Projects in collaboration with Atradius DSB and Carabus offer Lendahand investors a guarantee on their investment, including interest. With this guarantee, Atradius DSB reduces the risk of investing in crowdfunding projects focused on sustainable energy.
Lendahand, Carabus and Atradius DSB have joined forces. Carabus, supported by Atradius, provides loans to Dutch export companies active in the field of renewable energy, among others. Through Lendahand, impact investors can invest in Carabus projects. On those loans, Carabus receives a 100% guarantee from Atradius DSB. Atradius DSB has the mandate on behalf of the Dutch government to act as the executor of export credit insurance. They insure export credit in countries that are politically or economically vulnerable. Read more about this guarantee below.
How does the Atradius DSB guarantee work?
The collaboration with Atradius DSB allows you to invest in sustainable projects on Lendahand with very low risk. Atradius DSB eliminates the risk of non-payment by Carabus’ customers, enabling Carabus to repay the investments (plus interest) to Lendahand investors.
Through this partnership between Atradius DSB and Lendahand, investors can directly contribute to exporting sustainable energy products to emerging markets. The Dutch government, through Atradius DSB, guarantees this export financing, ensuring full coverage of investors' funds.
Practical Example:
You invest €1,000 in a Carabus project. Carabus lends that amount—minus interest and a small margin—to a Dutch exporter of sustainable energy products. The exporter then delivers goods of that value to a local customer, for example, in Nigeria. The customer is allowed to pay in six installments over a period of three years. Payments are made directly to Carabus.
If the customer fails to pay, Carabus can turn to Atradius DSB. As long as the claim is submitted on time and all administration is in order, Atradius DSB will compensate Carabus. This allows Carabus to repay your loan plus interest, as agreed.
When does the guarantee take effect?
If an expected repayment from Carabus is delayed by 30 days, the Atradius DSB guarantee is activated. The missing amount will then be transferred to Carabus within a maximum of 180 days and a few days later to your Lendahand wallet via Carabus.
The guarantee is assessed per expected repayment and reimbursed separately.
Lendahand will initiate the guarantee process. This means that, as with any project, an individual investor is not permitted to take action in the event of non-payment by the borrower.
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 covered. 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 that are guaranteed by Atradius DSB.
When does the guarantee not apply?
The guarantee does not apply in the following cases:
- If Carabus loses payment receipts or fails to provide them to Atradius DSB.
- If Carabus does not inform Atradius DSB of a customer’s non-payment in a timely manner.
The likelihood of these situations occurring is minimal, as Carabus was specifically established for this structure, and this is its core activity. Additionally, Lendahand supports Carabus in these processes.
Furthermore, the guarantee cannot be honored if both Carabus and Lendahand cease to exist due to bankruptcy or insolvency. However, this scenario does not affect your right to repayments—only the guarantee itself.
How Was the Guarantee Established?
This collaboration was made possible by Carabus, a new Dutch entity created to finance invoices from Dutch exporters to emerging markets. These exporters primarily supply products in the sustainable energy sector, such as Spark's Solar Kits.
With financing from Carabus, exporters can cover their costs and ship their products, increasing access to sustainable energy locally.
Carabus’ financing is backed by Atradius DSB, which provides export credit insurance on behalf of the Dutch government. This allows financial institutions, exporters, and their customers to enable trade that would otherwise be difficult to finance while reducing the risk of non-payment.
Carabus raises the necessary funding through Lendahand and utilizes Atradius DSB guarantees to provide financial security for both investors and exporters. In the future, Carabus aims to expand into other impact sectors, such as clean cookstoves and water purification systems.
Who is Atradius DSB?
Atradius Dutch State Business (DSB) is the official export credit insurer (ECA) of the Dutch government and offers a wide range of guarantees and insurance for exporters and financial institutions. Atradius DSB helps internationally operating companies and investors, large and small, with their business abroad. Each year, Atradius DSB facilitates between €3-5 billion in impactful exports across more than 50 countries, with approximately half of that amount benefiting SMEs.