DUK

Nordstreet is a crowdfunding platform. Crowdfunding is a model of investing money and raising funds, where investments are made by many individuals.

The Nordstreet crowdfunding platform finances various business loans as collateral for existing real estate. It is an alternative way to get loans for small and medium-sized businesses, as well as possible refinancing of existing loans or a loan for starting a business. This type of financing also opens up the possibility of investing in business loans selected by specialists. Anyone can invest the desired amount of money in selected business loans from just 100 €.

We would like to emphasize and be pleased that UAB Nordstreet is included in the Public List of Operators of Concentrated Financing Platforms administered by the Bank of Lithuania. Bank of Lithuania Consumer and Financial Market Participant Dispute Resolution Procedure.

Crowdfunding is a model of investment and fundraising where investments are provided by a number of single individuals. Crowdfunding significantly simplifies the investment process, provides an opportunity to choose an investment project and receive a higher return on investment.

If you did not receive a reset link, e-mail us at info[eta]nordstreet.com and we will send it to you.

Linking the „Nordstreet“ user account with a „Paysera“ account simplifies the confirmation of the investor’s identity. Moreover, this helps us ensure higher security of funds: neither the „Nordstreet“ platform operator nor „Paysera“ has direct access to your funds.

After registering on the Nordstreet platform, click on the red icon in the top right corner of the menu bar. In the popup window, select the "Link accounts to Paysera" option and you will be directed to the Paysera environment, where you can log in to an existing one or create a new account. After logging in, perform the required identification steps: confirm your phone number, personal identity.

After successfully linking accounts the color of the badge will change from red to green.

This is a legal requirement for your identification as a user. We are obligated not to use this data for any other purposes.

Creating a new „Paysera“ account is free of charge. During user identification, enter your e-mail address and password of choice in the „Paysera“ window that will open, then confirm the registration link sent by e-mail to create the account. You can receive more information on creating a new account by clicking this link.

Customer identification requires confirmation of a phone number and a document. To do that, you need to provide a photo of your ID document and, if possible, complete identification by using a computer or smartphone camera.

„Paysera“ will verify the documents necessary for identification within 1 business day, at which point they will approve your account.

In this case, please contact the „Paysera“ customer service. „Paysera“ specialists will help you with the identification. You can message them here or call the numbers provided.

Yes, all you will need to do is make a minimum required investment amount, i.e. EUR 100, available on your „Paysera“ account.

Investing on the ,,NordStreet"  crowdfunding platform is permitted to natural persons who have reached the age of majority and all legal entities. Prior to making an investment it is important to confirm your identity by linking your ,,NordStreet"  account with your ,,Paysera" account.

Yes, you can open an account in Nordstreet on behalf of the company. You must also link this account to your company Paysera bank account and other required company identification steps.

You can invest a minimum of EUR 100 in each crowdfunding project on the ,,NordStreet"  platform. There is no maximum restriction on the investment amount and number of funding projects.

Next to every crowdfunding RE (Real Estate) project, you will find information on its developers, capital type, risk group, loan repayment term, estimated return on investment, etc. We recommend considering all information provided on a project before making your investment choice.

If you are looking to invest (even if it is only a small amount), the ,,NordStreet"  platform offers one of the most promising investment areas – real estate. Main reasons to invest via ,,NordStreet" :

• Here you will find only thoroughly vetted projects assessed by our RE experts.
• You can start investing from EUR 100.
• Borrowers guarantee repayment of the project investments by pledge of property, which makes investment risk lower than normal.
• The average return on investment can be as high as 11 percent.

The „NordStreet“  crowdfunding platform has no access to your funds. They are available on your personal „Paysera“  account. However, linking the accounts allows seeing the amount available on your ,,Paysera" account as the balance on „NordStreet“  platform. The balance displayed is your „Paysera“ account balance.

1. Before you start investing, you need to register on the „NordStreet“ platform.
   
2. Following registration and logging in, you must link your „NordStreet“ account with your „Paysera“ account in order to confirm your identity. If you do not have a „Paysera“ account, you can create one during the linking process.
   
3. Select a crowdfunding project for investment in real estate on the „NordStreet“ platform, click ‘Invest’, enter the amount and confirm the investment.
   
4. The funds available on your personal „Paysera“ account will be used for investments on the „NordStreet“ platform: the platform will reserve the amount of your choice in the „Paysera“ account.
   
5. Once the full amount required for a project is collected and all loan guarantee funds are received, the reserved amount will be debited from your „Paysera“ account. Interest will be calculated from that moment on.
   

