Frequently asked questions

It is a way of fundraising through an online platform where the people with great ides raise money for their project from individuals in various amounts. The main idea behind crowd-funding is that money is invested from one person to another. Crowd-funding can take many forms:

• Rewards-based – investing for non-monetary rewards (goods or services);
• Donation-based – investing for no consideration, for emotion;
• Equity-based – invested in exchange for equity (shares, real estate);
• Debt-based (P2P lending) – investing in a loan to recover not only the amount invested but also the interest.

Profitus selects and places on the website projects to which investors are invited to invest according to the terms and conditions set out in the description. Investors are mortgaged with real estate and paid interest on the project, which is a guarantee that their investment will be repaid.

Profitus oversees the borrower’s timely settlement with investors and fully represents the interests of investors. On the other hand, Profitus is a great help for business as it mobilizes funding from a wide range of investors, manages paperwork, and provides a platform for easy reporting to investors.

Real estate in Lithuania is considered one of the most attractive investments because it is:

• Inflation-resistant;
• Generates additional income;
• Is tangible.

The activities of the operator of the Profitus platform is supervised by the Bank of Lithuania. Also, Profitus, as a platform operator, is listed in the public list of crowd-funding platform operators and operates in accordance with the Law on Crowd-funding, the Law on Legal Protection of Personal Data of the Republic of Lithuania, Rules on Acceptance of Financing Transactions by Operators of Peer-to-Peer Platforms and Assessment of the Reliability of Project Owners, Law on Companies. Thus, the activities of Profitus platform are regulated and supervised quite strictly.

Profitus platform does not perform any monetary operations itself. Your money transactions are made through the payment systems integrated in the platform, Paysera or Trustly.

The risk is assessed on the basis of the Law on Crowd-funding, the internal algorithm of the project and project owner assessment, which results in assigning a risk rating to the project (A+, A, A-, B+, B, B-, C+, C, C-, D). The internal algorithm is calculated based on information from state and other registries, reports from independent real estate appraisers, and the help of in-house professional analysts.

Profitus consults with the Bank of Lithuania in order to ensure perfect compliance with the law. Monetary operations on the platform are carried out in cooperation with Paysera and Trustly. The legal framework is coordinated with lawyers from the law firm Sorainen. The risk relating to the project and project owner are assessed on the basis of information provided by Creditinfo.

You can create an account by clicking on the button “Sign in” in the right-hand corner of the page and filling in the short registration form. Remember to identify yourself, because then you will get detailed information about the real estate project.

Profitus only acts as an intermediary, so there would be a direct investor-to-owner relationship in case the activity stops. As the project owner’s assets are pledged to the platform that, by law, represents the interests of investors, the assets will remain with investors.

Crowd-funding platform operators and other financial institutions must comply with the requirements of the Law on the Prevention of Money Laundering and Terrorist Financing and properly identify their clients and implement the “Know Your Client” principle.

On this basis, Profitus requests information from customers about their identity, activities and planned operations on the Platform, and requests the completion of a customer questionnaire.

We are prohibited by law from transacting with customers who have not provided us with the required information. Therefore, if the customer fails to provide the requested documentation after repeated requests, the customer’s operations may be suspended (e.g. for example, investing in projects, publishing them, suspending payments of benefits, etc. will not be allowed until the requested documentation is submitted), and customer information may be passed on to the responsible public authorities.

Your invested funds, interest payable will then remain secure and can be recovered as soon as you submit the requested information and/or documents.