8 things you need to know before you start to lend.
From €20 to €2,000, you choose
You can lend to companies from France, Italy, Spain and The Netherlands. You choose directly which project you wish to lend to and you decide the amount, from €20 to €2,000. October is totally free for Lenders.
Documents necessary to finalize your registration
In order to start lending you need to send us a few documents :
A principal proof of identity (ID, passport)
A second proof of identity (residence permit, driving license, social security card…)
A bank statement showing your IBAN.
Once these documents are uploaded, your account will be verified within 48h and you will be able to deposit money by card or transfer. Learn more.
Two types of Lenders
October is open to private and institutional lenders. Institutional investors and the management of October invest in the October fund, that finances at least 51% of most October loans to align their interest with yours. Some projects can be financed only by retail lenders.
Monthly repayments between the 15th and 20th
Each month, you receive part of your capitaland interests directly in your October account. You can reinvest your repayments to other projects or transfer them to your bank account without any fee. Monthly repayments are paid between the 15th and the 20th of each month. You can check the date of your next repayments in Transactions tab of your portfolio.
1 project selected out of 100
Our in-house credit team analyses every project through an analysis of the financials, the market and the management of the company. This risk analysis leads to a grade(from A+ to C-) which in turn leads to an interest rate given to the project.
Diversification is key!
Diversification is key to limit the risk of capital loss. We recommend to diversify over at least 100 loans. For example, if you wish to lend €1,000 through our platform, it is better to lend €20 to 50 projects than €100 to 10 projects. Therefore, to get started, you just need to divide the total amount you are planning to lend by 100, that will give you the average amount to lend to each project.
Taxes for non resident
If you are a French, Spanish or Italian resident, taxes are withheld from your returns directly. If you are a tax resident outside of these three countries, no taxes will be withheld and you will need to declare the revenues earned on October yourself. Every year you will receive a summary of what you need to declare.
Non Performing Loans
Lending money to SMEs presents a risk of capital loss due to non performing loans : delays or defaults. October manages the process of debt collection and default management for the lenders. More precisely October manages commercial recovery directly and works with a partner for legal collection. Read more on that.