A simple, step-by-step guide to the bonds process, designed to keep investors informed and empowered.
🤝 1. Initial Discussion
The individual or institution has an initial meeting or email exchange with SCD to discuss the investment opportunity.
📌 Outcome: Mutual interest established.
📄 2. Review & Decision
The investor reviews the loan agreement and any additional documentation. Key decisions are made regarding:
- 💰 Loan amount
- 📅 Term length
- 💹 Interest rate
- 📈 Interest accrual (yearly payment or paid at maturity)
🔁 Optional: The total loan may be split into multiple agreements to suit the investor’s liquidity needs.
📌 Outcome: Terms are finalized.
✍️ 3. Agreement Signed
Both parties sign the bonds agreement. Each party files a copy for their records.
📌 Outcome: Legal commitment confirmed.
💸 4. Drawdown & Registration
Funds are drawn down shortly before the property purchase. Loan start dates are recorded in the official loan register.
📌 Outcome: Loan active and tracked.
📊 5. Interest Accrues
Interest accumulates over the loan term according to the agreed schedule.
📌 Ongoing: Passive growth for the investor.
📞 6. Pre-Repayment Check-In (1 Year Before Maturity)
SCD contacts the investor one year before the term ends to discuss repayment preferences:
- 🏦 Which account should funds be repaid to?
- 🔁 Would the loaner like to reinvest with SCD for another term?
📌 Outcome: Repayment or reinvestment path identified.
➕ 7. Reinvestment Discussion (if applicable)
If reinvesting, a new meeting or discussion is held to agree on updated terms (amount, rate, term, etc.).
📌 Outcome: New investment pathway confirmed.
🏁 8. Full Repayment (if not reinvesting)
At the end of the term, the full principal (and any outstanding interest) is repaid to the investor.
📌 Outcome: Loan closed successfully.
Let us know if you have any questions, we’ll be happy to discuss this process further in even more detail.