Frequently asked questions

Frequently asked questions

Get started with Lendahand

How do I make an investment on Lendahand?

Investing on Lendahand is easy and takes just a few simple steps. Watch the video below or read through the steps.

Log in: Visit and log in to your account.

Explore Projects: Navigate to the 'Projects' section in the menu and browse the available projects. Choose the one you want to invest in and click on 'Invest now' to learn more about it.

Choose Investment Amount: Click on 'Select amount' and choose the amount you wish to invest in the selected project.

Add to Basket: Click on 'Put project in basket' to add your investment to the basket.

Review Your Basket: Click on the basket next to your name at the top right of the screen. You can add multiple projects with different investment amounts to your basket and pay for it all together. Click on ‘Add investments’ to explore this option. Take a moment to review the contents of your basket, ensuring everything is as you want it.

Proceed to Checkout: Redeem any coupon code you may have in this step. Click on 'Pay now' to proceed to the checkout process. Choose your preferred payment method for the investment.

Complete Payment: Click on 'Check out' and follow the instructions provided by your bank to complete the payment.

Confirmation Email: Once the payment is successful, you will receive an email confirming your investment.

Congratulations! You have successfully made an impact investment on Lendahand. You will be informed about the progress of your investment via email and the Financial Dashboard in your account.

Who can invest via Lendahand?

Anyone at least 18 years old and with a valid bank account can invest via Lendahand. Whether you're an individual investor or a company, you're welcome to join our crowdfunding platform and make a positive impact with your investments.

You’re eligible to invest if you have an identification document from one of the EER (European Economic Area) countries. The EER countries include Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and The Netherlands.

Please ensure you comply with any legal and tax requirements that may apply in your country of residence before investing.

Why do I need to verify my identity and bank account?

Verifying your identity and bank account is legally required by the European Law for Money Laundering and Terrorist Financing Prevention (WWFT). This ensures the highest level of security and compliance on our crowdfunding platform.

Identity verification

During the identification process, we only use your ID for verification purposes. Rest assured, your citizen service number (BSN) and other information on the ID will not be visible to us, ensuring your privacy and data protection.

To facilitate this process, you will be redirected to our trusted partner, Onfido. Onfido's advanced software allows for real-time verification by comparing your ID with a picture of yourself. This can be either a picture you upload or a selfie you take with your smartphone.

The verification process helps us ensure the accuracy and legitimacy of your identity.

Bank account verification

We use our payment service provider Intersolve to securely check your bank details.

If your bank account is from the Netherlands, we use Surepay to quickly validate your IBAN number.

If your bank account is from another country, we ask you to upload a bank statement. This can take some time to review. You’ll receive an email once the verification is successful or in case we need additional information.

Complying with these regulations helps create a safe and secure environment for all our users while preventing misuse of the platform for illicit purposes.

Why am I having trouble verifying my identity or bank account?

To verify your identity, you will be asked to upload a picture of yourself or take a selfie using your smartphone. Our trusted partner Onfido, performs real-time checks to ensure that you are the same person as shown on the document.

Having trouble? Please ensure:

- your ID/Passport was issued by a supported country

- your scan or photo is clear and free from glares

- the selfie you are uploading is a JPG or JPEG file format, as PDF is not supported for selfies

For a successful bank account validation, it is important that the name on your bank account matches the name you have provided in your personal details.

If you need assistance during the verification process, don't hesitate to reach out to our support team at [email protected]

How is my personal data handled and protected?

At Lendahand, we take the security and privacy of your personal data very seriously. Your private and payment details are treated with the utmost care and are subject to strict safety requirements.

To ensure the safety of your sensitive data, all information is transmitted through an encrypted connection (https). This encryption protocol helps protect your data from unauthorized access during transmission.

Moreover, we store your information in a secure facility provided by AWS, the world's largest hosting service known for its robust security measures. The data is stored in an encrypted format, adding an extra protection layer.

Access to customer documents is tightly controlled through multi-factor authentication, ensuring that only authorized personnel can retrieve and access this sensitive information.

Rest assured that we implement rigorous measures to safeguard your personal data, aiming to maintain the highest security and privacy standards.

Review our Privacy Statement here

If you have any further questions or concerns regarding the handling and protection of your personal data, don't hesitate to reach out to our support team at [email protected]

How should I declare my investments to the tax authorities?

