Glossary

Discover the terms commonly used in the field of SME financing and crowdfunding. As well as frequently asked questions.

Asset class:

A category of economic assets that have similar characteristics. Examples of asset classes are publicly traded stocks, government bonds and real estate.

Crowdfunding:

The funding of projects or businesses by raising money from a large number of people, usually online. The three main types of crowdfunding are equity, debt, and rewards/donations.

Crowdlending B2B: 

Crowdlending is the financing of projects through debt. We talk about B2B crowdlending when it is about project financing between companies.

Debt contract: 

A debt agreement is a contract in which the terms and conditions are specified, including the amount owed by a person/company to one or more lenders. A debt can be in the form of:

• • a loan agreement

  • financial securities, such as bonds
  • IOUs (such as minibonds)

The borrower must repay the amount lent over a period of time with or without a grace period. Generally, he/she must also pay interest.

Issuers: 

At Re fundia, we operate mainly with private debt issuers, which are private companies or legal entities that call on public and/or private savings in order to raise capital to finance their activity. The securities issued are shares or bonds.

Primary investors: 

It refers to a legal or natural person wishing to acquire the securities (shares or bonds) offered for sale by an issuer. This operation takes place on a primary market.

Secondary investors: It refers to a natural or legal person who buys securities (shares or bonds) from a investors (primary or secondary).

Know Your Customer (KYC): 

The regulatory process that all financial services companies, as well as specific companies, must follow to verify the identity of their customers to help prevent money laundering and other fraud.

Portfolio: 

A group of financial assets such as stocks, property or bonds, held by a person or entity.

Risk:

The possibility of losing something of value. In the case of debt financing, the main risk for the investor is to lose all the money invested.

Secondary market: 

Second hand market of assets (stocks, bonds, securities, ...). Re fundia provides an exchange solution for unlisted corporate debt securities. Investors buy debt securities (before maturity) from other investors rather than from the company that issued the debt securities directly.

Register of securities movements: 

The register of securities movements contains all the transactions carried out on the securities of an unlisted company. The register (often in the form of a paper book) contains both equity securities (shares) and debt securities (bonds, minibonds...) that have been issued by the company.

Based on the Decree No. 2018-1226 of December 24, 2018 ("Blockchain Ordinance"), Article L211-3 of the Monetary and Financial Code, Re fundia registers debt securities (bonds, minibonds, ...) in the Blockchain. It thus facilitates the movement of securities for primary investors, secondary investors and the issuer. 

Why finance companies?

Beyond the potential benefits that can be derived from an investment in financial securities, investors contribute to France's economic well-being by supporting domestic entrepreneurs and businesses when they need it most and giving them the opportunity to grow.

What are the risks when financing on Re fundia?

All investments carry varying degrees of risk. The main risk associated with the safe investment is that the company may simply go bankrupt with the result that investors lose their investment. Illiquidity is another consideration because if there is a lack in demand, one must wait for the debt security to mature. 

Is it possible to sell one's debt securities to recover liquidity?

Re fundia facilitates a secondary market where investors can buy and sell debt securities over the counter online...

Does the secondary market reduce investment risk?

The ability for investors to sell their debt securities before maturity frees them from a liquidity constraint and thereby reduces their risk.

The secondary market offers investors the opportunity to sell their debt securities (including bonds and minibonds) privately, however, the ability to find a buyer depends on demand. Investors should not assume that an early exit will be possible because the secondary market exists.

How do I deactivate my account?

To deactivate your account, contact us at info@refundia.eu.

We cannot deactivate/delete accounts of users who hold funds and/or assets in their securities portfolios, so you will need to transfer or sell your debt securities and withdraw any remaining funds from your Re fundia investment account before submitting a request.

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