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Post by kristjan on Sept 6, 2016 17:54:41 GMT
UPDATE We just got through to the seller company. Both payments have been sent by cheque to the seller. The representative at the seller company has been preoccupied with other matters (hence the delay in responding), but said he will check to see if the first cheque has cleared tonight and transfer the payment. The same applies to the second cheque. We will provide an update tomorrow.
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Post by kristjan on Sept 6, 2016 16:43:39 GMT
Hello everyone, Emails about our update to communications were sent out about half an hour ago. I understand you were expecting to get it earlier today. My apologies.
We haven't been able to get a response from the seller and will be pursuing the seller and the debtor again tomorrow. Regarding whether the cheque cleared, we have no further information at this point. We haven't received payment of the second invoice either. Normally we don't call to debtor at first sight of overdue payment so as not to interfere with their relationship. In most cases, this approach has validated itself. We will be contacting the debtor to get more information on the payment situation. We will provide updates via the website as I wrote in my email today (all invoices will have a button called collection history for overdue invoices). I would like to remind everyone that the debtor company has confirmed that they've received the goods/services provided, hence we have a right to ask for payment from both the debtor regardless of the fact that the cheque was sent to the invoice seller.
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Post by kristjan on Sept 5, 2016 13:48:43 GMT
I apologise for the spotty communication. I will be sending out an email regarding improvements to our communication regarding overdue invoices later today. UPDATE: The update and information about future communication will be sent out tomorrow (we plan to have the solution ready by that time). All other development work has been put on hold.
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Post by kristjan on Sept 5, 2016 12:40:17 GMT
I apologise for the spotty communication. I will be sending out an email regarding improvements to our communication regarding overdue invoices later today.
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Post by kristjan on Sept 5, 2016 12:07:11 GMT
Investly has set minimum interest rate at 8%, which limits investors ability to participate in auctions and deploy money. For smaller invoices, there is no chance to get a grab and money sits idle. Maybe it is the right time to decrease minimum interest rate? p2pmaster, we don't have plans to lower the rate. We have increased our support team to handle more business - this will allow us to sign up more companies, which means more invoices.
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Post by kristjan on Sept 5, 2016 12:05:54 GMT
At this point we haven't gotten a response, but we will give an update as soon as we have the information. In case the debtor does have difficulties paying, we do a full recourse - i.e. ask the invoice seller to repurchase the invoice. In most cases company directors have also provided a personal guaranty.
I'm sorry for that I didn't respond earlier. I don't normally check the forums on the weekend and I had to attend an important meeting today. In terms of communication we are going to improve the website to make communication faster and clearer. I completely agree that the current process needs improvement.
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Post by kristjan on Sept 2, 2016 8:04:51 GMT
As an investor, I would love that you contact them even without our questions on the overdue status. Could you please elaborate on how you manage overdue invoices and what steps at which dates are taken by your team to ensure full repayment? We keep contact with customers as often as needed. In this case we know the customer was waiting for the cheque to clear and we decided to wait until the end of the week (i.e. today) before asking for an update. We have a collection table that we monitor and we make contact as soon as it is needed. With overdue invoices we contact the seller first and ask them for an update. In some cases the funds have been erroneously sent to their account (happens with debtors who are new to our service). If needed, we also contact the debtor. If and when the debtor is unable to pay, we do a full recourse - i.e. ask the seller to repurchase the invoice in full. This hasn't been necessary so far. For smaller companies we also ask for a director's guarantee (from the seller company) to ensure payment.
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Post by kristjan on Sept 2, 2016 6:49:41 GMT
Hi, So we're now at the close of business on the 1st Sept, and the cheque for invoice 000360 still hasn't cleared. To add to our troubles, invoice 000363 (the same buyer/seller) was additionally due for repayment today and that hasn't happened either! Are we in the same situation here? waiting for a cheque to clear for 000363 as well as 000360 (although it was previously stated that cheques would no longer be used). I'm starting to lose confidence in the process, please help me :-) We will contact them again today to get an update.
