How much cash was recovered in April? Find out here

Welcome to our monthly blog post discussing the cash recovered in each stage of the collection process. We have tried to assign all recovery payments to a specific stage that was set closest to the payment date. While this approach is not always correct in the case where recovery stages are not promptly updated, it gives a very good overview of the drivers behind recoveries.

The total amount of cash recovered in April 2018 was €233,222 (-1% since last month).

recovery-cashflow-by-process-may-2018-en

Why is this important?

When looking at the table above, it shows how effective each stage of the process is at recovering cash owed to investors and can help you understand why some stages are more effective than others. If you haven’t already read about our 3-step collection and recovery process and April’s post then we would recommend that you check them out first.

+83% cash recovered in the bailiff stage in Estonia

The most noticeable change in April was the increase in cash recovered in the bailiff stage compared to the previous month, mainly in Estonia where the amount increased by 83% to €76,618. As more court cases reached a final decision in our favor, they were then handed over to the local bailiff who began to work on retrieving payments owed to investors from the borrower’s income and assets. In line with this, the amount of cash recovered in Stage 2 (Default & court) also decreased across the board. Across all stages, the total amount of cash recovered in Estonia in April increased by 27% (€135,200).

Even though the loans we issue are unsecured, bailiffs have the right to freeze a borrower’s net income and assets and therefore they can make a significant impact on the amount of cash recovered. Ultimately, we aim to proceed to this stage as quickly as possible in order to begin generating a cash flow for investors.

Rare cases

Very rarely, Bondora receives a notice about criminal proceedings related to a borrower. After an official notice is received from the authorities, the loan will be frozen until the police finish their investigation and the case is ready to be sent to court. In these types of cases, it is usually extremely unlikely that any funds will be recovered.

Other types of rare cases include bankruptcy and debt restructuring. The bankruptcy process is only initiated if the bailiff has not been able to collect the debt after freezing the borrower’s assets and accounts. Bondora either initiates this bankruptcy on its own or joins an existing bankruptcy filing. A distribution plan is then set up by the courts or bankruptcy registrar for the borrower’s assets and depending on the decision from the court, a new payment schedule is created for retrieving the principal. The court may also use debt restructuring to create a new payment plan for the debtor.

What next?

Once all cases can automatically be filed to the courts in all countries, we expect the cash recovered in the bailiff stage to show the largest amounts across all countries. This is important because it means that we can start to generate a cash flow in a more time-efficient manner for investors.

8% increase in cases moved to the bailiff stage

Welcome to another post in our monthly overview of the recovery stages. Here, we’ll show you exactly how many loans are in each stage of the recovery process and we will compare how it has changed from month to month.

While we have tried to assign all loans to a specific stage as of the date of the report, the recovery stages are sometimes not promptly updated so individual loans may occasionally fall under incorrect stages.

Where do the figures stand?

recovery-by-count-may-2018-en

Why is this important?

In case you missed our previous posts, you might firstly find it useful to check out our 3 step collection and recovery process. This explains everything you need to know about each stage and sub stage you see above. Soon, we aim to improve the view and reporting on your Bondora account so you can see all the information about what stage your loan is at in the recovery process along with a reminder of what happens at each stage.

8% increase in cases moved to the bailiff stage

In April, the number of cases in the bailiff stage increased by 7.79% (+429) compared to the previous month. Out of the 5,936 cases, 5,761 of them were in the ‘The bailiff is working to retrieve payments owed from the borrower’s income and assets’. In other words, the majority of the cases in this stage are now in a position to start generating a cash flow back to investors. The most notable change in this stage by country was in Estonia, where the figures increased by nearly 9%.

Good to know

When a claim is filed to a court via a payment order, it takes a minimum of 4 months for them to reach a verdict and can take longer depending on their total work load, available staff and processing speed.

As a reminder, a payment order is our first interaction with the courts and is a simple, fast and cost-effective process that accounts for the majority of our court cases. If the payment order does not bring any results or if the borrower objects to this, we then file a civil case.

Once the courts have reached a decision on these cases (and if they are ruled in our favor), then they will move to the bailiff stage where the bailiff will begin to work to generate a cash flow and return payments to investors.

Why is the bailiff stage important?

This is a critical step in the recovery process for a number of reasons, most importantly because the bailiff has the rights to freeze the debtor’s assets and accounts to cover the payments owed. Once successful, this stage is usually where a cash flow is generated and you will start to see payments come in to your Bondora account.

Check in again next month to see how the figures from May weigh up.

Updates to changing personal data (Video)

Welcome to another video from Bondora. Today, we’ll be talking about the updates on how you can change your personal information.

We have recently reviewed the process of changing your personal information on the platform and it’s now easier and faster. You can now change your phone number, email address and home address by yourself in just a few clicks.

Simply login to your account and go to your account settings page to edit and save these details.

