On October, you can lend to French, Spanish, Italian and Dutch projects. The process is the same for each; you select the project you want to lend to and determine how much. Within a few clicks you have lent to any project, regardless of their origin. However, there are some small differences between the countries. In this tutorial we go over them. 

How to know the origin of the project? 

All the projects can be found in the Projects tab and are identified by a flag. The flag corresponds with the origin of the project. 

Investment limits (based on tax residency)

France 🇫🇷and Italy 🇮🇹: 

  • Retail lenders can lend up to €2,000 per project. 
  • There are no annual limits on the number of loans or on the amount lent.

The Netherlands 🇳🇱:

  • Retail lenders can lend up to €2,000 per project. 
  • The outstanding capital of any Dutch lender on the platform can never exceed €80.000 because of local regulation. As a Dutch lender you will be able to keep your outstanding capital at €80.000 by reinvesting your capital repayments in projects. 
  • Also if you are not a Dutch lender, your outstanding capital in Dutch projects can never exceed €80.000. 

Spain 🇪🇸:

  • Retail lenders can also lend up to €2,000 per project. 
  • There is a maximum amount that any lender can lend to Spanish projects per year. The maximum that you can lend per year to Spanish projects is €10,000. If you wish to invest above this annual limit of €10,000 in 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. And you have to request the accredited lender status at [email protected] and complete an application form (only the first page in Spanish is to be completed, the second is an indicative translation).

Receiving reimbursements

You will receive your monthly repayments for French, Spanish, Italian or Dutch projects directly on your October account, between the 15th and the 20th of each month. To learn more about this topic, consult our tutorial.

Tax

The tax rate we apply to your earnings is based on your tax residency, not on the country of origin of the project you are lending to. Learn more about tax and find out which tax rate applies to you. 

The upsides of lending money to projects of different origins

Generally, lenders diversify their portfolio focusing on the following criteria: risk rating, maturity, interest rate and industries. 

Lending to projects from different countries allows for geographic diversification. Through geographic diversification your portfolio is less reliant on the economic trend of a country.  

Legislation and recovery management

When you lend to a French, Spanish, Italian or Dutch company, you will sign a loan contract drawn up in accordance with the French, Spanish, Italian or Dutch law and language respectively. 

The recovery management process for French, Spanish, Italian and Dutch companies is identical in its first phase. October takes care of the process but the teams in charge of the recovery change: each local team carries out the recovery in their country

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