The microfinance services market is now quite developed - a large number of people regularly issue small cash loans to purchase small household appliances, pay for some urgent bills and other things, returning them from the next salary.
In turn, companies providing such loans ensure the circulation of funds, attracting deposits of other people, replenishing their financial portfolio.
Today we will talk about one of such microfinance organizations involved in accepting deposits and issuing loans. It is called "Profit Alliance." Feedback from investors about the office, as well as general information about the company’s activities from the Internet, will be given in this article.
general characteristics
This microfinance organization (hereinafter referred to as abbreviated as MFI) is a typical structure for the circulation of money. As already noted, she accepts funds from some people and gives them to others. What is interesting in it is the high interest rate that accrues on deposits. This in itself cannot but attract people who want to make money on their investments.
In addition, the company uses a number of marketing tools - decorating the site with motivational beautiful pictures, painting all the details of its many years of successful activity and so on. Although, if desired, any site visitor is able to detect some inaccuracies in the activities of the “Profit Alliance”. We have not yet taken into account the feedback of depositors.
Years and documents
The “basement” of the site indicates that the company has been operating since 2011. At the same time, the year 2013 is clearly inscribed on the "about us" page. It was then that the MFI was allegedly founded. In order to reinforce their image in the eyes of investors, on the pages of the site you can find certificates and certificates of registration of this subject of activity, as well as a number of other documents. True, if we talk specifically about the company “Profit Alliance” (reviews also emphasize this), there are only two documents regarding it - this is a certificate of registration of a legal entity, as well as information on entering the company in the register of microfinance organizations. That is, other scanned papers relate to other business entities (these are Center for Population Financing LLC and CPC Eurocapital).
Deposits
Regarding deposits, the company Profit Alliance (reviews of those who managed to cooperate with it, we will give a little further) does not disclose more information. On the site you can find only general information that funds are attracted from the population in the amount of from 30 thousand to 5 million rubles. Regardless of the amount of the deposit, it will be credited with 120 percent per annum (or 10% per month). As written on the same page, the payment of interest on the deposit is carried out monthly. As for the period for which investments are accepted, it can be from 3 to 12 months.
A little further on the site describes the various "benefits" from this type of investment. Among them, the “Profit Alliance” (a financial company whose feedback is so interesting to many investors) includes openness, high profitability, the level of reliability of the company, quality service, customer focus and similar things.
In order to invest your money, you need to call one of the phones listed in the "Contacts" section on the website, then drive up to the office and bring the money. This is all done, as indicated by the representatives of the company, quickly and easily.
Loans
In addition to attracting money from depositors, the Profit Alliance MFI (reviews will be a bit further) also issues loans. These are, as a rule, typical microloans aimed at paying off small debts, acquiring some necessary, but inexpensive things, food, until a new salary, and so on.
According to information on the official website, in case of providing a car as collateral, the debtor has the right to issue a loan in the amount of 10 to 50 thousand rubles for a period of up to 1 year. At the same time, the borrower is obliged to make weekly payments on the loan. As for the interest rate, it is set at 2 percent per day.
Employees of the company promise that the procedure for issuing funds is quite simple and takes place as soon as possible. You need to call one of the offices, come and chat live, provide documents for the pledge of valuable property and get the desired amount.
Guarantees
As noted above, the company publishes its registration documents attesting to the establishment and registration of all Russian MFIs. Alliance Profit (St. Petersburg is the second center where their office is opened, after Moscow) also ensures that all deposits will be insured by Loyd City. In confirmation of this, the depositor receives an insurance policy, which means that 100% of the deposit will be returned in any case.
According to the agents of the company themselves, this allows us to talk about the absence of risk for investors and the profitability of the entire transaction as a whole. However, again, in order to be convinced of this, we will present the feedback of investors left about Profit Alliance, which will have to show what's what.
Why so much
There is a section on the MFI website that contains answers to the most common questions. One of them is: “Why are you paying so much?” At the same time, of course, this means a 120 percent rate, which is paid to the depositor for the year of use of the funds. This is really quite a lot - even at various forums about the “Profit Alliance”, the feedback from the investors testifies to it as a suspiciously super-profitable organization. Especially considering the fact that all deposits are insured.
As employees themselves explain this fact, the whole thing is in very high interest on loans paid by borrowers. Indeed, 2 percent for the use of funds per day - about 720% per year. This is really a huge amount of profit. But this cannot explain the 120% rate, since lending carries the marketing costs of attracting borrowers, as well as risk costs in case of loan default. People who began to actively learn the details of the company’s activities even got their own version on this subject.
Customer reviews
Most investors confidently call the fraudulent company Profit Alliance. A microfinance organization is just a cover for a simple financial pyramid that takes money from some people and pays to others, creating the appearance of work. The principle of operation is very similar to the way the legendary MMM functioned in its time, only the scales are smaller.
Feedback from contributors mentions that similar companies appear everywhere. They rent offices, hire managerial staff who smile at you, write beautiful stories about their work on the official website. But the matter does not go further.
As a rule, having collected a certain amount, they simply stop paying and “fold”, forever missing from indignant investors. And the company, most likely, does not have borrowers, since such a rate, and even on the security of a car, is pure sell-off.
And one more interesting point, which is indicated by the feedback from investors. The site contains information that the company disburses funds on behalf of Profit Alliance, while it accepts the Center for Population Financing LLC account. Thus, it will be impossible to prove that you carried the money to the first office - according to the documents, these are two completely different legal entities.
Employee Reviews
Unfortunately, using the search on the Internet, we were not able to find reviews about the Profit Alliance. Probably the reason is the small staff of the company, consisting of several people. It is possible that the direct owners of this company are engaged in working with clients without attracting additional staff.
One way or another, but it plays a clear minus the credibility of this MFI.
General conclusion
What can be written as a conclusion about this organization? She offers obviously too attractive conditions in order to obviously attract investors. At the same time, there are very few reviews from borrowers, there are no recommendations from employees, and only questioning comments from potential investors who are interested in what kind of profitable business this is, capable of giving such crazy interest.
The second point is the fragmentation of the company into several legal entities, which suggests that this is all done for a reason. It is quite possible, with the presence of several legal entities, that lies the key to how the system of deceiving investors functions.
According to recommendations of other investors, it is better to go past this company. A yield of 120% per year is just ridiculous. If you compare this organization with others, the most profitable in the industry, they can promise a maximum of 20% per year. The difference is palpable.