FAQ

Crowdfunding

Crowdfunding entailsjoint funding sponsored by multiple entities supporting a common project. Thanks to the collected funds, the borrower is able to implement their project, and the lender has anactual impact on its implementation.

Debt-based crowdfunding is a form of crowdfunding organized via an online platform aimed at concluding a loan between the Borrower and several Lenders. The loan has a set amount, time period and purpose, as well as permanent securities.

In addition to the undisputed value of the financing itself, the Borrower gains a valuable marketing and promotional effect for their venture. The crowdfunding platform creates a community of investors, which, due to abond with supported Projects, creates a strong promotional, marketing and consumer database for the borrower.

Debt-based crowdfunding is an innovative way to raise capital and a profitable alternative to traditional sources of financing.

The profit on investment in debt-based crowdfunding comes from the return of interest owed to the lender in exchange for the loan granted to the borrower. The value of the interest has a predetermined level, indicated in the Project Charter and in the Loan Agreement.

Crowd Real Estate

Crowd Real Estate is the debt-based crowdfunding platform for real estatein Poland. CRE connects Borrowers and Lenders, creating a mutually beneficialcommunity whose members cooperate in creating and supporting Polish real estate projects.

The identity of the Lender is verified on the basis of the personal information declared by them on the Lender's Panel, available after logging in to the Platform.

The required personal data are: name, surname, address, passport or ID number, PESEL number and bank account number with the IBAN code.

Supplementing the above data is necessary to conclude contracts on the Platform, including the Loan Agreement.

On their basis, the Crowd Real Estate team verifies the authenticity of the information entered.

Verification of the identity of users is performed to confirm the authenticity of the parties concluding contracts on the website, and thus - the security of transactions.

Yes, the agreement can only be concluded by a user with full legal capacity.

Anyone can become a lender, regardless of nationality. However, the investment will require a bank account with the IBAN code of a EU or European Economic Area member state orSwitzerland.

After lending the minimal amount a PLN 1,000, you grant the Borrower a loan, which under the Loan Agreement, will be repaid to you with interest at a predetermined value.

This solution is beneficial for both parties of the contract, as it offers you a high rate of return in the short term, and allows the borrowers to receive financing at competitive price compared to the traditional lenders.

The return on the loan is determined in advance individually for each project, the lender can view it in the Project Charter. Most loans on Crowd Real Estate achieve a rate of return of at least 7%.

In accordance with the agreements, the Borrower is obliged to return the loan with interest, even if they do not complete the project and thus the investment does not beginproviding the expected yield.

Thanks to the institution of the Collateral Administrator able to access a number of enforcement tools, such as:mortgage, transfer of title, surety, submission to enforcement (§ 777), pledge on shares, promissory note or preliminary agreement, you can rest assured that your funds will be recovered.

In accordance with the loan agreement, in the event of the campaign ending unsuccessfully, the funds you have pledged will be returned to the bank account they were paid from or to another account indicated by you within 7 days from the date of the campaign end.

The Crowd Real Estate users have a high degree of comfort thanks to the institution of the Collateral Administrator, who represents the lender's interest and has a wide range of tools at his disposal, such as: mortgage, transfer of title, surety, submission to enforcement (§ 777), pledge on shares, promissory note, preliminary sales contract. In addition, the borrower's business history and criminal record are verified.

Additional benefits are individually tailored to the specifics of the project and confirmed in writing in the Project Charter. For example:

If the project concerns a hotel investment, you may be granted free accommodation on its premises on the date selected by you.
If the project concerns a residential building, you may be granted a discount on the purchase of an apartment in its building.
If the project concerns a service investment (e.g. office or commercial space), you may be granted a discount on space rental.

No. For the fluency of the process, a meeting between the parties of the loan agreement is not required. This does not mean, however, that the borrower is anonymous to the lenders - in the project description, we provide information regarding the borrower, their current activity and source of capital, and the genesis of their idea for the project.

Due to Crowd Real Estate’s dependence onthe regulations and contracts based on the Polish law, all projects posted on the website must be located on the territory of the Republic of Poland.

No. By default, we will pay your interest to the account registered via the platform, or to another account indicated by you.

Campaigns on Crowd Real Estate do not have a defined maximal period. In practice, however, due to the practical need to raise funds in a relatively short time, most campaigns last from a few weeks to several months.

The agreement of fiduciary transfer of rights and receivables (assignment agreement) is concluded in order to properly secure the investor's interests. Thanks to this, the Security Administrator receives the rights that allow them to activate the contractually agreed securities in the event of the Lender breaching the provisions of the contract.

Rules

In order to receive funding for your project via the platform, you will need to conclude the following agreements:

Agreement for the Borrower’s account, agreement with the Law Firm for the audit of the Borrower and the Project, Agreement for the maintenance of an escrow account with the bank, agreement with an online payment provider, and a loan agreement with Lenders. You can complete the whole process at the headquarters of the Law Firm Sadkowski i Wspólnicy, where we cordially invite you.

Investors Agreements are concluded via the platform in electronic form.

Under the Loan Agreement, the Borrower is obliged to repay the Investor the value of the Loan with the agreed interest. Therefore, the return on investment is contractually guaranteed and its non-payment may involve the use of appropriate enforcement tools.

You can expect the first profits on the last day of the quarter after the conclusion of the campaign. For example, if the campaign ends in November, you can expect the first profits on December 31st.

You can grant a loan from anywhere in the world. However, please remember that you will need an account with a European IBAN for this.

Yes, the loans can be granted for an amount not lower than 1,000PLN.

You can grant loans of any amount until the campaign goal is reached – after achieving this, the campaign will end.

The consumer has the right to withdraw from the investment within two weeks from the conclusion of the Loan Agreement (in accordance with the Act of May 31, 2015 on consumer rights (i.e. Journal of Laws of 2019, item 134).

A consumer is an investor who makes a loan as a natural person, not as part of theirbusiness.

The capital is returned on the day of completion of the Investment. The borrower is not required to repay the principal ahead of schedule, but is obligedto return the agreed amount of interest on every quarter.

The Lender is protected by the provisions of the Loan Agreement and the Trust Agreement for the Transfer of Rights and Receivables concluded on its behalf. In the event that the Borrower does not pay interest or capital due to bankruptcy, appropriate tools will be used on behalf of the Lender, in order to recover the receivables.

Portal service

To grant a loan, create an Investor's account on our portal by clicking the "Registration" button in the right corner of the screen, or here.

Then select the project you are interested in and accept the terms and conditions and the loan agreement.

Transfer the funds you want to borrow to the ESCROW account indicated on the portal and ... that's it!

During the implementation of the investment, you will be able to actively monitor its current progress through the Investor's Panel after logging in to your account.

After the investment is completed within the deadlines indicated on the Project Card, your funds will be returned to you along with the agreed interest.

Review the investment information available on the project card. Based on them, you will have the knowledge to make the right business decision.

All projects have their specifics and apart from the benefits purely related to the interest rate, they can offer various types of rebates and discounts. So if you are interested in taking advantage of the additional benefits offered by the project, grant a loan for it and your investment will pay off twice!

After making the transfer, you will have to accept the contracts online via the Investor's Panel.

We will inform you no later than 7 days after the Campaign End Date whether it has concluded successfully. If so, you will start receiving interest due, usually paid quarterly.

Interest will be paid to you until the investment completion day. The investment completion dayis also when the capital you havelent will be fully repaid.