FAQ

For asset-based business lending, we aim to build long-term relationships with our originators, borrowers and owners of the projects. All involved parties stand to benefit then and only then when the risk-taker (the originator) is generating and retaining sufficient amount of proceeds. Typically, originator’s business models are not fit for modern banking, both in terms of availability of funds per se, the structure of project origination as well as the speed and methods of interaction with the originators. All originators (borrowers) are small and medium sized companies aimed for turnover and working capital growth, with proven business models and liquid and short-term maturity asset-based collateral.

For real-estate-based transactions, Decamel chooses the projects which have solid collateral with sufficient LTV, mostly using first-rank mortgages, to ensure secure funding in real estate lending. This is especially useful for entrepreneurs who struggle with the cumbersome banks polices, and provides the opportunity for investors to invest at yields exceeding 10% per annum. Currently, the borrowers and properties are in Latvia, Germany and Spain. All originators (borrowers) are relatively small and medium sized companies.

Decamel has strict guidelines when selecting investment projects to offer for the investors. The main prerequisite is clarity in the planned repayment of the project funding, which may depend on the quality of the underlying asset, quality of the business or real estate development project team, set-up structure of the project or transaction, additional covenants, liquid collateral, collateral with an attractive LTV rate and/or market demand for specific properties.

For asset-based business loans, we need to understand that such asset, business model and investment has qualified as reasonably predicable investment opportunity so that a fixed-income and a fixed-maturity instrument for the investors can be structured, whereby the business model and operations have proven to be able to convert these revolving assets back into cash for repayment of the financing.

In real estate, we would carefully pay attention to demand for the particular real estate property and the management team, their ability to return the required funding. For development projects, the saleability of properties is assessed as well as the security of exit options upon completion of the project. Also, the general policy is to finance up to where LTV is 70% or less.

For company funding, we would look at the founders and management, the problem the business addresses and the solution, clear monetization hypothesis, revenue growth and particular project development history, capital raising needs, among other things.

Please revert to Types of projects section on this website for more details.

The set of funding agreements will be signed between the originator and the Platform. Resulting asset-based claims to the originators or claims provided against real-estate assets would be assigned to the investors in respective proportions. For start-up funding whereby funding is exchanged for company shares (shares in a legal entity executing business project), the Platform would render nominee services by holding post as a shareholder in that business and then share the proceeds thereof to investors in respective proportions.

To apply for funding, please contact us at [email protected] or please follow the link and complete an application form to get your personal offer.

Rates vary depending on the type of project, the project itself, its risk for investors, as well as maturity and other factors. If you are the originator, please complete an application form and get your personal offer.

The Platform only accepts projects or deals with the corporate originators (legal entities) due to regulatory restrictions as well as policy of the Platform for portfolio development and project financing.