Goparity updates recovery processes after rise in arrears
Spain-based peer-to-peer lending platform Goparity has updated its debt recovery processes following a rise in the number of loans in arrears.
The platform has spent the past quarter focusing on developing new internal procedures and preventive measures to help identify loans which might be at risk of going in to default. The platform has also hired a new part time member of the team to monitor loan performance.
Goparity’s founder and chief executive Nuno Brito Jorge said that the first positive results are already starting to show, 13 loans in arrears regularised and three loan restructurings successfully concluded within the past three months.
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“As you know, things don’t always go according to plan,” said Jorge in a blog post to investors.
“Despite our rigorous risk analysis and risk mitigation procedures, starting last year, we’ve had some projects enter in arrears.
“Since then, debt recovery has taken a big part of our time. As you might understand, negotiations, restructurings and judicial processes have their own rhythm.”
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Jorge added that July was Goparity’s best month ever, with €1.25m (£1.09m) invested through the platform. To date, the platform has funded 315 projects, with €28.7m lent and almost €1.5m paid back in interest.
The platform launched in Canada in June, and has now successfully funded its first project in the country dedicated to providing reliable and affordable renewable energy to indigenous communities.
More Canadian and Spanish loans are set to be listed on the platform in the coming months to meet investor demand, Jorge said.
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