In May, Estateguru’s crowdfunding platform reportedly saw €8.2M worth of new loans.
In May of this year, Estateguru’s crowdfunding platform reported steady activity. Their sales team is now “concentrating on the Baltics and Finland: in Estonia the volume was €4.0M, in Lithuania €1.4M, in Latvia €1.9M and in Finland €0.8M.”
They are now “seeing an increase in investment from institutional investors, to further support growth.”
During the recent months the return of repayments “has been around 9.0%.” The repayment amount is stable, “with an average monthly volume of €7.5M over the last 3 months.”
In May they recovered “one of the long-term defaults in Latvia.”
The auction in this case “was successful, but the funds (€0,1M) were initially held up due to a legal dispute.”
After settlement with the borrower, the funds were recovered. The main focus of the risk and legal department during 2023 “has been and continues to be the recoveries in Germany, Finland and Lithuania.” However, they are also “improving their credit quality” by taking the following steps:
- A new credit policy including lower concentration risk limits, higher valuation standards, more emphasis on repayment ability and borrower background etc.
- A new loan application (credit memo) project with a focus on the needs of institutional investors, which will also benefit retail investors.
- Integration of Moody’s ratings.
- Risk based interest rate calculation project
- A middle office and document management upgrade regarding loan documents.
- A shift in the Operations team’s focus to more proactive late loan management.
As reported last month, Estateguru has been approved to operate under European Crowdfunding Service Providers Regulation or ECSPR. Under the new EU legislation, a platform may sell securities online across all EU member states. Issuers may raise up to €5 million. Estateguru was approved by the Estonian Financial Supervision and Resolution Authority (Finantsinspektsioon).
Estateguru is a European marketplace for property-backed loans for SMEs that allow individual investors to participate in the securities offerings.
Estateguru is a well-established crowdfunding platform that has operated in multiple markets, including Lithuania, Finland, and the United Kingdom. By receiving the pan-European license, Estateguru will be able to expand its services dramatically.