When you log into Lendahand, you'll directly access the Financial Dashboard. There, you can find the annual overview at the bottom of the page under Downloads.

For private investors in the Netherlands, loans issued through the Lendahand platform fall under Box 3.

Enter the outstanding amounts as of January 1 of any year under 'Bank accounts and other assets' and then under 'Loaned money and other receivables'.

Your possible wallet balance is listed separately on the annual statement. This amount can also be filled in under 'Bank accounts and other assets', but then under 'Bank and savings accounts'.

If you have also invested in dollar projects (where the investments in euros are eventually transferred in dollars to the borrower), you will find these outstanding amounts in the annual overview as well. These dollar investments are converted into euros at the rate of December 31 of the respective year.

For corporate lenders (BV's), the earned returns are taxed with corporate income tax.

If you are a taxpayer in a country other than the Netherlands, it's recommended to consult local tax advisors on how to declare outstanding funds from a crowdfunding platform in your tax return, ensuring compliance with the legal and tax obligations of your country of residence.

Lendahand currently does not report your outstanding amounts to the tax authorities. Should this policy change in the future, rest assured, we will notify you well in advance.

Are there any fees involved when investing with Lendahand?

Investing with Lendahand is free. You don't pay any membership or fixed fees to invest, regardless of the payment method you choose.

You choose in which projects you want to invest, and on Lendahand, you have the choice between projects in euros, US dollars, and local currencies. You always invest in euros, and you always receive your repayments in euros.

What about potential conversion costs? Well, for projects in euros and local currencies, you don't pay any conversion costs. Lendahand and the borrower take care of that. For projects in US dollars, the conversion costs from euro to dollar are charged to the borrower. However, once the borrower repays (a part of) the investment, you as an investor pay 0.30% conversion costs. Those are the only costs you need to consider when investing through Lendahand.

Do you have questions?

Check our currencies page

For further questions, contact our support team at [email protected]

How can I pay for my investments on Lendahand?

Paying for your investments on Lendahand is designed to be convenient and hassle-free. We offer multiple payment options to cater to your preferences:

iDeal, Bancontact, and Sofort: Investors within the Netherlands, Belgium, and Germany can pay using these methods, all of which are free of charge.

Credit Cards: Investors outside the Netherlands can use credit cards like Mastercard, Visa, and Carte Bancaire for payments. There are no additional fees for this option.

Bank Transfer: You can transfer money directly from your bank account to your Lendahand wallet. Use the following details for the transfer:


IBAN: NL72ABNA0492265631



Description: Wallet XXX [Make sure to add your personal wallet number here. Please request your wallet number by reaching out via [email protected]]

We aim to ensure a secure and diverse range of payment choices, enabling you to seamlessly participate in impactful investments. Should you have any questions or need assistance during the payment process, feel free to reach out via [email protected]

Can I cancel my investment?

We understand that circumstances may change and want to give you flexibility and control over your investments.

You have the option to cancel your investment within 4 days (96 hours) after receiving the confirmation email of your investment. If you decide to cancel, please email [email protected]

Upon cancellation, the invested amount will be returned to your Lendahand wallet. From there, you can choose to keep the funds in your wallet for future investments or transfer them back to your bank account.

If you have any questions about the cancellation process or need assistance, feel free to reach out to us.

Can I invest as a company on Lendahand?

Yes, you can invest as a company at Lendahand. When creating your account, choose the option 'For a business - a business account'.

Make sure you have the following information on hand for verifying your business account:

Chamber of Commerce number: Please enter the registration number with the Dutch Chamber of Commerce. Non-Dutch companies must provide an extract of their registration.

Identity proofs of owners:

- For companies: verification is required for each person with more than a 25% interest.

- For associations and foundations: verification is required for all directors.

Create Business Account

Do you offer private investing?

For investors who wish to invest more, we offer Impact+ Private Investing

Do you wish to invest more significant amounts? Impact+ is our exclusive private investing product designed for investors who wish to invest €25,000 or more in our impactful projects.

With Impact+, Lendahand takes care of handling the investments on your behalf, providing a convenient and efficient investment experience. The best part is that no additional costs are associated with using Impact+.

If you're interested, we invite you to reach out through the form on the Impact+ page here.

