Frequently asked questions

Here you will find answers to the most common questions concerning trading in preference shares.

The preference share is a share that, when distributed and liquidated, has preferential rights over other shares, such as ordinary shares. Untie Lending has two types of shares, ordinary shares and preference shares. Preference shares give priority to dividends.

The preference share gives a fixed dividend of 7.0% annually. Both types of shares give the right to participate and vote at the annual meeting of shareholders. Note that Untie Lending's preference shares are not freely transferable. However, a holder of a preference share may at any time request that the company redeem the shares to SEK 2,000 per share.

Untie Lending's board then decides on redemption. Read more in our Terms and Conditions.

Preference shares can be said to be a mix between a common stock and a bond. Like the bond, it provides a predetermined dividend, but it has no connection to future possible value increases that an ordinary share has. However, it gives influence and the owner can vote at the annual meeting of shareholders.

The preference share lies between the bond and the ordinary share in terms of preferential rights in a liquidation.

Untie Lending's preference shares also have preference over the ordinary shares in case a situation would emerge one year where the dividends would be canceled. Our preference shares cannot be sold in a market that bonds can without the owner having to request redemption. Therefore, it takes a little longer to get rid of the capital than in a regular deposit account.

The preference share is an ownership of the company and does not correspond to a pure debt obligation that a bond or deposit account entails. The preference share does not fall under the state deposit protection that many Bank accounts have. That is why there is such a large difference in return between ordinary bank accounts and the return from preference shares.

Yes, if the company were to lose money there would not be any profit to distribute. You should also know that the majority of votes at the annual meeting of shareholders formally decide on the company and can change the articles of association.

Therefore, it is always important to study the article of association and follow the news surrounding the companies you invest in. Untie Lending intends to inform about every important news regarding the company through its investor pages on the website.

Our preference shares cannot be sold or bought over a stock exchange. Consequently, the price of the share does not change. The actual dividend will also be stable with 7% of invested capital paid out each month (by 1/12) regardless of the preference shares being purchased.

News about the company, changes in the general interest rate situation, economic trends in the outside world, etc. can thus not change the value of our preference shares. You can therefore see it as a more stable investment.

In addition, we lend money to private individuals and not to the construction market to which most other preference shares are linked. The Swedish market for unsecured loans stands at just over SEK 225 billion in 2019, according to Statistics Sweden, with a growth rate of approx. 8%. We therefore see a large expansion opportunity with the help of extra capital contributions.

Dividends take place on a monthly basis, every time you want the money paid to your account you log into My Page with your Bank-ID and request payment. We will then send a payment to the account you have indicated.

For example, if you buy 50 shares for SEK 2,000 / each, you will receive a total of SEK 7,000, which can be paid out at SEK 583 / month.

The tax is currently 25% for private individuals and 0% for stock companies. Note, however, that Untie Lending is not acting as an adviser or tax consultant and does not waive any liability regarding shareholders' taxation.

Untie Lending does not withhold any provisional tax but pays the entire dividend directly to the shareholders' accounts. Untie Lending then submits control data for individuals to the Swedish Tax Agency. The shareholder must then declare his / her dividend on form K12 in order to receive the lower capital tax.

Since investments in Preference Shares are favored in tax legislation, we have, by comparison, calculated how much interest ordinary savings must yield to equal the return from an investment in Preference Shares. One assumption is that there are no other set-off options in the tax return "Income from capital".

An example of calculation:
If you, as a private individual, buy our preference shares for SEK 10,000, you will receive a return of SEK 700 gross. With the deduction for the tax of 25%, your net return will be SEK 525. If you, as a private person, instead lend SEK 10,000 to us, the return (interest rate) must be 7.5%, ie SEK 750 gross, so that after deduction of the tax of 30% you should have SEK 525 as net return.

Untie lending is owned by Untie Group AB which with many years of experience in the financial market offers industry-leading technology and financial services for companies and private individuals. Untie Group AB is a corporate group with permission from Finansinspektionen and today we see ourselves as an established fintech company with a growing customer base through competitive services for borrowing and lending.
You can find that information here.

Both private individuals and companies is welcome to buy Preference Shares in Untie Lending.

  • Private individuals must be over the age of 18 and have a Swedish Bank-ID.
  • Companies must be registered in Sweden and the representative must have a Swedish Bank-ID.

The yearly dividend is 7%.

A calculation of the annual effective return assumes that the actual return of 7% distributed each month is reinvested at the same interest rate of 7%.

This means that 7% is paid out every month, corresponding to an annualized return of 7.23%

At a price with other investments and savings, consideration should also be given to describing the dividend being 25% for private individuals and 0% for stock companies. This means that the return is 7%, for example, corresponding to a deposit account with an interest rate of 7.5% for private individuals and 8.8% for stock companies.

