Dear investor,
In Q3 2024, InRento reached an important milestone: our loan portfolio exceeded EUR 30 million, with zero late payments up until October, 2024 – such results in 4 years of our operations demonstrate the strength of our credit risk management.
Our investor base continues to expand, now surpassing 25,000 registered members, with over 3,000 actively investing. The average portfolio size has grown to more than EUR 10,000. During Q3, investors collectively earned over EUR 500,000 through interest and capital gains.
Q3 2024 in numbers
– Number of new investment opportunities: 23;
– Number of square meters financed: 1249.41 m²;
– Average investment return: 13.27%;
– Average project return: 8.27%;
– Repaid amount of principal investments: EUR 489,727;
– Late projects: 0;
– Amount financed: EUR 3,561,632;
Projects portfolio
During Q3, our portfolio remained solid, with 100% of interest payments executed on time and no projects delayed. However, in the first weeks of October, the first instance of late interest payments occured. The project owner has since settled the outstanding debt, and more importantly, investors benefited from late interest penalties, which on the InRento platform are set at 0.2% per day (InRento late loan administration fee is 0.1% of the overdue amount per day).
To clarify, if an investor is due to receive a EUR 1,000 interest payment on the 12th day of the month and the payment is delayed by one day, the project owner is required to pay a EUR 2 penalty for each day the payment is late.
Given this situation, I want to take the opportunity to outline how we handle and manage late payments:
First Day of Delay: when a project is delayed by even a single day, an official communication is sent to the project owner requesting to make interest and late interest payments and details on the reasons for the delay. We also reserve the right to request additional documentation, such as bank statements and other financial information, to assess the situation.
Late – grace Period (14 Days): the project is marked as ‘Late - grace period’ and enters a 14-day grace period. This time allows to properly evaluate the situation, gather necessary information, and make an informed decision.
Late for more than 14 Days: if the payment remains overdue for more than 14 days, we reserve the right to terminate the loan agreement and initiate the recovery process.
Termination of Agreement: if a decision is taken to terminate the agreement, the court order process begins to freeze the borrower’s bank accounts and other assets and repossess the asset.
Recovery Process: once the court order is issued, we use the borrower’s available cash balance to settle outstanding payments, and the auction process for the repossessed asset begins.
Asset Auction: when the asset is auctioned, the proceeds from the sale are used to settle the interest, late interest penalties, and the loan principal.
Considering the complexity and costs involved in managing these risks, we apply two additional safeguards:
Maximum Mortgage Amount: each loan agreement includes a maximum mortgage amount, which defines the budget that can be used in the recovery process. This amount is calculated based on estimated Future Loan-to-value (FLTV) and is transparently shown for each project and is visible to investors.
Suretyship: since 2023, we have implemented additional securities for certain projects, where, in addition to mortgaging the asset to investors, a suretyship is established by another entity or a shareholder of the project owner. The suretor warrants the loan principal and interest payments to investors in full, adding an extra layer of security and enhancing our credit risk management.
Discover full statistics here.
Outlook for Q4
I firmly believe that Poland offers one of the most attractive risk-reward ratios in all of Europe. Since launching in 2023, we’ve made significant strides in the market, and in Q4 2024, we will be opening a physical office in Warsaw and building a local team to further strengthen our presence.
We are also introducing currency hedging solutions to enhance our risk management and will begin issuing loans with a fixed exchange rate between EUR and PLN.
This move will offer greater protection to both our investors and borrowers against currency fluctuations. While we’ve already managed currency risk in Poland with conservative Loan-to-Value (LTV) ratios, this added safeguard provides an extra layer of security — because in risk management, it’s always better to be over-prepared.
Further updates on this will be provided in due course.
Latest news of Q3
InRento #1 InvestmentTech of 2024 at Europe FinTech Awards
Emotional factors: do they prevent the achievement of the desired investment result?
Market Decline – opportunity or the end of investing?
InRento has financed more than EUR 30 million of investments with 0 late projects
Kind regards,
Gustas Germanavičius
CEO and Founder of InRento
