Our average return on investments is 12.75%. Meanwhile, all issued loans are secured by collateral, which gives extra security and stability for our investors.
We give maximum possible information for our investors on the projects’ originators (borrowers), their collaterals, projects themselves and possible projects’ risks appraised by LEORM’s team.
We are sure that each investor could diversify its investments’ risk within one platform, by investing in different types of projects. Therefore, we ensure that our investors have a possibility to invest in projects of different nature, but all secured with collateral.
PROJECT 20073. DEVELOPMENT LOAN (LATVIA) (Co-financed by institutional investor)
PROJECT 20071. DEVELOPMENT LOAN (LATVIA)
PROJECT 20070. DEVELOPMENT LOAN (LATVIA)
PROJECT 20072. DEVELOPMENT LOAN (LATVIA)
20066 DEVELOPMENT LOAN 1st STAGE
PROJECT 20062. DEVELOPMENT LOAN (LATVIA)
PROJECT 20061. DEVELOPMENT LOAN (LATVIA)
PROJECT 20060. DEVELOPMENT LOAN (LATVIA)
PROJECT 20068. BUSINESS LOAN (LATVIA)
LEORM, OU is a Limited Liability Company registered in Estonia. It is an operator of an electronic system (the Platform, available at www.leorm.eu) in relation to lending via crowdfunding, which enables investors to enter into loan agreements with projects’ originators (the Borrowers).
LEORM, OU (Limited Liability Company) is an enterprise, registered in Estonia. Crowdfunding in Estonia is not a subject to any specific law and does not require any special permit or license. LEORM is not a finance provider, creditor or credit intermediary (as in Creditors and Credit Intermediaries Act), but a facilitator in financing obtaining. Meanwhile, LEORM has passed through the AML procedure of Estonian Finance Intelligence Unit (FIU) and has obtained a license (No. FFA000348) for acting as a financial institution.
Our main difference is a combination of both lending and buy-to-let investment offers. This way the security of our investment project increases, providing higher level of risk diversification for our investors. We have the necessary knowledge to take over management of projects of various types. Therefore, we ensure that our investors have a possibility to invest in projects of different nature, but all secured with collateral.
It is your personal secured sub-page at the LEORM platform, registered at your name with the purpose to conduct investing activities. It contains the information about your investments, your funds flow, investment incomes, and the like.
In order to be registered and accepted by the platform, you should be at least 18 years old, to be at full legal capacity and to have a bank or a payment institution account opened in the European Union, Norway, the United Kingdom, and/ or Switzerland.
Yes. These are exceptional cases but please note that the platform reserves the right to reject any user upon its identification/AML procedures and is not obliged to provide any kind of explanations in case of such refusal.
Due to AML considerations, because of the specific of international regulations, we do not accept users from the USA.
You should have an accurate copy of your government-issued identification document, an active e-mail and a contact telephone number.
NO, first of all you should register yourself as a natural person.
All investment projects are carefully selected before they are offered to our investors. The entire project study process is performed by at least 3 experts: financial analyst, business analyst, and an outsourced expert of the relevant branch of economics (the branch of the project). Thus, the project study is based on 6C model applied by different banks, which includes studies of Character, Capacity, Cash, Collateral, Conditions, Control. Each loan is secured with collateral. Loans are granted only for projects, which future value provides a safe exit route for investors in case the borrower might fail to meet loan payment schedule. Special Purpose Entity (SPE) - Leorm Agentas, UAB holds all collaterals and executes them if loans have defaulted.
Investors funds that have been transferred to the platform, but not been lent to borrowers, are held completely separate from LEORM’s own money on a segregated account. The funds are not a part of LEORM’s assets, which means that they would not be available to creditors in the case of LEORM insolvency. They are not reflected on LEORM’s balance sheet either.
You can find it in LEORM Investor Risk Statement. We strongly recommend you to read it carefully before making any investment.
A borrower is allowed repay the loan earlier. In the case, the interest for investors will be calculated and charged based on the number of days the funds were at the borrower’s possession.
A borrower can extend a loan period. LEORM will clarify the reason of the extending before the decision. In the case the reasons are acceptable, the loan period will be extended. The interest for investors will be calculated and charged based on the number of days the funds were at the borrower’s possession.
As soon as a borrower delays any repayment, LEORM contacts it/they on behalf of its investors to find out the reason of it. If the borrower faces financial difficulties, LEORM will try to find the best solution in addressing the problem and protecting the interests of its investors. LEORM will cooperate with its debt collection partners and the Special Purpose Entity (SPE) to realize the collateral.
No. All expenses related to the loan process are paid by borrowers. LEORM investors do not pay any fees for investing at the Primary Market. LEORM applies a reasonable commission fee for the sellers of investments at the Secondary Market.
You can do it by bank transfer. Follow the instructions in your LEORM virtual account to add funds to start investing process.
The minimum investment amount is 100 EUR.
The maximum investment amount is limited only with available (unfilled) amount for each active project.
NO, LEORM does not pay interest on the uninvest funds. To make your funds earn, you should invest them in available projects of the Primary Market or in actual supply of the Secondary Market.
NO. LEORM works carefully with each project. That is why, the time LEORM invests in each project is significant. As a result, LEORM offers usually 3-6 investment projects per month. LEORM considers, that for the number of projects, the function of auto-invest is not necessary. Furthermore, LEORM wishes that every investor study carefully each project before making any investment. Please, do not automatize decisions regarding your money! Read and analyse!
