Acceptable crowdfunding offer criteria

This document outlays FUNDAUS (the Company) approved minimum criteria for project owner acceptation and minimum criteria for project approval as a crowdfunding offer in accordance with Company’s projects and credit risk assessment procedure and project owners servicing procedure. All of them are exclusion criteria, which means that if project owner or project does not meet at least one criterion or it appears that it does not qualify or will not qualify by any of the said criteria during any stage of assessment, it is automatically rejected.

1. Acceptable project owner criteria

1.1. Type - legal entity;

1.2. Residence - the European Union;

1.3. Economically viable company - i.e., not classified as undertaking in difficulties;

1.4. Business field - any business activities, except high-risk business in accordance with the Company’s AML/CTF Policy;

1.5. The project owner or another person is ready to provide the collateral - first priority mortgage of a property with the appraised value, ensuring the LTV ratio not higher than 70% at all times of implementation of the Project (the threshold can be set lower depending on the specifics of Collateral and its quick sale value price);

1.6. LEI number is obtained;

1.7. Due diligence in accordance with the Company’s procedures is successfully passed;

1.8. Financial assessment is positive, including the company’s ability to generate sufficient income for loan serving with clear source of funds and overall project risk according to the Company’s assessment not increasing “Fairly low” (30%)*;

1.9. Has good reputation, no criminal records, insolvency or defaults in its previous experience;

1.10. Able to pay the Company’s fees related to the provided crowdfunding services and specified in the Pricelist, including, but not limited to: project general assessment, services of the outsourcing service providers used by the Company, and other fees and expenses, associated with the assessment of the project and one-time commission fee for funds raising;

1.11. Not associated with the Company or its Management Board members, employees, shareholders or outsourcing service providers.

2. Acceptable project criteria

2.1. Requested financing amount – up to EUR 5’000’000 – the limit for all the offers published by the same Project owner in the market. (project owner’s co-financing of the project is not mandatory, but shall be considered as a strong priority);

2.2. The project has a clear concept, high/advanced level of readiness to start and a foreseeable cash flow, based on substantially grounded assumptions;

2.3. The project idea, economic essence and its implementation schedule comply with the requirements of maximum loan repayment term up to 3 years;

2.4. The project generates sufficient income for loan serving, providing, along with alternate source of income of the Project owner, if any, an acceptable debt service coverage ratio (DSCR) at the level at least 1.3;

2.5. The credit score is at least 70 out of 100*.

* A detailed description of project risk assessment and credit score mechanism is provided in the document Credit risk assessment and fair offer price.