What type of vote?
If a borrower wants to modify its contractual schedule (in case of rescheduling for example) we consult lenders. We invite them to vote after a brief recap of the borrower's situation and our opinion in favour of one scenario or another.
How to vote?
Lenders are notified by e-mail when a project is updated. Its activity page is also updated in your portfolio. To vote, simply follow the Typeform link in the email and vote yes or no.
October’s particularity? Our hybrid model of lenders. Each project opened to crowdlending is at least 51% financed by institutional investors. This allows each project to be fully financed. As a result, retail lenders finance a maximum of 49% by project.
What are the consequences on the vote?
We count votes according on the amount and not the volume of lenders. In practice, retail lenders will not have a majority of votes if they are opposed to institutional investors. The situation is similar to a Board of Directors: there is a majority shareholder, which here are the institutional investors. Nevertheless, we want to be transparent and keep soliciting you. Your opinion has always been essential to us and we take into account your point of vue. When we ask you to vote, our interests are aligned to yours as October’s management invests in each project. We try to guide you to the most favourable situation: the one that would allow us all to recover the maximum amount.
October may also require lenders to sign special mandates (sent separately with Docusign) if legal proceedings are brought against a borrower. These mandates allow us to represent you in court, take any necessary legal actions, appoint all the lawyers, obtain all judgments in order to collect the claim.