Sometimes we get questions from your members about exactly what is going on with your money from the fact that you put them into your Mike Lala account, until you invest them in loans with good credit ratings, and ultimately charge them with earned interest. . That’s why we thought it might be interesting to know a little more about how things are going in practice.
When you send money from your bank to our bank transfer, they go directly into our client funds account with our bank (IOP). Your ID is matched with your OCR message and the money is then transferred to your profile. In reality, however, they remain in IOP’s client funds account, but they are matched to your profile.
Your money is thus matched directly with loans and has nothing to do with the ongoing operations.
This ensures that there is always a direct link between our lenders and our borrowers’ money. As long as the money is not paid to a borrower, ie invested in loans, they remain in the client funds account and therefore you as lender can always withdraw your liquid funds whenever you want.
When money has been reserved in a loan they are locked out for withdrawal, this is because the client funds account should always be able to pay off a loan when it is financed.
When a loan is financed and approved, the money is paid to the borrower.
These are then taken directly from the client funds account and the lender cannot withdraw their money until they are repaid. This means that every month when borrowers pay their bills, interest and amortization will be deposited into the client funds account. The lenders who do not reinvest can then choose to withdraw their portion of the repayment. Thus, this money has also not been in the vicinity of current operations (except our fee of 0.25% -1.5% of course)
When a loan is financed, the money is then taken from the client funds account.
All of these steps are designed to ensure that your deposited money is never mixed into the running business , and is always either liquid or loaned through a promissory note that stands between the specific borrower and the lenders.
If you have any further questions about this, please call us on 020-20 30 40 or email us at hello @ Mike Lala .