1. Do not invest your emergency buffer

Peer to Peer investing is offering the possibility to get a significantly higher return compared to deposits in exchange for slightly higher risk. Great! This is worth trying, but only if you have savings on top of the amount you consider necessary to cover unexpected expenses or emergencies.

We advise you to keep your emergency buffer on your bank account, in order to be available anytime.

2. Diversify in as many loans as possible

Klear takes care of the selection of creditworthy borrowers and prices their interest rate according to the risk profile (segment). Investors should get the average expected return.

For your return to be as close as possible to this average, you should invest in many loans, at least 150.

3. Do not keep idle money on your Klear account

You get return only on the money you’ve invested in loans. If you keep idle money on your Klear account during a long time, you miss opportunities.

We recommend you check regularly your dashboard to reinvest the idle money on new loans. It’s important because almost every day you will receive back some small payments from the loans you’ve already invested in.

Once you know well how the platform works, the most efficient way is to set up the Auto Investing tool. You define your investment strategy and the tool will automatically invest on your behalf every time a loan matching your criteria appears and you have available money in your wallet.

4. Be clear when you will need your money back

If you invest with the idea to generate a long-term saving for your retirement, for example, then no need to pay too much attention to the duration of the loans.

But if for example, you have an important project in 4 years, then we recommend you invest in loans with a remaining duration below 4 years. Besides, month after month, when you reinvest the money returned, reinvest it in shorter and shorter duration.

5. Start investing on secondary market only when you master the topic

Secondary market has not been built with the idea of making (or losing) fast money like the stock market. Its purpose is to offer the possibility for investors to sell their portfolio if they need their money before planned.

Investors can sell at a different price. So, be careful, being able to assess if you’re going to make a good deal when buying on the secondary market is not easy. We try to help with a valuation model (see KIP), but we recommend to go there only once you have extensive experience with the platform and its model.

Klear is open to individuals (physical persons):

• Being at least 18 years old
• Citizens and tax residents of/in the EU/EEA
• Having a bank account opened in a bank from the EU/EEA
• Having their identity verified by Klear

We cannot accept US citizens, residents or taxpayers.

Through our platform you invest in consumer credits. You buy rights to receive proceeds from the loans you invest in. Every month, on the due date of the loan, the borrower should pay an installment according to the payment schedule.

The installment includes the repayment of the principal borrowed as well as the interest. These are the proceeds you buy, proportionally to the share you own in the loan.

We lend to the prime segment, meaning to people with a low risk. Borrowers must have a stable situation, sustainable revenues and a good credit history.

We are not offering payday loans neither subprime loans at high interest rates to fragile borrowers.

Based on more than 20 years of experience in managing consumer credit risk, we have developed our own algorithm.

Our credit scoring model is using a wide range of data points of the borrower: its socio demographic characteristics, information about its family budget and its credit history.

We use official sources of data to collect or check the information.

• We connect to the Credit Bureau managed by the Bulgarian National Bank (CCR) which is registering all consumer loans, including mortgage loans issued by banks and nonbanks.
  
  
• We also consult the National health Insurance (NOI) where we can check the salary of the applicant. We also consult the Police register (MVR) in order to check if the ID card is reported as lost or stolen.
  
  
• On top of that we cross check some information by systematically looking at the social medias data and we perform a video call with each borrower in order to check its identity.

There is no fee for investors.

Klear earns revenues only from a one off fee paid by the borrower when the loan is financed.