An example of calculation:
If you, as a private individual, buy our preference shares for SEK 10,000 you will receive a return of SEK 700 gross. With the deduction for the tax of 25%, your net return will be SEK 525. If you, as a private person, instead lend SEK 10,000 to us, the return (interest rate) is required to be 7.5%, i.e. SEK 750 gross, so that after deduction of the tax of 30% you should have SEK 525 as net return.

No, invested amount is not covered by the Deposit Guarantee Act (1995: 1571) and can be lost in the event of the Company's insolvency.
In order to get back the amount you invested you request the redemption of your preference shares by logging into your account. The Board of Directors reserves the right to decide on redemption. In the event that redemption has been requested by several shareholders and the Board of Directors considers that such payment is not possible, the total redemption amount that can be paid out shall be distributed proportionately between the shares declared for redemption. Read more about redemption under conditions.

Can’t you find your question here?

Do not hesitate. Send an e-mail to Erik Hagelin (CEO) at < href=""> and ask.

Risk factors

Untie Lending AB (publ) (“Untie Lending” or “The Company”) offers consumer credit in Sweden. Investing in Preference Shares comes with a risk. The amount invested is not covered by the Deposit Guarantee Act (1995: 1571) and may be lost in the event of The Company’s insolvency.

Shareholding is always associated with risk and risk taking. Just as a share investment can both rise and fall in value, an investor may not regain the invested capital.

All business operations are associated with a certain level of risk. This summary of risk factors below cannot be considered comprehensive and is not ranked by significance.

Credit risk refers to the risk that the Company will not receive payment in accordance with an agreement. The company thus runs a risk of making a loss on the counterparty's inability to fulfill its obligations. The credit risk regarding the Company's accounts receivable is spread over a large number of customers, with relatively small amounts. By limiting the loan amount and maturity, the company limits its credit risk. The company also mitigates the risk by constantly monitoring credit losses, training staff and improving processes and systems. The company's credit rating is characterized by high standards of quality, control and ethics and morals.

The company is also constantly exposed to fraud risks. This is counteracted by the fact that all customers must identify themselves electronically before a loan can be paid out. Internal processes and staff training further offset the risk.

Credit risk is the single largest risk exposure for the company. The company's credit losses are commercially justifiable in relation to the company's revenues and fees. Because credit risk is distributed among a large number of independent private individuals, the total credit losses become relatively predictable.

Liquidity risk is the risk that the Company will not be able to fulfill its payment obligations at the respective due date. The company ensures that there is always sufficient liquid funds and the opportunity to increase the available funding. Liquidity is monitored on an ongoing basis and the Company has liquidity management which provides good payment preparedness in the short and long term. The company has great opportunities to manage its liquidity by adjusting its lending.
Market risk is the risk of loss as a result of market prices moving in an unfavorable way. This includes the risk of loss as a result of changes in interest rates and exchange rates. The company has limited market risks, see below.
In the future, the company may need additional financial resources to create growth and achieve its long-term strategic goals. This means that equity may need to be increased in order for the Company to develop in the best possible way. The ability to meet future capital requirements is always dependent on the Company's ability to either obtain loan financing from the capital market or through increased share capital.
The company's development and financial position are partly dependent on factors such as the general state of the market, the market conditions for customers and the existence of competition. A generally weak economy can have a negative impact on the Company's operations, growth, earnings and financial position.

The company has established an internal regulatory framework with instructions and policies for the employees. In addition, the company's essential processes are documented and the risks associated with these are analyzed. In developing the processes, the focus is on analysis of events related to potential operational risk and other early warning signals.

The company is dependent on a well-functioning IT system. IT attacks or other disruptions in the network can negatively affect the company, both through lost time and an increased risk of transaction errors.

The company has appointed a Compliance function that monitors rules and regulations in financial operations and is responsible for reporting obligations in connection with the Money Laundering Act. The operations conducted by the Company require permission from Finansinspektionen. Changes in regulation can seriously affect the business and even affect how the Company can conduct business. At the time of this issue, the Board is not aware of any circumstances that show that the Company is in any way affected by changes in laws or regulations.

The company provides products in a highly competitive market. It is possible that increased competition may lead to reduced revenues, lower market share and lower profitability for the Company.
The company has a relatively small organization, which results in dependence on individual employees. The future development of the business depends to a large extent on the ability to recruit and attract key competencies for the Company's future development.
The company operates in a relatively new market that is under development, prospects and opportunities are difficult to assess. A need may arise where the Company needs to raise additional capital to establish the Company according to new market conditions.
The company may finance some of the business by borrowing from credit institutions. Lending involves certain risks for the Company's shareholders.

Financing risk is defined as the risk that financing of the business is difficult and / or expensive to obtain.

It cannot be ruled out that in the future a situation will arise where the Company must raise new capital. It cannot be guaranteed that additional capital can be provided on favorable terms for the Company's shareholders, or that such capital contribution, if acquired, is sufficient to fulfill the Company's strategy. In the event that the Company fails in the future to raise the necessary capital, at reasonable terms for the Company, the Company's continued operations and strategy cannot be guaranteed.