Circulantis

Circulantis is a Spanish crowdfactoring platform, live since 2014 and run by Circulantis S.L. from Valencia. Spanish companies and freelancers sell the promissory notes and invoices their customers still owe them, and investors bid in an auction for a share of each operation. Bids start at 50 euros and are capped at 5,000 per offer, and terms run from a few weeks to a few months. Many of the debtors are Spanish public bodies, from town halls to ministries and social security offices. Circulantis charges investors a management fee of 1.5% a year, prorated over the days the operation runs and charged only when the note is actually collected. The notes are assigned "salvo buen fin", so if a debtor does not pay, Circulantis pursues the seller as well as the debtor. The assignment contract limits the seller's liability to the existence and validity of the claim, not to the debtor's ability to pay, and there is no repurchase obligation. There is no secondary market. Client money sits in an escrow account at Pecunia Cards E.D.E., S.L.U., an electronic money institution supervised by the Banco de España. Only people resident in Spain and companies with a Spanish tax domicile can open an investor account.