Any private individual or legal entity that has received an invitation link and is a resident of European economic area can register as a lender. If your residence country does not appear in the selection list, please reach out to email@example.com to arrange a solution to the issue. In the registration process we will ask to provide contact information, as well as complete identification procedure in line with our anti money laundering policies. As part of registration we will ask investors to complete a financial competency test to test the understanding of financial analysis topics.
For each of the investment opportunities information on the company's operations, provided collateral, financial results, risk analysis and other characteristics is available. Furthermore, additional information on each of the projects can be requested by contacting a representative of Capitalia, as indicated at the end of the description for each lending opportunity. Standard loan agreement forms are available here – Loan agreement / Factoring agreement.
All investment projects that can be cofinanced with Capitalia are published in our website under section Investment opportunities. Projects that are smaller than EUR 50,000 (before issue fees) are published and opened for investments at 10:00 (CET time) without separate email notices. Notifications on projects larger than EUR 50,000 are sent electronically via email to Prime investment account holders one working day before the launch for investments, while to Standard investment account holders on the same day of the launch of the investments (opening is also always at 10:00 CET time).
Please note that Capitalia does not offer any virtual account functionality on our website and hence all transactions with the investors are from and to the registered bank account. Following the evaluation of an investment project, on the right side of the project’s profile each investor can indicate the desired investment amount in the company. The minimum amount of investment per project is EUR 1,000. In some instances Capitalia might limit the maximum loan amount that one investor can provide towards the project. As a next step the investor will receive an email with a Draw-down notice that includes information on the bank transfer details for concluding the transaction. Draw-down notices are also available for download from Capitalia’s home page under section My Investments (requires login). Money transfer to the indicated bank account of Capitalia shall be made within 2 working days. When money has been received by Capitalia, investors will receive an automatic email confirmation.
Capitalia’s cofinancing is primarily aimed at offering direct loan based instruments to the investors. However, occasionally other coinvestment cases might be offered to the qualified investors, for example, bond placements, real estate and equity investment opportunities.
Financed companies transfer all of the payments according to the signed contract to Capitalia’s bank account. Following the reception of the payment, Capitalia distributes the funds and transfers money to the bank accounts of the investors within 2 business days. In some circumstances repayments (for example, small partial payments) can be held-up and grouped together when distributing to the investors. Please see our Terms & conditions on further details.
Information on all of the concluded agreements, received and planned payments as well as other information related to each investment opportunity can be viewed in Capitalia’s home page under section My Investments (requires login). Furthermore, each investor can view section Account Statement, where cash flows related to cofinancing activities can been seen for the selected time periods.
News and updates on the financed projects are released every Monday by the end of the day (that is, if there are any news). Updates are visible in Capitalia’s home page choosing project under section My Investments (requires login). To see the most recent updates, please log-in with our platform on Monday evening or Tuesday.
Investors can change their account information in the section My Profile. In case of changes in the country of residence, bank account details or other information, repeat personal identification might be necessary.
Cofinancing service is offered to investors free of charge. Capitalia collects a fee in the amount of 1-5% of the funding amount from the financed company in addition to regular monitoring and management fees that are added to the interest payments. All Capitalia fees and interests towards the borrower are disclosed in each project under the section Disclosure of Capitalia Interests, including the minimum investment commitment by Capitalia in the project.
Income gained by providing loans to businesses can be subject to personal and corporate income taxes depending on the tax residency of the investor. As of now, all of the transfers to the investors are gross, namely, Capitalia does not withhold any tax amounts. Capitalia invites all investors to individually seek guidance on the calculation and payment of the applicable taxes, consulting with certified advisors when necessary. In section Account Statement investors are offered an automatic Tax report print-out for the selected time period.
Capitalia offers investors two account types - Standard and Prime. At registration Standard account status is automatically assigned. Each investor can obtain a Prime account that offers a number of advantages, including early project access. Details about benefits as well as how to obtain a Prime account are available in Capitalia’s home page under section Account types (requires login).
Capitalia uses the following provisioning policy for loans depending on the count of payment overdue days:
|Provision (of remaining principal)||Conditions|
|10%||Overdue 31-60 days|
|30%||Overdue 61-90 days|
|60%||Overdue 91-180 days|
|80%||Overdue 181-360 days|
|100%||Overdue more than 360 days|
All restructured loans are automatically assigned a 10% provisioning amount. Loans can be restructured only once, while in case of further amendments to the loan repayment schedule, loan will be assumed to be in collection and will have a workout recovery schedule. Capitalia’s loan provisioning policy allows for a number of exceptions and additional circumstances that can be applied in loan provisioning. Loan provisioning has impact only on the return calculation (IRR) for the investor as visible in the Dashboard (requires login). The aim of the provisioning policy is to provide investors with more realistic reflection of the investment return from cofinancing activities.
While Capitalia encourages all investors to conduct independent evaluation of each project, the website allows for configuration of automatic investment policies. The set-up of automatic investment allocation is available under Automatic Investments section (requires login). If in use, the Draw-downs for the qualified investments will be sent automatically to the investors at the time when a project will become open to investments. The reservation can also be canceled after the automatic investment is done, in case the project does not seem appealing.
Capitalia offers an opportunity to participate in secondary market by purchasing and selling* investments to other investors at nominal value (however, with accrued interest at the date of the transaction) after the financing round has ended. Secondary market investment transactions will appear in the Investment Opportunities section with a separate identification mark. In secondary market transactions seller pays 1% fee from the amount of the sold loan principal. If the payment is not received in 48 hours, the reservation is canceled.
*During the testing stage only Capitalia can sell its investments. All investors will be notified about the possibility to sell in the secondary market once this function is released.