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What is Argeld?

Argeld.com is a crowdfunding platform. Argeld's team has long-term finance and business experience. We are interested in real estate and other business-related loans, and provide tailor-made investments for those who have joined the platform.

Argeld has participated in the financing of projects in the volume of around 24 million euros with an average contractual return of 11.6%. Types of transactions executed:

  • Financing of Novira Capital real estate development and fundraising for it
  • Financing of other real estate development and raising capital for projects
  • Corporate finance and takeover transactions

Argeld's focus is on the optimal risk-reward ratio, not on the number of projects involved. The amounts to be funded are, as a rule, between EUR 250 000 and 5 000 000.

How does the system work?

The portal contains projects under the Investment, into which it is currently possible to invest your chosen amount, the minimum allowed investment amount is 100 euros. By investing in the portal, the user gives his or her signature to the loan contract and the mandate Argeld to transfer funds to the borrower.

Each project/loan transaction is carried out through a sister company of the platfrom, which is a regular private limited company. This sister company is owned and managed by the holding company of Argeld platform. All companies belong to the Novira Capital consolidation group.

Therefore, the platform will receive orders from investors, carries out financing, and administers loans for investors. The money transferred by investors to Argeldi's virtual account is held in LHV Bank separately from the other bank accounts of Argeld OÜ. Available funds on the investor's virtual account can be transferred to the investor's private account at any time.

After signing the documents and transferring funds to the Investor's virtual account, the portal will transfer the amounts received from investors to the borrower or the assignor of claim. The money moves either under the loan contract or the loan assignment contract either to the borrowing company or to the assignor of the claim. Argeld makes sure every time that before the money transfer from the virtual accounts of the investors, all contracts must be signed and the collateral must have been set aside for the benefit of investors.

The borrower pays interest and loan repayments to Argeld's virtual account, where investors can dispose of their free funds without any restrictions.

We expect investors to understand both essence of crowdfunding as well as the legal and financial structure of loans offered through the portal before signing the loan decision.

Team

Arle Mölder

Arle is the founder and partner of Novira Capital who has 20-year long experience in the real estate sector. In 1995 he started to manage the national investment fund which developments included several remarkable buildings in Latvia as well as in Estonia, Kawe Plaza office in Tallinn among the latter. In 1999 Arle established the real estate company Metro Capital Management where he was responsible for the management of Riga office and organized sales and marketing activities in Tallinn office. In the course of fourteen years, he managed to implement several development projects of residential and office buildings in Metro Capital, including the construction of Metro Plaza in the heart of Tallinn and establishing of Prisma hypermarket to Riga. Arle has a Master’s degree from London Business School.

Kristjan Petjärv

Kristjan has long-term experience in investment management, capital raising and security issuance. He has previously worked wealth manager and head of investment support for Sampo Group company Mandatum Life, where he worked with investment portfolios of wealthy individuals and businesses. At the moment, Kristjan is working at investment banking company Redgate Capital, where he has advised on financing transactions worth over EUR 150 million and has developed bonds for both the Nasdaq Baltic bond market and the First North alternative market. Kristjan has a bachelor's degree in business finance (cum laude) from Tallinn University of Technology.

Jaak Raid

Jaak's speciality is business and project financing; he has long-term experience in the arrangement of capital provision for the public as well as private transactions, financial coordination on the capital markets and structurisation of projects, transactions and enterprises. As a partner and board member of several international corporations, Jaak has participated in the processes related to the financing, acquisition and real estate transactions of listed companies as well as given consultations about the capital provision in project financing. Jaak has got a Bachelor`s degree in Business Management from the Estonian Business School.

Alvar Soosaar

Alvaris a long-time investor with a focus on early-stage startups. He invests in and mentors startups in the Baltics and the east coast of the US with a focus on Philadelphia. Alvar is a co-founder of a startup bond platform and previously managed a portfolio of $7.8 bn of corporate and real estate debt and equity. He holds a BA from University of Virginia and an MBA from the University of Oxford.

What is Argeld?

Argeld is a crowdfunding platform which deals with project finance through crowdfunding. Argeld's team has long-term finance and business experience. We are interested in real estate and other business-related loans, and providing tailor made investments for those who have joined the platform.

How does Argeld work?

The system works in a very similar way to other crowdfunding portals. The first step is to register as a user. It allows you to view all the information and documents published on the portal. The second step is to verify your identity, this also requires the transmission of a person's copy of a document. On this basis, a virtual account will be created for the user to transfer their investment means. Transfers to and from the virtual account can only be made through a bank account associated with this account. You can transfer a larger amount to your virtual account and invest it in parts.

Projects open for investment will be visible on-line, when new projects are opened, e-mail notification will be sent to all interested persons. Become familiar with each project and evaluate its suitability with your investment profile. Be sure to read the terms and conditions of the loan agreement and the portal, as well as the terms and conditions of the collateral. Then select the appropriate investment amount and confirm your decision on the portal.

How to apply for a loan in the Argeld platform?

To raise capital, an application must be submitted by email or through the platform. The application could be as detailed as possible description of the project, as well as information on collateral. We will then contact you directly and specify the need for additional data. If we consider that financing is likely then we will certainly meet.

What projects can be funded by Argeld?

As a general rule, we are looking for projects with a funded amount starting from € 250,000 and with a collateral with a clearly valued value. The value of the collateral is assessed by independent assessors and the Argeld team. Argeld's focus is on larger projects with strong business potential. Our financing is usually between bank financing and the owners' contribution, and we are also prepared to consider projects without bank financing. Our focus is on the profitability of the projects and the likelihood of their realization. Argeld is able to arrange financing for takeover transactions and corporate finance.

How does funding of projects take place?

