Invest Information
Socilen won´t charge any fee to investors
(1) Socilen won´t charge you for depositing money; However, it´s possible that your bank charges you for this.
(2) Socilen will charge a commission of 1% of the withdrawn capital that has not been invested in any project. It will not be charged on withdrawals of dividends obtained. These fees are to cover the costs that our Lemon Way payment entity bills us.
- Registering in the platform: FREE
- Depositing money in your account in Socilen: FREE (1)
- Withdrawal of money to your bank: FREE
- Commission for investment: FREE
- Non-payment management: FREE
Which are the risks of investing in crowlending with Socilen?
NONPAYMENT OF THE LOAN
The collection of the quantity that has been invested in a loan, as well as the interests, depends on the payment by the borrower of the monthly fees. Socilen minimizes the risk in different ways:
- Carrying out a solvency scoring and verifying that the person or company applying for the loan doesn´t appear in the databases of defaulters
- Managing without fee the whole collection process and judicial claim
Even thought, there will always be a minimum risk of non-payment. For that reason, OUR RECOMMENDATION FOR THE INVESTOR IS TO DIVERSIFY HIS INVESTMENT.
If, for example, you want to invest 2.000€, you shouldn´t invest it all in an only loan since the non-payment would mean the loss of the whole quantity of money you´ve invested. Otherwise, if you invest 20 €in 100 different loans, you´ll have correctly diversified your investment and the non-payment of a loan would only mean a 1% of loss. In addition, this situation would lead into compensation thanks to the interests generated with the other loans. The risk of losing the money that has been invested is really slow in this case.
ABANDONMENT OF THE SERVICE BY SOCILEN
The contract existing between investors and applicants remains being valid even if Socilen stops operating. Therefore, the money collection can still be requested in the same conditions through any other way.
(Note: the regulations referred to the participative financing platforms, include the situation described in the last paragraph and the way in which the collections will continue being managed in case the platform stops operating has to be correctly scheduled).
FAQ
General information
WHAT DO I HAVE TO DO TO BECOME AN INVESTOR?
WHAT CAN I INVEST IN?
The user can invest exclusively in the loan coating to promoters asking for financing.
HOW CAN I DEPOSIT MONEY IN MY ACCOUNT IN SOCILEN?
You can deposit money in your account via credit card or bank transfer once you have completed the registration process.
HOW CAN I WITHDRAW MONEY FROM MY ACCOUNT IN SOCILEN?
You´ll have to add a bank account and enter the money you wish to withdraw. The system will carry out a transfer to your bank account without cost. It is very simple.
WHICH IS THE MINIMUM AND MAXIMUM QUANTITY OF MONEY THAT I CAN INVEST?
The minimum quantity is 20 €
The maximum quantity is 3.000€ per loan
Annually, you can´t invest more than 10.000€ between all the participative financing platforms unless you´re an official investor. If you are an official investor, you can invest as much as you wish. In order to become an official investor, it is necessary to meet several requirements, as well as applying for becoming it. Get in contact with us to submit the application. The requirements are as following
- If you´re an individual or a freelance, you´ll need to have annually incomes higher than 50.000€, or a financial wealth higher than 100.000€
- If you´re a businessperson, you´ll need to meet at least , two out of these three requirements we´re describing next:
- The total quantity of the assets is equal or higher than 1.000.000€
- The price of the annually volume of business is equal or higher than 2.000.000€
- The own resources are equal or higher than 300.000€
IS THERE A LIMIT IN THE NUMBER OF LOANS IN WHICH I CAN INVEST?
There is no limit. Actually, our recommendation is that you split your investment into as many different loans as possible to diversify and reduce your risk. Go to the section Diversification to know more about this.
WHICH IS THE PROFITABILITY I CAN GET?
It depends on the level of solvency of the loan in which you invest.
All the loans have a common base rate, but there´s a risk factor making the received interest rate higher as the solvency decreases.
