How it works

Below, we’ll outline how does Modena’s platform work and how can start earning money. If you have any questions or need further clarification, please don't hesitate to contact us by email info@modena.capital or by phone +372 5804 2366. Our support office hours are Mon–Fri, 10:00–17:00 CET.

Modena Estonia OÜ holds a consumer lender license from the Estonian FSA and therefore is able to issue both consumer credits and Buy Now, Pay Later type of financing to its customers.

Growing your money with Loan Vault

By placing money in the Loan Vault you are automatically buying debt claims (assets) from Modena. These debt claims are against customers who have used some credit or Buy Now, Pay Later financing from Modena.

Once you have placed your funds in the Loan Vault the platform will automatically sell to you the debt claims. The debt claims are sold in portions to platform users so that no user individually owns fully a debt claim. This is to ensure even distribution of revenues and stability. For example an user might own 1% or 5% or 14.63% etc. of a debt claim.

Debt claims are sold to platform users with a discount. The difference between the selling prince and the nominal value is the revenue for the user. Revenue is distributed to the users based on the ownership percentage of the debt claim. As an example a debt claims with a maturity of 30 days and principal amount of 500 € will be sold at a discounted price of 490 €. The platform users who owns that debt claim will earn 10 € for buying a claim of 500 € that matures 30 days. Please note that this is just an example the actual discount rate will depend on the actual debt claim, however on average platform users can expect around 10% ROI p.a.

When the customer makes repayments for part of that repayment that gets credited to the platform users' account is principal and part revenue. Received repayments will be used automatically for new debt claim purchases. Customer repayments are imported daily to the system.

If the customer fails to make repayments on time then Modena will rebuy the debt claim from the platform user automatically after the customer has been in delay for 35 days.

Key features

Targeted ROI 10% p.a.

Minimum starting amount 50 €

Automatic process

Buyback guarantee for defaulted contracts

Detailed steps to the process

Financing Customers

Modena Estonia OÜ issues credit to its customers and finances their e-commerce purchases. There are a number of financing products available in Modena's product portfolio. Hire-purchase and Buy Now, Pay Later options are available at e-commerce stores, while revolving credit lines and consumer loans that can be applied for at Modena's customer portal.

Creating Pools

After the financing contracts have been signed, Modena will group the claims arising from those contracts into asset pools. Asset pools are groups of claims bundled together from the underlying financing contracts. The benefit of creating these pools is that extraordinary events, such as prepayments and customer defaults, are spread across the pool, making returns for investors more stable and predictable.

Allocating Deposited Funds

Modena will use the money deposited in the Loan Vault to sell asset pools to platform users. Every user with available funds in the Loan Vault will receive a percentage of the asset pool and, therefore, ownership of the claims within that pool.

Distributing Repayments

As Modena’s customers make payments on their financing contracts, Modena will pay out those funds to platform users based on their stake in the asset pool. The payouts will be made based on the percentage of ownership each user holds.

Repeating the process

All the funds that have been paid back will automatically be used again to buy debt claims. Therefore the platform users will earn a revenue on their previously earned revenue. Reinvesting takes place until the platform user takes the funds out of the Loan Vault.