Buy-back Guarantee – What, Why and How

Our mission is to provide secure investments. We created an intuitive platform to help your money grow easy with minimum time invested. After you register, you can see how easy it is to manage your profile. Initial settings of one or more portfolios are the largest time asset in which we advise you to invest wisely. Then, if you have properly made your settings, your investment strategy will pay you off generously.

More than once we have shared tips how to set up your portfolio to make it work for you. We have advised you how to optimise your investments in order to have no unused funds available, we have shared with you how to build a low-risk investment strategy  and much more in our blog. Today, we would like to focus on another important functionality – the buy-back guarantee. What is it, how to use it and why to consider this option when setting up your personal investment portfolio – we have prepared a single summary with all this information. In other words, we dive deep in the ABCs of buy-back guarantee.

To begin with, iuvo offers buy-back guarantee to all its originators. This is an important clarification because if you are experienced in investments, you know that this option is often not available or only available with minimum features. Buy-back guarantee is the assurance provided by the originator that if the loan is defaulted, you as an investor will receive your money back. This is an excellent collateral for your investment, which guarantees that you will not loose your money, however you will not profit from it for a certain period of time. Here is what this means:

Types of buy-back guarantee                                                                    

Imagine iuvo as a continuously operating machine. Originators offer consumer loans as investment. Investors choose where, how much and against what interest rate they will invest their money. Sometimes borrowers fail to repay their loan on due time – this is what we call default. In the event of loan default, the originator buy-back guarantee is activated. Most often it differs with regard to the time period for which the originator will reimburse the amount deposited by the investor.

–  60-day buy-back guarantee The 60-day buy-back guarantee is most often used in the platform. This means that in the event of loan default, the amount invested by you will be available for investment again on the 61st day from such event.

–  30-day buy-back guarantee Our originators Easy Credit, Viva Credit and iCredit often have promotional offers reducing in half the activation period of the buy-back guarantee in the event of default. Promo offers are usually made for class A and B loans.
By including this type of loans in your portfolio, you provide more secure investments with a stable return. In case of default, your money become available again twice as short.

–  16-day buy-back guarantee To date, the option for a 16-day buy-back guarantee is available only for investments in loans offered by Ibancar. The Spanish originator has set the bar high by offering investments in secure loans. This opportunity is also determined by the business model of the company which offers loans using vehicles as collateral. Borrowers are highly motivated to pay their loans on time, and for investors this is a great opportunity for good profitability at low risk.

A few more tips

When setting up your portfolio, consider the options for buy-back guarantee with various activation periods. Here you can see the terms offered by various originators.

If you use the Auto Invest feature, view the settings carefully. Make sure that you properly combine different functionalities and that you have not set up mutually exclusive filters. If you notice that your portfolio does not work well, you have to check whether your buy-back guarantee is too restrictive and adjust it accordingly.

Enjoy investing with iuvo!

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