Frequently asked questions
General information about our platform
How to invest?
In order to begin investing, you need to meet the minimum 2 requirements:
- 1. Have an account on VIAINVEST,
- 2. Have funds available on your VIAINVEST account.
There are two ways to invest:
- Manual investing – control what offerings you would like to invest in and how much:
1. Browse the offerings currently listed on VIAINVEST in the primary market section and pick and choose how you want to build your portfolio.
2. Make full or partial investments into selected listings. - Auto-investing – save time and invest in several offerings at once by letting the auto-invest feature do the work for you:
1. Set the preferred criteria for your auto-invest portfolio.
2. Take your earnings and reinvest them into other offerings.
3. Fully automate the investment process without having to log in, and manage your investments by changing auto-invest criteria or canceling this option at any time.
What risks are involved with investing?
It is essential that you are aware that all investments involve some degree of risk. For a better and more safe investing experience, we advise you to learn about risks and the steps we take to decrease them here: https://viainvest.com/en/company/security
In what currencies can I make an investment?
Currently investments are accepted in EUR.
What are the investment types available on the platform?
Starting 02.08.2022 VIAINVEST will list a new type of investment – the Asset-backed securities.
Asset-backed securities will replace the current single loan investment type. Only investments in Asset-backed securities will be available on the platform from 02.08.2022. All the ongoing investments in single loans will remain active until they reach the end of the contract.
The previously available single loan types are as follows:
Short-term loan - fixed-term consumer loan with a maturity that varies between 7 to 30 days. The borrower is required to repay the full loan amount within the set loan term or to extend the loan term. In the case of delay, the Buyback Guarantee comes into force on the 61st delayed day.
Installment loan - a consumer loan with a maturity that varies from 3 to 12 months. The borrower is required to repay the loan within the set term by making constant monthly payments. In the case of delay, the Buyback Guarantee comes into force on the 61st delayed day.
Credit line - a consumer loan with an open-ended agreement. The borrower may choose the repayment terms - either to repay the full loan amount after 30 days or to make monthly payments until the full amount borrowed is repaid. The borrower may also raise the loan amount during the repayment process. In the case of delay, the Buyback Guarantee comes into force on the 61st delayed day.
Business loan - a business loan issued to the legal entity for a business development project. Business loans offer higher risk degree investment opportunities and are NOT secured with the Buyback Guarantee, however, there may be another type of security provided, for example, collateral.
What is the new Asset-backed securities investment product?
Asset-backed securities are financial instruments backed by a pool of loans. Several loans are pooled together to create a new investment product in a regulated environment – more secure, more balanced, and more convenient.
Investing in Asset-backed securities entitles the investor to receive the interest payments and principal repayments on the underlying loans. Being regulated means being more secure – all investments in Asset-backed securities are protected by the Investor Protection Law established under EU Directive 97/9/EC.
How do Asset-backed securities work?
The Asset-backed securities are backed by the loans originated by the loan originator. Prior to the issuance of each series of securities the issuer purchases the claim rights towards the loan originator’s borrower for the repayment of the principal and accrued interest arising from consumer loans. Also, the pledge agreement is concluded between the issuer and the loan originator for loan receivables and serves as the assets that are backing the securities.
Loans from each loan originator are combined into pools of loans. After the securitization process, all securities linked to a certain pool of loans will be published on VIAINVEST platform with the same ISIN (International Securities Identification Number provided by Nasdaq Riga).
This makes them available for investment and from this point, each investor has to decide on how much he wants to invest into a specific pool of loans.
What is the Asset-backed securities repayment schedule?
The repayment schedule depends on the underlying loans in each issuance of Loan Backed Security. The full information about the underlying loans is available in Final Terms for every Loan Backed Security offering.
The redemption of the asset-backed securities in the amount of principal and interest will be made once a month at the date defined in the Final Terms. At this date, the investors will receive their share.
Each investment in Asset-backed securities is proportionally distributed among the underlying loans of the issuance.
