What is the legal background?

We’ve built a process consistent with the existing regulations in Bulgaria, knowing that there is no specific law for Peer to Peer Lending.

First we finance an approved credit on our own funds and we immediately sell on the marketplace claims on parts of this loan. What is exactly sold is the rights to receive the proceeds of the part of the loan acquired, proceeds from principal and interest repaid. This is technically done through an assignment agreement.

Klear is a registered Financial Institution, supervised by the Bulgarian National Bank. This gives us the rights to finance credits as well as the possibility to consult the national credit bureau managed by the Bulgarian National Bank.

Investors do not have a direct link or legal relation with the borrowers.