What are the guarantees?
All projects are chosen carefully before being offered to Decamel investors. Every project is examined by our continuous evaluation process, which is managed by our experienced investment and finance experts. Each loan is secured by an underlying asset against which the funding is being provided, or a real estate mortgage. Real estate loans are provided to those projects only, when the value or the future value ensures an exit for investors in case the originator fails to meet its obligations. The Platform holds all pledges and covenants for the investors and collects the funding in case of default by an originator.
What happens in case the originator were to delay interest or principal payments?
If a payment gets sufficiently delayed, Decamel contacts to the originator on behalf of the investors to find out the reason for the delay. The Platform has the right to terminate the funding arrangement and require immediate repayment of funding and its proceeds in case of failure to comply with the terms of the funding agreement. The Platform undertakes the actions necessary to manage the situation and if the situation cannot be resolved in a working order, the Platform shall undertake the steps necessary to collect the debt through exercising of the collateral obligations of the originator and manage the collection process from the originator. In this case, the Platform informs and updates investors of the collection process and its details.
How returns on a real estate investment are generated?
It is determined by the type of real estate investment. The returns from a real estate investment can be generated both from income (on the real estate) and capital appreciation (of the real estate). Income returns, when paid in form of dividends, are earned from rental income (less expenses of operation of said real estate, including property tax, maintenance, insurance and debt). Capital appreciation happens in cases when the value of the real estate property increases (typically over time along with inflation) and is realized when the property is being disposed of (sold). Additionally, when funds are being invested in form of a debt (secured or mezzanine) against a real estate property, the investors would get a fixed interest return over the said time period, which is being paid out periodically as specified in the proposed deal offering.
How returns on a company equity and investments into invoices and asset-backed business loans are generated?
Investments into company equity and investments into invoices and asset-backed business loans present different ways in which investors receive their return. For information about returns on a particular investment opportunity, please examine the proposed transaction information and offering for a specific investment opportunity.
How investors affected? What happens if the Platform declares bankruptcy?
Solvency of the Platform does not affect the risk of losing funding not yet disbursed to the originators, as the investors make a decision to transfer the funds the originator, when making an investment by pressing the invest button. In case of bankruptcy, the liquidator must manage these funds separately from the assets of the Platform. If a specific project is not successful under and fails to collect the minimum required funding during crowdfunding, the investments are returned the investor account.
What steps does Decamel take to ensure that operations may continue?
Decamel takes steps to ensure that operations may continue in case of default of Decamel. For the services to be able to be provided under such event, objective of Decamel is to provide for the projects to be administered in such a way as to ensure that the fees of the originators are payable to the platform (e.g. arrangement fees, originator’s portfolio management fees) and in relation to the corresponding project contracts so that these fees remain sufficient in order to cover the costs of administering them during a discontinuation process in such a level of fees, which are sufficient for a prudent and unmaterialistic portfolio manager to be able to provide the services for the users (investors) under these project contracts.
What are the risks associated with investments into different assets?
Please revert to “Investment Risks” in the Security section to study and recognize this information in greater detail.