Invest and grow your savings with SymCredit
The list does not represent the complete set of information on which investors should base their investment decision. Prior to making any investment in P2P loans investors should ensure they fully understand all the risks of making investments in P2P loans including, but not limited to, the risk that part of all capital invested may be lost. Investors should also consult with their financial, tax and legal advisors. Investing in P2P loans should represent only a portion of an investor’s overall portfolio and does not represent a complete investment program. This list is for informational purposes only and does not constitute an offer of investment advisory services or a solicitation of investment. This list was published 22 May 2014.
How do I open an investment account?
To establish an investment account you must complete our account opening and client identification procedures. When you open your account you’ll appoint SYMVEST, s.r.o. as your agent to arrange and administer loans in which you’d like to invest.
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.
Where is my money held?
Your money is held at a fully licensed regulated bank. In the Czech Republic we maintain accounts with Unicredit.
How is my money protected?
We keep cash held for our clients strictly segregated from our own money. We maintain detailed records evidencing how much cash is held for each client. Upon request we share this information with banks, legal and regulatory authorities.
How can I withdraw my money?
Simply send us a request and we will return any cash in your account, except that which is held pending a loan offer you have made. Where applicable, we deduct bank transfer charges.
For security and anti-money laundering purposes we will only return money to the customer account from which it originated. If you change banks you’ll need to provide us additional documentation before we will act on your request to withdraw money.
How do I make loans?
After you open your investment account you’ll be able to browse our loan listings. You’ll find detailed information about each prospective borrower and request loan.
When you find a loan in which you’d like to invest simply enter the amount you offer to lend and the interest rate at whcih your offer is valid.
Can I withdraw my offer?
No. Once you make an offer to lend that offer cannot be withdrawn. For this reason you should consider each investment carefully before you extend an offer.
How long must I lend for?
Our loans have maturities ranging from 2 to 5 years. How long you lend for will depend on which loans you select.
How are the interest rates determined?
Interest rate are set at the time the borrower details are posted on our website. Each lender decides whether to offer to lend at that rate and invest in the loan or whether the lender will look for other opportunities.
How does Loan Listing Work?
We maintain a listing of each loan request. Anytime after the amount of money offered exceeds 70% of the amount to borrower requests the borrower may decide to close the loan listing and consider the loan to be fully funded. Loan listings will automatically close when offers have been received for the full amount of the loan request.
How long do loans stay listed?
The maximum time is 30 calendar days. If at the end of 30 days at least 70% of the amount requested is not offered the loan request is automatically cancelled and all offers are cancelled.
When will I know if my offer is accepted?
You should check the loan listing page to see the loan status. We’ll update that page to show the progress of each loan request.
What happens if my offer is accepted?
When the listing period closes the borrower will have seven business days to accept the loan offer and complete the loan contract.
Who owns the loan I’ve made?
You! Each loan contract is concluded by SymVest, acting as agent for the investors and named as a party to the loan contract signed by borrower. Each investor instead may arrange to have SymVest as a nominee owner. In that case, we will register your loan as SymVest for the benefit of client number XXX and we will not be obliged to reveal the name of the investor to the Company.
How is my privacy protected?
We will not disclose your identity to anyone except the company to whom you are lending and to banks, regulators and other legal authorities. We abide by strict data protection policies.
How do I collect my principal and interest?
Each borrower makes payments to SymVest. When SymVest receives the payments your Cash Account will be credited. You can either ask SymVest to send you the money or you can leave the money on account and reinvest in new loans.
What Does SymVest do?
SymVest is your agent. SymVest signs the loan contract with the borrowers, collects your principal and interest. If borrowers are not paying on time, SymVest will take action to collect outstanding money.
What information will I receive after I make a loan?
Each borrower is obliged to provide lenders a business update including financial results every six months. From time to time, borrowers may also make supplemental announcements to investotrs. SymVest will distribute this information.
SymVest monitors each borrower regularly. If we find out a borrower enounters financial difficultles or faces legal issues in connection with your loan or another loan the borrower has taken, SymVest will inform you.
How is my investment taxed?
Under Czech law interest income is taxable at a standard rate of 15%. Borrowers may be required by law to withhold tax on loan interest. When a borrower withholds tax, the borrower is oblied to pay the tax and you will receive report of the amount of tax withheld.
What Fees do I pay to Lend?
You pay no fees when you make a loan.
What fees does SymVest collect?
SymVest earns money when you earn money. We charge an administrative fee of 0.5% of the principal value of the loan. This is charged only when principal is actually re-paid and not before. We earn a share of the interest each borrower pays, depending on the risk band of the loan and depending on the overall interest rate charged to the borrower.
What is the Sym Rewards Program?
When a borrower makes all payments on time we refund the borrower a portfolio of the interest the borrower has paid. That comes out of SymVest’s share of the interest, not out the investor’s share. If the borrower is missing payments or paying late, that money is not refunded. The money we earn from late paying borrowers can be used to cover costs associated with loan collection, administration, and even to compensate investors.
The SymReward Program is not a form of insurance or guarantee. It is simply a resource that allows us to better serve our investors.
What are the key risks of making P2P loans?
Any time you lend money to a company or person your capital is at risk. The borrower’s circumstances can change over time. Bad debt refers to loans where the borrower has not repaid the full amount owed.
As part of lending to businesses, there will be instances where a business cannot continue to repay their loan, which becomes a ‘bad debt’. When this happens, we’ll send you an email to notify you that we’re working to recover your money. We manage the recoveries process on your behalf, so you don’t need to do anything. We’ll keep you updated on our progress.
How much bad debt should I expect?
In theory, the risk bands should be guide for you. We provide estimated bad debt rates for each risk band. We also provide detailed statistics on the performance of the loans we have issued. This statistics present by risk band the number of loans we have made, the amount of the loans the percent of loans classified as bad debt and the amount of bad debt recovered.
How does SymVest take legal steps?
We’ve established a process to make pursuing legal actions efficient and cost effective. Our lending contracts allow us to seek judgement against the borrower and the guarantor in the Arbitration Court attached to the Economic Chamber of Commerce. Decisions of this Court are enforceable according to Czech and international law. We can take other steps such as requesting courts to freeze borrower assets, taking possession of collateral posted by borrowers, requesting executors to seize assets.
If we feel there is reason to be believe a crime has been committed we can file police complaints and seek criminal prosecution.
How does a guarantee work?
If a loan is guaranteed then in case the borrower fails to make payments of as and when they are due the guarnator is obliged to make those payments. We can pursue guarantors using similar legal steps as pursuing borrowers.
What happens when SymVest classify a loan as Defaulted?
When we classify a loan as Defaulted we will also provide lenders our assessment of how much we think can realistically be recovered. Lenders can decide if they would like SymVest to pursue recovery or if lender would like to opt-out and pursue recovery on their own.
What happens if SymVest goes bankrupt?
In the event we go bankrupt all cash held in the client account must automatically be returned to the its rightful owners – the clients to whom that cash belongs.
Second, an independent administrator will be appointed to continue collecting principal and interest from the loans and paying that to investors.
Additionally, each investor can exercise his or her right to insist the borrower make payments directly to the investor.
If you haven’t done so, open your investment account with SymCredit. We’ll help you complete our anti-money laundering and customer identification process and we’ll show you how to place funds in your SymCredit account.