Crowdfunding is a way of collecting funds through online platform, when persons with an idea collect money for their project from individuals in different amounts. The essence of crowdfunding is that money are invested from people to other people. Crowdfunding may be of different types:
PROFITUS selects and places projects on its website, and invites businesses and people to invest in these projects under the terms and conditions provided for in the description. Real estate is pledged as a guarantee to the investors, so that the investments will be repaid and the interests foreseen in the project are ensured.
PROFITUS ensures that the borrower pays the investors in due time and fully represents the interests of the investors. On the other hand, PROFITUS assists those businesses interested in raising funding from many investors, by processing the documents and offering a platform that serves as an easy way of establishing settlements with investors.
Real estate in Lithuania is considered to be one of the most attractive investments because it is:
The activities of the platform operator PROFITUS are supervised by the Bank of Lithuania. In addition, as a platform operator, PROFITUS is included in the Public List of Crowdfunding Platform Operators and operates in accordance with the Law on Crowdfunding, the Law of the Republic of Lithuania on the Legal Protection of Personal Data, the Rules for the Assessment of Acceptability of Funding from Crowdfunding Platform Operators to Sponsors and the Reliability of Project Owners, and the Law on Companies. Therefore, the activities of the PROFITUS platform are regulated and supervised quite strictly.
The PROFITUS platform itself does not carry out monetary operations. Your cash transfers are carried out through the Paysera system integrated on the platform.
The risk is assessed pursuant to the Law on Crowdfunding, with an internal algorithm for the assessment of the project and the project owner which results in the assignment of a credit rating to the project (A+, A, A-, B+, B, B-, C+, C, C-, D). The internal algorithm is calculated based on the information obtained from state and other registries, as well as the reports of independent real estate assessors and our internal professional analysts.
In order to comply with the law, PROFITUS consults with the Bank of Lithuania. Monetary transactions on the platform are conducted in partnership with PAYSERA. The compliance of the legal framework with the law is discussed with lawyers from the TVINS and SORAINEN offices. The risk profile of the project and the project owner is assessed based on the information provided by CREDITINFO.
An account can be created by pressing the button „Sign in“ on the right-hand corner of the page and by filling in a brief registration form. Don’t forget to identify yourself because then you will get detailed information about the real estate project.
PROFITUS acts only as a mediator, so when the activities cease, the relation between the investor and the project owner would become direct. Since the assets of the project owner are pledged to the platform, which, according to law, represents the interests of investors, the assets would remain the property of investors.
Crowdfunding platform operators and other financial institutions must comply with the requirements of the Law on the Prevention of Money Laundering and Terrorist Financing and must properly identify their customer, by implementing the principle of Know Your Customer (KYC).
On this basis, Profitus requests information on its customer’s identity, activities and planned transactions on the Platform, and asks them to fill in the customer questionnaire.
The law prohibits us from entering into transactions with customers who have failed to provide us with the necessary information. Thus, if a customer fails to provide the requested documents after a repeated request, the performance of the transactions with the customer may be suspended (e.g. they will not be allowed to invest in Projects or publish them, payments will be suspended, etc., until the provision of the requested documents) and information on the customer may be transferred to the responsible public authorities.
In such a case, the funds invested and the interest paid to you will remain safe, and you may recover them as soon as you have provided the requested information and/or documents.