Brickfy

Brickfy

The international online marketplace for loans with an Avg. IRR 14.49%.

A platform where retail investors can invest easily and transparent in loans originated by a variety of alternative lending companies all around the world.

We are working hard to bring you the best service and products possible.

What is Brickfy?

Brickfy is the peer-to-peer lending marketplace specialyzed in property-backed and business loans.

Brickfy connects investors with borrowers of various loan originators from around the world. It is an easy and transparent alternative to the traditional banking system.

At Brickfy, both retail and institutional investors can invest in fractions of loans originated across different continents. Currently, we offer the opportunity to invest in mortgage loans.

By connecting to the Brickfy marketplace, loan originators get instant access to investors that are looking to purchase loans.

Individuals and companies can invest through Brickfy. Investors must be at least 18 years old, have a bank account in the European Union or third countries currently considered to have AML/CFT systems equivalent to the EU, and have their identity successfully verified by Brickfy.

As with any investment, there are some risks. The biggest risk is associated with possible credit losses from investments. The following measures have been taken by Brickfy and loan originators to mitigate the risk:

1. All loans are issued according to the established policies of the loan originators, which take into account the borrower's ability to repay the loan;
2. For certain types of loans (e.g. mortgage loans or vehicle loans), the client has offered collateral to be used to recover the loan in the case of default, thereby lowering credit loss risk;
3. For certain loans (e.g. business loans), other credit enhancements are obtained, such as a personal guarantee;
4. For certain loans, the loan originator has provided a buyback guarantee, which means that if the loan is delayed by more than 60 days, the loan originator repurchases the investment for the nominal value of the principal and the accrued interest till the date of repurchase.

Investors can mitigate risks by diversifying - making fractional investments in several loans across different borrowers, loan types, loan originators, and geographies.

The income earned at Brickfy is taxed for each investor based on the legislation of the respective country where the investor is a tax resident. As laws vary in each country, please consult an appropriate revenue service or a tax specialist for more information. Each investor can receive extensive information necessary for tax returns when logged into their Brickfy investor account. Below you can find more information about tax implications for tax residents of selected countries. The information provided does not constitute tax advice. All investors should seek independent tax advice.

The minimum investment in any single loan on the primary market is EUR 10. There is no minimum for investments in the secondary market.

Investing through Brickfy is free of charge. There are no fees for opening an investor account and no fees for depositing or withdrawing funds. There is also no service fee, or any other fee charged to investors.

You will receive invested money as defined in each loan payment schedule, which depends on the loan term and loan amortization method. If you would like to get your money back faster than it is scheduled, you can sell your investment in the secondary market. The secondary market allows you to add a premium or discount to your investment sale. You can read more about this in the FAQ Investing section.

Direct Structure

When you invest in a loan, you are buying claim rights against the borrower based on an assignment agreement. Borrowers make payments on their loans to the respective loan originator, and in turn, the loan originator and Brickfy distribute payments to investors. In the event that a loan originator fails or becomes insolvent, assignment agreements would remain in place and be unaffected.

As per the assignment agreement and cooperation agreement with Brickfy, in the event of the insolvency of the loan originator, Brickfy as a representative of the investor, would take over the management of the claim from the loan originator and recall authorisation of the investor to the loan originator or implement another strategy which would be to the best benefit of the investor. This means the loan originator would no longer be managing the borrowers' payments. After having taken over the management of the claim from the loan originator, Brickfy would be entitled to transfer the management of the claim to any third party at Brickfy’ discretion. This means that Brickfy as a representative of the investor would inform the borrower of the assignment and direct continued payments to Brickfy or any third party at Brickfy discretion.

The transition from the loan originator servicing its payments to Brickfy taking over this process may not happen immediately. The length of time for the transition depends on the legal obligations of the loan originator.

Indirect Structure

For loans under the Indirect Structure, the direct claim is against the loan originator and not the borrower and the underlying loans issued to the borrowers are pledged in the name of the respective Brickfy company. If the loan originator becomes bankrupt, we have agreements in place with the loan originator and also a commercial pledge which ensures investors on Brickfy will be the first to receive payments from bankruptcy assets.

In this situation, Brickfy will be involved closely in the legal proceedings and all funds received from the loan originator will be divided proportionally to their investments among investors. The time it will take for investors to get the borrower’s repayments returned depends on the legal proceedings and other external factors of the loan originator.