How does it all work?
RONDA INVEST provides business loans, primarily (but not exclusively) for smaller development projects. We carefully evaluate the loan applicant’s plan and creditworthiness, similar to how it works with bank loans, but the entire process is faster and shorter. If RONDA INVEST approves the loan, financing comes from our own capital.
Once the client starts repaying the loan, RONDA INVEST offers the loan for participation. In other words, we allow small investors to co-finance it and earn yield.
The principle is that all three parties benefit from the entire process. Entrepreneurs and developers obtain financing for their business plans, which will bring them profit in the future, and RONDA INVEST and its investors earn yield for providing the financial resources. To ensure the model is as secure and sustainable as possible, the key role is played by loan collateral.
Each loan is secured by a high-quality property that significantly exceeds the loan value in terms of its value. The minimum Loan-to-Value (LTV) is 70%, which means there is more than a 30% reserve in case the client stops repaying or if property prices decline. However, RONDA INVEST focuses on risk management and maintains intensive contact with loan clients, helping to prevent the worst-case scenarios.
How to choose a project to participate in?
Each investment has different parameters. Choosing investments solely based on the highest yield could lead to a negative investor experience. The yield should make sense considering other indicators as well.
Each type of investment has its specific characteristics. In the case of RONDA INVEST, you participate in domestic business loans secured by real estate. The following criteria are crucial for selecting projects:
Annual yield: It represents how much money you will earn from your investment. While it is a significant factor, it should not be the sole determining criterion for selection.
Maturity: This refers to the time when you will receive your initial invested amount back. Preferences may vary based on your needs, whether you want to have access to the funds quickly for personal use or reinvestment, or prefer to have them invested for a longer period without the need for active management, potentially resulting in higher overall returns.
Loan-to-Value (LTV): It indicates the value of the collateral compared to the loan amount you are investing in. A lower LTV means better security against various crisis scenarios. LTV below 70% represents high-quality collateral.
Collateral and its security: In the case of RONDA INVEST, collateral always consists of a mortgage on one or more properties, along with auxiliary instruments that facilitate and expedite potential enforcement, such as notarial deeds with enforceability consent, arbitration clauses, or assignment of insurance proceeds. RONDA INVEST typically holds the first-ranking mortgage. When comparing similar types of investments, it is essential to consider the auxiliary instruments and the ranking of the mortgage. Subordinate or second-ranking mortgages pose higher risks.
Personal affinity to the project: It can also play a partial role in your decision-making process. You can choose to support specific individuals, causes, or regions.
What is the minimum and maximum investment amount?
RONDA INVEST offers several investments categories:
Among the investments, you will find options in both Czech crowns and Euros. Thanks to enhanced financial services, you can easily invest in either currency according to your preference.
What are the risks associated with the investment?
Although these are investments in business loans, the value of the collateral always significantly exceeds the total loan amount. The Loan-to-Value (LTV) ratio, which compares the loan amount to the collateral value, typically ranges between 50-70%. RONDA INVEST thoroughly evaluates the properties used as loan collateral.
We prefer locations near regional cities, and only a small portion of financing applications ultimately pass through the approval process.
Therefore, investments with RONDA INVEST are very conservative in terms of risk.
Why do you require identify verification during registration?
Identity verification is required by law to prevent money laundering, similar to the process of verifying identity in banks. In its modern form, it can be conducted not only through personal presentation of identification documents but also online using a smartphone, computer, or tablet by taking a selfie and submitting a photo of the document. Both the law and we prioritize the careful protection of your personal information.
What does PAYMONT do?
PAYMONT UAB, founded in 2020, is an electronic money institution regulated by the Bank of Lithuania under license number 80. It enables the provision of comprehensive payment services throughout the EU.
A PAYMONT account is multi-currency, allowing for instant currency exchanges without hidden fees, SEPA and SWIFT payments. It can be accessed online through internet banking.
