Colombia Approves Terrenta’s Crowdfunding Platform for Real Estate Financing

In line with the regulatory adjustments the country has been making to enable more market players, the Colombian Financial Superintendency approved the operating regulations for Terrenta SA, a Collaborative Financing Company (Sofico).

Terrenta is a crowdfunding platform that, on its website, stated that it is authorized and supervised by the Colombian Financial Superintendency. “We connect companies in the real estate and construction sectors that need financing with investors interested in obtaining attractive returns,” it explained about its operations.

In this regard, the Superintendency of Finance’s resolution emphasizes that “the Collaborative Financing activity carried out by Terrenta is developed through technological infrastructure, which may include interfaces, platforms, websites, or other means of electronic or digital communication.”

Through these, a diverse group of donors are connected with recipients, who request financing in their own names for productive projects . In this case, real estate and construction projects.

How Terrenta works

The regulator’s resolution that enabled Terrenta’s operating regulations warns that, in the development of the Collaborative Financing activity, “Terrenta does not hold the status of a credit institution, nor of a securities intermediary, nor that of an advisor for the realization of Investments, nor does it assume any responsibility for the issues made through the Technological Infrastructure.”

In this context, the company’s website explains that “crowdfunding is a form of collective financing where many people contribute money to support companies, projects, or businesses.”

“At Terrenta, we publish companies that have passed our screening process on our platform, and investors can select which one or more of these companies to invest in, starting at $100,000, with the commitment to receive returns on their investment,” the firm offers.

Furthermore, it states that “it operates under strict processes, security standards, and due diligence. In addition to being supervised by the Financial Superintendency, we implement high standards of cybersecurity and information management, along with a rigorous selection and classification process for each of the companies that apply.”

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(Featured image by Flavia Carpio via Unsplash)

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First published in msn. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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