The investment platform can minimize the risks that an investor is facing. However, when unforeseen events happen the security of investors’ money is in question. LendSecured has figured out how to give investors an extra piece of mind. LendSecured investment platform has partnered with established payment solution Lemonway, where all investors’ funds are kept safe. 

Putting investor at the central stage 

Lending to businesses is very quickly becoming one of the most promising investment directions, which is now praised by both- savvy and beginner investors. When revolutionary investment products such as P2P, P2B, and Crowdlending first entered the investment scene private investors chose it mainly due to the high yield, steady cash flow, and low volatility. However, what the recent economic downturn has shown, we all have to be prepared for unexpected economic or other external events to challenge many successful business models.

A business can promote itself as stable, safe, and actually doing a good risk management job. However, nothing says "safe" more than offering investors assurance that their money is in reliable hands. Investors’ funds at LendSecured are held by the unaffiliated reputable payment institution Lemonway. In the meantime, LendSecured focuses on doing what it does best- connecting investors with secured property financing opportunities.

LendSecured was founded by professionals who owned and worked in the successful secured mortgage and agricultural lending business since 2013. The deep knowledge of lending and real estate experience has shown how it is important to protect the money of the lender. Therefore, the unique selling point and core strength of LendSecured is the protection of the lender or investor in the crowdlending industry. LendSecured philosophy is to take under control the risks that can be minimized.

Currently, there is a boom in the number of payment solutions providers. Many start-ups are getting the EMI license, however, they don't have a track record of success. This doesn't make other payment providers reliable enough for LendSecured investors. That is why the company’s goal was to partner with established and veteran payment solutions such as Lemonway. Lemonway not only has more than 10-year experience in payment processing but also is regulated by Banque de France.

About Lemonway

Lemonway was founded in Paris is 2007 as a payment solution, wallet management, and third-party KYC provider focusing on start-ups, especially on crowdfunding platforms and online marketplaces. Lemonway is regulated by the French Central Bank, hence has to comply with all European and French directives regarding processing and holding of funds. Until 2018 Lemonway was completely self-financed. However, the successful expansion and a positive word of mouth surrounding this French Fintech have brought the attention of several venture capital firms. As a result, Lemonway has raised EUR  35 million in 2 financing grounds.

The success of Lemonway is also mirrored in the payment volume it processes. In 2019 the payment flow increased by 60% when comparing to 2018, and was over EUR 3 billion. Lemonway is a trusted payment processor of more than 1400 marketplaces, including 200 crowdfunding platforms.

How it works

Crowdlending platforms like LendSecured are obliged to perform KYC (Know Your Customer) procedures before accepting money from investors. This procedure is very important and is a legal requirement because it is subject to AML (Anti Money Laundering ) regulation. The procedure involves checking the documents, which prove that the investors’ funds are obtained in a legal way. Even though there is stillnobody regulating online platforms, the Financial Supervisor is very strict about compliance with AML regulations.

The good news is, that LendSecured automatically passes all KYC and AML compliance, as it accepts funds through Lemonway. Lemonway saves resources, money, and time for LendSecured by doing verification procedures. Usually, the KYC process takes from 24 hours to 48 hours. If urgently requested, the verification can be accelerated.

The partner payment institution is regulated by ACPR (Prudential Supervision and Resolution Authority) of Banque de France, hence it has to comply with vigorous supervision set by the regulator. By partnering with Lemonway, LendSecured outsources not only state-of-the-art payment processing but also the experienced and dedicated KYC team. Besides that, Lemonway’s compliance team is constantly monitoring the updates of the current European regulations (PSD2, GDPR, etc.). This reassures LendSecured that we apply the highest standards when dealing with our customers and their money.

Segregating clients' funds

Furthermore, one of the most important reasons why LendSecured have decided to partner with Lemonway is the assurance that investors’ funds are held securely on segregated account in the jurisdiction with the stable banking system and strong rule of law. One of the risks that the investor faces when investing with the online investment platform is the platform risk (when the platform goes out of business). This unfortunate event can affect the funds, but not with LendSecured. When you choose to become an investor with us, you don’t have to worry about the safety of your funds. All investors' money is held on the segregated account with France’s Fintech number one- Lemonway.

All available (not invested) funds and interest payments are held on the Lemonway escrow account which complies with rules and laws set by Banque de France. The regulation covering clients’ assets and money obliges Lemonway to maintain all funds, held on behalf of LendSecured clients, to be available at all times. Besides that, the data and IT infrastructure of Lemonway allow efficient and uninterrupted service at all times.

Security is the priority

We all know the investment possesses the risk. So, LendSecured was founded with the aim to minimize all risks that we can control. That is why the platform chose three directions to protect investors- place only low LTV (Loan-to-value) projects, setting up Buy-Out fund, and segregating investors’ money from the investment platform’s money. Partnering with Lemonway shows our dedication to protect investors’ money.