FinBee lending and borrowing process operates online only. As a result, we have lower operating costs than traditional banks. Saved costs are passed on to lenders in a form of higher return on investment and to borrowers as lower interest payment. Managing risk properly, lenders can reach as much as 25 % annual interest returns.
We recommend investing each loan in small portions. This means that you do not have to finance whole sum of a loan that borrowers apply for. Thus, if borrower defaults a lender will experience less damage to his loan portfolio. We advise to start lending small amounts of money, evaluating and understanding the principles of FinBee operation as well as investment risk and only then start lending significantly larger amounts.
FinBee lenders are in charge of choosing the loan or part of it to invest their money to. Loans are repaid in monthly installments, thus earned interest is paid to lenders every time a borrower makes a monthly payment. Lenders have the choice to decide to withdraw the interest earned or to reinvest for even higher returns. World practice shows that investors can expect up to 25 % annual interest by investing over P2P platforms.
A secondary loan market is incorporated in FinBee platform and due to this lenders can sell their loan portfolio to other lenders. It is a common and accepted practice in the financial world.
Important: it is not possible to sell loans for which repayment period is delayed for more than 60 days and debt collection process is started from the borrower.