The results of 2017 Q2 look pleasing for investors as well as Lenndy team. Starting from September 2016 we have already funded over 3 mln. € and during the last 3 months of activity we almost doubled our total loan portfolio. 2273 investors have funded 565 loans on Lenndy platform and earned an average of 12.78% annual return. In June, loan portfolio of over 600 000 € was funded by investors at Lenndy. It was the best month since the launch of the platform. After moving the company to Latvia, Lenndy got back to sustainable growth. We appreciate investors contributing to small business financing in Lithuania.
We understand that the quality outweighs the quantity of the loans in p2p investing. Therefore, we are pleased that investors have not lost a single euro investing on Lenndy platform and all investments are being successfully repaid. Strict risk management policy and loan originators‘ buyback guarantee ensures the quality of the loans presented to investors.
Of course, overdue loans are inevitable in lending market. On Lenndy platform, the average number of days loans are overdue is 8 days. With the growing amount of loans the number of overdue loans is naturally growing. However, invoice financing loans, for example, may be delayed for a number of reasons:
• major company that bought goods from manufacturers may wait until certain amount of payments build up to pay them all at once,
• buyer makes payments for goods bought once or twice a month and this date may not coincide with loan repayment schedule provided on the platform.
It is important to note that interest is paid to investors for each day the payment is overdue. We invite you to carefully evaluate each investment and think carefully whether the possible delay of the repayment will not disrupt your cash flows.
Some of the investors were confused when Lenndy transferred some of its activities to Latvia. We received a lot of emails and calls and we try to answer all investor querries and inform about updates and new opportunities. Lenndy board has made a strategic decision to move Lenndy platform to Latvia due to more evolved and open-minded regulation, which is steered specifically to the lending marketplace business model. Most of the loan marketplaces operating across Europe are registered in Latvia and Lenndy is no exception. Again, we take this opportunity to apologize to investors who have encountered inconvenience during the transfer.
We would like to highlight new trends regarding Lenndy loan portfolio. During the previous quarter there was a significant drop of loans issued to individuals and huge increase loans to small and medium businesses. There was a considerable growth of invoice financing loans compared to other loan types. Investors expressed the reasoning behind choosing invoice financing loans – their choice was affected by short term of loans as well as strict risk management policy (large and reliable buyers, recourse, controlled accounts, bills of exchange and even Coface trade insurance in some cases).
Moreover, over 1 mln. € has been paid back to investors which is about 1/3 of total funded amount. This number demonstrates that short-term loans dominate on Lenndy platform.
More and more legal entities start investing on Lenndy including one of the leading alternative investment fund - “European Crowdfunding Fund”. So far the fund has allocated around 20% of its portfolio to Lenndy platform and earns over 12% annual return.
The Lenndy platform operator is currently focused on further technical development of the platform and deployment of new features. You will soon be introduced to:
- New and improved design,
- „Live“ investing with no „cash drag“ which means that you will not need to wait until loans reach their target amount.
- Deployment of depository account will enable investors to transfer funds and create „virtual“ account on Lenndy platform and invest instantly without the need of additional transaction and frustrating identification which will be simplified according to regulations.
- A wider choice of reports where you will be able to filter your investments.
- Auto invest!
- New loan originator!
The second quarter of this year has opened up broad opportunities for investors as well as borrowers. The next quarter will be dedicated to improving the features of the platform and quality of the loans. Let‘s carry on!
We inform you that there is a possibility that debtors will not fulfil their financial obligations and, therefore, investors may lose part or all of the invested funds. Make sure you evaluate your financial capabilities and risk preferences before investing.