1. Can I invest on the PROFITUS platform?
Yes, both natural and legal persons can. You can start investing even in small amounts. As a licensed platform under the supervision of the Bank of Lithuania we need to verify your investment knowledge and properly identify you after the registration. If you invest more, we may ask you to justify your source of income.
2. Can a legal entity invest on the PROFITUS platform?
Yes, a legal entity can invest on the platform through a representative, that is, a person working within the company and acting under the authority of the director of the company. We would like to emphasize that filling in the application form will also require the information of the company director.
3. From what amount can I invest?
Profitus platform aims to make the investment accessible to everyone even in small amounts, so the minimum investment is only EUR 100. However, we provide the opportunity to acquire investments in the secondary market, where the minimum investment may not be less than EUR 100.
4. What is the maximum amount you can invest?
You can invest different amounts of money. If you invest more than EUR 50,000, you become a Profitus nominal investor. In this case, please contact us by e-mail [email protected] or phone +37063760776.
5. How do I confirm my identity?
To verify your identity, you must select one of the verification methods on the Profitus self-service page. You can currently do this through Paysera or Ondato systems. With Paysera verification, you need to have an account with this electronic money institution and make all investments through it. By selecting Ondato’s verification, you will be able to use the Trustly payment system and make investments from major Lithuanian and foreign banks (does not apply to legal entities). Transfers are free of charge.
6. What platform fees apply to the investor?
There are no fees for using the platform or administering the account for the investor. However, in order to sell existing investments on the secondary market, a transfer duty applies. You can read more about platform "Fees".
7. What projects can I invest in?
All the projects you can invest in are listed in the "Invest" section. Today, we offer to invest in projects secured by a real estate primary mortgage or other collateral secured by business loans and in return receive interest on the borrowed amount and recover the entire borrowed amount.
8. How do I invest?
This is very simple: Register. Create your investor account on the Profitus platform and verify your identity. Add money to your account. Make sure this account has enough money for the investments you want. Invest. Choose the project that suits you best and invest. You can do this with one click of the button. Make money. Every month or quarter, the borrower will pay you interest. You will be able to re-invest the received amount in other projects and make even more money!
9. Why invest in Profitus?
Because here: Investing in business loans with real estate collateral can earn 5-18% annual interest; You can start investing from just EUR 100 You earn additional income every month or quarter; Profitus, as a platform operator, is listed in the public list of crowd-funding platform operators and overseen by the Bank of Lithuania.
10. How is the risk of the funded project assessed?
The risk assessment is based on an assessment algorithm validated on the Profitus platform. The algorithm consists of the assessment of project owner’s creditworthiness, the project risk, and of the collateral. The score that assigns a project risk to the risk rating is calculated (A+, A, A-, B+, B, B-, C+, C, C-, D). Risk is calculated and assessed by team members with years of experience in real estate. Also, in order to objectively assess the project, the project owner’s data is checked through various registers, such as Creditinfo and other sources.
11. How is my income received on the Profitus platform taxed?
If you are investing as a natural person, the interest earned is included in Class B income, which you must declare on Form GPM308 and in the attachment “Taxable Income” to this form. You must pay 15% personal income tax on this income. We will provide the State Tax Inspectorate with the required data on your interest earned during the calendar year. Any additional questions will be answered by e-mail [email protected]
or by telephone +37063760776.
12. How are my investments protected?
Your investment is protected by a mortgage on the primarty or secondary mortgage on real estate, as well as other collateral (such as a surety or guarantee). Different projects have different security measures, which you can find in the self-service, next to the information in each project, in the "Securities" section.
13. When can I withdraw my invested money?
According to the payment schedule, the project owner regularly transfers the indicated amounts. At the end of the contract you will be reimbursed the full amount invested, plus interest paid during the contract period, for example, you have invested EUR 1000. According to payment schedule once a quarter, you receive EUR 30. If the contract period is 12 months, you earn EUR 120 (30 x 4 = 120 euros). Calculate how much you can earn "calculator". You will also be reimbursed EUR 1000 at the end of the contract period.
14. Where can I find information about my investments?
You can find all your investment information by logging in to the self-service section “My investments“ as well as in the section “Documents”.
