Questions & Answers

Image 0

Dear Investors,
As the TFGcrowd community keeps growing, so does the amount of questions that we receive through our online chat feature and support emails. We try to answer each and every question personally, but we have noticed that some of the questions put forward by our community come up more regularly than others, which is why we decided to ask our Founder and CEO to answer some of the most popular questions being asked at the moment and publish the answers for everyone to read. So, just in case you have been wondering, but felt too shy to ask, here are the answers:

1. What’s on the cards for TFGcrowd for the near future?

Very soon we are planning to launch the new Auto Invest feature, which will enable investors to create an endless number of auto-invest strategies as well as to view the list of the applied strategies and the information on the funds invested. 

Also, TFGpay is almost ready to be integrated into our existing system. The online banking feature will provide our investors with the opportunity to conduct transactions via TFGcrowd platform in real-time, making it easier to make investments, and spend the interest earned via their very own TFGpay VISA debit cards.

2. What is TFGcrowd and how does it work?

TFGcrowd is an online marketplace, where businesses, looking to raise financing, meet verified investors looking for good investment opportunities. Two types of raising financing are currently offered on the TFGcrowd platform – business loans and invoice financing.

Businesses seeking financing apply online through the TFGcrowd Marketplace. The compliance team at TFGcrowd carries out the verification and evaluation process of the business and provides a quote and terms under which the business can market their loan or invoices on the TFGcrowd platform. If the business accepts the quote and the terms, a mutually binding agreement is signed and the loan or invoices are listed on the TFGcrowd platform, giving investors the chance to invest in these for a set term and return. Loan agreements are concluded between each lender and the respective borrower separately and TFGcrowd is not a party to these loan agreements.

It depends on the terms prescribed in the loan agreement, but usually, investors receive interest payments on a monthly basis, at the end of each calendar month for the duration of the agreed term and on maturity investment is repaid with any interest that remains due and unpaid. Investor money is always kept in a separate and segregated account, to ensure safety for both the investors and the businesses that are borrowing the money.

3. What happens if repayments are delayed?

Because each business undertaking carries risk, there may be instances, when investors will experience delays in receiving repayments from their investments – either in the form of delayed interest rate payments or delayed repayments of the principal amount. More often than not, these delays will be short term in nature and, although it will cause a temporary inconvenience to the investors, it will be for a short period of time.

Any delays in interest rate payments or principal amount repayments are not associated with the liquidity position of TFGcrowd itself, because TFGcrowd is not a party to the loan agreement between the lender and the borrower and funds belonging to investors (either on their way to the borrower or on their way back from the borrower) are always kept in a separate and segregated account and this money cannot be used by TFGcrowd for any other purpose than to transfer it to the relevant party. Investors should therefore always remember that they have lent money to the borrower, not to TFGcrowd and ultimately, it is the borrower that owes money to the investor.

When any delays in payments do happen, however, TFGcrowd steps in as the mediator and contacts the borrower, to find out the root cause of the delay. If the borrower is experiencing cash flow problems but is able to make partial repayments, these are strongly encouraged, in order to keep the funds flowing back to the investors, as soon as possible. Borrowers are also always advised to keep the communication channels with the investors open and to make regular updates, as to when repayments can be expected.

4. Registration and verification. Why do I need to submit my Identification?

TFGcrowd verifies the identity of all the investors on the platform in order to maintain a safe and trusted environment for all the involved parties. It is also a legislative requirement, to ensure the platform is not used by criminals for money laundering purposes.

TFGcrowd maintains its KYC policies to be in compliance with all the relevant legislation in force. With the introduction of payment accounts into our system, the identity verification and checks will become even more stringent, pursuant to more rigorous legislative requirements.

Onfido is the system we work with to process the personal data of our investors. Onfido is a worldwide leading provider of secure digital services, which meets the highest security standards and partners with the big players, such as Revolut, Orange, Zipcar, and others.

Best regards,
Founder and CEO of TFGcrowd
Emil Kerimov