Learn more about Impact+

About (re)payments and interest

How much interest do I receive?

The annual interest rate on investments varies from 2-8%, depending on the type of investment.

How do I transfer the proceeds to my bank account?

Everyone who invests via Lendahand has a personal account: My Lendahand. Repayments, including interest, are transferred to this account every six months. You can choose to reinvest your repayments or have them transferred to your bank account at no extra cost. Want to change your wallet settings? Go to Settings

How is the interest being calculated?

Your investments are paid back in equal amounts on a semi-annual basis. For instance, an investment with a maturity of 12 months will be repaid in two parts. You’ll receive payments after 6 and 12 months, including interest. In the next example, we’ll show how principal and interest payments are calculated.

Suppose you invest € 1,000 in project A which is interest-bearing as of 1 January 2023. The loan has a maturity of 12 months and pays an annualized interest rate of 3%.

- On July 15th 2023, you will receive the first repayment of € 500 as well as an interest payment of 3% over € 1,000 for that 6 month period (€ 15). The total amount for thefirst period is € 515

- On Jan 15th 2024, you will receive the second repayment of € 500, as well as an interest payment of 3% over the outstanding notional of (€ 1,000 - € 500) for that 6 month period (€ 7.50). The total payment for the second period is € 507.50

Are the interest rates the effective yearly interest rates?

Yes. The effective interest rates at Lendahand varies between 2-8% on an annual basis and are paid on the notional amount that is sent to the company. No interest is paid on amounts that have been repaid to the investor.

What is the maturity of the loans Lendahand offers?

Anywhere from 6 to 48 months in 6 month intervals.

Are companies allowed to repay the investments early?

Yes. In some cases, the company can choose to pay back the invested money before the scheduled date. For example, if the business has been growing faster than expected and they want to pay off their debt. When an investment is repaid early, you will receive the remaining amount together with the accrued interest. You will also receive a 1.5% interest on the early payment. Early repayments are not possible within the first 12 months of the project.

When do I start receiving interest?

Once a project is fully funded, the money from all investments will be transferred to the company on the first day of the following month. You will start accruing interest as of that day.

When do I receive my repayments?

Repayment periods are every 6 months, so you will usually receive money in your account around the 10th working day of the month every 7th month. For example, if you invested in a project that was fully funded on the 30th of January, you would receive your first repayment around the 10th of August.

How can I change my bank account number?

You can change your bank account via your ‘My Lendahand’. Choose 'Change bank account' and upload a copy of the new account’s bank statement, or transfer €0,01 from the new bank account to your wallet. You will receive a confirmation email confirming your change was successful.

What procedure is there in case of restructuring and/or the default of an investee?

- In case of payments in arrear, a new payment schedule is drawn up (with or without other creditors) together with the investee. We also call this restructuring. In such situations, the interest that should be paid back in any month is in principle deposited into your wallet. For the notional amount, the following principle counts: the longest outstanding amounts will be repaid first. The new payment schedule will also be integrated into your My Lendahand environment. 

- When an investee indicates that it is no longer able to meet its payment obligation, all investors become competing creditors, and should there be any return of funds, these are distributed pro-rata among those investors. In your My Lendahand environment the concerning projects are placed under Written-off investments.


What risks are involved with investing money via Lendahand?

The risk varies depending on the type of project and the borrower you invest in. Investments in financial institutions are partially protected. The risk of bankruptcy and currency fluctuations (for investments in euro projects) is largely covered by the financial institution. In addition, they spread the investment across multiple, diverse SMEs. Investing in a financial institution yields an annual interest rate between 4% - 7%. The credit score of these loans is A or B (on a scale from A to E). The historical write-off percentage since 2013 for this investment category is 0.37%. Of course, this is no guarantee for future investments.

Direct investments in companies carry higher bankruptcy risks not covered by an intermediary, thus higher than investments in financial institutions. However, currency fluctuations (on euro projects) are covered. Direct investment in a company yields an annual interest rate between 5% - 9%. The credit score of these loans is B (on a scale from A to E). The historical write-off percentage since 2013 for this investment category is around 5%.

In case of difficulties or bankruptcies of borrowers, Lendahand will do everything possible to handle outstanding investments to the best of its ability.

If Hands-on BV (i.e., Lendahand) goes bankrupt, all transactions between Lendahand and Intersolve EGI will stop immediately. Intersolve will then transfer the money in your personal wallet to your bank account.

