Anticipate its cessation of activity as soon as it is launched
Thinking about the end from the start: a necessary paradox
When you launch a crowdfunding platform, you think about growth, the acquisition of projects, and technology. Thinking about your own cessation of activity seems counterintuitive, even anxiety-provoking. And yet, it is not only a regulatory requirement, but also a strategic one.
The PSFP regulation is clear: as soon as the application for approval is requested, the platform must present a business continuity plan including an extinct management component. But beyond the obligation, anticipating its cessation as soon as it is launched has concrete advantages.
Why thinking about it early changes everything
Structuring technical choices
Early decisions on technical architecture have a direct impact on the ease of future migration. A platform that structures its data from the start in standard and exportable formats will make the transfer work considerably easier when the time comes.
Conversely, a platform whose data is locked in proprietary or poorly structured formats will have to invest heavily to make its data transferable — sometimes too late.
Adapted contractual clauses
Loan contracts signed between borrowers and lenders via the platform must integrate from the outset transfer clauses. These clauses provide for the possibility for a third party to resume the management of contracts in the event of the cessation of the platform.
Adding these clauses retroactively is legally complex and may require the individual agreement of each party. Integrating them from the start avoids this difficulty.
A living continuity plan
A continuity plan written hastily for approval and never reviewed is a dead plan. By anchoring it in the life of the company from the start, it becomes a Living document, updated in line with technical and regulatory developments.
Best practices to adopt from day one
- Choosing an extinguishing management provider before even starting to operate. This makes it possible to build the relationship and to carry out the first migration tests as soon as the portfolio reaches a significant size.
- Structuring your data by providing for their exportability: standard formats, clear classifications, documentation of data schemas
- Integrate transfer clauses in loan contract templates as soon as they are initially drafted
- Plan migration tests in the platform's operational calendar from the first year
- Budgeting extinctive management in the business plan: it is a predictable cost that is better to anticipate
What does it cost to be late
Platforms that postpone the implementation of their extinctive management system are exposed to several risks:
- Refusal or delay of PSFP approval by the regulator who considers the plan insufficient
- Increased compliance costs : restructuring non-standardized data is much more expensive than structuring it correctly from the start
- Legal risk : the absence of transfer clauses in existing contracts complicates the takeover
- Reputational risk : in the event of an unprepared termination, the image of the platform and its managers is permanently affected
Runoff: a partner from day one
Runoff offers support that starts well before the cessation of activity. As soon as a platform is launched, it is possible to set up the preparation system: semi-annual migration tests and annual audits of loan contracts. At 290 euros per month, this investment in prevention is paltry compared to the cost of an unprepared cessation.
Capsens' expertise in building crowdfunding platforms allows Runoff to intimately understand the technical challenges of platforms and to offer adapted recommendations from the first stages of development.
The best time to prepare for its extinctive management is launch day. The second best moment is today.
