Roadmap crowdfund project review
Investing your money through crowdfunding can be a great way to make a return. At this item we already discussed the pros and cons of investing in crowdfunding. But if you want to invest through crowdfunding, how do you select a project? There are several types of crowdfunding and you would prefer a steady return and as little risk as possible. So before you invest, you want to assess a crowdfund project. How to do that? We explain!
This campaign is a paid
partnership with Collin Crowdfund.
They pay Elfin to work with us to create content for our community. Our common goal is for women to make an informed assessment of whether crowdfunding is an option for them. Always do your own research well and invest only with a party that feels right for you. Don’t invest with money you can’t afford to lose.
Crowdfund project review
Assessing a crowdfund project is different for everyone, of course. The confidence you have in the project is very important. Some base this on the collateral, for example, hedging risk in the event of possible bankruptcy(read more about that in this article). Some people trust the entrepreneur behind the project and/or the look and feel of the company.
In that first case, it is important to carefully read the pitch(the presentation in which the company explains what they do, what their business model is, how they make money and what their future plans are) of the project. This states what collateral is being offered, whether a company already has a certain cash flow and exactly what will happen with the financing. This information is enough for many investors who have built a certain level of trust with a platform.
Other investors wish for more affinity in their investment and go to research. They like to have a picture of the entrepreneur, the business and/or the property to be financed. All of this is reflected in the pitch. In addition, you can also just take a look at the company’s website. A link to the website is also listed in the pitch in many cases, and if not, in many cases you will have found it in no time on Google.
At best, you evaluate a project based on both criteria. What are the securities, does the company have a certain cash flow and what is being financed? Do these values give you confidence? Good! Then look now at the content of funding. What do you think of the company, the industry, the entrepreneur and do you support the financing? If that is the case then you have found a project that you feel good about on the one hand and which is adequately covered for possible bankruptcy on the other. That way, you stand behind your investment and have also limited the risks of your investment.
Invest in a project through Collin Crowdfund
If you are going to invest in projects at Collin Crowdfund, you can do so in 6 simple steps. The steps are as follows:
- Step 1: register
- Step 2: reading in
- Step 3: assessing projects
- Step 4: invest
- Step 5: reflection period
- Step 6: final investment
Below, we will explain which actions you can take and how to work your way through the range of investment opportunities at Collin Crowdfund, step by step.
Register
Are you new to Collin? Then you need to create an account before you can invest. This can be done privately or corporately and can be arranged in just a few minutes through the Collin website. During the registration process, you will go through a short questionnaire to see if you have enough knowledge about investing, but of course you as a loyal elfin reader will fly right through that. After registration, you will get a personal “My Collin” account with your own current account.
>> Create a free account with Collin Crowdfund here now
Reading up on the projects
Now that you have an account, let’s explore. One advantage of investing with a platform with an exemption from the AFM is the fact that projects appear on the website at least 48 hours before investments can be made. No investments can be made then, but you can already read through the entire pitch. Indeed, it may be that, for whatever reason, one investment opportunity attracts you and another does not. You can do this based on the interest rate, term, loan goal, risk analysis by Collin, D&B score and background of the company/entrepreneur.
Assessment of projects
In addition to your own assessment of the project, Collin also performs a thorough analysis, which is presented through the Collin Credit Score.
Collin Credit Score (CCS).
Collin adds its own risk rating for each investment opportunity. Basically, it can be assumed that all crowdfunding projects, or investment opportunities, are classified as “good” when they appear on the platform. Collin has now provided financing to 1,806 entrepreneurs, but they have also handled more than 12,000. So there are already more than ten thousand applications that have not made it to the desired publication on the website. Collin thereby separates the already chaff from the wheat for you.
With the (
CCS
) indicates the risk of the investment. The CCS is a risk rating that follows from a balanced model. This model follows at a glance the assessment of a company’s repayment capacity, solvency and security. The scores are: adequate, more than adequate, good and very good.
Dun & Bradstreet (D&B) risk score.
In addition to its own assessment, Collin also uses a risk score from independent Credit Rating Agency D&B. This way, you avoid having only the butcher judging his own meat. The scores are: minimal risk, low risk and increased risk.
Invest
Okay, you now have an account and you have carefully chosen a project you want to invest in based on the CCS, D&B score, maturity, interest rate, etc. To invest, you can deposit money into your My Collin current account or during the investment process using iDeal. The minimum investment amount is €100 at
Collin Direct
investment opportunities and € 500 for investment opportunities above € 250,000.
Once the investment opportunity goes live, go to that investment opportunity and press subscribe.
Balance not used or returned as redemption/interest can of course be withdrawn.
Grace period
From the time you register, you legally have a four-day reflection period. During this period, you can still adjust or withdraw the investment as you wish.
Final investment
Once 100% of the loan amount is raised and the consideration period of all investors has expired, the loan, and thus your investment, will be finally booked out by Collin to the entrepreneur. This means that the investment can no longer be withdrawn.
The payment of interest and principal is then made monthly (
unless it is a grace loan
) and is credited to your “My Collin” current account. The first installment usually starts one month after the loan’s charge-off date.
You can find all current investments with their repayment schedule in ‘My Collin’, under ‘Investments’.
Listen to the podcast with Audrey Franssen of Collin Crowdfund here