And that’s it for now. Visit us on Facebook @bondoracapital and bondora.com if you have questions. Remember to subscribe to our channel for more videos and until next time, thanks for watching, keep investing and bye for now.

+41% cash recovered in the bailiff stage – More info here

Welcome to our monthly blog post discussing the cash recovered in each stage of the collection process. We have tried to assign all recovery payments to a specific stage that was set closest to the payment date. While this approach is not always correct in the case where recovery stages are not promptly updated, it gives a very good overview of the drivers behind recoveries.

The total amount of cash recovered in March 2018 was €235,573 (+16.6% since last month).

recovery-cashflow-by-process-apr-2018-en

Why is this important?

When looking at the table above, it shows how effective each stage of the process is at recovering cash owed to investors and can help you understand why some stages are more effective than others. If you haven’t already read about our ‘3-step collection and recovery process’ and March’s post then we would recommend that you check them out first.

+41% in cash recovered in the bailiff stage

The most noticeable change in March was the increase in cash recovered in the bailiff stage compared to the previous month, mainly in Estonia and Finland. As more court cases reached a final decision in our favor, they were then handed over to the local bailiff who began to work on retrieving payments owed to investors from the borrower’s income and assets.

Even though the loans we issue are unsecured, bailiffs have the right to freeze a borrower’s net income and assets and therefore they can make a significant impact on the amount of cash recovered. Ultimately, we aim to proceed to this stage as quickly as possible in order to begin generating a cash flow for investors.

Rare cases

Very rarely, Bondora receives a notice about criminal proceedings related to a borrower. After an official notice is received from the authorities, the loan will be frozen until the police finish their investigation and the case is ready to be sent to court. In these types of cases, it is usually extremely unlikely that any funds will be recovered.

Other types of rare cases include bankruptcy and debt restructuring. The bankruptcy process is only initiated if the bailiff has not been able to collect the debt after freezing the borrower’s assets and accounts. Bondora either initiates this bankruptcy on its own or joins an existing bankruptcy filing. A distribution plan is then set up by the courts or bankruptcy registrar for the borrower’s assets and depending on the decision from the court, a new payment schedule is created for retrieving the principal. The court may also use debt restructuring to create a new payment plan for the debtor.

What next?

Once all cases can automatically be filed to the courts in all countries, we expect the cash recovered in the bailiff stage to show the largest amounts across all countries. This is important because it means that we can start to generate a cash flow in a more time-efficient manner for investors.

149% increase in Spanish claims filed to court

Welcome to another post in our monthly overview of the recovery stages. Here, we’ll show you exactly how many loans are in each stage of the recovery process and we will compare how it has changed from month to month.

While we have tried to assign all loans to a specific stage as of the date of the report, the recovery stages are sometimes not promptly updated so individual loans may occasionally fall under incorrect stages.

Where do the figures stand?

recovery-by-count-apr-2018-en

Why is this important?

In case you missed our previous posts, you might firstly find it useful to check out our 3 step collection and recovery process. This explains everything you need to know about each stage and sub stage you see above. Soon, we aim to improve the view and reporting on your Bondora account so you can see all the information about what stage your loan is at in the recovery process along with a reminder of what happens at each stage.

149% increase in Spanish claims filed to court

A notable change (+149%) compared to the previous month is the total number of loans in the ‘We have filed the claim and the local court has not yet reached a verdict on the payment order’ sub stage in Spain. Previously, many of the cases were being prepared to be filed and as we are now working with a partner in Spain who is submitting 250-270 defaulted cases per week to the local courts, this will improve our overall efficiency of generating a cash flow from defaulted Spanish loans.

In addition to this, 518 cases were moved to the bailiff stage in Estonia where they can now begin to retrieve payments for investors.

When a claim is filed to a court via a payment order, it takes a minimum of 4 months for them to reach a verdict and can take longer depending on their total work load, available staff and processing speed.

As a reminder, a payment order is our first interaction with the courts and is a simple, fast and cost-effective process that accounts for the majority of our court cases. If the payment order does not bring any results or if the borrower objects to this, we then file a civil case.

Once the courts have reached a decision on these cases (and if they are ruled in our favor), then they will move to the bailiff stage where the bailiff will begin to work to generate a cash flow and return payments to investors.

Why is the bailiff stage important?

This is a critical step in the recovery process for a number of reasons, most importantly because the bailiff has the rights to freeze the debtor’s assets and accounts to cover the payments owed. Once successful, this stage is usually where a cash flow is generated and you will start to see payments come in to your Bondora account.

Check in again next month to see how the figures from March weigh up.

An increase in the cash recovered in Estonia

Welcome to our monthly blog post on the performance of recoveries. Below, we take a look at the percentage of principal and interest retrieved between 2014 – 2017.

recovery-rate-yearly-apr-2018-en

Why is 2017 showing the lowest recovery rate?

