Who can invest in iuvo?

Iuvo is a platform that is open to individuals and companies.

The individuals must be at least 18 years old, and they need to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT regulations to the EU.

Companies are required to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT regulations to the EU. Their data and funds origin will be checked accordingly.

Required documents for companies are:

–  ID card or Passport of all owners of the company

–  company registration document or Certificate of good standing

–  articles of incorporation (contract)

–  information about actual owners (UBO)

How can I add funds to my investor account?

You can add funds to your iuvo account by some of the following methods:

–  a bank transfer from your bank account with a payment order in a bank branch or by using your online banking

–  at the cash register of a bank

–  Trustly – a licensed payment institution, started back in 2008 in Sweden. You only need to choose this method from “Аdd funds” and fill the payment details from your online banking. The funds will be added within seconds;

–  PaySera – transfer funds directly from yours to iuvo’s PaySera account. Transactions between two PaySera accounts are free.

–  add funds with e-money companies as a bank transfer to some of our bank accounts – Revolut, ePay, Transferwise, Currency Cloud etc.

All bank details are available at the “Add funds” section.

How to invest?

The platform offers two methods of investing – manual and automatic.
Manual investing includes selecting loans, filtered by your criteria on primary or secondary market, adding them to the cart, and confirming the investment.
The Auto Investing is creating one or more portfolios with combination of loan parameters. It spreads your available funds according to your preferred criteria. The main advantage of it is that the available funds from received payments are being reinvested automatically. This way you are optimizing your yield without the need of any extra activity. How to make your investing more efficient, find out here.

What is the minimum amount for investing?

There is no minimum amount for deposit.
The minimum amount for investing in one loan on the primary market is: 10 BGN, 10 EUR, 25 RON, 25 PLN, 400 RUB.
There is no minimum amount for investing on the secondary market.

When do I receive payments?

With every paid installment from a borrower, you receive parts of your principle back and parts of the interest amount, depending on your invested sum. The information is accessible at “Account Statement”. The due dates of the installments are visible in the Payment Schedule on each loan – which installment has been paid and which are about to be paid. A borrower can also pay an installment partially in order to avoid any late fees. In such cases you receive payments according to the paid amount.
The installment types that are currently being offered on the platform are: 7-days, 14-days, 15-days, 30-days, and 1 month.

What do the score classes mean?

Each originator has a system for defining the probability of the loans to not get paid until the end, based on the borrower’s profile. This system makes the loans comparable. According to the probability, the score classes can be the following:

A  0 – 4% probability of default

B  4 – 10% probability of default

C  10 – 18% probability of default

D  18 – 25% probability of default

E  25 – 35% probability of default

HR  over 35% probability of default.

What is a Secondary market?

The secondary market gives you the opportunity to sell loans that you have bought, on a higher than the nominal price (premium; red percent), lower than the nominal price (discount; green percent), or on the nominal price (black zeros). The market provides the selling investor with higher liquidity of their funds, and the buyers – an opportunity for extra profit.
Please keep in mind that the only fee on the platform is 1% of the sold amount of a loan for the selling investor.

Can I cancel my investments?

You can cancel an investment before confirming it from the shopping cart. After that, the only way to get out of investment is to sell it to another investor on the  secondary market.

Can I make a currency exchange on the platform?

Yes, we offer a fast and convenient  currency exchange tool. You can invest in five different currencies at the same time – BGN, EUR, RON, PLN and RUB.

What is a “late fee payment” and when is it being applied?

The originator can charge the borrower with a late fee due to delayed payments. Each originator defined the late fee charges in the contract with the borrower. You receive late fee payments according to the percentage of the loan that you owe. You can check for received late fee payments on the Dashboard or in “Account statement”.

What charges may apply?

There are no fees on the platform for investing and adding funds. Fees may be charged for:
– secondary market sale – 1% of the sold amount;
– withdrawing funds after the two free of charge withdrawals per month, each following withdrawal in the same month is charged, as follows: 1 EUR, 2 BGN, 5 RON, 5 PLN;
– early withdrawal from iuvoSAVE – 1% of the early withdrawn amount.
Please keep in mind that this does not include the fees your bank may apply.

How is the expected return (interest) of the loans calculated?

The expected profit is calculated by the XIRR formula (Extended Internal Rate of Return). XIRR is a widely used method for calculating profit from investments in order to equate the benefit from all loans on annual base and make them comparable. The formula contains a sequence of payments and proceeds. In order to calculate the profit, we use it in Excel = XIRR (amount, data, [suggestion]). Here you can find useful information about how to check what kind of yield you receive.

How is the generated profit being taxed?

Investors in Estonia

The peer-to-peer income in the annual tax report comes from:
1. Interest received (interest payment from the borrower)
2. Late fee payments
3. Secondary market gains

Investor from other countries

The investor’s generated profit from the platform is being taxed according to their country of residence. It is the investor’s responsibility to declare their income. The platform does not do the tax reports for its investors, but it can provide the needed information. Declare your income to the local tax authorities in accordance with the order provided and check how and when to do it.

You can get the needed information about your profit from “Account Statement”. Select the preferred period, currency (if you have more than one), and press Filter. At the bottom of the page, you will find a pdf file, ready for download, which you can apply to your tax report.

Please, keep in mind that iuvo does not provide tax, financial, or legal advice. We would like to recommend to contact your financial or tax consultant, if needed.

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