Projects in collaboration with Atradius DSB and Carabus offer Lendahand investors a 100% guarantee on their investment, including interest. With this guarantee, Atradius DSB reduces the risk of investing in crowdfunding projects focused on sustainable energy.
Atradius, mandated by the Dutch government, administers export credit insurance. They provide insurance for exports to countries that are politically or economically vulnerable. Read more about this guarantee below.
How does the Atradius DSB guarantee work?
Partnering with Atradius DSB provides you with a guarantee on your sustainable investments in certain projects on Lendahand. Your entire investment in projects by borrower Carabus is automatically protected by Atradius DSB.
For example: If you invest €1,000 in Carabus and the company is unable to repay the loan, the €1,000 of your investment is protected, and the expected interest on your investment is also covered.
When does the guarantee take effect?
The guarantee takes effect when a repayment from Carabus is 30 days late. The missed amount is then transferred to your Lendahand wallet within 180 days at most. The guarantee is evaluated and reimbursed separately for each expected repayment.
Lendahand will initiate the guarantee. This means, as with any project, that individual investors should not take action if the borrower defaults.
Does the guarantee also cover expected interest?
Yes, the expected interest is also covered.
Does the guarantee cover the EUR to USD exchange rate?
No, the exchange rate risk between EUR and USD is not guaranteed. Read more here about investing in different currencies via Lendahand.
Does the guarantee apply to all my investments?
No, the guarantee only applies to specific projects by borrower Carabus.
When does the guarantee not apply?
The only scenario in which the guarantee cannot be honoured is if Carabus and Lendahand both cease to exist due to bankruptcy or insolvency. However, this scenario does not affect your repayment rights, only the guarantee.
How does the guarantee come about?
This partnership was established through Carabus, a new Dutch entity created to finance invoices from Dutch exporters in emerging countries. These exporters mainly supply products in the sustainable energy sector, such as Spark’s Solar Kits. Carabus’ financing enables these exporters to cover costs and ship their products, thus increasing access to sustainable energy locally.
The financing through Carabus is supported by Atradius DSB, which offers export insurance on behalf of the Dutch government. This reduces risk for exporters and allows them to receive payments faster. Carabus raises necessary funding via Lendahand and leverages Atradius DSB guarantees to offer financial security to both investors and exporters. Carabus aims to expand into other impact sectors, such as clean cookstoves and water purification systems.
Who is Atradius DSB?
Atradius Dutch State Business administers export credit insurance on behalf of the Dutch government. This program helps Dutch companies conduct international trade by protecting them against potential risks. Through credit insurance and guarantees, Atradius DSB assists businesses in building safe and sustainable trade relationships, especially in emerging markets. In 2023, Atradius DSB issued 152 insurance policies, 77 of which were for Dutch SMEs. In this way, Atradius DSB supports a wide range of exporters with financing solutions, helping them enter new markets and seize growth opportunities.