Hello Everyone,
Great news for all Crowdestor Investors starting today! They are introducing their very own buyback guarantee in the form of a provisional fund.
Here is more about their BuyBack fund:
In order to maximize the financial security for their investors in case of default by the borrowers Crowdestor has decided to introduce a new program called ‘Buyback Guarantee Fund’. The aim of the Program is to safeguard the investors’ proper return in case the borrower is subject to default.
The program will operate as follows:
- Crowdestor makes an initial investment in the Buyback Guarantee Fund an amount of EUR 50,000.
- Starting today, Crowdestor is devoting a commission of 1-2% from each project that is funded via Crowdestor Platform into the Buyback Guarantee Fund.
- They expect the Fund value at EUR 100,000 by the end of 2019.
- In case of a default of Borrower, the Platform will compensate all Investors, in a proportionate amount, according to Distribution Rules of Buyback Guarantee Fund, their contributions to the particular project.
- The current standing of funds available in the Buyback Guarantee Fund at any given time will be published on the website.
In summary, the Buyback Guarantee Fund will operate in a roughly similar way to the Deposit Guarantee Funds of credit institutions operating in the EU Member States. While being a start-up crowdfunding entity, Crowdestor constantly strives to offer to its client’s various instruments aimed for improvement of the Investors’ risk standing in an overall balanced and structured approach.
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