7 Key Principles Every Afranga Investor Should Know
When it comes to investing, trust is built on clarity. That’s why we want to explain (in simple, practical terms) how the regulatory framework behind Afranga protects your money.
Here are the 7 most important points with a focus on what truly matters to you as an investor.
1. You Don’t Buy Receivables – You Sign a Direct Loan Agreement
At Afranga, you are not purchasing receivables and you are not part of complicated assignment schemes. Your investment is a direct loan agreement between you and the originating company. This means that even if the platform stops operating, your loan agreement remains valid — because it is signed directly between you and the originator, not through an intermediary.
2. Your Money Doesn’t Sit With Us
All payments flow through Lemonway – a fully licensed payment institution, not through Afranga’s own bank accounts. In other words: your funds are handled by a regulated third-party provider that specialises in safeguarding client money.
3. Every Investor Completes a Knowledge & Experience Test
Before investing, each user goes through a suitability test. This ensures you understand the risks and helps prevent investors from taking on products that do not match their financial knowledge or risk tolerance.
4. You Have a 4-Day Withdrawal Period
After making an investment, you have four days to change your mind – no reason required. This cooling-off period gives you the freedom to reconsider your decision without any pressure.
5. Afranga Must Maintain Adequate Own Capital
As a regulated platform, Afranga is required to maintain a certain level of capital at all times. Currently, our own capital exceeds the regulatory minimum – this adds an additional layer of financial stability.
6. You Receive a Key Investment Information Sheet (KIIS) for Every Project
Before you invest in a loan, you receive a KIIS document that outlines all essential information about the originator. This ensures full transparency and allows you to make an informed decision.
7. We Report to the Financial Supervision Commission (FSC) Every Year
Afranga submits annual reports to the FSC that include:
- all loans financed through the platform
- our risk-management policies
- borrower verification procedures
- conflict-of-interest policies
- key data on delays, defaults, and investor-protection measures
This ongoing oversight ensures we operate with maximum transparency and accountability. And If Someone Still Doubts the Value of Regulation…
A good way to conclude the conversation is with this simple truth:
No regulation can promise that an originator will never face financial difficulties – that is part of the investment risk.
However, the EU Regulation and the supervision of the FSC make your investments significantly safer by requiring:
- direct agreements with originators
- thorough checks of originators
- full transparency for investors
- client funds to be held only by licensed payment institutions
- constant monitoring and reporting
Regulation doesn’t eliminate risk – it eliminates opacity and bad practices. And these are exactly the factors that most often lead to major losses.
Still thinking about joining or no?
Get in touch with us – our support team is here to help.