FAQ’s - Investors

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1. What are the fees impacting me as an Investor?

 

  • For an Individual Investor, the fee per year is R240 Vat inclusive. This is renewable annually on account opening date.

  • For an Institutional Investor, the fee is 1% of the amount invested and placed on the platform.

 


2. When is a loan in default?
 

  • Sometimes, borrowers will miss a repayment. Most of the time they get back on track and continue to pay their loan. If they miss 3 months’ worth of repayments, we then classify their loan as in default. We do not write them off though as we still actively work with the borrower to collect on these loans, and anything we recover we pass back to you as the investor.

 

 

3. Can a business invest through Funderjet?
 

  • Yes, they can, but they have some essential requirements that we would require such as the details of a controlling Director/s

  • Confirmation of who you would like to instruct on the account and the person appointed should show be confirmed by Directors.

  • Document details required is on our website Terms and conditions for Business or Institutional Investors.
     

 

4. How safe is my money?
 

  • As with any lending there are some risks, the biggest being that a borrower does not repay. Funderjet has the following steps in place to keep this risk to the minimum:
     

i. All borrowers are FICA’d and checked as well as credit checked via the credit bureaus and assessed by our experienced team.

ii. Your money is spread over various borrowers to diversify your risk.

iii. A collections process actioned by our team and a collection agency will chase missed payments on your behalf.

 

 


5. Will I know who my borrowers are?
 

  • Yes and no. You will be able to see relevant information about their loan in your loan book, but you would not know their names or addresses for security and privacy reasons.

 

 


6. Who can Invest through Funderjet?
 

  • All SA residents that are over 18 years and have a bank account with any South African bank.

  • All SA companies registered as a Close Corporation, Public Company or SA Company and that have a bank account with any South African bank.
     

 

 

7. Can I lend to multiple borrowers at the same time?
 

  • Yes. Once you have created a portfolio/s, you may be matched to multiple loans, which you can accept or reject.

  • The matching will be subject to how much money you have added to your portfolio/s and the amount that has been committed from that portfolio.

 


 

8. Why do you need to validate my bank details?
 

  • To protect you from fraud, we need to validate your bank details.

 


9. Do I have to pay tax on the money I earn by lending?
 

  • All returns are paid without any tax. At the end of the tax year we will make an annual income statement available to reflect your annual interest earned. The responsibility is with you to determine what your liability is to SARS. You may even have to register as a provisional taxpayer if so, required by SARS.

 

 

10. What happens in the event of my death?
 

  • In the event of the death of an Investor, the loan contracts still stand but the benefits pass first to the estate of the deceased and then, if appropriate, on the ultimate beneficiary.

  • The value of the portfolio is calculated on the date of death as the capital outstanding plus any funds not yet loaned out.

  • Funderjet need to be informed so we can stop lending more funds to borrowers and we will then provide the administrator or executor of the estate late, with all the details. We will only be able to give the details as we require a certified copy of the High Court which confirms the appointment of the Executor/Administrator of the Late estate.

  • If the estate is in liquidation, we will work with Executor/Administrator on how we handle the loans by selling the loans to other investor at an administrator ‘s fee of 1%

Governance: 

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