Instruction manual

Instruction manual on how to start, conduct and manage loan projects with Capitalia

Registration as a lender

Any private individual or legal entity that is resident of European economic area can register as a lender. In the registration process we ask to disclose contact information, as well as provide with identification documents. At the moment new lender registration is available only through invitations that can be sent by already registered members or Capitalia.

Evaluation of companies

For each of the lending opportunities information on 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 representative of Capitalia, as indicated at the end of description for each lending opportunity. Standard loan agreement forms are available here – Loan agreement / Factoring agreement.

New projects publishing

All lending opportunities that can be cofinanced with Capitalia are published in Capitalia’s website under section Lending opportunities. Projects that are smaller than EUR 55,000 are published every day and are opened for investments at 11:00 (Baltics time) without separate email notices. Larger projects are sent electronically via email one working day before opening for investments (opening is also always at 11:00 Baltics time).

Loan issue

Following the evaluation of the investment project, on the right side of the project’s profile each lender can indicate the cofinancing amount for the company. The minimum amount of investments is EUR 1,000. In some instances Capitalia might limit the maximum loan amount that one lender can provide towards the project. As a next step lender will receive to the registered email Draw-down notice which includes information on the transfer details for concluding the transaction. Draw-down notices are also available for download from Capitalia’s home page under section My Loans (requires login). Money transfer to the indicated bank account of Capitalia shall be made within 48h. When money has been received by Capitalia, lender receives automatic email confirmation.

Financing is issued to the company on the condition that the full amount of the requested funding is acquired from cofinanciers within the time frame as indicated in the project’s description. If the funding has been successfully raised, Capitalia concludes loan agreement with the company as well as sends email to all lenders on conclusion of the transaction. Each lender owns proportional share of the issued loan to the company. In accordance to our Terms of Use lenders authorise Capitalia to sign the loan agreement, conduct registration of the pledge, provide loan monitoring, payment distribution and other necessary actions.

If the project does not raise the requested funding, all of the received transfers are sent back to the lenders within one working day.

Repayment of loan

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 lenders.

Loan information and management

Information on all of the concluded agreements, received and planned payments as well as other information related to each lending opportunity lenders can view in Capitalia’s home page under section My Loans (requires login). Furthermore, each lender can view section Account Statement, where cash flows related to cofinancing activities can been seen for selected time periods.

Change of account information

Lenders 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.

Fees

Cofinancing service is offered to lenders 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 loan monitoring and management fee that is 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.

Taxes

Income gained by providing loans to businesses can be subject to personal and corporate income taxes depending on the tax residency of the lender. All of the transfers to the lenders 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.

Account types

For co-financing businesses with Capitalia there are two account types - Standard and Prime. At registration Standard account status is automatically assigned. Each investor can obtain Prime account that offers a number of advantages. Details about benefits as well as how to obtain Prime account are available in Capitalia’s home page under section Account types (requires login).

Information about late loans

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 Loans (requires login). To see the most recent updates, please log-in with our platform on Monday evening or Tuesday.