Introduction: What is the cost?
The process is free for investors. Companies pay us a commission based on the loan amount as below:
|Amount raised (COP$ Millions)||Fee (1)|
At the time of delivering the funds to the company, you will have to pre-pay us the commission which will be reimbursed back to you in the course of the loan repayment.
(1) Fee excludes taxes.
You agreed to lend COP $ 5M at a rate of 12% per annum for 1 year which gives a total repayment of COP $ 5.6M per year. The commission is equivalent to 11% * COP $ 5M = COP $ 550,000. You will pay the commission after the company raises its loan online. So you will be paid back after 1 year: COP $ 5,600,000 + COP $ 550,000 = COP $ 6,150,000, equivalent to COP $ 512,500 monthly. Capital, interest and commission payments are made month by month.