It is unpleasant to have late debtors. We work hard to ensure that your investments earn the best possible return and we take care of the safety of your money. The best borrower is the one you forget about. :)
Updates: what have we changed in 2021?
Optimizing collection processes has led to even better collection results for our business loans.
More efficient debt management process – automated notices regarding contract termination for business borrowers ensure a timely and efficient debt management process;
We allocated more resources to recovery – the amount of loans in the portfolio that are at least one day late in Q4 2021 decreased from 15.53% to 8.30%;
Changes in the practice of lawsuits – we adjusted the lawsuits according to the changed judicial practice – the process of awarding the debt is faster and there is no longer a need to file appeals.
Operations: how do we work with late borrowers?
We actively work preventively – during the first half of this year, we sent 156.023 e-mails and 44.796 SMS messages to the borrowers.
We monitor the work of the bailiffs – we constantly communicate with the bailiffs directly in order to ensure the fastest recovery process.
We monitor the court practice and adopt timely changes – when the court practice changed, we adjusted the wording of claims in order to always award lost income.
What happens when the loan contract is terminated?
After the termination of the contract, we prepare a lawsuit for the court. In case of a personally guaranteed business loan the lawsuit is prepared for the company and the guarantor. After the court approves the claim and issues the executive order, we hand the case over to the bailiffs.
Historically, loans are recovered within five years. Each borrower’s case is unique, some loans are recovered within months, some will never be recovered.
In the seven years of our platform’s existence, we have had a number of interesting recovery stories:
1. We apply the recovery to the spouse as well. We also apply this practice in cases where recovery is carried out from a person who has guaranteed for a company loan;
2. The debtor threatened to declare the company bankrupt if we transfer the collection to the bailiffs. We did not hesitate, we transferred the collection to the bailiffs and after 3 days we got back 13,500 Eur;
3. The debtor submitted a request to remove the arrests from the accounts in order to “breathe”. We did not remove the arrest and the next day we recovered the entire debt of 5.000 Eur;
4. Late paying private borrower was managing a lot of forest land near Vilnius and refused to repay the loan. We seized the forest land and immediately recovered the debt of 13.962 Eur;
5. The biggest amount recovered from a private borrower is 19.380 Eur.
Improving: what can we do better?
We are striving for an even better recovery process. I would like to share our upcoming plans regarding recovery processes:
We will speed up the claims process – 2 new employees have joined the collection team, we now have a total of 5. In order to make the work of the collection team more efficient, we are automating part of the claim process.
We will provide specific information to investors about recovery actions – template notifications about completed recovery actions save the recovery team’s time, but do not always help to get a clear picture of the real situation. We plan to add the ability for debt collectors to provide a custom comment about the borrower. We intend to implement the changes by the end of 2022.
We will separate procedural interest from conventional interest on the platform – we plan to make the change by 2022 Q3.
We wish you a good investment!