For example, if an investment of 50 EUR is made in the issuance with a total value of 500 EUR that combines 10 loans of 50 EUR, this would give an investor the share of 10% in each of the underlying loans.
When the borrower repays 10 EUR of the principal and 0.50 EUR in interest, the investors receives their share of 1 EUR in principal payments and 0.05 EUR in interest payment.
What are the Base Prospectus and Final Terms?
Each offer of the asset-backed securities comes with a detailed description of the investment that helps the investor to make an informed decision.
The Base Prospectus is the document published by the issuer in relation to a security issuance program and made available to prospective investors. The Base Prospectus includes information, such as issuer business data, loan originator data, duties and responsibilities of each party, payment flow structure, risks, terms and conditions, and other details related to the security issuance program.
The Final Terms document provides detailed information about the specific investment offer, such as interest rate, maturity date, repayment schedule, and other data.
How does the buyback obligation of Asset-backed securities work?
One of our top priorities is helping you mitigate and manage this risk.
Most Asset-backed securities come with a Buyback Obligation. These investments are marked with a Buyback Obligation icon. This means that if a borrower misses a payment for more than 60 days, the loan originator is required to buy back the loan from the issuer in the form of the full principal and interest.
Investors are not required to take any action; however, the buyback process may take some time. If the loan originator is not able to honor its liability, the Buyback Obligation is also at risk.
Who are the issuers and loan originators?
The issuer is an entity emitting the securities under the International Securities Identification Number (ISIN) provided by Nasdaq Riga.
The issuer acquires the claim rights towards the repayment of the principal and accrued interest of the loans issued by the loan originator (an entity that issues loans to borrowers) and finances it by issuing and offering the securities to the investors.
SIA “VIAINVEST Assets”, a subsidiary of the VIA SMS Group, is the issuer of the Asset-backed securities published on the VIAINVEST platform.
VIA SMS Group subsidiaries are the originators of the underlying loans of the Asset-backed securities offered on the VIAINVEST platform.
What is the loan originator stake and how does it secure investors?
All Asset-backed securities offered on the VIAINVEST platform have the requirement for the underlying loan originator to keep a stake (skin-in-the-game) in each underlying loan. The amount of the loan originator stake is defined in the Base Prospectus.
This is done to ensure that the loan originator’s interests are aligned with the investors.
How will the transition to Asset-backed securities happen?
We are making sure that the transition happens smoothly with no effort required from your side and that there are no interruptions in your investing experience.
Starting 02.08.2022:
Asset-backed securities.
- - The Asset-backed securities will be the only offering type available on the VIAINVEST platform for the new investments.
- - Auto-invest strategies will continue investing in Asset-backed securities based on the previously defined terms. If you would like to review the auto-invest, you can do so any time by accessing your investor profile. If you have not completed the appropriateness questionnaire, your auto-invest will be paused until you do so.
- - All investments in asset-backed securities will be protected by the Investor Protection Law established under EU Directive 97/9/EC..
Single loans:
- - Starting 02.08.2022 the new investments in single loans will be disabled.
- - All the ongoing investments in single loans will remain subject to their initial agreements and stay active until they reach the end of the contract.
- - Auto-invest strategies will no longer invest in the single loans.
Investment in single loans
What happens to my investments in single loans after 02.08.2022?
All the ongoing investments in single loans will remain subject to their initial agreements and stay active until they reach the end of the contract. New investments in single loans will not be available.
Do I also receive interest if the loan is extended?
Yes, you will always receive interest for the whole period when your funds are invested in the loan - actual loan term as well as delayed period and/or extension period (if such).
What is the Buyback Guarantee for single loans?
The Buyback Guarantee is an investment security that guarantees loan originator intent to repurchase the active loan contract if it has been delayed for more than 60 days. The Buyback Guarantee is given at a particular loan level and refers to the obligations the loan originator has towards the investor.