15. How much can I earn on the Profitus platform?
Your earnings on the Profitus platform depend on the amount invested and the risk and profitability of the project. You can assess all this at any time using “Calculator“. You will always see all your investment information in the Profitus platform self-service.
16. I have invested in the project. When will I earn?
Each project offers a different income that you will see on the payment schedule. You will also find a deadline for the project owner to pay you regular contributions. You can also find the dates for interest payments on the last page of the loan agreement in the appendix. The payment schedule indicates the dates of the project owner's interest payments, so when distributing interest or returning investments to investors - Profitus may take 3 additional business days.
17. What happens if a borrower wants to repay a loan prematurely?
The early repayment terms are defined in each loan agreement and in the project information section "investment information".
18. What would happen if the project owner extended the loan repayment period?
If the terms of the loan agreement between Profitus and the project owner permit, this is possible. In most cases, the project owner will not be able to extend the loan repayment term. If the loan is extended, we will inform you immediately of the following contacts. Of course, we are always looking for maximum value for investors.
19. What would happen if the loan was not collected in full within the allotted time?
If the full amount of funding within the target period is not collected, we will refund you the full amount invested by the end of the following day. The likelihood of this happening is very low. So you have nothing to lose in this case.
20. What would happen if the project owner were late in paying the contributions?
The borrower is encouraged to fulfil his obligations according to pre-established rules.. If the payment or payments are not made within the time limit, the recovery process is initiated, which is administered by Profitus. You will be informed of the progress through the contacts listed. Remember that your investments are secured by collateral. In the event of late payment, recovery will be made from these assets.
21. What is my investment risk?
Investing always comes with the risk of losing some or all of your investment, but real estate or other collateral is always pledged as a guarantee. To assess the risks, you can find them in a separate document prepared by us "Investment risks". Also, the risks of a specific project are indicated in the "Documents" section of the project description.
22. Can I lose the entire investment?
Since all projects are secured by real estate pledge or other guarantees, a complete loss of investment is a virtually impossible situation. However, investing always carries the risk of losing part of your investment.
23. What else should I know before investing?
Before investing, be sure to familiarize yourself with the investment risks, study the details of a specific project, calculate the return on your investment, and only then invest. It is important to understand that you are responsible for your investment decisions.
24. How to transfer money to/from Paysera account?
You must complete the following steps to add money to your account: 1. Log in/sign up for Profitus. 2. When at Profitus self-service, perform identity verification through Paysera payment system. If your identity is verified, you can already invest. If you see that your identity has not been verified, follow the instructions below. 3. Click on the “Verify your identity” box to verify your identity. After completing the questionnaire, you will be directed to the Paysera identification environment. Follow the Paysera instructions. 4. If you see a cash balance on your Paysera account when you return to Profitus self-service with your account name, your identity has been successfully verified. You can invest. Transfers from Paysera account to another bank are done in the same way as in banks. This requires filling in the payee details, bank account number, and purpose. To transfer money from Paysera to another payment system you will need to provide the customer number or other details of that system depending on the payment system. You can add money to your Paysera account from any bank in the world or by depositing cash through the Paysera partner network. After logging in to your Paysera account and selecting the section “Adding money to your account”, all you have to do is choose which way you want to add money to your account. You will receive step-by-step instructions on how to add money to your account.
25. Do I have the opportunity to sell my investment before the scheduled term?
Yes, you can do this in the secondary market, where you have the opportunity to sell all your active and overdue investments until the investment project is completed.
26. When does interest start to run?
Interest shall start to run on the next business day following the money is transferred to the borrower.
27. Is it possible to invest in Profitus outside Paysera?
Yes. You can also invest from major Lithuanian and foreign banks using Trustly payment partner.
28. Why do I need a personal number when I verify my identity?
The personal number is used to identify the investor as required by the laws of the Republic of Lithuania.
29. Are the investments protected by coverage provided for by the law on deposits and liabilities?
Investments through crowd-funding platforms are not subject to the insurance requirement of the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania. However, your investment is protected by a mortgage on real estate, as well as other collateral (such as a surety or guarantee).
