Profit Farm’s Crowdfunding Lending Moves from French Lemonway to Italian TPPay

Profit Farm, the lending crowdfunding platform specialized in NPLs, has announced in an email to its users that the migration process to the new payment institution TPPay, regulated by Italian law, is currently underway

The change of Payment Institution

TPPay will replace the current partner Lemonway, a French payment institution, adopted by most Italian platforms.

In its communication, Profit Farm specifies that the transition involves an important technological evolution of the platform and will be completed in the next few days, with the publication of the new site and the resumption of the publication of new operations.

Once the new site is available, users will need to create new wallets on TPPay and transfer funds from their current wallet on Lemonway.

A unique proposition in the European crowdfunding landscape

Profit Farm, founded in 2020 by Lawyers Cristiano Augusto Tofani and Francesco Sibilla with the support of Roberto Macina ‘s Venture Builder WDA , is the first authorized platform that offers financing for credit purchase and collection projects (NPL).

The platform was authorized by Consob under the European regulation last December.

The credits subject to financing are all characterized by objective certainty, enforceability and liquidity. These credits, mainly linked to the Public Administration or to private individuals with solid real guarantees, offer investors attractive returns in a short time, minimizing the risk of default (so far equal to 0%).

To date, the platform has published 44 projects, raising 8.3 million and returning 8.8.

How Profit Farm Works

Only credit transactions that need to be settled in the short term are published on the platform, for example, since the related legal process has already been concluded with an uncontestable ruling in favor of the creditor.

Or simply having to wait for the timing of the distribution of the sums already present in the procedure accounts (so-called “cash in court” – literally “money in court”).

Furthermore, the legislation on late payments in commercial transactions, in implementation of a Community directive, requires all debtors, including the Public Administration, to pay the creditor, in addition to the principal amount due, also annual default interest, equal to the ECB rate plus a spread of 8 percentage points.

A company that has a “secured” credit towards a Public Administration, or towards an equally solvent public or private entity, and that has successfully exhausted the entire legal process of ascertaining the credit itself, can therefore propose its operation on Profit Farm.

Naturally, before approving its publication on the platform, Profit Farm analysts proceed with a rigorous preliminary analysis.

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(Featured image by Jonas Leupe via Unsplash)

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