Mitigating investment risks

There are several ways to mitigate investment risks. Some of the methods have already been implemented by isePankur and the others are to be used by the investors themselves.

isePankur’s steps for mitigating credit risk	Investor’s steps for mitigating credit risk
isePankur has analysed the bank statements of all borrowers in order to verify information provided with the loan application as well as to ensure that the borrowers can afford to repay the loans. Same procedures are used by banks. All customers are identified using ID-card or Mobile-ID.. The same security technology is used by the banks and public sector. All contracts are signed with digital signature, giving them full legal power. This means that all contracts can be brought into force by court. isePankur runs a credit background check at Krediidinfo on each borrower.. isePankur has established requirements that all borrowers’ background in Official Registry and the Courts’ Databases must be clean. In case the borrower has any negative information, all new loan applications and transactions will be blocked. All borrowers must fill a thorough credit application with their loan application, providing a complete overview of their financial health. isePankur has developed a thorough debt settlement process, which is used on all debtors. The debt settlmenet process is comprised of dent notification letters, publishing the debtor’s details in the Official Debt Registry, publishing the debtor’s details on isePankur website and starting court proceedings. Similar process is being used by banks and other financial institutions.	Diversify your investment between many different investors, in other words do not put all your eggs in one basket. You will reduce the credit risk on your loan portfolio derived from one borrower by investing your capital in different borrowers at acceptable risk levels. For example if you would like to invest 5 000 € then we recommend investing 25 € in 200 different loans. Try avoiding investments in borrowers with active payment problems. It is highly likely that the borrower will use the money for paying off other debt. If the borrower was not able to pay for the other liabilities then it would be too optimistic to assume that the financial situation will change in short term.

isePankur’s steps for mitigating credit risk

Investor’s steps for mitigating credit risk

isePankur has analysed the bank statements of all borrowers in order to verify information provided with the loan application as well as to ensure that the borrowers can afford to repay the loans. Same procedures are used by banks.
All customers are identified using ID-card or Mobile-ID.. The same security technology is used by the banks and public sector.
All contracts are signed with digital signature, giving them full legal power. This means that all contracts can be brought into force by court.
isePankur runs a credit background check at Krediidinfo on each borrower..
isePankur has established requirements that all borrowers’ background in Official Registry and the Courts’ Databases must be clean. In case the borrower has any negative information, all new loan applications and transactions will be blocked.
All borrowers must fill a thorough credit application with their loan application, providing a complete overview of their financial health.
isePankur has developed a thorough debt settlement process, which is used on all debtors. The debt settlmenet process is comprised of dent notification letters, publishing the debtor’s details in the Official Debt Registry, publishing the debtor’s details on isePankur website and starting court proceedings. Similar process is being used by banks and other financial institutions.

Diversify your investment between many different investors, in other words do not put all your eggs in one basket. You will reduce the credit risk on your loan portfolio derived from one borrower by investing your capital in different borrowers at acceptable risk levels. For example if you would like to invest 5 000 € then we recommend investing 25 € in 200 different loans.
Try avoiding investments in borrowers with active payment problems. It is highly likely that the borrower will use the money for paying off other debt. If the borrower was not able to pay for the other liabilities then it would be too optimistic to assume that the financial situation will change in short term.