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5 min with CEO: What causes late loans?

Firstly, I would like to explain why some loans are late and our investors experience delays. The cause of the situation is delayed payments from loan originators.

Since the beginning of the pandemic, we notice an increased level of delayed payments from loan originators which, of course, have a negative effect on our investors’ portfolio. This is a very unfortunate situation, and we understand everyone’s concerns. However, the current worldwide situation had a strong effect on borrowers’ income, it was especially difficult for those who operate in the most affected sectors, such as tourism, catering, events, the beauty industry and similar. This has caused an increased late payments situation, which we are experiencing right now.

In the case of late payments, the loan originator takes full responsibility when borrowing FAST INVEST's investors' assets to ensure that everything is paid back to the investors. If borrowers are late with their payments, FAST INVEST investigates the situation and collaborates with the loan originator to ensure that no investor loses their funds on the loan. If a borrower is unable to meet its obligations, the loan originator will take all necessary efforts to recover a borrower's late payment. To avoid insolvency, experienced loan managers double-check all borrowers’ applications following all necessary creditability features as well as stringent corporate business and European Union law.
To clarify the situation of delayed payments from loan originators, we have recently introduced a new Pending Payment from Loan Originator status, which you will find on your Investor’s Dashboard and in your Account Statement in case you have delayed payments.

When the payment from the loan originator is delayed, FAST INVEST investigates the situation and the cause of the payment being delayed. There might be several reasons for this situation to occur and it is not necessarily due to the borrower not being able to make the payment. Some of the possible causes are postponement of the transaction, the borrower forgetting to make the payment on time, or delaying the payment on purpose for a short period.

In my opinion, there is no doubt that everything will get back to normal and affected sectors will recover as well as the people related to it. We are working with lenders to monitor each situation and to ensure that the payments are resumed. However, current circumstances require some patience until the situation returns to normal.