To reduce the level of risk we use several methods of money protection

Secured business loans
Secured business loans
We provide lending only to businesses secured by their assets, which can be used as collateral
Personal guarantee
Personal guarantee
We require business owners to provide a personal guarantee to limit the possibility of the business defaulting on the loan. It means, if the business becomes unable to repay the loan, the owner assumes personal responsibility for such loan
Provision Fund
Provision Fund
In order to protect our customers from the possibility of not receiving compensation on their investments, we set up a Provision Fund, which automatically reimburses investors if a borrower misses a payment

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
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How it works

The Provision Fund was established to meet any future reimbursement to investors if borrowers miss or fail to make repayments. It is formed by contributions received from interest payments on the loans that borrowers make. The money in the Provision Fund is a buffer that helps protect your investment and perform regular monthly payments of fixed returns.

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?

When borrowers pay interest on the loan, part of the interest goes to investors as fixed returns within their fixed term investment plan, while another part goes into the Provision Fund.

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
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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