This Collateral Management Policy is based on and must be fulfilled together with the General Terms & Conditions of Quanloop published on the Platform (hereinafter referred to as the General Terms), the Loan Agreement of Quanloop (hereinafter referred to as the Loan Agreement) and other terms referred to in the General Terms. The expressions and overall terminology, including but not limited to the Borrower, the Investor, the Platform, Quanloop, and a User, used in this Collateral Management Policy are described in the General Terms. Any such relations between the Investor and the Borrower or Quanloop that are not regulated by this Collateral Management Policy are subject to the General Terms or other legal documentation published on the Platform and Estonian law.
This policy defines how Quanloop performs collateral management to cover the Loan Agreements entered into on the Platform between the Investor and the Borrower. This policy sets out the basis on which the money the Investor lends to the Borrower will be secured. Certain definitions set out in the General Terms also apply in this policy. Please read the following carefully to understand the views and practices of Quanloop regarding investors' money safety and how Quanloop and the Borrower treat it.
Quanloop is the owner and administrator of the Platform, as outlined in the General Terms. Quanloop does not borrow money from the Investor nor does not lend money to the Borrower. Quanloop runs the lending-borrowing process and manages the Investor's Loan Book.
The Borrower is the sole Borrower on the Platform, which borrows money from the Investor according to the General Terms and the Loan Agreement. The Borrower has a written agreement with Quanloop covering the Collateral and other securities. Each Collateral is registered in the Collateral Books managed by Quanloop.
An Investor is a person as outlined in the General Terms. The Investor has no direct access to the Collateral as outlined in this policy.
The Investor lends money to the Borrower, while the Borrower borrows money from one or many Investors for the purpose of lending it further to its partners. A partner is a fully validated, trustworthy organization registered in Europe and operating in the Euro currency.
The Borrower is not obligated to share the information of its Partners as permitted by the Limited Partnership Fund vehicle and to self-govern their limited partnership agreement.
Each time the Borrower lends money to a Partner, a separate credit agreement is signed as described in the General Terms. Each Credit has Collateral or is secured by personal guarantee(s); the Credit collateral is the basis for the loan-to-value (LTV) ratio calculation and risk planning.
The Borrower lends money to legal and natural persons through its partners, and it never lends money to an end-consumer directly. The Investor never lends money to an end-consumer, but always to the Borrower.
Quanloop may, as per a separate agreement with the Borrower, act as its representative and manage their Credits portfolio on behalf but in the name of the Borrower.
As for Credit security, the Borrower 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.
The Borrower accepts inventory as Collateral for inventory financing. Such financing is performed by our partners, so it 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. The Borrower accepts such Collateral from partners involved in the invoice financing or factoring business. Each Credit secured by such Collateral is normally extra-secured by a partner's guarantee.
The Borrower considers a lien to be a legal claim that's attached to a third-party business loan, and it allows the Borrower to sue the business and collect their assets in the event of a default. The assets can be specified or not. Blanket liens give the Borrower 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. The Borrower reduces the market value of a share typically by at least 25%.
The Borrower has the right to determine the suitable asset or right as Collateral given the appropriate circumstances. The choice of the Collateral does not bring any additional liability to the Borrower regarding the relations with the investors.
Depending on the region, a partner or Collateral is allocated, the Borrower requests a partner to forward the pledged security to the Borrower. Usually, the Borrower 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 the Borrower doesn't have a personal asset manager, such a service is outsourced from a local public law office.
The Borrower stores all the data about the Collateral in the Collateral Book managed by Quanloop. Any updates to the current status of the Collateral should be reported to Quanloop and recorded in the Collateral Book.
Once a year, Quanloop orders a global independent audit. The audit covers all the assets listed in the Collateral Book managed by Quanloop. The public audit report is published for Quanloop investors on its website upon authentication. Some specific details about the listed Collateral may be hidden from the public report for security and confidentiality purposes.
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.
Disclaimer: Some text on this website is purely for marketing communication. Nothing published by Quanloop constitutes an investment recommendation, nor should any data or content published by Quanloop be relied upon for any investment activities. Quanloop strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decision.