Interest will be calculated on the total (i.e. 100 percent) amount of your investment.

The „NordStreet“ platform is an intermediary between the investor and the project owner, offering a range of carefully selected projects of the highest creditworthiness; however, the investor shall assume all possible risks: risk of full or partial loss of funds allocated for funding (capital); absence of potential profit and financial liquidity risks.

However, these scenarios are highly improbable. „NordStreet“, acting as the creditors’ representative, will ensure repayment of investments: whenever necessary, transfer of property pledged by the project owner may be initiated and other measures may be taken to ensure repayment of an investment.

The interest on the Loan Amount shall be calculated from and including the date of disbursement of the Loan Amount to the Borrower's Paysera account or to such other account (or accounts) as notified by the Borrower to the Operator in writing prior to the disbursement of the Loan Amount.

All projects are carefully assessed by the „NordStreet“ team and our advisers. We take into consideration both the project owner’s credit history and rating, the project itself, and evaluate the business plan and payback opportunities, etc.

The LTV indicator provided next to each crowdfunding project shows the loan amount to pledged property value ratio. The lower the indicator, the lower the investment risk, as in a case of non-repayment of the loan, the value of property sold will be higher than the loan. A lower LTV indicator means lower risk of not recovering the investments if property prices drop due to a crisis.

After logging in to „NordStreet“ crowdfunding platform, in your Investor Profile in the section My Investments you will always be able to find a project information summary. Full information is available under the project. We will also notify you as an investor on all updates and additional information by e-mail.

If the necessary investments are not collected, the project will not be funded. „NordStreet“ does not have access to your funds; until confirmation of the project, the amount invested will simply be reserved on your „Paysera“ account. If the project is not confirmed, the reservation will be cancelled and the money will remain on your account.

In this case, „NordStreet“ will initiate the loan recovery procedure. If your money is not repaid, the property pledged by the borrower will be sold to return money to the investors.

The interest rate indicated next to each „NordStreet“ crowdfunding project is an annual rate. Thus, if during a period of 12 months the estimated rate of return on the loan is 12 percent, this means that the monthly interest rate is 1 percent (12 / 12 = 1). For example, if you invest EUR 1,000 in a project with a 12 percent annual rate of return, then each month’s interest will comprise EUR 10 (EUR 1000 x (12/12/100) = 10).

When the borrower makes a payment, the funds will be distributed among all investors in proportion to the amount invested. If the amount received is insufficient to cover the full payment, the share of investments and interest will be allocated to the investors in proportion to the invested amount. For example, if your investment comprises 3 percent of the total project amount, you will receive 3 percent of the interest amount transferred by the borrower. In this case, upon receipt of funds from the borrower who delayed payments, first, the default charges due to the investors will be deducted, then the interest.

Unless otherwise indicated in the loan repayment schedule provided next to the project, your interest will be paid on a monthly basis, while the principal amount invested will be repaid at the end of the project (each project has a specified duration – 12, 24 months, etc.).

Until the beginning of 2020, STI information was provided by borrowers. From 2020, this information will be administered by UAB Nordstreet.

Important information for Lithuanian residents

If you invest as an Individual, the interest earned is included in Class B income, which you must declare and pay 15% PIT (personal income tax) on that income. This tax must be paid by Lithuanian residents themselves on the total amount of interest received during the tax period, which exceeds € 500, i.e. when the total amount of interest received during the tax period exceeds EUR 500, the amount exceeding EUR 500 is taxed at the rate of 15%.

For 2020, Nordstreet will provide the State Tax Inspectorate with the necessary data on the interest you have received during the calendar year.

When paying penalties / interest to Lithuanian residents, Nordstreet will deduct and pay 15% PIT to the STI budget.

Important information for foreign residents

Interest paid to foreign resident individuals is classified as Class A income and will be subject to personal income tax (PIT) deducted and paid by Nordstreet.

For this reason, foreign residents will automatically be charged 15% personal income tax before paying interest, which will be transferred to the State Tax Inspectorate (STI).

No PIT is required for the payment of penalties / interest to foreign residents.

Log in to your „NordStreet“ account to see the amount available on your „Payera“ account. This is a settlement account and operates according to the same principles as the accounts in other banks: it can be used to make transfers, payments with the available „Payera“ Visa card or you can withdraw the available funds.

Investment may be requested, i.e. applied for, by any legal entity. When selecting the projects, we assess the creditworthiness of their owners and companies, and the project’s business plan; we also try to ensure that the LTV (Loan-to-Value) indicator does not exceed 75 percent.