The platform offers 3 types of projects: real estate development projects, buy-to-let investment objects and other business projects. The type of the project is indicated for each project separately.
You invest in loans for business, which are secured with collateral.
Loan to Value (LTV) ratio is calculated by dividing the amount of loan by the appraised value of the property and/or a project. For instance, loan amount is 100000 and a value of a property is 200000. Thus, LTV ratio is 0.5 (100000/200000).
This is Loan to Value ratio which is projected after the completion of the certain stage of works financed at the platform.
Development loan is used to finance a development planning process or for development of a property itself.
Bridge loan (refinancing of liabilities) is used to meet current obligations before ensuring a permanent financing option.
Business loan is used to increase a working capital of an enterprise or to purchase fixed assets, generally.
In general, the loan type does not make any significant difference for an investor. It shows more “the nature” of a project.
An Annuity schedule type means that a loan is paid back periodically (depends on the loan contract) in the fixed amount instalments consisting of a loan repayment portion and an interest portion.
A Bullet schedule type means that a principal of a loan is paid back as a one lamp at the end of a loan period and an interest is paid back during the durations of a loan contract.
A Full Bullet schedule type means that a full borrowed amount and an accumulated interest is paid back at the end of the loan period.
Therefore, the same principle is implemented to the repayments to the investors of LEORM platform. The repayment schedule depends on the agreed loan repayment type with a borrower.
Yes, all the interest rates indicated are per year (per annum). That means, for example, if a project’s period is 9 months (9/12 of a year) and an interest rate is 11%, the calculation of total return percentage for the project will be: 11 /12 * 9 = 8.25%
This can happen for two reasons: 1) the person (his/her e-mail address) is registered in our data base yet, 2) you have already invited him before.
You get your referral income at the moment when fundraising campaign for the project/s has been fully completed and the raised funds have been transferred to the project’s originator bank account.
YES. In the case, you should be registered as a referral partner. Register as a referral partner
YES. You can withdraw your referral income without investing it whenever you wish.
You will need to provide your bank or payment institution account number (in case if you are registered as a referral partner and do not have an investor account at the platform). The account could be registered in any country of the world. We charge 1 Eur fee for each withdrawing transaction (See Pricing), plus bank commission fee (depends on the country and bank where you have your account).
This is the place for you at the LEORM platform to sell your investments to other registered investors or buy investments from already funded projects from other registered investors.
It means that, at the moment, there is no any selling offers.
It is free of charge.
The platform’s commission of 2.3% is applicable for the sellers of the investments.
Certainly, NO. By investing in the projects, any investor makes his/her funds less liquid. Therefore, the Secondary Market option is the means to increase liquidity of investors’ portfolio, when it is necessary for different reasons.
The main advantage is that you do not have to wait while the project pulls the necessary funds. There is no any risk of fundraising campaign insolvency, as every project of the Secondary Market is fully funded already. Your investment will start to earn your income at the moment you press the button “INVEST” without loss of your time waiting for the results of the fundraising campaign.
For now, the platform accepts EUR.
The amount in other currency will be converted automatically to EUR at the rate of beneficiary bank. Usually, the automatic conversion rate are not expedient. Therefore, we kindly recommend you to avoid such kind of transactions.
The bank commission fee could be applicable. For Paysera users it is free of charge.
You can withdraw only the amount of your funds with the status “AVAILABLE FUNDS”. The minimum withdrawing amount of funds should be no less than 1 EUR.
LEORM does not offer the possibility to withdraw invested money before the scheduled repayment date.
(For the purpose, investors have an opportunity to sell their investment at the Secondary Market of the platform.)
You can withdraw your income at any time. If the schedule period for your project is Bullet or Annuity, the income is calculated monthly and it will appear in your AVAILABLE FUNDS. You can withdraw the funds from your available funds only.
NO. You need to verify it. Follow the instructions in your LEORM virtual account to do this.
To change or add your bank or payment institution account to your LEORM virtual account you need to verify it. You should make a transfer of at least 1.00 EUR* from your bank or payment institution account you wish to add. This will enable us to verify your bank or payment institution account. If the verified bank or payment institution account belongs to you or your represented legal entity, it will be saved automatically in your profile of the LEORM virtual account. Therefore, you will have a possibility to choose to which bank or payment institution account you wish to withdraw your funds.
*The payment will be added to your available funds on the LEORM account.
Yes, it is possible, provided that your Leorm virtual account’s number is specified in the purpose of your payment. That will help us to identify that the payment is yours. In the case, you will need to verify your bank or payment institution account registered at your own name separately from the transfer for withdrawing of your funds.
Due to AML considerations, in order to transfer your funds, we need your bank or payment institution account registered at your name and verified by the platform.
YES, the interest you receive from the investments is your gross income. All interest earned from the investment is treated by tax authorities as investment income. LEORM does not provide any tax-related advice and recommend that you turn to your local tax advisor or a consultant to obtain the necessary information.
YES, the referral income you receive is your gross income. LEORM does not provide any tax-related advice and recommend that you turn to your local tax advisor or a consultant to obtain the necessary information.
NO, LEORM does not withhold any taxes. The taxation matter is your responsibility.