The team at P2P lending platform Bondora notes that September was another month that will be recorded in the platform recovery and collections “hall of fame.”
Bondora writes in a blog post that more than €2.3 million was recovered in missed payments, which is notably another all-time high for the European peer-to-peer lender. This was an “incredible cross-team effort – thank you to everyone who made it happen,” the company noted.
They also mentioned that Bondora “experienced a considerable divergence in the number of loans recovered and the amount of cash recovered.” Although total loan recoveries fell, the Bondora team managed to recover over “twice as much cash from missed payments compared to August.”
The update from Bondora further noted that in total, 70,547 missed loan payments were “recovered in September, representing a 5.0% month-over-month decline.” Rare case recoveries “were the only category to grow, up by 2.4%,” the report revealed.
The report added:
“On the flipside, in-house collections fell the most, down to 10,811—a 21.3% monthly decline. While Spanish and Finnish recoveries were slightly higher, Estonian recoveries led to the decline in missed payment recoveries, down by 11.1% on the month.”
Cash recoveries
Bondora also pointed out that they were able to recover “€2,346,197 in September” and this is a considerable 130.0% increase from August. It’s also “the first time in history that we passed the €2M mark,” the company confirmed.
They added that this significant increase was “led mainly by a 138.2% growth in bailiff recoveries, totaling €2,068,418, accounting for 88.2% of all cash recovered in the month.” But there was a large difference “in cash recovered by originating country, with Estonian cash recoveries up by 311.3% and Finnish recoveries falling by 16.2%.”
The report continued:
“With such a large divergence in origination recoveries and cash recovered, the average missed payment grew significantly, from €13.74 in August to €33.26 in September.”
Yearly recovery rate
Recoveries for this year are “showing strength never seen before,” the report noted while adding that the 2021 recovery rate “exploded from 53.6% in August to 87.3%.” This was “the driving factor in the growing cumulative recovery rate from 2014-2021, climbing higher by 4.3% to 47.7%,” the report added while noting that the recovery rate for last year “was also strong, growing by 4.5% to 48.4% in September.”
Recoveries by country
The report also noted that the “driving force behind the major growth in the 2021 recovery rate came from Estonian recoveries, where the rate grew from 73.6% to 152.7% in September.” In fact, Estonian recoveries also “performed well for loans originated over the previous few years, with the recovery rate for 2020 and 2019 originations growing 12.0% and 3.2%, respectively,” the report added.
The Spanish recovery rate was also “higher in 2021, up by 10.9% to 73.2%, as was the Finnish recovery rate, which was a marginal 0.6% higher,” the report noted.
Cash recovered outpaces missed payment recoveries
The report concluded:
“It was a topsy-turvy month for Bondora recoveries. While there was a 5.0% decline in the number of missed payments recovered, the amount of cash recovered from those missed payments grew exponentially by 130.0%. The result was an average missed payment recovery of €33.26 and a yearly recovery rate for 2021 at 87.3%. These figures represent quite the outlier from previous months. Therefore, investors may be curious to see if these statistics are an anomaly or a sign of changes in Bondora recoveries.”
You may review missed payment recoveries and all other Bondora data “at any time” and you can check out the platform’s real-time stats to see recovery data on all Bondora missed payments, as well as loan history, returns data, and other information.