Why is there an extension period to a Deal?

In certain emergency situations, beyond all stakeholders’ reasonable control, mainly caused by natural disasters such as floods, fires, and/or pandemics like COVID-19 or SARS, there may be unavoidable delays in construction or development projects. During such times, national security measures may also be enacted to curtail normal economic activities and restrict the movement of citizens (as experienced during the 2020 lock-down periods across the globe).

Under such circumstances, BigFundr may opt to trigger the extension period to manage these delays in the underlying projects effectively with the borrower as these mechanisms are crucial in managing the risk associated with rapid, albeit, temporary adverse changes in market conditions that could affect the value of the underlying real estate assets.

In cases where loan repayments are delayed, there is compensation for investors with additional interest payments (in accordance with the provisions outlined in the deal factsheet), providing a layer of assurance and financial benefit during such periods. This policy is specifically designed to reconcile the liquidity requirements—facilitated by the extension period—with the practical challenges of real estate investment, such as delays in construction or development projects.

It is crucial to note that the duration of any extension period is strictly limited to the maximum term specified in the deal factsheet. To date, BigFundr has not had to trigger the extension period for any of its deals, demonstrating our dedication to efficient investment management, even under challenging conditions.

Should the full extension period prove insufficient for the full repayment of the loan, it is important to note that Maxi-Cash Capital Management, as the guarantor, is legally bound to step in and purchase the notes from BigFundr’s investors at the end of the extended period. The purchase price would include both the principal and all accrued, unpaid interest up to the day of the purchase.

This safeguard ensures the protection of our investors' interests under all circumstances.