How does Afranga’s ECSP license protect my money?

Afranga operates as a licensed European Crowdfunding Service Provider (ECSP). This regulatory framework establishes clear rules on transparency, investor protection and the handling of customer funds. Below is an overview of how these safeguards work in practice.

Direct contract with the loan originator

When you invest, you enter into a direct loan agreement with the company–originator.
You do not buy receivables and you are not part of a cession chain. Because of this structure, your contract remains valid even if Afranga were to stop operating. The legal relationship exists between you and the originator.

Your funds are never held by Afranga

All investor funds are handled by Lemonway, a licensed electronic money institution supervised by the ACPR (France). Your money is kept in a separate Lemonway account opened in your name, fully segregated from Afranga’s corporate funds. This prevents commingling and ensures that your money is not exposed to Afranga’s operational risks.

Knowledge test and a four-day reflection period

Before making your first investment, you complete a knowledge and experience assessment, as required by ECSP rules. This helps ensure that you understand the nature and risks of crowdfunding investments.
Additionally, for non-sophisticated investors, every new investment comes with a up to 4-day reflection period, during which you may withdraw your commitment without giving a reason.

Capital requirements, KIIS and regulatory oversight

Afranga must maintain own capital above the ECSP regulatory minimum, supporting operational stability and continuity. For each loan project, you receive a Key Investment Information Sheet (KIIS) that includes essential information about the originator, risks, repayment terms, and potential conflicts of interest. Afranga also submits annual reports to the Bulgarian Financial Supervision Commission (FSC), covering funded loans, risk-management procedures, borrower checks and key performance data.

Regulation reduces uncertainty, not risk

Although the ECSP framework strengthens investor protection, it does not eliminate investment risk. A loan originator may still face financial difficulties. However, the ECSP rules significantly increase transparency by requiring direct contracts with originators, standardized disclosures, segregation of investor funds and ongoing regulatory supervision.

If you have questions regarding investor protection under the ECSP license, you are welcome to contact us at support@afranga.com.