If Argeld's analysis of the project and an independent assessment of the collateral give a positive result, a loan agreement with the Borrower will be concluded, collateral will be established and the loan amount will be issued after the provision of the collateral. As a general rule, we assign various contractual obligations to the borrower that apply after the loan is disbursed. For example, in the context of development, compliance with the construction budget or after completion milestones of the project, a certain amount of surface or units must be realized over a period of time. We also prefer projects where the builder's performance is guaranteed by a separate guarantee, and the contract has a fixed price and maturity. For cash flow projects, we are very flexible in structuring, but we want to clearly agree on the use of periodical overdue funds.

What are the basic terms of the loans applied for?

When submitting a loan application, the maximum amount, time period, and interest rate of financing must be specified. As a rule, the loan period is 3 years and therefore we are ready to consider both regular repayments and financing with no capital repayment during the loan period.

What is the minimum investment amount?

As a rule, the minimum investment amount is 100 euro, but this may be different in some projects. The minimum amount is shown in each project description.

What is the expected productivity and interest rate?

The interest for each investment is provided in the details, as a rule, it varies between 8% and 12% depending on the level of risk of the project. The investor will not be charged any fees other than cash transfer fees, thus the interest rate will also be the basis for the profitability.

How is my investment guaranteed?

All loans mediated by Argeld are generally guaranteed, usually we prefer mortgages, but in more complex projects, a combination of different pledges and contractual structure can be the collateral. Mortgages and other guarantees are kept by a separate company, which is a guarantee agent. Detailed information on the collateral is provided in the content descriptions of each project, and the detailed data include also the registry data of the mortgage.

Why invest through Argeld?

Argeld's advantage is that we can finance our selected projects, no matter how much capital we raise through the portal investors, as a result of which investors do not have the risk of completing the investment amount. We are, so to speak, calling the investors onto a moving train.

Which rules apply to Argeld?

Today there is no separate legislation on crowdfunding in Estonia, but it is in preparation. Thus, the general commercial code, real rights, and the right of obligations apply. In addition, the Financial Supervision Authority is keeping an eye on the evolving area of ??crowdunding, and there is also the Good Practices of Crowdfunding which Argeld has joined.

Will Argeld guarantee my investments?

Each investment has its own guarantee, which is indicated in the project description. In addition to the guarantees provided in the project description, Argeld does not provide any additional guarantees or collateral.

Why go to Argeldi instead of banks?

The focus of Argeld and the crowdfunding is on projects with limited or even impossible financing from banks, but with strong business potential. As a rule, banks do not finance, for example, the purchase of land for the development of real estate or just on land collateral, nor do banks want to finance real estate development at 100% of the construction price. In the case of a takeover transaction, the acquired company may, for example, be located on rental space and, therefore, there is no registration guarantee. Often there are projects where the amount of bank financing is insufficient.

Argeld's position in the financing market follows from the fact that banks' lending is limited with laws and standards to protect deposits and current accounts, often they are not capable or banks do not want to finance projects that are, for example, carried out by a company with no operating history. In case of real estate and other development activities, or in the case of takeover transactions, banks can also deem the guarantees insufficient or the risks associated with the project termination inappropriate.

Since our focus is on the profitability of the projects and the likelihood of their realization, we are ready to assess the company's capability and the likelihood of realization.

Argeld's advantage is that we also can finance our selected projects, no matter how much capital we raise through the portal investors, as a result of which neither investors nor borrowers have the risk related to completing the entire investment amount.

How is my investment taxed?

The project financing model is structured in such a way that Argeld's investor finances a legal entity’s project in the form of a loan. In most cases, the investor is either a legal person or a natural person. Loan transactions are subject to the applicable tax regime.

In the case of a private investor, it is a lender's income, which is subject to income tax in accordance with the Income Tax Act, in force in the year in which the profit was generated. In general, this is a tax on interest or investment income, at which point the Estonian general tax rate 20% applies.

At this point, it should be noted that, the time of the generation of the income is deemed to be the transfer of interest to the investor's virtual account in Argeld, rather than transferring from Argeld to a bank account.

Who can invest in Argeld?

In Argeld, both a private individual and a company can invest. It is necessary to complete the registration process and identification. Then there are no restrictions.

How to start investing in Argeld?

The system works in a very similar way to other crowdfunding portals. The first step is to register as a user. It allows you to view all the information and documents published on the portal. The second step is to verify your identity, this also requires the transmission of a person's copy of a document. On this basis, a virtual account will be created for the user to transfer their investment means. Transfers to and from the virtual account can only be made through a bank account associated with this account. You can transfer a larger amount to your virtual account and invest it in parts.

Projects open for investment will be visible on-line, when new projects are opened, e-mail notification will be sent to all interested persons. Become familiar with each project and evaluate its suitability with your investment profile. Be sure to read the terms and conditions of the loan agreement and the portal, as well as the terms and conditions of the collateral.

Then select the appropriate investment amount and confirm your decision on the portal. You have thus entered into a loan agreement with the borrower and ordered the portal to transfer funds from your virtual account to the borrower's account.

What are the service fees for investors?

By investing through the Argeld platform, all fees for investors are clearly set out. At the moment the service fee is charged only with transfer of money by card, the investor must pay the card payment processing fee, which is received by the card payment solution provider.

How long does it take to deposit paid-in money into my Argeldi virtual account?

As a rule, it takes place within one business day, but it depends, in particular, on the receipt of a bank transfer, payments made on the afternoon from Estonian banks may be received the next day.

Where is the money of the investors held?

Investors' money is held in LHV Bank separately in a special investors account, separately from the bank of Argeld OÜ, and this money will only be used with the mandate of the investors. In case the investor has given an investment order, the money will be transferred to the company created for carrying out the corresponding project. The investor can also transfer the available funds at any time to his or her bank account.

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