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Security and Safety
The Income platform is an intermediary between the investor and the Loan Originators, offering a range of carefully selected loans of the highest creditworthiness; however, the investor shall assume all possible risks: risk of full or partial loss of funds allocated for funding (capital); absence of potential profit and financial liquidity risks.
While such scenarios are uncommon, Income has structural mechanisms in place to manage them. Acting as representative for the creditors, Income works to recover and repay investments. If necessary, Loan Originators may be required to transfer the pledged loan book to Income, or other measures may be taken to support investment repayment.
What if the borrower defaults?
What if the Loan Originator defaults?
Buyback Obligation
Every loan on Income comes with a Buyback Obligation. If a loan becomes more than 60 days overdue,it is contractually required to be bought back from you with the full principal and interest, designed to protect your investment.
Cashflow Buffer
The Cashflow Buffer is determined after a comprehensive evaluation of the LO’s loan portfolio, assessing the quality, profitability, and potential risks such as economic fluctuations or unforeseen events. The core of the Cashflow Buffer is the “Junior Share,” which is set based on these assessments to address potential losses. If an LO defaults, the Cashflow Buffer is activated, directing the repayment of investors’ principal and interest from the collected loan repayments and any profit generated from the loan portfolio listed on Income.
Safeguarding investor assets
Income follows rigorous internal protocols designed to protect investor assets, maintaining a distinct separation from its own assets. This involves meticulous record-keeping, regular reconciliation of internal records, and robust controls to help mitigate the risk of loss for investors.
Financial assets owned by Income investors are held in separate accounts, while uninvested funds are kept in reputable institutions across the European Union. These funds are allocated exclusively for executing investor orders, whether for investment purposes or withdrawals. By holding these funds in safeguarding accounts, they remain insulated from Income’s financial obligations, providing an additional layer of protection against claims from Income’s creditors.
Platform Stability Assurance
In the event Income Company faces operational challenges, we have measures in place designed to help protect your investments. An experienced insolvency administrator would oversee the orderly settlement of all ongoing investments. We have also partnered with a Certified Auditor Office to ensure that all data is securely backed up and accessible, supporting the continuity of your investment journey with us.
Market Adaptability
Like any market, investing in loans offers dynamic opportunities as conditions evolve. While interest rates and market conditions may fluctuate due to various macroeconomic factors, such as economic shifts or geopolitical events, these changes also present the potential for growth and adaptation. Income Company is poised to navigate through these fluctuations, aiming to harness opportunities for our investors.
Regulatory Vigilance and Diversification
We proactively manage the impact of legislative changes on our business model and the broader Income marketplace. Our thorough due diligence process assesses the regulatory landscape of each lending company we partner with, minimizing regulatory and compliance risks. To further enhance the resilience of your investments, we recommend diversifying your portfolio across various countries and investment types, thereby spreading and mitigating potential risks.
