Trust won’t have enough money to repay its Noteholders, so you can lose money.

Does the Trust have a Loan Loss reserve?

Yes! Symfonie Capital LLC and its affiliates placed reserve capital into the Trust. Also, money the Trust earns over and above the interest used to pay Noteholders is maintained as reserve capital in the Trust.

How does the Loan Loss Reserve Work?

The Loan Loss Reserve is a source of cash and investments the Trust can use in order to ensure that payments of interest and principal due to the Noteholders can be made.

Currently the loan loss reserve is 3%.  This means that for each $100 the Trust borrows from Noteholders the Trust holds $103 of assets.  In practice this means investors don’t lose principal unless at least 3% of the loans the Trust invest in default.

What happens when P2P loans the Trust owns are not repaid?

Each P2P platform where the Trust invests money has its own procedures, but generally speaking, money the Trust invests in loans that are not repaid is lost.

How can I make money even if loans are not repaid?

P2P loans earn interest. So long as the overall portfolio is earning more interest than the percentage of loans that are not repaid, the P2P investor makes money. For example, if a P2P portfolio is earning 10% annually and 2% of the loans are not repaid, the P2P investor still makes about 8%.

How does the Interest Bonus work?

Part of the interest the Trust earns over and above the money used to pay interest and principal to the Noteholders is set aside and held in the Loan Loss Reserve. This is call „excess interest.“ When notes mature 75% of the excess interest earned is paid to the Noteholders as an additional interest payment.

What fees do I pay?

None! There is no fee to charged to purchase notes and there is no fee charged when notes mature.

What happens if I need my money before maturity?

The Trust can only pay to Noteholders the income and principal it is receiving from its investments and there is no secondary market for the Notes. Consequently, one of the risks Noteholders face is that they will only be able to collect their investment back according to the schedule of principal and interest payments for the Notes they are holding.

Can I transfer or sell my Notes?

There is no public market for sale or transfer of the Notes. It is possible for Noteholders to assign, sell or transfer their notes on the basis of a private transaction, provided it is compliant with anti-money launder rules and regulations.

Will I receive reports about my investment?

Of course! Symfonie Capital provides Trust Noteholders a quarterly update about the peformance of the portfolio. The Trust will also provide detail about the amount of interest and principal paid to the Noteholders.

Are the Notes Taxed?

The Trust may be required to withhold tax on distributions of income. Noteholders may benefit from reduced withholding tax according to double taxation treaties. Taxation of income earned will depend upon the Noteholder’s tax jurisdiction. Noteholders are advised to consult a professional tax advisor prior to investing.

How do I invest in the Notes?

  1. download and read materials about the Notes
  2. download the Notes application form
  3. sign, scan and return to Symfonie Capital
  4. once your application is approved you can remit funds via bank transfer

Investment in the Notes is suitable only for investors who have sufficient investment experience and understanding and who are able to accept the risks, including the risk of loss of principal and lack of liquidity.   Investors are strongly advised to consult an independent financial professional prior to investing.

How do I fund my investment account?

We accept only bank transfers from bank accounts held in the name of the account owner. When you set up your investment account we will provide you banking instructions.