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• A personal identification document (ID, passport, driving license) and a selfie (service provided by Onfido and is a step of the onboarding process)

• Personal identification document of company representative as well as of beneficial owners
• Latest version of Articles of Association
• Extract from official company register of your country
• In case the Ultimate Beneficiary Owners are not listed in the Extract, additional documentation about them is needed.

Company assessment

In each loan project, investors can review the company description, available collateral, financial data, risk analysis, and other information. Investors can also request additional details about any company by contacting the Capitalia representative listed at the end of the project description. Standard loan agreement form is available here - Loan agreement.

Publishing new projects

All financing projects are published in the Lending opportunities section on Capitalia website, accessible for logged in investors. Financing projects below EUR 50,000 are published daily at 11:00 (Baltic time) without a separate email notice. Information about larger projects is sent via email in case available investment after Advised accounts and Auto-invest investments is more than EUR 50,000.

Making an investment

After evaluating a company, the investor can enter the desired investment amount on the right side of the project description. The minimum amount per project is EUR 100. Every fully registered investor on Capitalia platform has an Investment wallet - which is used for adding funds, making investments, receiving repayments, and withdrawing funds.

A loan is issued to the company provided that the full required funding amount is collected from investors within the term stated in the project description. Funding for each project is usually open for two weeks unless stated otherwise. If the full required amount is not collected within this period, received investments are returned to investors within one business day. If the full amount is collected, Capitalia signs the loan agreement with the company and sends confirmation of the completed transaction to all investors. When funding is secured by a commercial pledge or other collateral types, investor confirmation may be sent within two weeks. Each investor owns a proportional share of the total loan issued to the company. According to the Terms of Use, lenders authorize Capitalia to conclude loan agreements, register pledges, supervise credit, distribute payments, and perform other necessary actions.

Secondary market

Capitalia offers investors an opportunity to participate in the secondary market by buying and selling* investments.
*In the testing stage. Investors will be informed as soon as this function becomes available to them.

Auto-invest tutorial

The Automatic investment function allows investing a pre-determined investment amount in loan projects based on stipulated risk, geography, and term preferences. Investors can create their own automatic investment algorithm or use our offered strategies. Using Auto-invest ensures that you do not miss great opportunities and achieve a well diversified portfolio.

How to set up Auto-invest
The first step is to access the Auto-invest area. You need to login into your profile and then in the Invest menu choose Auto-invest. We offer to choose one of the predefined strategies by Capitalia or create your own customized strategy. In predefined strategies, you only need to enter the Total investment amount. In the Custom strategy, you choose settings such as Countries, Term, interest rate, and can adjust the desired allocation to each Risk rate.

The essential part of any Auto-invest strategy is choosing the total investment amount (Investment amount field) that you want to achieve with this strategy. We recommend building a portfolio of at least 50 different projects, however, the more projects you invest in the more diversified your portfolio will be, meaning that any single project delay or loss will not have a significant impact on overall portfolio performance.

The final step is to Activate and Save your strategy as shown below:

Once you Activate and Save your strategy it will be running until you turn it off. Once the target is reached, Auto-invest will resume investing once any of the previous projects are repaid. Auto-invest works ONLY when your Wallet balance is sufficient for the next investment.

Tips on auto-investing

The smoothest automatic investing so far
The intended way of using Auto-invest is to invest in a large number of projects, maximizing diversification instead of picking projects individually. For this the Investment Wallet feature brings the true benefit of automated investments - you add funds once to your wallet and everything else is taken care of automatically. Just make sure to add enough funds to the wallet to last either for the total strategy amount or at least for 1-2 months' worth of investments. Reach out to us at support@capitalia.com and we can indicate this specific amount suggested for your individual strategy.

Why it is important to keep funds on the Investment Wallet
All investments, including auto-invest are possible only from the available wallet balance. This means you should keep the wallet balance sufficient at all times. If you wish your portfolio to be growing, we recommend to keep your Investment wallet balance enough for at least 2-3 new investments, based on your usual investment per project size.

