PeerBerry: Let’s talk about risk management

This is the second blog post from the series about how some of the P2P lending platforms in Europe manage the risks (like creditor or platform bankruptcy, project failures, buyback guarantees, etc.) and how their strategy is aligned with the investors’ interests.

All answers are officially provided by PeerBerry @

Questions and Answers

Q1. What is the procedure when an originator bankrupts? What is the worst thing that could happen to an investor when an originator/creditor bankrupts?

A1. In case of insolvency of the Loan Originator AV Marketplace will take over the management of the claim. AV Marketplace can manage the claim itself or transfer the management of the claim to third party at AV Marketplace’s discretion. AV Marketplace as a fiduciary has an obligation to inform the Borrower on the assignment of the claim on behalf of the User and demand the Borrower to continue to make all payments arising from the claim to AV Marketplace or third party as a fiduciary of the User.

Q2. What happens if the platform (or the company behind it) bankrupts? What is the worst that could happen to an investor in this scenario?

A2. Insolvency of AV Marketplace will not affect legal relations between the User, the Creditor and the Borrower. In such case AV Marketplace shall be taking all the necessary steps so that a third party takes over the administration and management of all claims.

Q3. Who secures and provides the Buyback guarantee – PeerBerry or your creditors/originators?

A3. Buyback guarantee is loan originator’s is obligation to exercise buyback of the claim at the end of 60 day of overdue.

Q4. What guarantees the payment of the Buyback guarantee – is there a specialized fund that would supply it? If there is one, what happens if there are not enough funds or liquidity to cover the Buyback guarantee?

A4. The is no specialized fund accumulated.

Q5. Is it possible for the Buyback guarantee to get delayed, longer than the expected 60 days term? Is it possible for the Buyback guarantee to not be applied (or just partially) and under what conditions (e.g. a lack of financial funds due to a lot of defaulted loans)?

A5. The buyback occurs automatically at the end of the day then term of overdue is reached.

Q6. Do you plan to release any public information about your financial statements of the platform and the company behind it and if you do when can I expect it?

A6. Of course we will share financial statements for 2018 as soon as they will prepared. Also we are preparing to add more detailed information about each originator on our website.

Q7. What is the actual profit margin of the platform? What is the expected/forecasted profit margin of the platform?

A7. Peerberry was launched on the 1st of November 2017, the first year was ended with 9358 EUR loss and last year we became profitable, but we don’t have exact numbers yet, they will be prepared until March and we will share on our site.

Q8. What are the actual interest rates and APRs for borrowers?

A8. In every country Loan originators have different interest rates for the customers. Interest rates is dynamic, especially in short terms loans business and Loan originators decides what pricing to use at exact time. To know exact interest rates you can always check on our Loan originators web pages. Please find links below:

Czech Republic:






© 2019 Martin Nikolov All Rights Reserved

Published by Martin Nikolov @

I work as a Senior Software Engineer at Financial Times. I am a software craftsman. Passionate about system design, architecture and building highly scalable and distributed cloud systems. My hobbies are sports, finances and investments in the FinTech industry.

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