Making Biva’s investment – Keeping a company functioning properly and without any debt requires good management by those responsible. Business loans have become a great alternative for those companies that need to keep finances in order. Setbacks exist and nothing is better than having a place to be rescued at a time when money is lacking. With Biva, you get your loan without too much bureaucracy and follow through on all your projects.
The decision to make a loan should be taken very carefully. You should check all information regarding this type of financial transaction so that there is no regret later. Generally, the newer companies usually request some type of loan in the first few years until they achieve a certain stability.
In peer to peer loans, there are two groups: the credit borrowers, who are the companies applying for the loan, and the investors, who are individuals who lend directly to these companies, without the need for a bank as an intermediary. Biva brings great advantages to both groups, but before you know how Biva works, let’s understand what peer to peer lending is.
What is peer to peer lending loan?
The peer to peer lending loan is the mode that has been growing and becoming the most sought after when it comes to credit for companies. Through Biva or other platforms, borrowers connect much more easily to investors in this type of market. The P2P loan is also called collaborative or shared savings, and all transactions in this model do not use banks as intermediaries in the process.
Understand how Biva works
Biva is a young company and at the same time a pioneer in the peer to peer lending segment. Built to facilitate the financial market, it has made some bureaucratic loan processes much more accessible and uncomplicated. Until recently, when talking about credit for companies, the only alternative that existed was the banks. With many bureaucratic processes and high interest rates, few could get the credit they needed.
The credit analysis that Biva does combines important information and essential documents that must be presented by the entrepreneurs. In the second moment, the portfolios are created with the companies that wish to become borrowers, thus increasing the diversification of the portfolio of investments.
What are the advantages and disadvantages of peer to peer loans?
Like any business financial loan transaction, peer to peer has advantages and disadvantages that need to be watched with attention by interested borrowers and investors.
The main advantages observed are related to the ease of requesting processes. Everything is done in an online environment, with little bureaucracy and with total speed.
Because banks do not participate in the processes for approving the requested loan, this modality becomes much more accessible and their interest rates much lower.
The disadvantages of this type of credit are all based on the difficulties that individuals have in obtaining approval in the solicitation of this type of loan. For investors, the risk is the lack of guarantee of payment of the borrowers.
Diversification and investment risks
The degree of risk of investing in Biva is considered to be aggressive, as if a borrower becomes a defaulter, payments of the installments of the acquired money are not made and investors only get their money back if there is payment plots
Before becoming an investor, you need to pay close attention to details that can make a difference as you read carefully the Terms and Conditions of hiring the platform.
Several actions are carried out by Biva to avoid cases of default by borrowers. A thorough credit analysis is done, along with the application of a pricing model and diversification of charges and risks.
With this analysis, only about 7% of companies applying for a loan are approved.
Understand how diversification works
Diversification is one of the features of Biva’s investment to be safer. In order not to take many risks, the tip is that investors have their capital allocated to as many companies as possible. Between 8 and 10 is a good number.
What is the minimum amount that can be invested in Biva?
Those interested in investing in Biva need to know that the minimum amount is R $ 5,000.00 for new investors. When you reach the amount of R $ 10,000.00 invested, then the minimum investment becomes R $ 2,000.00.
The exception for an investment smaller than R $ 5,000, can only happen when the portfolio of companies presents a funding amount lower than the amount of R $ 5,000.00. In such cases, investors do not need to own R $ 10,000.00 of investments made in Biva.
What is the value of profitability in Biva’s investments?
Biva gives investors greater returns than traditional fixed income applications. The average profitability of the platform is 22% per year. For more information, just visit the official website.