Tip on the Total investment amount
We suggest increasing the Total investment amount by +10-20% above your desired value. Investment distribution to risk classes is rounded down, which results that the Total investment amount is not being utilized in full.

Example case, Balanced strategy, Total investment 5,000, investment in one project 200.
Resulting utilization: 4,800 investable amount

• A+ 2 x 200
• A 4 x 200
• B 12 x 200
• C 5 x 200
• D 1 x 200

In case you wish to try investing in every project, we would suggest to set the Total investment amount much higher than wanted and then add funds to your wallet at a pace comfortable for you. Auto-invest works only when there are enough funds on the investment wallet.

Reflection period
Once you activate Auto-invest for the first time, or make significant changes (for example changing from one predefined strategy to another) a 4-day reflection period will be in force. This means Auto-invest will wait for 4 days before it starts investing allowing you to have a cool-down period in case you change your mind.

The benefits of diversification

In this article, we’d like to highlight the significant advantages of diversification in investing. Lending to businesses inherently carries the risk of not receiving back some or even all of the amount you’ve lent. To mitigate this risk, it’s crucial to adopt a strategy of consistent investment over time and across a range of projects. By doing so, you can achieve two key objectives:

1. Minimizing the impact of individual loan performance on your overall return.

2. Avoiding the pitfalls of poor timing.

The value of diversification is clearly demonstrated by the historical returns data from our platform. When we factor in loan losses and provisions for potential losses, we can see the following portfolio returns based on the number of loans invested in by each investor:

Chart: Portfolio Return on Investment vs. Number of Loans Invested

From this graph we can draw several clear conclusions:

1. All investors who have invested in 27 or more projects have achieved a positive net return above 5%;

2. Some investors that have built a relatively small portfolio of up to 20 loans can get higher than average returns, however, most small portfolios will deliver lower than average results;

3. Investing in all loans by Capitalia would bring a return of 10% (investors who have invested in more than 130 projects have a net return from 9.5% to 10.5%);

4. In many cases investors that have built portfolios with over 25 loans but have reported below average returns, have invested much higher than their average amounts in a few riskier loans;

5. Only 13 out of 800 active investors have a negative return. 

Conclusions on using Auto-invest

With these conclusions in mind we strongly recommend you to follow the following principles when investing in Capitalia (or anywhere else for that matter):

• Aim to continuously have a portfolio of at least 50 investments;

• Invest a similar amount in each project;

• Make smaller investments but invest in a larger number of projects;

• Use our Auto-invest tool for headache free automatic diversification. 

The latest information about fees is available on our Pricelist page. Capitalia provides 2 withdrawals per month free of charge for investors, every next withdrawal during a month costs EUR 3.00. Starting from January, 2027 an Investment account servicing fixed monthly fee will be applied for all investors. New investors receive a 3 month grace period to build a portfolio. In addition, Capitalia earns revenue by charging borrowing companies a fee of 1-5% for successfully funded transactions, as well as a regular monthly management fee. All Capitalia fees charged from borrower, including minimum Capitalia co-investment in the project, are shown in each project section under Disclosure of Capitalia Interests.

Account maintenance fees Q&A

1. You invest in a project.
2. The borrower makes a payment that covers interest (interest or late interest). 
3. Once the received payment is processed and is being distributed to investors, a part of the interest payment is automatically deducted from repayment to your account as withholding tax based on the applicable tax rate.
4. When you declare your income in your country of tax residence, you might be able to reduce the tax payable in your country by the withheld amount. Please consult your local tax legislation and seek professional advice if needed. 
5. You can see the withheld amount as a separate entry in the account statement, as well as in the bank transfer payment details text. The total withheld amount will be visible on your tax report which you can download from the Account statement page. 