30. How is the safety of investors’ money ensured when crowd-funding?
All investors’ money is held in the technical accounts of payment partners Paysera and Trustly, with Profitus as the manager (but the Profitus platform is not considered the owner of the funds). The account is intended solely for the technical administration of payments between investors and project owners, i. y. to collect investors’ funds for the project, to secure full funding, and to pay the collected amount to the project owner. When the project owner, respectively, pas back the interest and investments, payments are made into the technical account to be distributed to the investors. Profitus does not hold its own or any other funds in the technical account, the funds of the clients are not part of the assets of Profitus, and are the property of the clients.
31. How do I get my investment back if there is not enough collateral?
The borrower is encouraged to fulfil his obligations according to pre-established rules. If the payment or payments are not made within the time limit, the recovery process is initiated: a notarial order is obtained and transmitted to the bailiff. The bailiff performs the recovery from the collateral.
If the pledged property is insufficient, the bailiff will continue to recover the property belonging to the project owner.
If the funds are still not sufficient to cover the investment and Profitus expenses, the debtor’s insolvency proceedings may be initiated, which may include bankruptcy, consideration of shareholders’ and manager’s liability, if the debtor is mismanaged or intentionally insolvent.
Read more in our Debt Recovery Procedure.
32. What happens if a borrower goes bankrupt or undergoes restructuring?
During the bankruptcy proceedings, the interests of investors are protected by the value of the pledged assets, i.e. regardless of the number of creditors, the proceeds of the sale of the pledged assets, after deduction of the bankruptcy administrator’s expenses, will be used to serve the interests of the investors. If the pledged assets are insufficient, the investors will join the common line of creditors and their claims will be settled in the following way: third row (first row – employees, second row – state tax claims, third row – all other). In the event of restructuring, creditors’ claims will be met by a recovery plan prepared by the debtor and approved by the creditors, which will include the terms and methods of sale and settlement. As in the case of bankruptcy, the proceeds from the sale of the pledged assets will be directed specifically to the interests of the investors, regardless of the number of creditors in the company. If the assets are insufficient, the outstanding debt claims will be settled on the basis of a defined payment plan in the row of the creditors described above.
33. What steps should a legal entity take before investing?
Before investing, make sure that you have completed all required verification steps: - Verified the identity of their manager/authorized representative (only Paysera); - Linked/approved the legal entity account with the Platform; - Submitted additional documents: copy of the personal identity document of the manager/authorised representative, the Articles of Association, the decision of the manager/shareholders/board of directors to invest (if applicable according to the Articles of Association), filled in the legal entity form. Please be informed that in case of verification of identity Profitus will contact the State Enterprise Centre of Registries (Register of Legal Entities and Information System of Legal Entity Participants), where it will obtain extract from the Register of Legal Entities and list of participants of a legal entity.
34. Why does Profitus ask for additional documentation to authenticate or fill out a customer form?
Crowd-funding platform operators and other financial institutions must comply with the requirements of the Law on the Prevention of Money Laundering and Terrorist Financing and properly identify their clients and implement the “Know Your Client” principle. On this basis, Profitus requests information from customers about their identity, activities and planned operations on the Platform, and requests the completion of a customer questionnaire. We are prohibited by law from transacting with customers who have not provided us with the required information. Therefore, if the customer fails to provide the requested documentation after repeated requests, the customer’s operations may be suspended (e.g. for example, investing in projects, publishing them, suspending payments of benefits, etc. will not be allowed until the requested documentation is submitted), and customer information may be passed on to the responsible public authorities. Your invested funds, interest payable will then remain secure and can be recovered as soon as you submit the requested information and/or documents.
35. What is LTV and how is it calculated?
LTV stands for loan-to-value ratio. It shows the percentage of loan in the pledged property. So if the borrower seeks to raise EUR 70,000, its pledged real estate to investors must be at least EUR 100,000, in which case LTV will be 70%.
The lower the LTV percentage, the better, as it means more real estate is pledged to investors. However, it should be borne in mind that the mortgaged property is a primary mortgage.
36. Can I change the account from which I invest?
The Paysera account can only be changed before the first investment is made. If you haven't invested yet, wirte us at [email protected]
, a free-form request and we will cancel the identification of your Paysera account. If you invest using a Trustly payment partner solution, you can use all of your personal investment accounts. Account selection is available in the ''Account Management'' self-service section by selecting ''Top up''.