The „NordStreet“ crowdfunding platform allows funding of promising RE projects with a loan period from 1 to 36 months and an LTV (Loan-to-Value) indicator no higher than 75 percent.

At this time, only legal entities, i.e. companies, may apply for RE investment via the „NordStreet“ crowdfunding platform.

The amount required for the project can be collected within 2 weeks or sooner, depending on the attractiveness of your project to the investors.

The project will not be funded and the funds allocated will remain in the investors’ accounts.

The collected investments will be transferred to the project owner’s account after the documents on the guarantees of performance obligations (pledge of property, etc.) have been provided.

The fees applied by the Nordstreet crowdfunding platform are published in the pricelist.

The investment repayment period and other loan conditions are confirmed by a mutually concluded agreement. The investments may be repaid upon expiration of at least one half of the loan period; meanwhile, penalty charges will be imposed on delayed payments. In any event, for individual changes of the payment schedule or other conditions of the agreement, please contact us personally at info@nordstreet.com.

The Borrower undertakes to use the Loan amount exclusively for the purpose of using the Loan, which is specified in the Special Conditions. Upon receipt of the Operator's written request, the Borrower undertakes to immediately provide the Operator with the requested information and documents justifying the use of the Loan amount.

We invite you to get acquainted with the "General Terms and Conditions of the Loan Agreement".

If you cannot repay the loan at this moment, but you are willing to cooperate and find a solution, please contact us, and we will discuss the refinancing of the loan (at mid-term) or the possibility to postpone payment of interest. Otherwise, „NordStreet“ will be forced to initiate subrogation and sale of pledged property in order to repay the funds to the investors.

1. If the borrower delays payments by 40 or more days, the repayment of the loan shall be managed by „NordStreet“ (see question 5.2.).
   
2. If payment is delayed by 40 or more days, „NordStreet“ will transfer the borrower’s data to the debt collection company. It will initiate a pre-trial recovery of the debt. Debt recovery can be carried out in two stages – primary and secondary, the differences of which are discussed in question 5.3.1.
   
3. If the borrower fails to make the payment, evades communication, otherwise avoids contact or fails to respond to the actions of collection companies, „NordStreet“ will immediately terminate the agreement concluded with this borrower. Commonly, the agreements with an insolvent borrower will be terminated after 7-8 failures to provide payments. In this case, the borrower will be notified about the termination of the agreement, a detailed procedure of the debt repayment, and in accordance with the requirements of the Law on Credit, the borrower will be granted an additional period of two weeks to make the delayed payment. If the borrower fails to perform the demanded actions, relevant documents will be passed on to a lawyer, who will initiate legal debt recovery proceedings.
   
4. Following the award of the loan, „NordStreet“ will contact a judicial officer. Enforced recovery will be initiated after a judicial officer accepts the enforcement documents issued by the court. The recovery time of investments depends on the actual financial position of the debtor at the time of enforced recovery, i.e. the debtor’s income, its stability, passiveness and availability of assets, which could be subject to encumbrance. Taking the above into account, a payment plan will be drawn up, according to which you will be able to recover your investments.
   

In this case, loan repayment will be managed by „NordStreet“.

Borrowers always receive a reminder message about an upcoming payment deadline. If the payment is not made on the date specified, the customer will receive an automatic reminder call. During the call, the reasons for delay will be established and an exact amount due will be indicated. The borrower will be reminded that in the event of delayed payments, he/she will be obliged to pay penalty charges and his/her personal data will be published in the system of Creditinfo Lietuva credit bureau.

The aim of „NordStreet“ is to inform the borrowers about possible consequences and encourage them to make payments within a reasonable time. A customer delaying any payments will receive SMS messages, e-mails and phone calls. If the parties fail to come to an agreement, i.e. the borrower does not make the payment, he/she will receive a warning of transfer of this information to a debt collection company and its publication on the Creditinfo database.

If the Borrower delays payment for a period of 40-45 days, „NordStreet“ will transfer the debt recovery process to debt collection companies. At the same time, in order to make sure that the customer does not assume any more financial obligations, information regarding the debt will be published in the database of Creditinfo.

The „NordStreet“ crowdfunding platform cooperates with three debt collection companies. Two of them are involved in the first, and one – in the second debt administration stage.

Primary recovery

The duration of this stage is commonly 3 or more months, counting from the moment of transfer of the debtor to a debt collection company. If at the moment of debt administration the debtor is solvent and complies with the debt repayment schedule approved by the debt collection company, the debt will not be passed on for the secondary recovery and will be managed by the same company until the end.