On first glance, this may appear to show that the success of our recoveries process has slightly decreased since 2014. However, it is important to note that the latest year will almost always show the lowest recovery rate. Quite simply, this is because the loan is moving through our 3-step collection process and is not yet generating a cash flow or has only recently started generating a cash flow.

A total of €5,801,632.93 was recovered between 2014 – 2017, an increase of 3.5% since last month.

A 12% increase in Estonia since last month

recovery-rate-year-country-apr-2018-en

In 2017, the largest amount of cash recovered was in Estonia with a total amount of €428,130.63, an increase of nearly 12% on the absolute amount since last month. However, the highest rate of recovery is still visible in Finland at 47.76% and a total of €330,508.06. It’s important to remember that these statistics will change over the coming months, we explain why in the next section.

Historically, recovery rates have always been the highest in Estonia. Take 2014 as an example, the rate for this period is 79.5% and a huge €830,451.18 recovered. Looking backwards from 2017, you can see the rate of recovery increase over each year in Estonia as more time is allowed for the cash flows to come in.

Why have the figures changed since last month?

After a month or a year ends, investors still receive a cash flow from this time period when the loans were issued. For example, we may still receive a monthly cash flow from a loan that defaulted in 2014. Due to this, the data is consistently being collected and updated to reflect the changes.

What happens when a borrower stops making repayments?

Recently, we published our 3-step collection and recovery process which explains exactly what happens when a borrower misses their monthly loan repayment.

A ten-fold increase in the number of Spanish cases filed to the local courts

Welcome to another post in our monthly overview of the recovery stages. Here, we’ll show you exactly how many loans are in each stage of the recovery process and we will compare how it has changed from month to month.

While we have tried to assign all loans to a specific stage as of the date of the report, the recovery stages are sometimes not promptly updated so individual loans may occasionally fall under incorrect stages.

Where do the figures stand?

recovery-by-count-march-2018-en

Why is this important?

In case you missed our previous posts, you might firstly find it useful to check out our 3 step collection and recovery process. This explains everything you need to know about each stage and sub stage you see above. Soon, we aim to improve the view and reporting on your Bondora account so you can see all the information about what stage your loan is at in the recovery process along with a reminder of what happens at each stage.

A ten-fold increase in Spain

In Estonia and Finland, the figures have decreased slightly since the previous month but remain relatively similar in the sub stage ‘We have filed the claim and the local court has not yet reached a verdict on the payment order’. When a claim is filed to a court via a payment order, it takes a minimum of 4 months for them to reach a verdict and can take longer depending on their total work load, available staff and processing speed.

A notable change compared to the previous month is the total number of loans in the same sub stage in Spain, over a ten-fold increase since the previous month and now standing at 855. This was expected, as we are working with a partner in Spain who is submitting 300-400 defaulted cases per week to the local courts to improve our overall efficiency of generating a cash flow from defaulted Spanish loans.

As a reminder, a payment order is our first interaction with the courts and is a simple, fast and cost-effective process that accounts for the majority of our court cases. If the payment order does not bring any results or if the borrower objects to this, we then file a civil case.

Once the courts have reached a decision on these cases (and if they are ruled in our favor), then they will move to the bailiff stage where the bailiff will begin to work to generate a cash flow and return payments to investors.

Why is the bailiff stage important?

This is a critical step in the recovery process for a number of reasons, most importantly because the bailiff has the rights to freeze the debtor’s assets and accounts to cover the payments owed. Once successful, this stage is usually where a cash flow is generated and you will start to see payments come in to your Bondora account.

Check in again next month to see how the figures from March weigh up.

Over €200,000 recovered in February, Default & Court vs Bailiff Stage

Welcome to our monthly blog post discussing the cash recovered in each stage of the collection process. We have tried to assign all recovery payments to a specific stage that was set closest to the payment date. While this approach is not always correct in the case where recovery stages are not promptly updated, it gives a very good overview of the drivers behind recoveries.

The total amount of cash recovered in February 2018 was €202,026.

recovery-cashflow-mar-2018-en

Why is this important?

When looking at the table above, it shows how effective each stage of the process is at recovering cash owed to investors and can help you understand why some stages are more effective than others. If you haven’t already read about our ‘3-step collection and recovery process’ and February’s post then we would recommend that you check them out first.

Default & Court VS Bailiff stage

Whilst there are more than double the amount of loans in the Default & Court (10,422 pcs) stage than in the bailiff stage (4,913 pcs), only €45,794 more was recovered in the first stage. Overall, this shows how much more effective the bailiffs can be at recovering cash than in the methods used in other stages. Largely, this due to the bailiffs having the rights to freeze a borrower’s net income and assets, regardless of the loan being unsecured, and therefore makes a significant impact on the amount of cash recovered.

