The financial landscape is continually evolving through strategic collaborations, opening avenues for innovative solutions. This blog post describes the Credito Fiscale Guarantee Loan, a new type of loan by EvenFi, WeAreStarting, and PMI Advisor, aimed at giving investors more investment alternatives.
EvenFi, WeAreStarting, and PMI Advisor
EvenFi has joined forces with WeAreStarting and PMI Advisor, leveraging their year-long expertise in the market of buying and selling tax credits resulting from eco-bonuses.
Credito Fiscale Guarantee Loan
The operation's purpose is straightforward:
- Finance construction companies by collateralizing the loan through the assignment of their tax credits and selling them when ready for use.
- Fund the future sale of the credits, through crowdlending, at a discounted value, and sell them at a higher price when mature.
- The above allows to remunerate investors by repaying the capital and interest, thanks to the difference between purchase and sale prices.
This operation benefits:
- Companies holding credits, allowing them to access liquidity before expiration.
- Italian companies without eco-bonus interventions, benefiting from savings by purchasing credits at a discounted nominal price.
- Private individuals unable to execute eco-bonus operations, gaining an economic advantage through this operation.
Structure of the Operation Guaranteed with Tax Credits
1. The borrower uses tax credits from their business as collateral to secure a loan on the EvenFi platform.
2. A non-possessory pledge will be registered on the credits given as collateral and present in the tax drawer in the register at the Inland Revenue "Pledge".
3. Saffi CS SpA ("Saffi CS"), is in charge of the registration of the Pledge, as the representative appointed by the borrower, on the tax credits securing the repayment of the loan, and SAFFI SpA Fiduciaria Finanziaria Italian ("S.A.F.I."), of the administration of the escrow account where the funds from the future sale of tax credits will be deposited.
4. The loan is published on the EvenFi platform for investor participation.
5. Once fully subscribed and the pledge registered, funds are released to the borrower.
6. The Borrower, with the assistance of WeAreStarting and SME Advisor, will try to find a buyer for the tax credits pledged as collateral for the loan received.
7. Once a buyer is found, the funds from the sale will be deposited into the escrow account administered by S.A.F.F.I., which will later be used to repay the investors of the loan.
Benefits of the Operation Guaranteed with Tax Credits
The financing benefits include:
1. A 100% real guarantee, ensuring real security used to close the transaction.
2. Credit sale at a discount compared to nominal value, attracting high buyer interest.
3. Buyer payment to an account accessible only to SA.F.I., ensuring collection and investor satisfaction.
4. The buyer will pay on an account where only SA.F.I. can operate as escrow agent ensuring collection and control of the flows.
Risks of the Operation Guaranteed with Tax Credits:
1. Since the tax credits remain unsold, borrower may struggle to find a buyer, resulting in investors not receiving loan payments and funds needing to be recovered from the borrower.
2. Delayed or lower-priced buyer acquisition for tax credits could lead to investors:
a) not receiving payments at the expected time o
b) receiving insufficient funds to settle the debt, requiring loan funds from the borrower.
3. In the event of the borrower's bankruptcy, the bankruptcy judge will decide on using tax credits, posing a risk if they are used to pay other debts. Please read below for more information:
In the event of the debtor's bankruptcy, the creditor may proceed only after its claim has been admitted as a priority claim". Unlike what happens in the hypothesis of an "ordinary" pledge, therefore, for which pursuant to Article 53 of the Bankruptcy Law, the pledgee may sell the pledged item only with the authorisation of the delegated judge, who may, however, also opt to keep the res in the bankruptcy liquidation by the receiver (without prejudice to the right of pre-emption), the only requirement requested for the out-of-court realisation of the non-possessory pledge pursuant to Article 1 of Law Decree No. 59/2016 is the admission to the state of liabilities.
The creditor's enforceable self-assessment is therefore full, unlike under Article 53 of the Italian Finance Act, only the prodromal step of ascertaining the claim during the formation of the state of liabilities being necessary.