Types of lenders
There are two types of lenders on October :
- Retail Lenders who are free of choosing the different projects on the platform.
- Institutional investors (asset managers, private banks, family offices, professional investors) who are committed to subscribe to all projects on October through the fund
The October fund financed automatically 51% of the amount of each project presented on October. The remaining part of the project is offered to retail lenders on the platform for a defined period of time. If they do not fully finance the remaining 49%, the fund completes the loan to reach 100%.
The retail lenders (you) 👭
They lend mainly on the platform to improve the return on their savings and invest in the real economy. October now has a community of more than 40,000 lenders living worldwide, of which around 14,000 are active (i.e. have lent to at least one October Project).
Investment rules for retail lenders:
In France and in Italy, retail lenders can lend up to 2,000€ per French or Italian project but they have no annual limit on the number of loans or on the amount lent.
In Spain, due to local legislation, the maximum amount you can lend to all Spanish projects over 12 months is €10,000 (the maximum loan limit per project being €2,000, as for the French and Italian projects).
If you wish to invest above this annual limit of 10,000€ on Spanish projects, you will 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, retail lenders can lend up to 2,000€ per Dutch project. The outstanding capital of any retail investor in Dutch projects can never exceed 80.000€, because of regulation. That is also why retail investors from The Netherlands are not allowed to have more than 80.000€ outstanding on the platform in any projects. You will be able to keep your outstanding capital at 80.000€ by reinvesting your capital repayments in projects.
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.