This does not apply to money still outstanding with borrowers. In that case, Intersolve, in consultation with a curator, will handle all outstanding repayments to investors until the last repayment of the last project is done.

Have questions about the risks? Contact us at [email protected].

How does Lendahand minimize the risks for investors?

In addition to a social mission, every borrower must have a 'track record' proving they are a reliable credit provider for local SMEs. This means, for example, that they need a solid credit portfolio, sufficient buffers, and equity to absorb unforeseen setbacks. We also check the organizational structure of every potential borrower.

When currency exchange risk becomes too high for a borrower, Lendahand will urge them to cover these risks. In some scenarios, companies offering projects on the platform are contractually obligated to do so.

More about currencies

An extensive selection procedure and due diligence precede the financing received by companies through Lendahand. More information about the risks per project can be found on the individual project pages. However, these analyses are not investment advice.

More about the selection procedure

Lendahand only offers loans with a credit score of A or B (on a scale from A to E).

If you would like more information on the financial indicators we use, please contact us at [email protected].

Does Lendahand offer a guarantee to investors?

Despite our efforts to minimize risks, your investment is not guaranteed. There is a risk of partial or total loss of your invested money. Therefore, never invest money that you cannot afford to lose.

As part of specific campaigns, Lendahand sometimes offers guarantees under certain conditions up to a certain investment amount. Read the terms of the current campaign here for more information.

Guarantee terms

The Netherlands Authority for the Financial Markets (AFM) strongly advises not to invest more than 10% of your freely investable assets via crowdfunding. Furthermore, it is highly recommended to diversify investments across different borrowers.


What does the credit score mean?

The credit score, on a scale from A to E, reflects the creditworthiness and the likelihood of repayment by a borrower. It helps you, as an investor, to understand and weigh the risks before investing your money. Scores A and B indicate lower risks and are the only scores accepted by Lendahand, to maximize the chance of successful repayments.

Read more

Invest with Lendahand

What interest rate do entrepreneurs pay?

We want to be the cheapest alternative for the companies that need funding. Providing mesocredits to entrepreneurs in often rural areas is a very labour intense process. It is comparable with the cost structure of microcredits. A huge number of loans with a relatively small size puts quite some administrative pressure on local partners. Also, these loans have to be monitored and obviously repayments have to be collected at the right time at the right place. Furthermore, partners have to pay local taxes and they have to take a provision at their balance sheet for possible non-repayments.

Since our SMEs do not have access to micro credits or bank loans, they often need to borrow from 'loan sharks' that may charge more than 100% interest per year. Even if they had access to micro credits, they would still be paying 30-50% annually. According to the New York Times (2010), the global average interest rate for microfinance loans is 37%.

On average, our SMEs pay around 1-3% interest per month. Lendahand will launch new propositions structurally for which the central theme is lowering the interest entrepreneurs have to pay.

Which criteria should entrepreneurs have to meet?

Our local partners screen applicants thoroughly. The potential client must be or have:

  • Share our values and mission;
  • At least three years of profitability;
  • Able to generate income to repeat the investment;
  • Compliant with legal requirements such as the payment of required taxes and permits;
  • Free of any legal process involving non-payment, non-compliance with legal contracts or involvement in illegal activities;
  • Verifiable experience in debt servicing (no past due fundings with any private or government lending institutions or banks);
  • Socially relevant: the business offers clear and solid benefit to it's stakeholders, such as: employment generation, care for labourers and other workers, payment of wages and taxes, adherence to principles of fair trade, care for the environment, concern for the community at large.
  • Our local partners will never finance the following projects:

  • Projects that cause harm to people and the environment;
  • Projects that are illegal and immoral;
  • Projects that exploit and/or employ children younger than 16 years of age or projects that involve any kind of human trafficking.
  • What types of investments can I find at Lendahand?

    At Lendahand, there are two types of impact investments available for you:

    - Investing in multiple entrepreneurs at the same time by investing in financial institutions in emerging markets.

    - Investing in a single mid-sized company active in the sectors of 'clean energy' and 'agriculture.'

    Both types of investment opportunities have their own characteristics and benefits.

    Read here about the differences between the various types of investments.

    Types of Investments

    What businesses and countries are active on Lendahand?

