Your capital is at risk and returns are not guaranteed
When you make an investment on Abundance your capital is at risk. If the company you have lent money to runs in to difficulties or fails during the life of the investment it may not be able to pay your returns and you may not get back all or any of your original investment.
The risks for your investment will depend on the particular business you are investing in to. Investments with a higher return are usually correlated with higher risks. You should review all the information provided about a particular investment, including the risks section in either the Offer Document or Factsheet before you decide whether the investment is right for you.
Each investment is different
Each investment has its own return, terms and risks. The length of each investment will vary, with the shortest being 1 year and the longest up to 20 years.
Some investments may be secured depending on the type of project which means assets of the issuer or an associated company may be reserved to cover Abundance investments. However, security does not guarantee repayment and there may be reasons why any assets can’t be realised to pay investors. These include where the market value of the assets concerned is insufficient or the costs of realising them make sale uneconomic.
You should consider investing across a range of different investments. By spreading your money over a number of investments you reduce the overall impact if any one of your investment runs into difficulties and is unable to repay your investment.
Selling your investment
The investments on Abundance are transferable which means they can be sold to other investors, however there is no regulated marketplace. To help you sell Abundance provides a marketplace which enables buyers and sellers to connect and trade investments, but this is informal and is not like a stock exchange or other regulated market. You may not be able to sell instantly or at all. Remember, if you are forced to sell them in a hurry or if an investment has not paid returns as expected, there is a risk you may not get all of your money back.
Abundance is not authorised to provide financial advice to investors and does not do so. It is therefore your responsibility to do your homework on whether to invest in a specific investment or not. If you do not understand anything regarding a particular investment please seek independent financial advice.
Past and future performance
The past performance of an investment is not a guide to its future performance and should therefore not be relied on when making an investment. This is particularly important if you are buying an investment through the marketplace.
There may be predictions or forecasts as to future performance in Offer Documents. Abundance works with the issuer to make sure (as far as possible) that these are reasonable and are supported by objective data but they may still be affected by risks and other factors. There is no guarantee that any business will succeed or meet its objectives. You should consider carefully any predictions and forecasts in the Offer Document and any detailed risk warnings relating to them.