Article 7
Factors to be considered in assessing the financial situation of the project owner or of the crowdfunding project
1. When assessing the credit risk of crowdfunding projects or project owners, crowdfunding service providers shall consider all of the following factors in relation to the financial situation of the project owner or of the crowdfunding project:
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(a) |
the income and cash flow generated by the crowdfunding project over the past 2 years, where available; |
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(b) |
the expected income and cash flows of the crowdfunding project in different scenarios; |
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(c) |
the current and projected financial situation of the project owner, including any other existing loans and liabilities; |
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(d) |
the availability of collateral or other guarantees. |
2. For the purposes of paragraph 1, point (c), crowdfunding service providers shall consider the following factors when assessing other loans and liabilities that the project owner may have in place at the time of the loan request:
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(a) |
the amount of those other loans or liabilities; |
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(b) |
the currency in which those other loans or liabilities are issued; |
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(c) |
the maturity of those other loans or liabilities; |
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(d) |
the repayment schedule for those other loans or liabilities; |
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(e) |
the interest rate or any other compensation provided for in those other loan or liabilities contracts. |
3. When performing the assessment referred to in paragraphs 1 and 2, crowdfunding service providers shall consider relevant financial, asset class-specific or product type-specific indicators for the last 3 financial years, where available, in line with the policies set out in Chapter IV. Those indicators shall be calculated in accordance with the International Financial Reporting Standards (IFRS) or local Generally Accepted Accounting Principles (GAAP), in line with the policies set out in Chapter IV.
4. Relevant financial indicators may include, but are not limited to, the items listed in the Annex.
5. When using financial projections to assess the credit risk, crowdfunding service providers shall ensure that those projections are based on solid and prudent assumptions and are consistent with historical data and reasonable market expectations.