To cover exchange rate fluctuations between when the loan is first placed on the Lendwithcare website and the loan being fully funded and sent overseas, a 10% buffer is added to the loan being sought by the entrepreneur. The loan amount you see on the Lendwithcare website includes this 10% buffer.
The unused portion of the 10% buffer is repaid to you, the lender, as the first repayment on the repayment schedule. This repayment may have decreased against the amount scheduled due to fluctuations in the exchange rate. If there was a gain on the exchange rate this will be retained by CARE to support operational costs. The remaining installments on the repayment schedule are the repayments of the loan provided by you to the entrepreneur.
By managing loans in this way, the entrepreneur receives their full loan request and is guarded by you and other lenders from currency exchange rate fluctuations that could damage their plans entirely and lead them into difficulty.
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