To reduce the level of risk we use several methods of money protection
Secured business loans
At UCG TRUST, we take investor protection very seriously. Unfortunately, some loans default, but you have nothing to worry about since we already factored in such risks before calculating your fixed returns
We understand how important it is to be paid on time while investing, in order to be confident about your financial stability. While investing funds at majority of investment platforms, investors have to wait for an indefinite period of time to recover their capital whenever borrowers miss their payments, which is certainly accompanied by a tremendous amount of stress and uncertainty.At UCG TRUST, however, we use old-school strategies that are time-tested, which allows us to perform payments of fixed monthly returns even if a borrower misses the payment
How it works
The use of your investment account is similar to a conventional savings account. It means, if a borrower misses the payment it won't affect your regular interest payments. Interest will continue to be credited to your account on the 1st date of each month for the previous month
How is Provision Fund formed?
The size of the Provision Fund grows monthly along with the size of total loans lent to borrowers. When a borrower applies for the loan, our credit assessment team provides detailed analysis of business to predict the expected losses that potentially will need to be covered. Based on the expected losses, we determine the percentage of amount that has to be contributed into the Provision Fund from the borrower's monthly repayments
Is there enough money in the Provision Fund?
The coverage ratio of the Provision Fund is not fixed. Typically, it varies between 180% - 200% of the expected losses.
Whenever the coverage ratio is higher than 100%, the money that is in the Provision Fund is completely enough to cover failed payments made by borrowers.
The graph below shows the percentage comparison of the Provision Fund and actual losses to the total amount lent to borrowers by year