On investment returns, funded loans and upgades

Investment returns

We wish to draw your attention how long term and diversified investing on Capitalia compares to other types of investments. In the graph bellow we show growth of an EUR 1,000 investment in different asset classes. Investing in loans to Baltic companies with Capitalia has ensured a stable savings growth over the last six year period. This return compares very favorably with returns of investment to any other general investment categories in the eurozone, providing not only the best return, but also the smallest variation (hence implied risk).

Lending activity in March

In March we processed 91 applications from borrowers for a total of EUR 15.9 million, lower in number of applications, but larger in value comparing to February. On the platform, we have published 14 projects for a total of EUR 1.96 million. Project sizes ranged from EUR 26 thousand to EUR 416 thousand. The largest project of EUR 416 thousand was successfully funded in 10 days. This project was to finance acquisition of a large housing property for an outsourced workforce provider in Latvia. Overall we feel that economic activity among the Baltic businesses is good and picking up.

Upgrades in platform

We have added Knowledge assessment test. The purpose of the test is to evaluate investors' knowledge regarding investmetn products in order to assess whether investing in crowdfunding loans is appropriate for each investor. The test consists of 9 questions.

We have also introduced Net worth calculation and loss simulation. In addition to the knowledge test, a net worth calculation and a loss simulator will be required for each investor. This will help investors to understand better the risks involved in crowdfunding. These details will be used only for showing the relevant risk warnings and applying correct limits.

Final updates around Investor protection as intended by the regulation are in development stage - risk warnings based on knowledge assessment and ability to bear loss simulation tests results, and the 4 day reflection period. A summary of all these changes is available here. We are also starting development on improvements in Auto-invest to make it even more simple and straight-forward.

Doubtful loans statistics

Currently, Capitalia is handling 10 active loan recovery cases (out of 994 funded) for a total of EUR 809 thousand (out of EUR 73.1 million funded). Overall that constitutes 1.11% of the total loans issued in the platform, while loan write-offs remain below 0.5%.