This policy explains how Quanloop performs collateral management to cover the loans originated on the website and financed by investors.
This policy (together with our Terms and any other documents referred to in them) sets out the basis on which the money you lend to us will be secured. Certain definitions set out in our Terms also apply in this policy. Please read the following carefully to understand our views and practices regarding your money safety and how we treat it.
Quanloop lends money to legal and natural persons through its business partners. A partner is a fully validated trustworthy organization registered in Europe and operating in the Euro currency.
Upon the lending agreement, a partner becomes a principal borrower from Quanloop and may lend or otherwise invest money as it finds the most valuable. Every loan is secured by collateral and/or other rights and guarantees.
Quanloop never lends money to a final borrower directly.
As for loan security, Quanloop accepts real property, inventory, cash, unpaid invoices, blanket liens, company shares and guarantees.
Real property includes, first of all, real estate assets or home equity, as well as equipment, cars, boats, motorcycles, planes and ships.
Quanloop accepts inventory as collateral for inventory financing. Such financing is performed by our partners, so is also secured by extra guarantees offered by a partner on top of the inventory.
Cash as collateral is considered to be a business savings account or a personal savings account.
Unpaid invoices are outstanding business invoices issued and accepted by a person located in Europe. Quanloop accepts such collateral from partners involved in the invoice financing or factoring business. Each loan secured by such collateral is normally extra-secured by a partner’s guarantee.
Quanloop considers a lien to be a legal claim that’s attached to a third-party business loan, and it allows Quanloop to sue the business and collect their assets in the event of a default. The assets can be specified, or not. Blanket liens give Quanloop carte blanche to seize every asset and form of collateral a business owns in order to satisfy its debts.
Company shares, both offered publicly or privately may be offered as collateral. Quanloop normally reduces the market value of a share by at least 25%.
Quanloop has the right to determine the suitable asset and/or right as collateral given the appropriate circumstances. The choice of the collateral does not bring any additional liability to the Quanloop regarding the relations with the investors.
Depending on the region, a partner and/or collateral is allocated, Quanloop requests a partner to forward the pledged security to Quanloop. Normally, Quanloop has a personal asset manager in every global region and would request the collateral to be registered to that legal person. If a region is new or Quanloop doesn’t have a personal asset manager, such a service is outsourced from a local public law office.
Once a year, Quanloop orders a global independent audit. The audit covers all the assets that Quanloop keeps as collateral. The public audit report is published for Quanloop investors on its website upon authentication.
Quanloop does not register any collaterals to its investors directly. The tiny loan principal normally makes a small share of the total asset value and changes every 24 hours, so registering personal collateral directly would be impossible from the point of view of time and money.