• For investors who are tax residents of Latvia, the withholding tax rate is 25.5%, in line with the Personal Income Tax Act.
• Investors who invest as private persons and are tax residents of Lithuania can reduce their withholding tax rate to 0% if they provide a tax resident certificate. Note: In case your income on Capitalia platform is over EUR 5,000 the original tax resident certificate must be submitted to our office in Vilnius or Riga via post or in person. Tax resident certificates must be renewed every year and submitted to us no later than the 31st of January of the new year.
• For all other investors who invest as private persons, the standard withholding tax rate is 25.5%. The rate can be reduced if the investor provides a tax resident certificate. Note: In case your annual income on Capitalia platform is over EUR 5,000 the original tax resident certificate (2 copies) must be mailed to our office in Riga via post. Tax resident certificates must be renewed every year and submitted to us no later than the 31st of January of the new year. Please see the full list of reduced applicable tax rates:

Reducing the withholding tax
To register your tax residence and apply a reduced withholding tax rate, we are required to receive a tax resident certificate from you. Check with your local tax authorities to see how you can obtain a tax resident certificate in your country of tax residence. Your tax resident certificate must meet the following requirements to be accepted:

• It must contain your full name and tax identification number
• It must confirm your tax residence for the current year
• It should specify that it applies to income generated in Latvia
• It must be in English and signed by the issuing tax office

How to obtain Tax residence certificate for Lithuanian investors

• Safety - your funds will be clearly segregated from Capitalia at all times and money will be transferred directly between investors and borrowers. Your money will be held in separated client-money accounts opened with large and safe partner banks, such as BNP Paribas
• Convenience - you will be able to top up the Investment Wallet with a single transfer and then make multiple investments to new projects directly on our platform without paying bank fees for each transaction
• Reinvesting - since the repayments will accumulate in your Investment Wallet, it will be effortless to reinvest funds in new projects
• Auto-invest - your auto-invest strategy, as well as Advised account service will require even less attention as you will no longer need to make a new bank transfer for every project automatically booked for you

Changing data

Investors can update their citizenship or tax residence country on the My Profile section. To change the bank account for money withdrawal, a dedicated button is available in the Withdrawing funds page. Any other information like name, surname, email address can be changed by contacting our investor support team via support@capitalia.com.

Additional security for your account: two step authentication

Under the European Crowdfunding Service Providers (ECSP) regulation, non-sophisticated investors must periodically complete two key investor protection assessments: the Entry Knowledge Test and the Simulation of the Ability to Bear Loss. These tests are designed to ensure you understand the risks involved in crowdfunding and have the financial capacity to absorb potential losses. If these tests become outdated on your profile, your account will be temporarily restricted. You will not be able to make any new investments, and crucially, your Auto-Invest feature will be paused, leaving your funds sitting idle.

Investors who have never taken the tests or their previous test result has expired, after login are shown a notification linking to the tests page. In addition, it is accessible via My profile page, tab Investor status.

Entry knowledge test
The purpose of the test is to evaluate your knowledge regarding investing and financial products and assess whether investing in crowdfunding loans is appropriate for you. The test consists of 9 questions and takes up to 5 minutes to complete. Test results are valid for 2 years.

After completing the Entry knowledge test, the investor is prompted to continue with the Simulation of ability to bear loss test.

Simulation of ability to bear loss
Simulation of ability to bear the loss will guide you to calculate your Net worth. You will be able to use our calculator or choose to enter the Net worth value yourself. The end result will provide you with the recommended investment amount for crowdfunding platforms based on your net worth. Simulation of ability to bear loss results are valid for 1 year.

Using test results
Both tests can be completed several times and you can retake them anytime if you go to My profile and select the Investor status tab. The test result will allow us to determine the investment size per one project appropriate for you. Investors are shown warning messages in case an investment in one project exceeds the recommended limits.

For active investors email reminders are sent before any of the test expires. In addition, a notification is shown on the platform to retake the tests.

Video tutorial
Here is a quick video tutorial for taking the tests (length 1:25):