Frequently Asked Questions

There are two ways to buy the Claim Rights at Swaper:
1. Auto-Invest Portfolio – an Auto-Invest feature that purchases the Claim Rights automatically as they become available on the Platform;
2. Manual investing – manually selecting and purchasing individual Claims yourself.

With each repayment made by the Borrower based on the repayment schedule, you receive a portion of your principal amount and the accrued interest for the relevant period, depending on the Claim bought by you. The money is automatically transferred to your Swaper User Account balance.

Swaper and Loan Originators provide a Buyback on Claim Rights that are listed on the Platform. Buyback varies by Loan Originator and more details should be checked in the concluded Assignment Agreement. For example, Swaper provides a Buyback on Wandoo Finance loans where Swaper can compensate Users for both - the invested principal amount and the accrued interest if the Borrower delays repayment for more than 60 days.

Investments XIRR: This metric evaluates the actual rate of return on all your investments since you commenced investing on Swaper. It considers factors such as interest earnings, penalties and bonuses, providing a comprehensive view of your investment performance over time.
Account XIRR: represents the actual rate of return of all funds within your Swaper account. This includes returns from investments as well as considers the part that is uninvested, excluding one-time benefits such as bonuses, offering a holistic assessment of your overall account performance.

Both XIRRs are calculated using the extended internal rate of return methodology, which accurately considers the timing and amounts of cash flows, ensuring precise evaluation of investment returns.

Swaper does not make any tax deductions from the interest you receive, except if you are subject to taxation in Estonia. Thus, any Tax filings and related payments are the responsibility of each User. Swaper provides a Tax report in your account for your reference. If you have questions regarding Taxes on the profit received, please contact your local state revenue service.

Yes, if you are a natural person residing in the Republic of Estonia, Swaper is legally required to withhold income tax from any interest earned through the platform. This is in accordance with the laws and regulations of the Republic of Estonia. (Income Tax Act § 17)

The tax is automatically deducted from your earnings on the Swaper platform.
You can see the deducted tax amounts on the Account Statement page.

Swaper also declares and pays the withheld taxes to the Estonian Tax and Customs Board (Maksu- ja Tolliamet) each month by the 10th. This means you do not need to take any additional steps.

If a Borrower has made his long-term Loan monthly payment before its due date, you receive interest for the whole month the same day when payment was done. At the same time, the Loan share is locked for selling, as interest is paid in advance. You will be able to sell the share after the next scheduled loan repayment date (the date can be seen when opening the share details section).

Once you have reviewed and confirmed your bought Claim Rights, you cannot cancel them. However, you can use the secondary market to sell the Claim Rights to other Users.

If the Borrower is late with their Loan payment, then Loan Originators are doing everything to receive the payment from Borrower. When the Loan is more than 60 days overdue then usually Buyback occurs compensating the principal and the accrued interest in accordance with the concluded Assignment Agreement.

In general, if a Borrower does not make a payment according to schedule, the Loan Originator will contact the Borrower to remind them about the missed payment. The Borrower can choose to either make the full payment or make a payment to extend the Loan for 30 days. In case of no payments being made, the Loan Originator will initiate debt collection process. If debt collection efforts do not succeed the Loan Originator may decide to pursue the collection of the debt in court.

All investments carry risks.
Below you will find a description of the main risks that the Users take on when buying the Claim Rights on Swaper marketplace along with an explanation of what we are doing to mitigate these risks.

Currency risk
When registering for the first time, the User can choose whether to open an account in euros or in British pounds (claims added to the platform are always in euros). Offering both currencies should allow most Users to eliminate the risks associated with exchange rate fluctuations and reduce exchange or transfer fees.

Event risk
The company may be affected by events beyond our control such as the Covid-19 pandemic, geopolitical situation or natural disaster. Events such as a pandemic can seriously affect both legal and natural persons, which can lead to difficulties for borrowers in repaying their loans. Environmental factors are always a risk when assigning claims.

The risk related to the cessation of operations and bankruptcy of the platform
If the User acquires a financial right of claim arising from the loan agreement directly from the lender against the borrower, an Assignment agreement for acquiring the right of claim is concluded directly between the User and the lender. In the event that the company should cease its activities, the Assignment agreement remains valid and the User retains the right to claim against the borrower, which the User must pay himself in this case (compared to a functioning platform, in which the principal and interest payments are automatically received by the User).
If the assignment of the claim takes place in two stages, i.e. the agreement is concluded first between the lender and the company and then between the company and the User, if the claim has already been assigned from the company to the User, in the event of the bankruptcy of the company, the risk related to the possible recovery of the assignment of the relevant claim remains with the User.

Lender risk
Lender risk relates to events and consequences where the lender ceases operations, including voluntarily, due to economic problems or regulatory problems. Depending on the method of termination, the administration of the relevant loans may be complicated, the lender may not have to fulfill its obligations, and the User may need to assign claims to ensure or simplify collection (assignment may reduce the User's income).

Loan type risk
On its platform, the company offers for acquisition secured and unsecured financial claims assigned from loan agreements, which allows Users to spread their risks. Unsecured loans do not use assets such as real estate, appliances or a car as collateral. In the case of unsecured loans, the User may suffer a greater loss. In the case of a secured claim, there is a risk related to the decrease in the value of the collateral and its realization.

Risk of fraud
There may be risks associated with using the platform if User passwords are stolen or leaked. If a third party accesses the User's account, e.g. with stolen passwords or the User forgets to log out of the platform account on a publicly used device, the third party can access the User's data and perform actions on the platform.

The minimum amount for the purchase of the Claim Right is 10 EUR.

The proof of your purchased Claim Rights is a concluded Assignment Agreement.