Purchasing of receivables

Iuvo is a portal that is open to individuals and companies.

The individuals must be at least 18 years old and have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU. They are required to provide ID Card/Passport and Proof of address document.

Companies are required to have a valid bank account within the European Union or third countries that are currently considered as having equivalent AML/CFT systems to the EU. Their business and funds origin need to be compliant to the aforementioned AML/CFT regulations.
Required documents for companies are:
– ID card or Passport of all owners of the company;
– company registration document or Certificate of good standing;
– articles of incorporation (contract);
– information about actual owners (UBO).

You can add funds to your iuvo account by some of the following methods:
– a bank transfer from your bank account with a payment order or by using your online banking;
– at the cash register of a bank;
– a bank transfer made by using a trusted e-money company.
Please keep in mind that there is no minimum or maximum amount of money you can add to your iuvo account. All bank details are available at the “Add funds” section.

The portal offers two modules to purchase receivables – iuvoP2P and iuvoSAVE.
Manual purchasing of receivables (iuvoP2P) includes selecting loans, filtered by your criteria on primary and/or secondary market, adding them to the cart, and confirming the purchase.
Automated purchase receivables (iuvoP2P – Auto Assign) happens when you create one or more portfolios with your criteria for loan receivables, and then activate it. It follows your criteria and it purchases receivables instead of you. The main advantage is that the available funds from received payments are used to purchase new receivables automatically. This way you are optimizing your return without the need of any extra activity.
You can purchase receivables automaticately with iuvoSAVE, too. Select one or more of the predefined options. It allows you to predict your return and to know when your money is going to be available. All you need to do is make a couple of clicks.

There is no minimum amount to add to your balance.
The minimum amount to purchase receivables from one loan on primary market is 10 EUR.
There is no minimum amount to purchase receivables on secondary market.
The minimum amount to purchase receivables with iuvoSAVE is 100 EUR.

With every paid installment from a borrower, you receive parts of your principal back and parts of the expected annual return amount, depending on your share of the purchased loan receivables. The information can be found in “Account Statement”. The due dates of the installments and information about repaid installments are visible in the Payment Schedule of each loan. An installment can also be partially paid. In such cases, you receive payments according to the paid amount.
If you use iuvoSAVE, you receive payments after the end date of the selected version.

Each originator has a system for defining the probability for the borrower to delay the full repayment of an installment of a loan, based on a group of indicators for each specific borrower. According to the probability of delayed payments, the loans are divided into different score classes. This system makes all loans on our market comparable.

The probability for delayed payment is:
A 0 – 4%;
B 4 – 10%;
C 10 – 18%;
D 18 – 25%;
E 25 – 35%;
HR – over 35%.

The main market on iuvo is primary market.
Secondary market gives you the option to sell loan receivables you have bought from other users. The selling user defines the price of the receivables – higher than the nominal (premium; red percent), lower than the nominal (discount; green percent), or at the nominal price. The market provides the selling user with flexible access to their funds, and the buyers – additional opportunities to purchase receivables and get competitive return.
Please keep in mind that when a loan receivables are sold, there is a 1% fee of the sold amount at the selling price for the selling user.

You can cancel a purchase of receivables before confirming it from the shopping cart. After that, the only way to get out of the purchase is to sell the receivables to other users on secondary market.

The late fee is an additional fee that some of the originators charge the borrower due to delayed repayments. Each originator defines the late fee in the contract with the borrower. Users can receive late fee payments with loans of Easy Credit and Viva Credit. If there was no payment, not even a partial one, for at least 30 days, the fee is applied. With the next payment from the borrower, users receive payments for principal, expected annual return, and late fee.
You receive late fee payments according to the share of the loan that you owe.

There are no fees on the portal to purchase receivables or to add funds.
Fees may apply for:
– secondary market sale – 1% of the sold amount;
– sending funds to your bank account after more than two times in the same month – 1 EUR;
– early exit from iuvoSAVE – 1% of the amount of early exit.
Please keep in mind that this does not include the fees your bank may apply.

The expected annual return is calculated with the XIRR formula (Extended Internal Rate of Return). XIRR is a widely used method for calculating return from receivables in order to equate the benefit and make them comparable. The formula contains a sequence of payments and proceeds. To calculate the profit, we use it in Excel = XIRR (amount, data, [suggestion]).

The user’s received return from the portal is taxed according to their country of residence. It is the user’s responsibility to declare their income. The portal does not offer tax services and does not do the tax reports for its users, but it can provide the needed information for the received return. Declare your income to the local tax authorities in accordance with the order provided and check how and when to do it.

You can get the needed information about your received return from the “Account Statement” page. Select the preferred period and press Filter. At the bottom of the page, you will find a PDF file to download, which you can use to file your tax report.

Please keep in mind that iuvo does not provide tax, financial, or legal advice. We would like to recommend that you contact your financial or tax consultant if needed.