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Interview with Wise’s Fund Customer Support.
Can you introduce yourself and your role in WiseFund?
My role is to provide customer support (reply to emails, help customers solve minor problems, managing client database) and daily office tasks. Regarding others: Olga is the founder, main idea generator and Wisefund startup funding, provider.
Ingus is the CEO of the Wisefund, and is responsible to keeping all parties involved working as a perfectly operating engine. He reports to the founder, makes important development decisions, provides the final reviews of borrowers and other business decisions.
Others are working on establishing partnerships with borrowers, evaluating applications, providing technical support and updates on the portal, taking care of accountancy etc.
Can you describe Wisefund in numbers?
Very fast growing and promising company, a week ago we were proud to announce that we have over 1000 registered investors and as we closed the Contract Farming project, we reached a milestone – over 1M euro in successfully funded loans. Shortest period in which a project were closed were 8 days longest 18
How does an investment in WiseFund generate Passive Income?
Every project has a yearly interest rate, basically idea is that a customer loans to a company some certain amount of money and receives interest repayments credited and available for withdrawal every month, and when the loan term ends customer gets back the full principal that was invested.
Although I would not really call it a passive income, because it still takes an effort to search for projects to check them and decide if they are worth investing or not (what amount of money should they invest)
What has been the average rate of return for passive income investments on WiseFund?
Currently average interest rate are 18.40%
What are the steps to open an account and start investing in WiseFund?
Opening an account on WiseFund are easy. Any one can be a lender if they meet a couple requirements, sch as:
- They must be over 18 years old
- They are residents and have a valid Passport, ID card or residence permit, issued in European Union (EU), European economic Area (EEA) or Switzerland
- They must have European Union bank card
- First they have to go trough a simple registration form, after they must upload the document and a selfie holding that document so we can make sure that it is a real person creating the account ( just now we created a new system that these documents don’t need to be checked manually, system will do that for us. It means that ID check will take now only 1-3 minutes) after that upload a proof of address. It is very important that it must be no more than 6 months old, and it should match details and address to the one you provided during registration. Proof of address can be a bank statement or utility bill. No screenshots allowed. After all this is done you are all set and ready to invest
What has been the average default rate on WiseFund?
We are new company with 10 projects and we are proud to have 0 default rate
On average how many loans are current and late on the platform?
Wisefund connects borrowers and lenders. Borrowers need to be checked before they can be entrusted with the lenders’ funds. The analysis process is carried by NordCapital a company specialised in asset management. Many other p2p platforms do the due diligence in-house. How does outsourcing the business analysis benefit the lenders?
Currently, Wisefund has established a partnership with local Attorney at Law, specialized in and with experience of 15 years evaluating businesses, doing due diligence on businesses, providing legal advise for commercial operations. He has a study background in USA, and is a valuable asset to the Wisefund when it comes to evaluating borrowers before listing them on the portal. Taking a professional as outsourced partner on case to case basis provides more value and trust than in-house employee, as the lawyer actually takes responsibility on provided reviews.
With NordCapital markets Wisefund is ending cooperation at the moment, and all further borrower evaluations are taken care by Wisefund’s attorney.
Can the lenders use an auto-investor? (if no, why not and will this be available in the future)?
No currently we do not use auto investor
WiseFund offers three levels of protection; Early exit option; Buy-back guarantee and a Protection fund. An external third party provides the buyback guarantee. How does this third party benefit from buying defaulted loans?
In case of early exit option, buy-back guarantee provider benefits by purchasing claims at reduced rate, i.e., buys loans for 85-95% of their value, and earns on the difference.
In case of guarantee for defaults, guarantee provider is paid a fixed fee from Wisefund on each guarantee, and works in a way insurance companies do.
Wisefund offers a Protection fund, under what circumstances is this fund used? What is the percentage of this fund compared to the outstanding loans?
If applicable to the relevant Project, this fund provides guarantees for unpaid interest and/ or legal costs necessary for recovery of the unpaid interest and/ or Loan Amount from a defaulting Project.
What are the essential aspects lenders should consider when investing in p2p loans?
Lenders should certainly do the evaluation of businesses listed by themselves. As Wisefund works with EU business financing, all companies structure, ownership records, statistics and reports are available on public registers, as well as the business project description should be evaluated to understand whether to take the risk to lend to the business project described.
For more information please visit WiseFund
Thanks to the Wise fund’s customer support for answering all of our questions.
- This interview does not constitute an endorsement.
- The answers have been provided by the interviewee.
- This is not a buy, sell or hold recommendation of any assets mentioned in this interview.
- Do your own research before you invest in anything.
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