    The investment opportunities on the Lendahand crowdfunding platform boast a diverse range of impactful businesses and financial institutions based in emerging markets. All actively contribute to social change and sustainable development across various sectors in their locality.

    Countries on the sanction list
    Lendahand (via Intersolve) screens different sanction lists, drawn up by national and international regulators, excluding countries such as North Korea, Syria, Cuba, and Iran. Since 2022, Lendahand has had a European Crowdfunding license. Because of this permit, the European Commission's sanctions lists have become even more important, as they are not static.

    - You can view the EU Sanctions Map here
    - Read more about the EU's high-risk third-country identification methodology here

    The sanctions mean we can no longer enter into new collaborations with companies and organizations in these countries because their state policies against money laundering and terrorist financing are considered insufficient. Repayments on current projects in these countries can, however, continue as usual. As soon as a country puts things in order and is re-evaluated positively, the country will disappear from the list and we will be able to offer new projects in that country again.

    Currently Active Portfolio
    For more specific details and up-to-date information on the companies and countries active on our platform, we encourage you to explore the following pages:

    Explore our Borrowers Overview Page v to find detailed insights into the currently active businesses and entrepreneurs across different countries, their tenure with Lendahand, and portfolio performance. If you’re more into reading stories from entrepreneurs to understand their work, have a look at the blog or our YouTube channel for their testimonials.

    Head to our Loan Portfolio Page for interactive figures that present the current outstanding investments facilitated by Lendahand in different categories: by counterparty, over time, by country, by currency, and by repayment status. Additionally, this overview page includes the default rates and other statistics. The page is updated during the first month of every quarter.

    Should you have any further questions about a specific borrower, please reach out to our support team via [email protected]

    How are Lendahand projects selected?

    Lendahand ensures a thorough selection process to ensure impactful and responsible financing. Lending is done only and exclusively after extensive due diligence and internal and external approval processes.

    Broadly speaking, the process of selection and launch has four phases:

    1. Introduction: screening of financial information and impact
    2. Negotiation: first offer and due diligence interviews
    3. Know Your Customer: KYC and anti-money laundering procedures by our Payment Service Provider (Intersolve), in parallel with due diligence
    4. Approval and Completion: second screening, risk estimation, impact and financial analysis, recommendations from Credit Committee and Impact Committee, prepare for launch

    For a detailed explanation of all 15 steps, read here.

    Every borrower must:

    • Share our values and social mission, focusing on providing affordable financing to empower local entrepreneurs.
    • Prove profitability with a track record of at least three years of profitability to demonstrate stability and reliability. For further insights into our credit assessment and pricing, read here.
    • Prove the ability to generate income to sustain investment operations.
    • Comply with legal obligations, including payment of taxes and permits.
    • Have no involvement in legal disputes related to non-payment, contractual breaches, or unlawful activities.
    • Demonstrate ability in debt servicing, with no overdue funding from private or government lending institutions.
    • Have a positive impact on stakeholders, such as employment generation, fair trade principles, environmental responsibility, and community support.

    Who seeks financing through Lendahand?

    The businesses you can invest in directly through Lendahand are typically active in the clean energy access or agricultural sector. These entrepreneurs must possess a 'moral compass' and demonstrate that they aim for the best for their enterprise, people, the community, and the environment.

    The financial institutions we collaborate with can only seek financing through Lendahand if they can demonstrate their social mission. They offer financing to micro, small and medium-sized enterprises, ranging from 2 to 100 employees, active in sectors such as agriculture, retail, wholesale, production, or services. Institutions prioritizing commercial gains over social impact are not considered for a partnership with Lendahand.

    For both types of borrowers, we conduct impact studies where possible to investigate the social impact of our investments, despite this being time-consuming and costly. We also ask them to provide an estimate of the expected effects when submitting a new financing request.

    About Lendahand

    What is the remuneration policy of Lendahand?

    Lendahand has a payment policy based on the Dutch Law remuneration policies of financial undertakings. The policy applies to all employees of Lendahand and is aimed at ensuring that employees rewards do not pose any undesirable risks and/or behaviour to the sustainability of Lendahand.

