1. Crowdfunding – what is it?
It is a way of fundraising through an online platform where the people with great ides raise money for their project from individuals in various amounts. The main idea behind crowd-funding is that money is invested from one person to another. Crowd-funding can take many forms: Rewards-based – investing for non-monetary rewards (goods or services); Donation-based – investing for no consideration, for emotion; Equity-based – invested in exchange for equity (shares, real estate); Debt-based (P2P lending) – investing in a loan to recover not only the amount invested but also the interest.
2. What is Profitus?
Profitus is a crowd-funding platform, an intermediary between investors and businesses seeking finance. Profitus raises money for the development of real estate projects and other business loans, but in all cases the borrower pledges real estate as a guarantee to investors or suretyship.
3. How do we work?
Profitus selects and places on the website projects to which investors are invited to invest according to the terms and conditions set out in the description. Investors are pledged real estate, other property or a surety as security for the return of their investment. During the project period, investors are paid the interest provided for in the project. Profitus oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Profitus is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.
4. Are the activities of Profitus regulated?
The activities of the operator of the Profitus platform is supervised by the Bank of Lithuania. Also, Profitus, as a platform operator, is listed in the public list of crowd-funding platform operators and operates in accordance with the Law on Crowd-funding, the Law on Legal Protection of Personal Data of the Republic of Lithuania, Rules on Acceptance of Financing Transactions by Operators of Peer-to-Peer Platforms and Assessment of the Reliability of Project Owners, Law on Companies. Thus, the activities of Profitus platform are regulated and supervised quite strictly.
5. What kind of projects are funded by Profitus platform?
Profitus raise money for various business loans. The Profitus platform currently funds two main products. The first is a business loan with real estate collateral, where real estate is secured by a primary mortgage to secure the interests of investors. Second, business loans, in which investors are pledged as collateral for real estate with a sub-mortgage, equipment, car or warehouse balance, are in all cases supplemented by a personal guarantee from the head of the company or a related person. Also, all projects on the platform can be funded in stages. This is a particularly attractive method of financing for real estate developers, when the current value of the object under development is significantly less than the total amount of investment required for the project. It is valuable for the project owner to finance the development project in installments, gradually increasing the value of the mortgaged property and not overpaying for the borrowed funds, which cannot be immediately employed in the project. Projects of this type provide for a maximum LTV indicator, which cannot be exceeded when financing new stages of a project. All loans are financed according to the value of the mortgaged property at that time, and when the loan is obtained in stages, after reaching the maximum LTV indicator, a new valuation is performed by independent real estate appraisers. If you are interested in financing opportunities: call tel. +37063760776 or write to us at [email protected]
6. What is the basis for making transactions on Profitus platform?
Profitus platform does not perform any monetary operations itself. Your money transactions are made through the payment systems integrated in the platform, Paysera or Trustly.
7. What is the basis for the risk assessment of project owners?
The risk is assessed on the basis of the Law on Crowd-funding, the internal algorithm of the project and project owner assessment, which results in assigning a risk rating to the project (A+, A, A-, B+, B, B-, C+, C, C-, D). The internal algorithm is calculated based on information from state and other registries, reports from independent real estate appraisers, and the help of in-house professional analysts.
8. Who does Profitus work with?
Profitus consults with the Bank of Lithuania in order to ensure perfect compliance with the law. Monetary operations on the platform are carried out in cooperation with Paysera and Trustly. The risk relating to the project and project owner are assessed on the basis of information provided by Creditinfo.
9. Does registration on the Profitus platform is free of charge?
Registration for investor and project owner is completely free.
10. How do I create a PROFITUS account?
You can create an account by clicking on the button „Registration“ in the right-hand corner of the page and filling in the short registration form. Remember to identify yourself only after the identification process - you will see detailed funding information for each newly announced project.
11. What happens if Profitus fails?
Profitus only acts as an intermediary, so there would be a direct investor-to-owner relationship in case the activity stops. As the project owner’s assets are pledged to the platform that, by law, represents the interests of investors, the assets will remain with investors.