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LendSecured partners with Lemonway

An investment platform can minimize risks that an investor is facing. However, when unforeseen events happen the security of investors’ money is in question. LendSecured has figured out how to give its investors an extra peace of mind, partnering with established payment solution Lemonway, where all investors’ funds are kept safe.

Putting investor at the central spot

Lending to businesses has very quickly become one of the most promising investment directions, which is now praised by both - savvy and beginner investors. When revolutionary investment products such as P2P, P2B, and crowdlending first entered the investment scene, private investors chose it mainly due to the high yield, steady cash flow, and low volatility. However, the recent economic downturn has shown that we all have to be prepared for an unexpected economic or other external events, which could challenge many successful business models.

A business can promote itself as stable, safe, and doing a good risk management, however, nothing says “safe” more than offering investors assurance that their money is in reliable hands. At LendSecured  investors’ funds are held by the unaffiliated reputable payment institution Lemonway. In the meantime, LendSecured focuses on doing what it does best - connecting investors with real estate secured financing opportunities.

LendSecured was founded by professionals - owners of a successful secured mortgage and agricultural lending business, operating since 2013. The deep knowledge of lending and experience in real estate market has shown how important it is to protect the money of a lender. Therefore, the unique selling point and core strength of LendSecured is the protection of investors in the crowdlending industry. LendSecured philosophy is to take under control risks that can be minimized.

Currently, there is a boom in the number of payment solution providers. Many start-ups are getting the EMI license, however, they don’t have a track record of success. This doesn’t make other payment solution providers reliable enough for LendSecured investors. This is why the goal of the company was to partner with established and veteran payment solution provider, such as Lemonway. Lemonway not only has more than 10 year experience in payment processing, but it is also regulated by Banque de France.

About Lemonway

Lemonway was founded in Paris is 2007 as a payment solution, wallet management and third-party KYC provider, focusing on start-ups, especially on crowdfunding platforms and online marketplaces. Lemonway is regulated by the French Central Bank, hence it has to comply with all European and French directives regarding processing and holding funds. Until 2018 Lemonway was completely self-financed. However, the successful expansion and a positive word of mouth surrounding this French Fintech have brought the attention of several venture capital firms. As a result, Lemonway has raised EUR 35 million in 2 financing grounds.

The success of Lemonway is also mirrored in the payment volume it processes. In 2019 the payment flow increased by 60%, when comparing to 2018, and was over EUR 3 billion. Lemonway is a trusted payment processor of more than 1400 marketplaces, including 200 crowdfunding platforms.

How it works

Crowdlending platforms like LendSecured are obliged to perform KYC (Know Your Customer) procedures before accepting money from investors. This procedure is crucial and of great legal importance, as it is subject to AML (Anti Money Laundering) regulations. The procedure involves checking documents, which prove the legality of investor funds. Even though there is still nobody regulating online platforms, the Financial Supervisor is very strict about compliance with AML regulations.

The good news is, that LendSecured automatically passes all KYC and AML compliance, as it accepts funds through Lemonway. Lemonway saves resources, money, and time for LendSecured by doing verification procedures. Usually, the KYC process takes from 24 hours to 48 hours. If urgently requested, the verification can be accelerated.

The partner payment institution is regulated by ACPR (Prudential Supervision and Resolution Authority) of Banque de France, hence it has to comply with vigorous supervision set by the regulator. By partnering with Lemonway, LendSecured outsources not only state-of-the-art payment processing, but also an experienced and dedicated KYC team. Besides that, Lemonway’s compliance team is constantly monitoring updates of the current European regulations (PSD2, GDPR, etc.), which reassures LendSecured that we apply the highest standards, when dealing with our customers and their money.

Segregating clients' funds

One of the most important reasons why LendSecured has decided to partner with Lemonway is the assurance that investors’ funds are held securely on a segregated account in the jurisdiction with the stable banking system and strong rule of law. One of the risks that investors face, when investing with an online investment platform is the platform risk (when the platform goes out of business). This unfortunate event can affect recollection of funds, but this is not the case of LendSecured. When you choose to become an investor with us, you don’t have to worry about the safety of your funds. All investors’ money is held on a segregated account with France’s Fintech number one- Lemonway.

All available (not invested) funds and interest payments are held on the Lemonway escrow account, which complies with rules and laws set by Banque de France. The regulation covering clients’ assets and money obliges Lemonway to maintain all funds, held on behalf of LendSecured clients, to be available at all times. Besides that, the data and IT infrastructure of Lemonway allows efficient and uninterrupted service at all times.

Security is the priority

We all know all investments possess risks. LendSecured was founded with the aim to minimize all risks that are under our control. That is why the platform has chosen three directions to protect its investors - by placing only low LTV (Loan-to-value) projects, setting up Buy-Out fund, and segregating investors’ money from the investment platform’s money. Partnering with Lemonway shows our dedication to protect investors’ money.