Security and risks

Any questions?

• How is the risk of SaveLend going bankrupt managed?

  If, against all odds, SaveLend goes bankrupt, there are several safety measures for you as an investor, including:
  
  1. SaveLend has permission via the Financial Supervisory Authority and it follows that it is the Financial Supervisory Authority that exercises supervision that SaveLend complies with the applicable rules and regulations. This takes place, among other things, through continuous reporting.
  
  2. SaveLend has an independent internal auditor who ensures that the company has implemented routines and processes to ensure that we comply with applicable regulations.
  
  3. SaveLend has a risk framework where the company's risks are managed and monitored continuously. This means that the risks would be flagged in good time before circumstances that could lead to bankruptcy could arise, and that measures to prevent this could be taken immediately.
  
  4. SaveLend has an independent Risk function that reviews and follows up on the company's risk framework.
  
  5. SaveLend has an authorized auditor who reviews the financial reports and follow-ups, to be able to take measures in good time if necessary.
  
  6. You as an investor own the right of claim in the invested credit, not SaveLend. This means that you have the opportunity to get your investments back from the lender directly.
  
  Read more about various securities and risks linked to investments in general and SaveLend in general on our page Security and risks.

• Is it a risk to invest with SaveLend?

  All investing comes with some form of risk. Read more about security and risks associated with investments in general and SaveLend in particular on our page "Security and risks".

• Risk rating - SaveLend’s risk classification model

  The SaveLend platform offers its own risk rating model to provide investors with an assessment of individual real estate loans (hereinafter referred to as "projects") and their risk profile in comparison to other projects on the platform. By using SaveLend's risk classification model, investors can easily gain an understanding of the projects' potential risks and opportunities.

  The model analyzes and assesses each project based on various factors and criteria. By carefully reviewing the project's characteristics, such as cash flow, security, the contractor, capital structure and project stage, SaveLend (SBL Finans AB, which is a provider of crowdfunding services in SaveLend) can calculate risks for the project and assign a risk rating from A to E. If a project receives a risk rate of F, it gets rejected.

  

  The risk classification model is based on five criteria that are individually rated on a scale from 1 to 100. These ratings are then summed to obtain an aggregate scoring value for the project, which translates into a risk rating between A and E according to the table.

  A: Highest risk rate. Indicates a low risk that the borrower will not be able to meet its financial obligations.

  B: High risk rate but with a slightly higher risk level than A. Still considered low risk.

  C: Good risk rating, but with an increased risk compared to risk rating B. It is still considered a good credit rating, but not the highest level.

  D: Acceptable risk rating, but with a progressively increased risk compared to the above risk rates. The borrower may, for example, be more sensitive to economic fluctuations and an uncertain market.

  E: A higher credit risk compared to the above risk rates as the borrower is deemed to be more vulnerable to changes in economic conditions or industry-specific challenges.

  Lowest interest rate - the lowest rate you typically see for each risk rating. However, there may be exceptions depending on local market conditions, and sometimes you can find loans with both higher and lower interest rates.

  * "Lowest interest rate" is based on the reference interest rate STIBOR 90 days with a risk rating surcharge based on each individual risk rating. SaveLend reserves the right to change the lowest interest rate based on the company's view of the market and the outside world without being informed in advance.

  By always valuing underlying information in the same way, it gives investors the opportunity to make informed investment decisions and diversify their portfolio based on different risk profiles. In this way, investors can shape an investment strategy that suits their risk tolerance and goals. SaveLend strives to offer a transparent and reliable risk rating that promotes a responsible investment environment where investors can make well-informed decisions and understand the risks associated with each project.

  The model provides an overall assessment of the level of risk and serves as support for decision-making, but it does not constitute an absolute truth. Even if a project has a favorable risk rating, credit losses may occur, just as a project with a less favorable rating will not necessarily result in losses. Therefore, it is crucial that investors do not rely solely on the risk rating, but also conduct their own careful evaluations of the project's fundamentals as well as the business model, the team's skills, market trends and other relevant variables that may affect the project's success.

• Are my funds safe with SaveLend Fixed?

  Your invested money in SaveLend Fixed is not covered by the state deposit guarantee. However, when you use SaveLend Fixed, your invested money is protected in such a way that you have a direct contractual claim against the borrowers. This means that it is the borrowers who are obligated to repay the money to you, and this obligation is not affected if, against all odds, SaveLend were to become insolvent.

  In the event of bankruptcy, SaveLend will transfer the continued management of the platform to another party, who will then ensure that borrowers’ payments can continue as usual to you as an investor. If that party is unable to collect the claims, you will ultimately have the right to pursue the claims against the borrowers yourself. If SaveLend decides to wind down its operations, we will continue to manage the borrowers' payments to you as long as you have an outstanding claim.

  Why doesn't SaveLend offer a State Deposit Insurance scheme?

  Only accounts with credit institutions (i.e. banks and credit market companies) are covered by the State Deposit insurance. As SaveLend is not a bank or a credit market company, it is unfortunately impossible for us to offer this guarantee. However, this does not mean that your capital is unsafe with SaveLend, because of the model of a built-in capital protection.

  Your money at SaveLend is protected differently depending on whether the capital is invested or not:

  Non-invested capital

  As SaveLend is a payment institution, we are required by law to always protect investors' money by keeping it in an account, completely separate from SaveLend's operations. We have no right to the capital even if we end up insolvent. This therefore applies if, for example, you have put money into the platform but have not yet chosen how it will be invested, or if the Fixed Interest Account has not yet been activated.

  Invested capital

  When you start using SaveLend's savings platform, the money is automatically invested for you as a customer. This also applies when you use the Fixed Interest Account. Once the money is invested, it is protected in such a way that you (and not SaveLend) have a direct right to your money vis-à-vis the person or company with whom the money was invested, as the loan agreement is written between lender and borrower. If SaveLend goes bankrupt, that right is not affected at all. Your capital is never counted as an asset for SaveLend and thus does not risk being included in the bankruptcy estate should SaveLend go bankrupt.

  SaveLend has existed for ten years, is under the supervision of the Financial Supervisory Authority through several permits and is listed on Nasdaq First North. So, our business is under full transparency and control.

• How do you check the companies that own projects?

  SBL Finans AB (publ), which is a consumer credit institution and provider of crowdfunding services in SaveLend, always conducts a thorough credit analysis of both the borrower and the specific project before any loan is brokered, regardless of whether it is project finance or other forms of loans. In case of project finance, SBL Finans AB will also provide comprehensive documentation and materials.

  This gives you as a potential investor the opportunity to independently carry out a thorough analysis of the project. The goal is to ensure that the proposed loan is consistent with your individual risk tolerance and investment strategy.