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).