FREQUENTLY ASKED QUESTIONS (FAQ'S)
Creditworthy companies that are registered with the Chamber of Commerce are eligible for a loan. Max Crowdfund also mediates loans for associations, cooperatives and foundations with a business purpose. The purpose of the loan is always related to property, either to develop, buy-to-let, buy-to-sell or bridging/temporary finance.
The following documents are required to assess your loan application:
- The most recent financial statement(s);
- Recent appraisal report by a recognised appraiser not older than 3 months;
- Extract of the Chamber of Commerce registration.
Additional documents may be requested depending on the specifics of your loan application.
Any loan is backed by a first or second mortgage on a least one property. The loan amount can be up to 90% of the market value with first or 70% with second mortgage. Depending on the execution value of the property, additional collateral in the form of a business or private guarantee may be required.
Your loan application is published on our platform for 30 days. If your loan application has not been fully subscribed by the end of this publication period, the Investment Committee may decide to extend the period once only for another 30 days. This is excluding a closed subscription period of 1-4 weeks during which only invitees (family, friends, business partners) are allowed to access and invest.
Your loan application will still be successful if at least the minimum loan amount has been reached. If that is not yet the case after the initial 30 days publication period, the Investment Committee may decide to extend the publication period only once. If the minimum has not been reached after the publication period, your loan application will be cancelled and any invested monies will be returned to the investors who subscribed.
In case the loan is fully subscribed, it will remain visible on the home page until the loan is activated. Once activited, the loan application can be viewed only via all investment opportunities page. Also when the loan application is cancelled during or after publication, it can be found on all investment opportunities page. Detailed status information will only be accessible to investors and fundraiser via their My MCF Account.
How much interest you will have to pay depends on the risks associated with the loan. A bandwidth for the interest to be paid is linked to each risk class. An optional profit share allows you to lower your fixed interest costs and still offer an interesting proposition to investors.
Once the cooling-off period has passed and at least the minimum amount is raised, predefined payment conditions are checked by Max Crowdfund. When all are met, the amount raised will be paid out minus the total amount (incl. VAT) from outstanding invoices for the success fee and optionally additional services. How this is paid is predefined in the loan agreement. For example partial payment can be to notary for purchasing a property and partial payment can be to fundraiser's bank account.
Yes, but only a full repayment of the outstanding loan amount is allowed. Please check the Fees Details page for applicable charges and interest bonus to be paid to investors. If you wish to make a partial repayment, you can request for a loan restructuring.
If unforeseen circumstances arise, preventing you from temporarily or structurally meeting your interest and repayment obligations, you should contact us. Together we will look for the best solution to maintain fulfilling your obligations to the investors and MCF. It may be that a revision of the loan conditions is the best solution for all parties.
Investors can invest in real estate backed loans from €100 or a multiple of this. NOTE that there is a 0.1% fee to make an investment. As such you need to ensure you add this 0.1% when making a transfer to ensure you can invest the amount you would like to invest, i.e. if you would like to invest €10,000, you need to transfer €10,010 to your account on Max Crowdfund.
Because of the regulations in the Netherlands:
- A maximum of €80,000 applies per individual investor in total investments made on Max Crowdfund.
- If you have a joined account this is doubled to €160,000.
- Company accounts as well as Qualified Investors have no limits.
Please note, that Max Crowdfund can optionally set a maximum for a single investment regardless of the above.
You will be notified in case your investment(s) exceed(s) any limit.
Most of the answers can be found via this section on our website. If you could not find a clear answer to your specific question, you may send your query to: [email protected] Max Crowdfund can be reached by phone on working days from 9:30 to 17:00 (Amsterdam Time). Our office phone number is: +31 10 764 0518.
Max Crowdfund is a regulated platform and as such each user is required to be identified with a valid ID (passport, identity card or driver license), or via bank account identification (EU residents only). To invest in loan applications you have to make payment for the investment from a bank account in your own name. Anti Money Laundering (AML) regulations require identification and we need to establish the user's minimum age of 18 years. For identity verification we use embedded services provided by Sum & Sub and Trustly. Only relevant information for platform use is stored on our system.
Loan application placed on Max Crowdfund have a minimum term of 6 months and maximum term of 120 months. A maximum of 60 months applies to bullet loans. A full bullet loan has a maximum term of 36 months.
- Linear loans, which are loans where a fixed amount is repaid periodically (usually monthly). The fixed amount is calculated by dividing the loan amount by the number of periodic repayments. Due to the monthly repayments, the residual debt and the monthly interest payments decrease over time. This type of loan can optionally come with a grace period, during which interest only payments are made and a higher fixed amount is paid during the remaining period. Another option is to make a partial payment at the end of the term.
- Bullet loans, which are loans with periodic interest payments (usually monthly) and where payment of the entire principal of the loan is due at the end of the loan term. The debt amount as well as interest payments remain constant during the term of the loan.
- Full bullet loans, which are loans where payment of the entire principal of the loan and interests are due at the end of the term.
Yes. The annual interest rate is fixed during the term of the loan. This can only be changed during the term with the approval from the majority of the investors.
The frequency of the payment of interest repayments is flexible and defined by the fundraiser with each loan. This could be either every 1, 3, 6 or 12 months, although most loans have a monthly repayment schedule. In case of a bullet loan, the repayment would be at the end of the term (max 60 months) and only interest will be paid during the loan term. A full bullet loan will pay both the repayment and interest at the end of the term (max 36 months).
The fundraiser may offer a percentage profit share with each loan. Investors receive that percentage of the market value increase of the underlying property, paid at the end of the term. In a market with rising real estate prices, this provides an interesting bonus on top of the fixed interest that is paid out periodically.
The real estate world is not particularly known for its transparency. The lack thereof can do harm to both real estate developers and investors. Max Crowdfund strives to achieve that transparency and believes that blockchain's Digital Ledger Technology (DLT) contributes to achieving that. Together with FIBREE and other key market players, we are contributing to the definition of the standards for representing property on blockchain.
You can buy MPG on our platform at a fixed rate as stated in our price list. You can also purchase MPG at variable market rates and for different currencies on various exchanges. Please check on CoinMarketCap.com on which exchanges MPG is listed and what the current prices are.
You can use MPG tokens to pay for certain services on our platform. For example a transaction fee charged when investing, opening a support ticket or voting for a charity is charged in MPG tokens. Also, the fundraiser is charged in MPG when creating an asset and transferring it to investors to represent a loan on the blockchain.
Besides paying with EUR you can also purchase MPG on our platform paying with crypto currencies AEUR, ARDR, BNB, BTC, IGNIS, ETH, BCH, LTC and NXT. Currency pairs offered by various exchanges vary. Please check on CoinMarketCap.com which exchanges have which currency pairs listed.