Crowdhive / Risks and defaults / How are loans monitored after funding?
How are loans monitored after funding?
09/24/2026
1 min
Monitoring continues through the life of the loan: whether interest arrives on schedule and whether the source of repayment is developing as planned, for example construction milestones or portfolio performance. If a borrower misses payments, BellaVista Invest One AG acts as Collateral Agent and conducts recovery on behalf of all investors, so you never need to pursue a borrower in court yourself.
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What happens if a borrower pays late?
The borrower receives formal notice and a defined grace period to cure the missed payment. Many delays end there. If the default is not cured, the loan can be accelerated and collateral enforcement begins.
Can I lose my invested capital?
Yes. CrowdHive investments are not bank deposits and are not covered by any deposit-guarantee or investor-compensation scheme. Collateral and centralised recovery reduce risk but do not remove it: if enforcement proceeds fall short of the outstanding debt, investors bear the loss on the remainder. Never invest money you cannot afford to lose.
How should I use risk grades?
Every project carries a grade from AAA to B. The grade and the interest rate move together: AAA projects pay around 5-7% and carry the lowest assessed risk, while B projects pay 17% and above and carry meaningfully more risk. A higher rate is compensation for risk, not a gift. Use grades to build a mix that matches your own risk tolerance rather than concentrating on the highest rate.
What are the main risks of investing?
The main risk is credit risk: a borrower may pay late or fail to repay. Related risks include country risk for projects outside Europe and currency risk where a borrower earns revenue in a local currency while the loan is in EUR or USD. Returns of 10-17% exist precisely because these risks exist. Investing involves risk, including the possible loss of capital, and returns are not guaranteed.
What happens if a borrower pays late?
The borrower receives formal notice and a defined grace period to cure the missed payment. Many delays end there. If the default is not cured, the loan can be accelerated and collateral enforcement begins.
Can I lose my invested capital?
Yes. CrowdHive investments are not bank deposits and are not covered by any deposit-guarantee or investor-compensation scheme. Collateral and centralised recovery reduce risk but do not remove it: if enforcement proceeds fall short of the outstanding debt, investors bear the loss on the remainder. Never invest money you cannot afford to lose.
How should I use risk grades?
Every project carries a grade from AAA to B. The grade and the interest rate move together: AAA projects pay around 5-7% and carry the lowest assessed risk, while B projects pay 17% and above and carry meaningfully more risk. A higher rate is compensation for risk, not a gift. Use grades to build a mix that matches your own risk tolerance rather than concentrating on the highest rate.
What are the main risks of investing?
The main risk is credit risk: a borrower may pay late or fail to repay. Related risks include country risk for projects outside Europe and currency risk where a borrower earns revenue in a local currency while the loan is in EUR or USD. Returns of 10-17% exist precisely because these risks exist. Investing involves risk, including the possible loss of capital, and returns are not guaranteed.