    Remuneration Lendahand pays all employees a fixed monthly income, which is not dependent on targets. Employees do obtain options. The management of Lendahand earns an average income of EUR 65,000 gross per year (2021).
    We do not work with guaranteed variable remuneration

    The decision on remuneration policy

    The remuneration policy is drawn up by the management. Because Lendahand is a relatively small enterprise a remuneration committee will not be set up. However, the remuneration policy is aligned with the Supervisory Board annually.

    Adjusting policy

    The remuneration policy shall be reviewed at least once a year to determine whether the policy meets management’s requirements, the applicable laws and regulations, and investors’ interests. The types of remuneration that can encourage undesirable behavior will be examined and how the remuneration policy provides for appropriate action. If necessary, the assessment can be done more often.

    Why Lendahand?

    Lendahand creates new jobs in emerging markets and enables people to improve their access to basic needs. This way, we contribute to the UN’s following Sustainable Development Goals:

    1 no poverty

    2 zero hunger

    6 clean water and sanitation

    7 affordable and clean energy

    8 decent work and economic growth

    The Sustainable Development Goals (SDGs) were adopted by all United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that all people enjoy peace and prosperity by 2030.

    In which countries is Lendahand active?

    Mexico, Indonesia, Kenya, India, Mongolia, Kirgizie, Moldavia, Peru, to name a few. Every year we add more countries to our portfolio, see our partner page.

    View partners

    What is the competitive advantage of Lendahand?

    Lendahand is the only crowdfunding platform where you can invest in SMEs in upcoming economies and sustainable initiatives at an interest rate between 2-7% per year.

    What is the business model of Lendahand?

    Our borrowers (issuers) pay an average interest rate of 7,8% per year to Lendahand. Consequently we pay on average 4,25% interest to our funders. Our gross margin is around 3% (and maximized at 4%).

    How does the legal structure of Lendahand work?

    Possible debt instruments officially termed “Notes” are issued to the crowd (also called investors) when they want to invest via Lendahand. These notes are similar to bonds but cannot be resold.

    The provider of the debt instruments to the public is called an ‘issuer.’ At Lendahand, these are either the financial institutions that finance the Small and Medium Enterprises (SMEs) in emerging countries, or entrepreneurs that raise capital on our platform themselves. Issuers only access the Lendahand website for projects when they comply with the admission requirement and quality standards beforehand. This includes the acceptance of the conditions for using the platform.

    The crowd can select one or more projects (propositions) that he/she can finance by purchasing notes (or similar instruments) worth €50 each. Once the payment of the investor is successful, the purchase agreement is established. This agreement is entered under the condition precedent that the project (the proposition) will meet enough registrations. Investors accept the Terms and Conditions in which the purchase agreement takes part. Once the proposal is fully funded, the condition precedent is completed, and the notes are issued to the investors who have registered to the respective proposition. There are no exemption rights with regards to investments in requests. All investments are done via the website and are handled automatically and in order of entry.

    What should I do if I have a complaint?

    Please use the complaint form to file your complaint and email it to [email protected]. A first response to the complaint will be given within five working days, and the response will indicate possible follow-up measures. Lendahand will then make every effort to respond to the dissatisfaction as soon as possible. All follow-up communications will be by email, with the email address on file in our system, unless otherwise specified. This is to ensure a reproducible digital archive of communications. Complaints are investigated in accordance with Dutch law as well as our terms and conditions. The filing of a complaint and the corresponding measures taken by Lendahand are of course free of charge for the investor. As a licensed investment firm, Lendahand is also a member of KiFiD, a Dutch foundation whose main objective is to deal with complaints within the financial services industry. If we are unable to resolve the complaint, we will follow KiFiD's advice.

    Download the complaint form.

    Complaint form

    How can I delete my account?

    Send an email to [email protected]. Your account will be deactivated after the last repayment.

    What happens with my money if Lendahand goes bankrupt?

    If Hands-on BV (containing the brand name Lendahand) went bankrupt, all transactions between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your personal wallet to your bank account.

    This does not apply to money that is still outstanding with borrowers. In consultation with a trustee, Intersolve will then handle the settlement of all outstanding repayments to investors, until the final repayment of the last project has been made.

    Since obtaining the ECSP license, Hands-on BV/Lendahand is no longer part of the Dutch Investor Compensation Scheme, 'Beleggerscompensatiestelsel' (BCS).

    Why does Lendahand work with a Third-Party Funds Foundation?

