What are the financial guarantees and how is risk mitigated?

As a crowd-lending platform, we bring together promoters (companies, NGOs, social institutions) that need financing (borrowers) and investors (private or institutional actors) who are looking to invest (creditors).

There are a number of risks associated with this investment class, the most significant being the credit risk (where one or both parties do not fulfill their contractual obligations); the operational risk (where the project fails for technical reasons); and the market and industry risk (where a change in the economic climate can cause the project to fail). 

In order to minimize credit and operational risks, our team follows a rigorous risk assessment protocol before launching any project for funding. The protocol is divided into three steps: project admissibility criteria, statistical credit model, and technical project assessment. You can learn more about our risk assessment model here.

In addition to this, and in order to mitigate our investors' exposure, we negotiate guarantees and similar mitigation measures that are triggered should the project promoter be unable to fulfill their contractual responsibilities towards the investors.

Such compensation and mitigation mechanisms can include:

  • Equipment pledge: as we are talking about a secured loan, the pledge has priority over other loans.

  • Financial guarantee from the parent company or the legal representatives themselves.

  • Co-financing by another company or non-repayable entity. In case of default, the payment is guaranteed by a third party and not by the creditor/investor.

Investing in a project means that you are lending capital to an entity, which in turn means that you are taking a risk that could result in the partial or total loss of your capital invested.

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Goparity is an impact investment platform that connects companies looking to finance their sustainable projects, with individuals and entities who want to invest sustainably. We are growing, both in terms of size and impact generated. We were born in Portugal in 2017, but have since then financed projects and grown a large community of investors all around the world.

Casa do Impacto

Tv. de S√£o Pedro 8
1200-432 Lisboa
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© 2021 Goparity

Part or all of your original invested capital may be at risk and the return on your investment depends on the success of the project invested in. Consider all risks before investing and read the Key Investment Information Sheet (KIIS) for each investment, available at www.goparity.com. Power Parity, SA is a crowdlending platform authorized and supervised by CMVM (Portuguese Securities Commission). All payments, transfers and funds collection are assured by MangoPay SA, an electronic payments institution authorized and supervised by CSFF (Luxembourg Financial Authority) under the n¬ļ 8711.