Profitus is a crowdfunding platform that connects with real estate projects, enabling to invest in property without needing significant capital. Profitus aims to democratize real estate investment, making it accessible to a broader audience while providing developers with a reliable source of funding. The platform typically offers detailed information about each project, including expected returns, duration, and risk assessment,.
Key numbers
Who can invest?
How it works
Both individuals and legal entities can invest on the platform. There are no age restrictions on the platform either, but the user must have a bank account, which limits the investment opportunities for minors. Different banks have different rules for opening bank accounts to minors – please reach out to a bank that you want to use regarding more information on the matter.
- Specialisation: Real estate development, rental projects, business loans secured by real estate
- Maximal observed interest rate: 14%
- Average rate: 10%
- Minimum investment amount: 100€
- Average terms: 12 months
- Currencies supported: €
- Foundation year: 2017
- Commission: 0%
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Instruction:
Registration Process
The registration process on Profitus is meticulous, designed to ensure compliance and security. It starts with filling out personal details, including name, date of birth, and country of residence (the platform supports multiple countries). Additionally, the process requires detailed address information, including city, street, and house/apartment number.
Identity Confirmation
On Profutus you must agree to transfer personal data to Lemonway, a third-party provider, to create a wallet. This step underscores Profitus’s commitment to regulatory compliance and the security of user data. Verification can be done via a passport or an identity card, supported by robust compliance measures like those provided by Ondato, which helps check for sanctions and the authenticity of documents.
Profitus places a strong emphasis on data protection. Users must consent to the processing of their personal data, which includes biometric data for identity verification. This consent is in line with GDPR requirements. KYC process involves collecting data from various sources, including Creditinfo and Ondato, and evaluating the reputation and financial history of the project owners.
Risk Assessment
The platform rate projects and determine their risk category, ranging from AAA (lowest risk) to BBB- (highest moderate risk). Key aspects assessed include the financial situation of the project owner, the business plan, industry context, and the collateral provided. The platform’s algorithm considers various criteria, including the project’s feasibility, the experience of the project owner, and the economic potential of the project. Interest rates are determined based on the project’s risk category and rating.
Profitus ensures the security of investments through detailed creditworthiness assessments and continuous monitoring. This includes regular checks on payment performance, collateral value, and any potential negative information.
The borrower evaluation process on Profitus is stringent, involving several critical steps to ensure only reliable and creditworthy borrowers are approved. This includes reputation assessment through Creditinfo and Ondato, examining criminal records, financial history, and public reputation. The platform also performs a creditworthiness check, analyzing financial statements, credit history, and existing debts to determine repayment ability. Collateral evaluation ensures the value and liquidity of assets like real estate cover the loan amount. Project feasibility is assessed by examining the business plan, projected revenues, market conditions, and borrower experience. Compliance with Regulation (EU) 2020/1503 and anti-money laundering policies is mandatory.
Types of Borrowers
Real Estate Developers: The primary borrowers on Profitus are real estate developers. These developers seek funding for projects such as residential, commercial, or mixed-use developments. The funds raised can be used for acquiring land, construction, renovation, or expansion of real estate properties.
Small and Medium Enterprises: SMEs also seek loans on Profitus for business expansion, working capital, or specific projects. These businesses can range from local shops to more significant enterprises needing capital to grow their operations.
Entrepreneurs: Individual entrepreneurs typically have a clear business plan and seek crowdfunding to bring their ideas to fruition.
Contact
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