    Lendahand collaborates with Stichting Derdengelden Intersolve EGI, a Dutch financial institution specialized in payment settlements and managing electronic money. This collaboration ensures that Lendahand complies with strict financial laws and regulations. Intersolve EGI is supervised by De Nederlandsche Bank (DNB) and the Authority for Financial Markets (AFM), and holds a license as an electronic money institution and payment institution. The collaboration guarantees a safe and reliable handling of your investments.

    Your invested money is placed in a secured bank account until the project you are investing in is fully funded. Intersolve has no access to these funds. Once a project is fully financed, the money is transferred to the loan recipient (the borrower).

    About USD investments

    Is the investment process the same as with EUR projects?

    Yes, making investments in USD projects work largely the same as all of our other projects. Investors can make investments in projects in increments of €10, and all payments will be made in EUR, via any of our currently available payment methods.

    Is the repayment process the same as with EUR projects?

    The repayment process is slightly different due to the added conversion process. On the last business day of every month, iBanFirst will give Lendahand a conversion rate that will be fixed for the next 30 days. After companies make their repayments, the USD amount will be converted back into EUR using that exchange rate. On each repayment day, around the 15th of each month, the repayment amount due to you, principal and interest, will be deposited into your Lendahand wallet in EUR.

    Can I have a separate USD and EUR wallet in my Lendahand account?

    Our payment service provider does not currently offer the option of USD wallets due to the very strict American supervisory institution.

    Do I need to create another account or wallet to invest in USD projects?

    No, as our payment service provider does not support USD wallets for investors, it is not necessary to have another account or wallet to invest in USD projects. All investments and repayments will be in EUR.

    Is there a difference in interest rates and costs for USD projects?

    Yes, investors pay a 0.3% commission to iBanFirst for repayment transactions of their USD investment. On the other hand, interest rates for projects in USD are on average 1 - 1.5% higher. A higher interest rate on USD is justified since the entrepreneurs save on conversion costs and run less to no currency risk when raising financing in USD.

    Is there a difference in risks compared to EUR deals?

    Investing in projects held in USD comes with the added risk of currency fluctuations. It may cause you to lose money when converting money back from USD to EUR. This risk will be present when you receive your repayments, as the conversion rate from USD to EUR may be less favorable than the rate when you originally made your investment. Vice versa, you could also receive a more favorable exchange rate at the time of your repayments.

    Do the local partners or iBanFirst hedge the currency fluctuation risks?

    Most of our local partners hedge currency fluctuations against their local currency (in which they generate revenues and pay their expenses). Typically, Lendahand also agrees with the local partner the maximum amount of unhedged loans. With the USD loans, some companies will no longer have to hedge, as their local currencies are pegged to the US Dollar. This means they do not fluctuate against the USD (whereas they do fluctuate against the euro). iBanFirst could technically hedge the EUR-USD exchange rate up to two years, but this is something we currently do not offer.

    What happens if the exchange rate goes down between the time I invest in a project and the time it gets fully funded? Will iBanFirst cover the exchange rate?

    In this situation, the local partner will receive less money in USD than what they had expected at the time the project was uploaded. However, it also means that their loan (and therewith repayment obligation) would be lower in USD. For you as an investor, nothing changes, as you will still have invested the same amount of euros.

    How do I know if I’m investing in a USD or EUR project?

    When you visit our projects page you will see the following project information: issuer, amount, maturity, annual interest, repayment terms, and currency, listed as either EUR or USD. Also at the top of the project page, it will be explicitly stated if a project is in USD.

    At what point in time is the exchange rate determined?

    On the last business day of every month, iBanFirst will give Lendahand a conversion rate that will be fixed for the next 30 days. This rate will be used for all transactions during that month, including investments and repayments.

    What is the role of iBanFirst?

    Lendahand, iBanFirst and Intersolve are working together and iBanFirst handles the USD payment transactions to the partners.

    How does iBanFirst fixes the conversion rate?

    iBanFirst offers very attractive rates for currency conversion, significantly cheaper than banks. iBanFirst adds a fee to the interbank mid-rate. They fix the exchange rate at 14.15 pm of the last business day, such that the exchange rate prior to the surcharge of iBanFirst is very close to the official ECB exchange rate for that date. The conversion cost is shared between the entrepreneur and the investors. The entrepreneur pays the transaction fee at the start of the loan. Investors pay a 0.4% transaction fee on their repayments. We strive to offer an interest rate which is net (i.e. after conversion costs) 0.6-1.1% higher compared to similar EUR projects.

