What is Vault Circle Inc.? How does Vault Circle Inc. work?
What is Lendified Inc.? How does Lendified Inc. work?
⦁ Customers interested in a business loan complete an application on Lendified’s website via www.lendified.com.
⦁ Based on the information provided, Lendified evaluates it and through its leading-edge technology and proprietary algorithms, determines an interest rate and presents a loan offer to the qualified borrower.
⦁ Applications are approved based on Lendified’s proprietary LendScore method, which aggregates and analyzes thousands of data elements and attributes related to a business, the business owners, its industry and key markets – all of the factors that impact credit performance and the majority of applicants do not receive a loan.
⦁ As an EMD, Vault Circle converts those loans into Investor Notes on a reoccurring basis for accredited Canadian investors.
⦁ Investors, ranging from individuals to institutions, can invest in the current series of Investor Notes and earn monthly returns.
How does Vault Circle make money?
What is the minimum amount of money I can invest in Notes?
How long does it take for my funds to transfer into my Lendified Investor Note Program account?
Where are my funds held?
How do I pick which Investor Notes to invest in?
Vault Circle does not offer investment advice. Please consult a financial advisor if you have any questions or need additional information.
Am I investing in the loan of a single borrower?
How often do I get payments and when do I get all of my money back?
How do I exit my investment?
Borrowers & Underwriting
How does Lendified set interest rates?
Lendified, a premier provider of working capital loans to small businesses in Canada, assigns a LendScore (credit grade), and an interest rate to every approved loan. Lendified’s interest rates increase for each risk band ranging from A+ to C-. For example, an A+ LendScore loan has a lower interest rate than a C LendScore loan, reflecting the lower expected losses and lower expected volatility of returns associated with A+ loans. Similarly, a C- LendScore loan has a higher interest rate than a B LendScore loan, reflecting the higher expected losses and higher expected volatility of returns.
Returns, Performance, & Taxes
How do we measure returns?
How is this taxed?
Is my money insured?
Lendified Investor Notes are not guaranteed or insured.
Delinquencies & Defaults
What happens when a borrower misses a payment?
Delinquencies are a natural component of small business lending and we are prepared for some borrowers to miss loan payments. When borrowers miss a loan payment, Lendified makes reasonable efforts to collect outstanding payments and bring the loan back to "current" status. The collections process in general is highly regulated and our third-party collection agency will take action to collect payments from delinquent borrowers in accordance with federal, provincial, and municipal laws related to collections activities.
What is the general risk involved when investing in products offered by Vault Circle?
Vault Circle has taken steps to protect investors in the event that Lendified were to go out of business or if their services were disrupted with a wind-down strategy.
The risks of investing mean that investors may lose all or most of their investment. Before purchasing any of our Notes, you should carefully read our Investment Profile which provides information about the risks of investing in our Notes. The Notes are not guaranteed or insured by any governmental agency or instrumentality or any third party.
Exempt Market Dealers
What does it mean to be an Exempt Market Dealer (EMD) in Canada?
EMDs may act in two primary capacities in the capital markets:
⦁ As a dealer or underwriter for any securities which are prospectus exempt, or
⦁ As a dealer for any securities, including investment funds which are prospectus qualified (mutual funds) or prospectus exempt (pooled funds), provided they are sold to clients who qualify for the purchase of exempt securities. The qualification criteria for exempt purchasers and exempt securities are found in National Instrument 45-106 Prospectus and Registration Exemptions.