An account with PAYMONT is established for each user upon registration with RONDA INVEST and serves as the account for receiving investment returns and the repayment of invested amounts from agreed-upon participations. It is integrated with the RONDA INVEST platform, so when an investment is arranged, funds are automatically debited from the account, and the participation is activated. Additionally, you can freely perform financial transactions and transfers to any other account using the PAYMONT account.
Account maintenance is free of charge, as are most services. Some services may have minor fees, as specified in the pricing list.
How high of a loan will you provide me with?
RONDA INVEST provides loans to entrepreneurs ranging from 2 million to 100 million CZK.
For existing clients with whom we have an ongoing partnership, we also offer financing below 2 million CZK.
What collateral does RONDA INVEST require?
We require high-quality collateral, preferably residential properties (houses, apartments) in good locations (Prague, regional cities) or rental apartment buildings, or land in advanced stages of the construction permit process. The maximum Loan-to-Value (LTV) ratio is 80%.
Other types of properties are also considered after careful evaluation of the client’s entire business model, with LTV ratios ranging from 50% to 60%.
What are the options for repayments and early repayment?
Repayment is always done through annuity payments or interest-only payments. The latter form is predominant in developer financing.
Considering our business model, the monthly interest payment is always crucial for us. We are able to offer both traditional annuity repayment, which involves monthly payments of interest and principal, and monthly interest payment with the repayment of the principal on the loan maturity date.
We can also set up repayment plans that reflect the seasonal impact on the client’s business.
Early repayment without fees is typically possible after 12 months, although in exceptional cases, for shorter loan terms, it is determined on an individual basis.
What types of loans do you provide?
We provide business loans secured by mortgage rights to real estate. These loans can include developer loans, investment loans, and what is commonly known as an “American mortgage for entrepreneurs.” An additional product offered by RONDA INVEST is a loan for financing receivables.
What documents do I need to submit to obtain a loan?
To obtain a business loan from RONDA INVEST, you will need to submit:
This is a general list – we will request specific documents after the initial assessment of the plan.
How quickly is it possible to get a loan?
We are able to adequately evaluate the loan request within 48 hours. The subsequent drawdown of the loan depends mainly on the speed of delivery of the necessary documents by the client.
Low-entry investment
Yield
The return represents the amount of money you get for the capital invested. It indicates the difference between the final value of the investment and the capital employed.
p.a. means per annum, i.e. yield calculated on an annual basis.
Example:
You invest CZK 10,000 with a return of 10% p.a. We will pay you the income in a proportional amount every month, you will get a total of CZK 1,000 in income per year.
Maturity
The maturity date indicates the binding date by which the loan will be repaid and when your investment ends.
After this date, we will send the original invested amount to your account along with the last return.
Min. investment
The minimum investment indicates the lowest possible amount that can be invested in the project.
LTV
LTV = Loan to Value
(translated as “loan to value”)
LTV indicates the ratio of the property’s value to the loan’s value. The lower the LTV, the higher the collateral.
LTV calculation = loan amount / estimated market price × 100
Prague 10, Sterboholy
EUR investment
Yield
The return represents the amount of money you get for the capital invested. It indicates the difference between the final value of the investment and the capital employed.
p.a. means per annum, i.e. yield calculated on an annual basis.
Example:
You invest CZK 10,000 with a return of 10% p.a. We will pay you the income in a proportional amount every month, you will get a total of CZK 1,000 in income per year.
Maturity
The maturity date indicates the binding date by which the loan will be repaid and when your investment ends.
After this date, we will send the original invested amount to your account along with the last return.
Min. investment
The minimum investment indicates the lowest possible amount that can be invested in the project.
LTV
LTV = Loan to Value
(translated as “loan to value”)
LTV indicates the ratio of the property’s value to the loan’s value. The lower the LTV, the higher the collateral.
LTV calculation = loan amount / estimated market price × 100
Nitra – Mlynarce
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CALCULATOR
The calculator calculation is based on a model example of a one-time repayment loan investment (full principal repayment at the end of the loan term). Returns are paid to investors monthly, and the calculator does not consider reinvestment. The actual performance of the investment may differ from the model example. It represents gross yield, subject to taxation. At RONDA INVEST, there are no entry fees or regular fees.
