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Read more about the risks of crowdfunding in our FAQ.
With EUR 6,800 Margarita is able to reconstruct her successful restaurant after it was wiped out by a typhoon.
PhilippinesFully funded in 31 days.
Margarita Rivera is a mother of 2 and the owner of IsKarGu Restaurant located in Calauan, Laguna. The restaurant is located along a highway with a beautiful scenic view of rice fields with mountain ranges at the horizon. Margarita started the restaurant in 2002 on her mother's advice with a small inventory. At conception, the restaurant only contained 5 chairs and only the necessary kitchen appliances, which she was able to buy after she and her husband separated. Her ex left Margarita with Php. 100,000, which was fully invested in the restaurant.
Because of the rural ambiance and the excellent food that the restaurant has to offer, it became a highly attractive restaurant for travelers passing the highway. Margarita is not only the owner, but also a committed chef. IsKarGu Restaurant currently employs fifteen workers with Margie's sister as the assistant manager and her brother as the sous chef. She is also highly committed to her community and uses her skills as a chef and restaurant owner to sponsor a feeding program for children from the nearby Don Bosco region.
Unfortunately, Mother Nature struck Margarita and the restaurant hard when Typhoon Glenda wiped out her restaurant completely in 2014, leaving her and the workers unemployed. She is, however, motivated more than ever to reconstruct her business.
Lendahand and its local partner NPFC are very proud to support Margarita in her time of need to rebuild her restaurant by providing a loan, which will be repaid in 18 months.
Our local partners cover the risk of currency exchange rates and loan defaults. They do this by maintaining financial reserves for this purpose . In addition, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to funders, our local partners face risks of their own that could effect their ability to secure a loan. These include: - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.
If you invest direct in a company, hence not via a local partner, risks of default are not covered. As the risk that comes with direct lendings is generally higher than an investment through a local partner, the interest rate is also higher.
There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding loans at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.
Local partners must adhere to our mission and work with us to provide loans that are affordable. This insures that local entrepreneurs have access to financing that allows them to grow their business. A local partner must also have a track record. In other words, they must have proven themselves as a meso-credit provider for SMEs. This means (for instance) that the partner must have a solid credit portfolio, along with enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the partner and how robust their (internal) procedures are. Finally, the loans that a local partner receives via Lendahand must be in proportion to the partner's total balance sheet. A healthy balance between effectuating influence and independence is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via info@lendahand.com.
When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.
Lendahand will always conduct due diligence when a Company requests for a direct loan. To provide more insights on risks, an independent partie comes in to perform brief analysis on direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not an investing advice.
No. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason Lendahand only selects financially solid partners based on strict criteria.
Also, for direct loans no guarantee is provided.
Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).
Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year.
We adhere to strict safety requirements with regards to private and payment details. All sensitive data is sent through an encrypted connection (https). Also, data is stored (encrypted) in a secured facility provided by AWS: the world largest hosting service. Customer documents can only be retrieved by a secured connection and multi-factor authentication.
Our local partners and Companies bear the exchange rate risks. We settle the loan, redemptions, and interest payments in euro or in dollar.
If Hands-On BV (containing the brand name Lendahand) would go bankrupt trades between Lendahand and payment service provider LemonWay would cease immediately. LemonWay will then transfer the funds in your personal wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). LemonWay will then in consultation with a trustee handle all repayments between the investors and investees up until the final repayment of the last project has taken place.
Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses who have trusted money and or financial instruments (such as notes or options) to a licensed bank, investment firm or a financial institution in case the financial firm is unable to meet its obligations arising from claims related to the investment service. The ICS guarantees an amount of up to EUR 20,000 per individual. For more information, go to www.toezicht.dnb.nl/en/2/50-202210
| Number of companies in portfolio | 350 |
| Total assets | €6,792,200 |
| Leverage ratio | 13.20% |
| Write-off ratio last 12 months | 8.90% |
| % investment amount in arrears (>90 days) | 34.98% |
| % investment amount in arrears (>180 days) | 28.49% |
Dinand Mentink
Jan de Wit