Ultimately, we aim to proceed to this stage as quickly as possible in order to begin generating a cash flow for investors. In February, the amount of cash recovered in the bailiff stages increased by approximately 9%.

Rare cases

Very rarely, Bondora receives a notice about criminal proceedings related to a borrower. After an official notice is received from the authorities, the loan will be frozen until the police finish their investigation and the case is ready to be sent to court. In these types of cases, it is usually extremely unlikely that any funds will be recovered.

Other types of rare cases include bankruptcy and debt restructuring. The bankruptcy process is only initiated if the bailiff has not been able to collect the debt after freezing the borrower’s assets and accounts. Bondora either initiates this bankruptcy on its own or joins an existing bankruptcy filing. A distribution plan is then set up by the courts or bankruptcy registrar for the borrower’s assets and depending on the decision from the court, a new payment schedule is created for retrieving the principal. The court may also use debt restructuring to create a new payment plan for the debtor.

What next?

Once all cases can automatically be filed to the courts, we expect the cash recovered in the bailiff stage to show the largest amounts across all countries. This is important because it means that we can start to generate a cash flow in a more time-efficient manner for investors.

The highest rate of recovery in 2017 was in Finland

Welcome to our monthly blog post on the performance of recoveries. Below, we take a look at the percentage of principal and interest retrieved between 2014 – 2017.

recovery-rates-mar-2018

Why is 2017 showing the lowest recovery rate?

On first glance, this may appear to show that the success of our recoveries process has slightly decreased since 2014. However, it is important to note that the latest year will almost always show the lowest recovery rate. Quite simply, this is because the loan is moving through our 3-step collection process and is not yet generating a cash flow or has only recently started generating a cash flow.

A total of €5,602,087.70 was recovered between 2014 – 2017, an increase of 3.6% since last month.

53% recovery rate in Finland in 2017

recovery-rates-per-country-mar-2018

In 2017, the largest amount of cash recovered was in Estonia with a total amount of €382,782.58, an increase of nearly 10% on the absolute amount since last month. However, the highest rate of recovery is still visible in Finland at 53% and a total of €313,010.13. It’s important to remember that these statistics will change over the coming months, we explain why in the next section.

Historically, recovery rates have always been the highest in Estonia. Take 2014 as an example, the rate for this period is 80% and a huge €821,570.97 recovered. Looking backwards from 2017, you can see the rate of recovery increase over each year in Estonia as more time is allowed for the cash flows to come in.

Why have the figures changed since last month?

After a month or a year ends, investors still receive a cash flow from this time period when the loans were issued. For example, we may still receive a monthly cash flow from a loan that defaulted in 2014. Due to this, the data is consistently being collected and updated to reflect the changes.

What happens when a borrower stops making repayments?

Recently, we published our 3-step collection and recovery process which explains exactly what happens when a borrower misses their monthly loan repayment.

Over 2,000 Estonian cases currently waiting for a verdict

Welcome to the fourth post in our monthly overview of the recovery stages. Here, we’ll show you exactly how many loans are in each stage of the recovery process and we will compare how it has changed from month to month.

While we have tried to assign all loans to a specific stage as of the date of the report, the recovery stages are sometimes not promptly updated so individual loans may occasionally fall under incorrect stages.

Where do the figures stand?

recovery-by-count-feb-2018-en

Why is this important?

In case you missed our previous post, you might firstly find it useful to check out our 3 step collection and recovery process. This explains everything you need to know about each stage and sub stage you see above. Soon, we aim to improve the view and reporting on your Bondora account so you can see all the information about what stage your loan is at in the recovery process along with a reminder of what happens at each stage.

Over 2,000 Estonian cases currently waiting for a verdict

In Estonia, a total of 2,090 loan cases have been filed and we are waiting for the court to reach a verdict on the payment order. The number is approximately half of this in Finland at 1,060. As a reminder, a payment order is our first interaction with the courts and is a simple, fast and cost-effective process that accounts for the majority of our court cases. If the payment order does not bring any results or if the borrower objects to this, we then file a civil case.

Once the courts have a reached a decision on these cases (and if they are ruled in our favor), then they will move to the bailiff stage where the bailiff will begin to work to generate a cash flow and return payments to investors.

Similarly to last month, there are still a high number of loans that we are preparing to file via a payment order to the local court in Spain. As it stands, we are currently working with a specialist partner in Spain who will aid us in filing the remaining defaulted cases to court. We filed a handful of these cases in January and have been doing the same in February. The speed and frequency of this is expected to increase on weekly basis going forward.

Why is the bailiff stage important?

This is a critical step in the recovery process for a number of reasons, most importantly because the bailiff has the rights to freeze the debtor’s assets and accounts to cover the payments owed. Once successful, this stage is usually where a cash flow is generated and you will start to see payments come in to your Bondora account.

Check in again next month to see how February’s figures weigh up.