    Do I always get paid back in euros?

    Yes, on each repayment day, around the 15th of each month, the repayment amount due to you, principal and interest, will be deposited into your Lendahand wallet in EUR.

    Is the interest rate entrepreneurs pay different from EUR projects?

    Yes, it will probably be 1.0 - 1.5% higher. This is justified as interest rates on the USD are currently higher and local partners save on conversion costs compared to receiving funds in EUR and they do not have EUR currency exchange risks anymore.

    Is the competitive advantage of Lendahand the same as for EUR projects?

    It depends how you compare this. Compared to other lenders with funding costs in EUR we believe this is an attractive and strongly priced offering. Compared to lenders which have their funding cost in USD and therefore do not have to convert from EUR to USD, we have a slight disadvantage. However, more importantly, by gaining the ability to offer USD investments, many more businesses who have not been able or have not been prepared to otherwise borrow in EUR will now be able to get funding through Lendahand.


    How does Auto-Invest work?

    Auto-Invest is, by default, turned off and can be easily switched on and off on the page below. Both turning it on and off are effective immediately and free of charge.

    As soon as you activate Auto-Invest, we will ask you for your project preferences. Auto-Invest only invests in projects that meet your specified criteria, allowing you to control which projects you invest in.

    Activate Auto-Invest here

    When can an automatic investment take place?

    There are four moments when Auto-Invest can proceed with an investment:

    • 60 minutes after Auto-Invest is enabled and there's money in your wallet.
    • 15 minutes after a deposit is credited to your wallet.
    • 2 hours after a repayment is credited to your wallet.
    • Immediately when a new project appears on the website, provided there's money in your wallet.

    What is Auto-Invest's investment setup?

    1. Auto-Invest will only invest in projects that meet the following two criteria:

      a) You have not previously invested in this project, even manually.
      b) The project meets all your personal project preferences.

    2. If multiple projects meet these two criteria, Auto-Invest will spread your balance as much as possible across the available projects.
    3. The amount to invest per project depends on:

      a) the minimum and maximum investment amounts you've set;
      b) your available balance and;
      c) the number of projects that meet the two criteria mentioned above.

    4. It's possible that Auto-Invest may only be able to invest in some projects that currently meet the above criteria (1a and 1b). For example, if the minimum investment amount you've set is too high. In this case, Auto-Invest will choose the project that has been on our website the longest.
    Example 1a:

    You have €2,000 in your wallet. You activate Auto-Invest, set the maximum investment amount per project to €500, and set the minimum interest rate to 5.5%. There are 5 projects on the website at that time, 3 of which have an interest rate of 5.5% or higher, and 2 have an interest rate of less than 5.5%. One hour after you activate Auto-Invest, €500 will be automatically invested in three projects. €500 will remain in your wallet.

    Example 1b:

    Two days later, a new project appears on the website. The project has an interest rate of 6%. As soon as the project appears, the €500 remaining in your wallet will be automatically invested.

    Example 2:

    You receive a repayment of €1,000 in your wallet. Auto-Invest is enabled, and you've set a minimum investment amount of €400. There are 3 projects available that meet your personal preferences. Two hours after the repayment, Auto-Invest will invest €500 in 2 of the 3 available projects. Auto-Invest will invest in the 2 projects that have been on the website the longest.

    Example 3:

    You deposit €2,000 into your wallet. Auto-Invest is enabled. You've set a minimum interest rate of 5%, a maximum term of 24 months, only projects in euros (EUR), and only in financial institutions. At that time, there's no project available that meets your preferences. Fifteen minutes after the deposit, Auto-Invest will decide that it cannot invest the money, and it will remain in your wallet. Auto-Invest will only invest once a new project that meets your preferences becomes available.

    What general terms and conditions apply to Auto-Invest?

    Specific terms and conditions apply to participation in Auto-Invest. Upon activation of Auto-Invest, you will be asked to accept these terms. You can view the terms on this page.

    Auto-Invest is subject to the licensing requirements of the European Crowdfunding Regulation EU/2020/1503. Lendahand has the necessary license to offer this service.