Loans secured with the Buyback Guarantee are marked with a Buyback Guarantee icon . Information about loan security can be found in each of the “Loan profile” pages.
Please note that the Buyback Guarantee does not apply to business loans.
This particular business loan allows early exit from the investment taking into account specific annual interest rate calculation terms. Early exit options and respective annual interest rates are listed below. Early exit from the investment can be requested by pressing EARLY EXIT button available in this particular business loan profile. Invested principal and earned interest returns to investor account after selected notice period.
| Reason for withdrawal from the agreement | Prior notice period | Guaranteed annual interest rate (paid on monthly basis) | Extra annual interest, paid once at the end of the agreement | Total annual interest rate |
|---|---|---|---|---|
| The loan maturity day | n/a | 12% | 2% | 14% |
| Early exit request before the maturity day | 1 month | 12% | n/a | 12% |
| Early exit request before the maturity day | 3 month | 12% | 1% | 13% |
| Early exit request before the maturity day | 6 month | 12% | 2% | 14% |
By selecting one of the early exit options listed below, you will automatically inform VIAINVEST about your willingness to exit the investment after the selected period of time starting from the date when the request is made. Invested principal and respective earned interest will be transferred to your investor account after chosen time period.
This particular business loan allows early exit from the investment taking into account specific annual interest rate calculation terms. Early exit options and respective annual interest rates are listed below. Early exit from the investment can be requested by pressing EARLY EXIT button available in this particular business loan profile. Invested principal and earned interest returns to investor account after selected notice period.
| Reason for withdrawal from the agreement | Prior notice period | Guaranteed annual interest rate (paid on monthly basis) | Extra annual interest, paid once at the end of the agreement | Total annual interest rate |
|---|---|---|---|---|
| The loan maturity day | n/a | 11% | 2% | 13% |
| Early exit request before the maturity day | 1 month | 11% | n/a | 11% |
| Early exit request before the maturity day | 3 month | 11% | 1% | 12% |
| Early exit request before the maturity day | 6 month | 11% | 2% | 13% |
By selecting one of the early exit options listed below, you will automatically inform VIAINVEST about your willingness to exit the investment after the selected period of time starting from the date when the request is made. Invested principal and respective earned interest will be transferred to your investor account after chosen time period.
This particular business loan allows early exit from the investment taking into account specific annual interest rate calculation terms. Early exit options and respective annual interest rates are listed below. Early exit from the investment can be requested by pressing EARLY EXIT button available in this particular business loan profile. Invested principal and earned interest returns to investor account after selected notice period.
| Reason for withdrawal from the agreement | Prior notice period | Guaranteed annual interest rate (paid on monthly basis) | Extra annual interest, paid once at the end of the agreement | Total annual interest rate |
|---|---|---|---|---|
| The loan maturity day | n/a | 9% | 2% | 11% |
| Early exit request before the maturity day | 1 month | 9% | n/a | 9% |
| Early exit request before the maturity day | 3 month | 9% | 1% | 10% |
| Early exit request before the maturity day | 6 month | 9% | 2% | 11% |
By selecting one of the early exit options listed below, you will automatically inform VIAINVEST about your willingness to exit the investment after the selected period of time starting from the date when the request is made. Invested principal and respective earned interest will be transferred to your investor account after chosen time period.
*Two component compensation model: interest of 8% p.a. on monthly basis plus interest paid at maturity of the agreement, providing investor with yield to maturity range from 8% to 12% p.a. Interest paid at maturity derives from project Capitalization Rate and Real Estate sales price as follows:
Calculation example:
| Capitalization Rate | Sales price | Yield to maturity |
|---|---|---|
| 5,75% | < 38 093 071 € | 8% |
| 5,25% | 38 093 071 € - 41 720 983 € | 10% |
| 4,75% | 46 112 665 € < | 12% |
Capitalization rate indicates the expected rate of return an investor is likely to achieve on an investment property. The rate is calculated by dividing net annual operating income by the value of the property and multiplied by 100 to get the percentage.
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