The liquidity of the investment corresponds to the cash generated by the fund's receivables (monthly repayments, collections, early repayments).
Indeed, each month, borrowers pay a monthly instalment of their credit, make early repayments, or repay their monthly payments late. This represents several thousand withdrawals, and between 3 and 5% in value of each fund each month.
Thus, each month these withdrawals are transferred to the fund; this liquidity injection allows:
- Either settle investors' requests for redemption of units (as a priority)
- Or in the event of no request for reimbursement, the cash is reinvested into new loans
In the extreme case where all investors request redemption of their units at the same time, unit redemption orders would be executed on a pro rata basis, and each investor would recoup between 3 and 5% every month, until fully redeemed.
In practice, investors who wish to exit can request a total or partial redemption of their fund units by applying thanks to their investor personal account. This request will be executed as soon as possible depending on the liquidity available on the funds, and after the notification period of 30 days.