Secondary recovery 

The secondary recovery will be initiated, when during the primary stage, the debt collection company is unable to reach agreement on the payments and/or the debtor fails to settle within a period of 90 days. The secondary recovery is always executed by a specialised debt collection company.

Once the customer repays the debts, the recovery actions will the suspended and the customer will be asked to follow the previously established payment schedule.

The status of primary and secondary debt recovery and all actions involving investors will be displayed in real time. You can see:

• the payment agreement;
• attempts to renew the agreement;
• restored contacts;
• additional actions initiated

The status of investments and the meaning of each will be provided in the personal account of each investor. Relevant information and information on the debt recovery actions, their commencement or completion, will be both made available on your „NordStreet“ account and sent to you by e-mail.

Legal recovery is a measure of last resort which is used if, during the pre-trial procedure, the debtor ignores attempts at communicationand evades their obligations and responsibilities.

Duration of legal recovery

This recovery procedure takes up to 6 months. In exceptional cases, for example, where it is impossible to serve the procedural court documents to a debtor or where the debtor raises objections against the claim lodged, legal recovery may take a longer period of time.

Information on the transfer of the debt matters to a court, termination of the agreement with the debtor, etc., will be provided to investors by e-mail. Following the award of the debt and transfer of a debtor to the judicial officers, this information will also become available in the investor’s personal account – such loans are marked in red.

The legal recovery procedure is organised and its costs are borne by „NordStreet“.

When you transfer the money into „Paysera“ account, an electronic equivalent of cash used for transfers is created. This means that your money is kept in a separate account at one of the Lithuanian banks independent of „Paysera“. This system guarantees that, in the event of bankruptcy of „Paysera“, all funds will immediately be returned.

The „NordStreet“ crowdfunding platform is supervised by the Bank of Lithuania, thus the latter has also approved the platform’s business continuity plan. Its purpose is to protect the investors in the event of the company’s bankruptcy. The plan identifies the main risks and the action plan to execute if „NordStreet“ operations were to be suspended.

In this case, the following key actions have been identified:

• Suspension of the release of new loans.
• Transfer of loan administration to a temporary administrator.
• Pursuant to public procurement, the temporary administrator would sell the loan portfolio to another operator which would continue the administration of settlement with the investors.
  

Protection of the funds invested is achieved by means of such guarantees of performance of the loan obligations as the pledge of immovable property, personal surety, etc. These measures are specified next to each investment project individually and may differ from project to project.

It is important to know that the „NordStreet“ platform does not have access to any funds: they are directed from the investor’s „Paysera“ account to the project owner’s account and vice versa. For this reason, the funds are secure even in the event of unexpected platform operation circumstances.

Nordstreet is included in the Public List of Crowdfunding Platform Operators administered by the Bank of Lithuania. The „NordStreet“ crowdfunding platform is supervised by the Bank of Lithuania, thus the latter has also approved the platform’s business continuity plan. Its purpose is to protect the investors in the event of the company’s bankruptcy. The plan identifies the main risks and the action plan to execute if „NordStreet“ operations were to be suspended.

In this case, the following key actions have been identified:

•      Suspension of the release of new loans.
•      Transfer of loan administration to a temporary administrator.
•       Pursuant to public procurement, the temporary administrator would sell the loan portfolio to another operator which would continue the administration of settlement with the investors.

Who can use the program?

The program is open to both business and private Nordstreet investors who have created an account on the Nordstreet platform and linked the account to a Paysera bank account. Participation in the referral program is free and unlimited.

How does it work?

Below you will find a special link created for you that you can place on your website and / or social networks or invite friends directly to join the Nordstreet investor community. When a new user clicks on your special link and signs up and successfully invests, you will see your earned bonus in your account. The bonus is paid once a month to your Paysera account.

Terms & conditions

• If your invited friend registers and successfully invests 100 € and more in the selected project - you will receive a 25 € bonus for the recommendation.
• The invited friend must be a new Nordstreet user, which means they didn't have to have an account on the site before
• The bonus is calculated when an invited friend invests in the selected project within 30 days after registration. If the invited friend invests later - no bonus will be calculated.
• The received bonus is valid for 70 days. If payment is not made within that number (the account is not linked to Paysera) - the bonus will be canceled.
• The bonus is only transferred to the Paysera bank account linked to the Nordstreet account.
• Bonus Payments take place once a month on 15-19 days of the month.
• 15% PIT (Personal income tax) is deducted from natural persons who resident in Lithuania and paid to the STI (State Tax Inspectorate).