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As you know, Manageable risk receivable does not exist, but the risk can be successfully controlled through some mechanisms, the most important of which is the so-called buy-back guarantee that all iuvo credits currently have. If the credit you purchased in is delayed by more than 60 days, the buy-back guarantee is activated. This means that the Originator is obligated to buy back the unpaid remaining purchased principle in full amount on the 61-st day of the delay.
Partner game
The benefit of this mechanism for you is the certainty that whatever happens with the credits you purchase in, the remaining unpaid principle will be reimbursed by the originator. And you will be able to purchase them again, diversifying your portfolio and reducing the risks to a minimum. The benefit to the originator is that by winning your trust, they provide you with a fresh inflow of funds to use for new loans and thus give you new opportunities for receivable and diversification of your portfolio.
Parameters of the buy-back guarantee
All iuvo originators provide a buy-back guarantee for the principal, which is one of the main tools for us at iuvo to provide a safer environment for our users. Guarantee for the expected annual return, on the other hand, would create tensions for iuvo’s loyal partners, and will also create conditions for limiting available credit from a higher risk class, which would also reduce opportunities for diversifying your portfolio. Purchasing of receivables in more and more credits is a mechanism to increase the rate of annual yield in iuvo.
Scope for diversification
Remember that P2P lending is a good tool for diversification because it is easy to manage and brings a steady return, while the risk is relatively low. Diversification is a technique that reduces risk by allocating receivables between different types of assets and instruments. To provide you with the opportunity to really make an informed decision, we have introduced an obligation to all originators to publish details of each borrower, such as age, monthly income, risk rating, etc., along with information about the expected annual return rate and payment plan of the loan.
The buy-back guarantee protects your receivable, but in order to achieve a good return, while also protecting your funds, you must not stop looking for different borrower profiles and different credit ratings for your next receivable. In addition, it is advisable to keep track of all your receivables, to compare their results and to adjust your strategy as you go.
