Your risk of default is very low because of several protections in place:
- First Legal Claim on Real Estate: If a property is sold due to default, we get paid first before anyone else.
- Personal/Corporate Guarantee by Borrowers: Borrowers personally guarantee the loans, adding extra security.
- Buy-Back Provision: We work with top-tier fund managers who have agreed to buy back loans if necessary, offering more protection. Each of these fund managers has more than AUD$1Bn under management, hence our exposure to each fund manager is small compared to their loan under management.
Additionally, each loan on our platform has a 12-month contingency period that BigFundr can use to fix any repayment issues. During this period, you also earn an extra 1% interest per year.
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