The secondary market

What is the secondary market?

The secondary market is an opportunity for investors to buy and sell investments. Investments can be sold on the secondary market by quoting the price of each investment as a percentage of the outstanding credit.

Premium (+%) - a margin charged by the seller on the remaining credit. It is applied when an investment is sold for more than it was bought for.

The discount (-%) is the discount applied by the seller on the remaining credit. It is applied when an investment is sold at a lower price than it was bought.

Reasons for purchase:

Reasons for selling:
Option to purchase investments that have already been made and are not overdue for less than the outstanding amount of the loan (discounted purchase).
Early withdrawal of your portfolio.
The primary market does not offer the type of credit you want to invest in (period, interest rate, rating and other criteria).
A desire to remove from your portfolio investments that you consider unviable and that other investors value more highly than you do.
Buying overdue loans at a deep discount in the hope of a successful debt recovery.
The opportunity to sell your investments for more than the NEO Finance is offering to buy them from you on BuyBack terms.
The ability to see the solvency history of the specific investment you are purchasing in the NEO Finance.
  
The opportunity to buy an investment for less than the minimum investment amount in the primary market.

 
   

 

What taxes apply when buying or selling investments on the secondary market?

Both the sale and purchase of investments on the secondary market are subject to a 1% brokerage fee, which is calculated on the basis of the sale price of the investment.

How do I sell an investment on the secondary market?

You can sell your investment under "My investments". By clicking on "Sell investments", you can tick the investments you want to sell. Once you have selected the investments you want to sell, click "Continue". In the window that appears, you can set the desired price for each investment (enter a premium or discount) and see the result of the investment for a potential transaction. Investments for sale on the Secondary Market will be placed on the Secondary Market within a few minutes, so you have the possibility to cancel the sale within that time.

The secondary market advert for the sale of an investment is valid for 30 days. If the investment is not sold within 30 days, the advert would be automatically withdrawn and the advert would have to be re-uploaded in order to continue offering the investment to other investors.

If the NEO Finance initiates the termination of a consumer credit agreement due to a borrower's default, the sale of the investment is automatically cancelled.

How do I buy an investment on the secondary market?

You can find the secondary market under "Invest" by clicking on "Secondary Market". In the list of investments for sale, you can see all the information related to the investment you are selling, the date the investment was made, the rating, the outstanding loan tranche, the annual interest rate, the maturity of the loan, the remaining amount receivable, the premium or discount, and the selling price.

ATTENTION! In some cases, the sale price may exceed the outstanding loan balance, so you should compare the two amounts. To purchase an investment on the secondary market, click on the "buy" button and sign the contract.

It is also possible to invest in the Secondary Market automatically. The auto-investment feature allows investors to pre-select the criteria on which investments on the Secondary Market will be purchased. When new investment offers appear, the system automatically checks the criteria of all auto-investments and, if the investor's account has funds available, purchases the investments that meet the criteria

 
 
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