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What happens if the business I invest in isn’t making payments?
What happens if the business I invest in isn’t making payments?

If a business in your portfolio isn't making payments or responding to inquiries, this should help you make sense of the situation.

Isabel Strobing avatar
Written by Isabel Strobing
Updated over a week ago

Every investment contains risk, and there is never a guarantee that a particular investment will be able to meet its obligations under the note. A business may fail to make payments for any number of reasons.

A business may simply be late or else have had technical difficulties in processing. If the reason for a missed payment is more consequential, most responsible business owners will provide an update explaining the situation to investors. If a business goes completely silent, it may be an indication of a larger issue. In these circumstances, Mainvest will assist in facilitating communication and relaying information between the investors and issuers if possible.

Mainvest vets every issuer prior to their launch on the platform to determine (1) if they are statutorily disqualified from conducting a Reg CF raise and (2) if there are any past legal issues that call their integrity into question. This process is intended to reduce the risk of fraud and looks predominantly at public court records, however, is not perfect. There is always the possibility that a bad actor either does not have a disqualifying or questionable legal record, or else they become a bad actor after the offering is completed.

In all situations, Mainvest will work to facilitate communication between investors and issuers or other investors when appropriate, as well as monitoring ongoing offerings and alert investors to potential bad actors. Because Mainvest is not party to the agreements, it is primarily the responsibility of investors to seek to enforce their rights. If you believe you may be the victim of misconduct, it is recommended you seek assistance from your local regulators.

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