Risk Management

Risks associated with your investment.

Like any investment, investment offerings on Finouse carry investment risk, which should be evaluated on a case-by-case basis and prospective investors are urged to read the risk factors for each applicable offering. We strive to list investments on Finouse that are backed by strong collateral,provide attractive returns and have low correlation to the overall stock market.

The risk that the borrower will not be able to repay the associated interest and principal on a particular loan.

The possibility that a lender won’t get back some or all of the principal balance, the amount that they had originally invested.

The borrower could pay back the loan amount earlier or later than the expected offering length. All durations associated with Finouse investment offerings are “target durations” and while we do everything we can to hit those targets, in certain situations, an offering can end or extend before or after that target duration.

Investors will not have access to their funds until the investment fully matures, thus reducing liquidity. In addition, some of our litigation investment offerings produce event-based payments which reduce payment schedule predictability.

Finouse places great importance on keeping your information secure. We encrypt all personal information on our website and our technology team endeavors to utilize best practices for security sitewide.  This includes other documents provided, such as a government ID or Trust agreement, as applicable. All other information entered on our site is encrypted, and our team ensures that sufficient cyber security measures are in place Additionally, Finouse does not store or see banking information or bank login information for additional security.

Finouse works with asset managers and loan originators who have extensive experience in their field who service the loans. Finouse is a manager of the SPV (special purpose vehicle) from Finouse Inc. The SPV is a company created with the sole purpose of keeping your investment secure, regardless of the originator or Finouse’s credit risk. For example, in an SPV, if anything were to happen to our company, a new manager, would be appointed for the SPV and take over management responsibilities, and would also receive the associated management fees and you would continue to hold the investment.