Types of lenders
There are two types of lenders on October :
- You, the Retail Lender, who is free to lend between €20 and €2.000 to a project of their choice.
- The Institutional Investor (asset managers, private banks, family offices, professional investors), who are committed to lend to all projects on October through the October fund.
The October fund automatically finances 51% of the loan amount of every project that is presented on the platform. The other 49% is offered to retail lenders for a defined period of time. If they do not fully finance the remaining 49%, the fund completes the remain loan amount to 100%. Thereby the borrower is guaranteed to receive the money they request as a loan.
The retail lenders 👭
The retail lenders lend on the platform for many reasons: to improve the rate of return on their savings, or to invest in the real economy, for example. The community of retail lenders on October currently counts more than 45,000 people, from all over the world. Over 15,000 of them are active lenders, because they have lent to at least 1 project.
Limits for retail lenders:
In Spain, due to local legislation, the maximum amount you can lend to all Spanish projects within a year is €10,000.
If you wish to invest more on Spanish projects, you have to become an accredited lender. To become one, you have to:
- Provide a proof that your annual income is above €50,000 or that you have more than €100,000 in financial assets
- Request the accredited lender status at [email protected] and complete an application form.
In The Netherlands, your outstanding capital in Dutch projects cannot be more than €80.000. You will be able to keep your outstanding capital at €80.000 by reinvesting your capital repayments in projects. If you are Dutch tax resident, your outstanding capital in any project cannot be more than €80.000.
In France and in Italy, there is no annual limit on the number of loans or on the amount lent.
The investors of the Fund 🏢
- Institutional investors: they can be public or private. Our Institutional Investors include the European Investment Fund, Wormser Frères Bank and Groupama, among others.
- Family offices: These are holding companies that wish to invest in business projects and diversify their assets. Decaux Frères Investissement or Weber Investissement are some of the family offices that trust us.
- October managers: they invest automatically in all the projects published on October without choosing the amount lent to each project to align their interest with yours and those of the Investors of the fund.
What are the advantages of this hybrid model of Investors?
- 100% of the projects published on October have been financed: for the companies, it means that there is no risk of reputation or of not achieving 100% of the required financing.
- 100% of the money lent by the investors has been used: there is no risk that their funds will be immobilised without purpose during the subscription period since the collection will be completed.