CAN I CHOOSE THE PEOPLE WITH WHICH I WANT TO INVEST?
Yes, you can choose both the people and the pymes with which you want to invest; as well as how much money you want to loan to each one.
CAN I LOAN MONEY MORE THAN ONCE TO THE SAME APPLICANT?
Yes, you can loan more than once to the same applicant as long as the loan isn´t completed and in case the maximum limits of the investments aren´t higher than 3.000€.
WHICH ARE THE COMISSIONS CHARGED BY SOCILEN?
Socilen doesn´t charge any commission to the investors.
WHEN WILL I START GETTING PAID?
Socilen sends the bill to the borrowers at the beginning of each month. As soon as we receive the confirmation that the money has been charged, it will appear in the investor´s account. Since there´s a period of time to return the bill, the money initially appears as hold. As soon as that period ends and we are sure that the bill hasn´t been returned, the money will be available again.
HOW WILL I GET PAID FOR THE INVESTED CAPITAL AND THE INTERESTS?
Monthly, Socilen charges each person or company for the corresponding loan fee, which includes a part related to the capital amortization and another interest part according to the amortization table (French system). In addition, Socilen is in charge of depositing the money in each investor´s account according to their contribution to the loan. In each loan profile, you´ll see an amortization table with all the fees and the current situation of each one of them.
WHAT HAPPENS SINCE I INVEST IN A LOAN UNTIL THE FINANCING PROCESS IS COMPLETED?
Your money will be held until the total quantity is reached. Once the financing is completed, the money will be transferred to the applicant and you´ll start collecting your monthly fees.
WHAT HAPPENS IF THE FINANCING ISN´T COMPLETED?
If the financing isn´t completed, your money stops being held and becomes available again so you can invest it in new loans.
Risks
IS THERE ANY RISK WHEN I INVEST IN SOCILEN?
Every investment has risks. The most important fact is to know the risks that are being taken as well as minimizing them as much as possible.
Socilen wants you to earn money so you recommend us to other people and to become a greater company in the future. Because of that, we think it´s very important to inform our customers with total transparency about the possible risks that the investors are taking and we provide them with the necessary tools to minimize them as much as possible. In every moment, in your control chart, we´ll be informing you about your risk level and how to have it under control according to your investor profile
Check our section of Risks to know more about this.
HOW IS THE SOLVENCY LEVEL DETERMINED?
Socilen requests the documentation to the loan applicant in order to verify the information introduced while filling out the online application. In addition, this information is contrasted using public access databases for it. Besides, it´s requested to the credit bureau EXPERIAN a report of defaulters of BADEXCUG, the most checked database of defaulters by the banks. In case you have a payment history without incidences, the system uses a complex algorithm and takes into account the socio-economical data of the applicant in order to determine his or her level of solvency. This algorithm takes into account the socio-economical variables of the applicant, for example, if the person is in possession of guarantors, if he has or hasn´t an insurance covering the non-payments…
In the case of companies, apart from consulting Badexcug, we also check the RAI (active insertion income), the administrative and judicial incidences, the business register and other public databases. We can´t obtain directly the solvency rating for companies using an internal algorithm, like in the previous case, but it´s provided by INFORMA instead, the leader company in Spain in terms of supply of business information.
WHAT HAPPENS IF THE BORROWER RETURNS A BILL?
The Socilen work team will get in contact with him to find out the reasons of the return. There will be a negotiation process with him in order to set a new date to charge him the bill again. Those days of delay generate a delay interest. This interest is calculated adding to the common interest rate of the loan, an additional 4% which goes directly to the investor to compensate him for the delay.
WHAT HAPPENS IF HE RETURNS MORE THAN ONE BILL?
From the first non-payment, the Socilen work team gets in contact with the borrower to come into an agreement and to solve the problem as soon as possible. This is always our priority. In case this is not possible, Socilen will cede the collection management to a specialized company, one of the most important ones in Spain, and which will be in charge of the extrajudicial or judicial collection if necessary.