Investown introduces stricter rules: 90 days to meet commitments
At Investown, we decided to adopt a new, clearer approach to dealing with problematic projects. Although we choose each project carefully, it can still happen that the partner becomes insolvent.
If we cannot find a solution and there is no remedy, we approach enforcement. And to ensure the highest possible quality of investment opportunities and security for all our investors, we are introducing a rule of no more than 90 days to meet their commitments. From now on, our partners will have a maximum of 90 days to meet their commitments. If the loans exceed this deadline or it becomes very unlikely that the partner will meet its loan obligations, our credit commission will intervene. The latter will decide whether the project is suitable for extension or we will begin to recover the amounts owed. This step is necessary for us to ensure financial stability and the protection of your investments.
What does this mean for you as an investor?
You don't have to worry about your investments. Our new, stricter rules mean your money will only go to quality and trustworthy projects. According to the CNB report, we have the lowest percentage of loss from failures in the market, which confirms the long-term ability to effectively solve potential problems to your satisfaction. Unlike the competition, which often faces a much higher percentage. This new approach will allow us to maintain a high standard for the future.
In addition, we have recently implemented significant improvements in the administrative system, which has led to an increase in efficiency. Together, both the new rules and the improved administrative system will allow us to respond better and faster to the problems that arise, and everything will be easier for both investors and developers. Alan Pock, our CEO and founder, says: “Troubled projects are a common part of business. We believe that with our new approach we will continue to have a minimum percentage of overdue projects. “
Step-by-step recovery procedure
- Warning and challenge: The first step is a call for payment of the obligation, which we send to the guarantors with a period of 10 days to pay.
- Liens: If the challenge does not help, we apply a lien and send a notice to the Land Registry. After 30 days, we can begin the execution of the lien.
Enforcement Scenarios
- Project with notarization: We send a proposal for execution, which can take 6-8 months. We are the first in order to be paid out.
- Project without notarization: We are asking the court to sell the pledge, which can take 6-12 months. The bailiff orders the auction.
- The partner is in insolvency: We file an insolvency petition and the court will rule on bankruptcy. This process can also take several months. The solution is bankruptcy or reorganization.
The most important thing you need to know
- Up-to-date information: Every 14 days we update the status of the project and inform you by email.
- Proceeds on recovery: Contractual interest and default interest run throughout the recovery period. As soon as we manage to extract the money, we will distribute it among the investors.
- Risk of loss: Even if we try our best, sometimes we fail to get any money back. Nevertheless, we will continue enforcement for as long as we can.
Tip: Read the full procedure enforcement of problem projects and frequently asked questions.
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