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Post by kristjan on Aug 31, 2016 9:22:02 GMT
As there are no new invoices to invest, we as investors, should be thankfol for the delay, as our money stays invested and we will be compensated for the delay At least you see the humour in this. Fortunately the vacation period is ending, which will make it easier to reach new customers. We also have a number for customers signed up from earlier on. A lot of companies sign up before they actually need the service so they have their accounts set up by the time they do need us. I'm sure some of them will reach that stage in early September.
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Post by kristjan on Aug 30, 2016 12:22:12 GMT
What news on the overdue invoice Kristjan? Currently we're still waiting. It can take up to a week for the cheque to clear in some instances. We will let investors know if there are any other issues.
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Post by kristjan on Aug 23, 2016 8:49:20 GMT
Is it still common in the uk to use ancient developments like cheques for payment? In some sectors it can be common. We will make sure all future payments are done via bank transfer as was agreed initially.
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Post by kristjan on Aug 23, 2016 7:02:04 GMT
I asked kristjan directly and he says that the debtor is contacted but no reply yet (as it is a huge Company and processes Need some time...). Hello all, A lot of companies outsource accounting services and even the ones that don't can sometimes be difficult to contact when the client relationship has just started. We try to get a concrete contact person in place to make sure everything is handled promptly. Because it was this debtor's first invoice on our platform, we hadn't yet had that opportunity. In any event, the invoice has now been paid, but unfortunately to the seller's account and with a cheque. What does it mean for investors? It means that investors will receive their funds by the end of the week. Overdue fees will of course be added to the principal and interest. We are sorry for the inconvenience and will make sure all parties adhere to the factoring arrangement requirements in the future.
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Post by kristjan on Aug 9, 2016 12:35:27 GMT
1) We have several partners. The specific agency that will handle the payments will be determined based on the situation. It would be premature of me to provide a specific name when in fact a different agency might be chosen. 2) We monitor account activity on all accounts and will take action if needed. As I said, it is a case by case approach. We've already had a case where one of our investors passed on and we have the necessary processes in place to deal with such occurrences. 3) Currently we have close to 700 investors. The total amount of invested funds stands at £46,000 in the UK and €550,000 in Estonia. 4) Annual Report: Investly Holding AR 2015.pdf (36.78 KB)
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Post by kristjan on Aug 8, 2016 10:49:32 GMT
1) Is it (or planning to get) regulated by a financial authority? Invoice discounting is not a regulated activity neither in UK or Estonia. Hence, the financing activity is not regulated. However, we have registered for AML/KYC compliance with the FCA
2) Where can i find the financial data for Investly? Annual reports for all Estonian companies are available on the Centre of Registers and Information Systems website rik.ee. Investly Ltd is consolidated under Investly Holding OÜ. I will upload a copy or a link to it today.
3) Are there any provisions made for the case of Investly folding? (e.g. any third party that will make sure that active invoices will be paid back to investors even after Investly's default). We have partnerships in place with several collection agencies in Estonia and UK to continue debt collection should Investly seize operations.
4) What will Investly do with an investor's funds in case there is account inactivity for a prolonged period (e.g. investor's neglect or even death)? Issues like this will be handled on a case by case basis.
5) Is there any invoice recourse and/or personal guarantee offered with invoices? What is the procedure followed in case of a borrower's default? What is the expected rate of recovery and time needed for recovery? In the case of debtor insolvency, we will ask the seller of the invoice to repurchase the invoice in full (principal + interest + any overdue fees). So far we haven’t had any defaults. The seller company director also provides a personal guaranty. The recovery rate very much depends on the profiles of the seller and the debtor. We have rejected a number of potential customers due to the financial weakness of their clients (the debtors) to protect investors from undue risks. The companies that we do accept are not homogeneous and as such, will have different recovery rates in case of default. We display credit ratings next to each company (both the seller and the debtor) to provide investors a chance to make an educated decision. The ratings are provided by trustworthy sources (Experian and DueDil in the UK, Krediidiinfo in Estonia). The better the rating, the lower your risk of losses.
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Post by kristjan on Aug 8, 2016 7:56:08 GMT
Here's a quick data update. Duration and return figures are weighted averages. The full dataset is available here. Invoice discounting (Estonia)
- July volume: €347,000
- total volume: €877,000
- net return per 30 days: 1.21%
- net annualised return: 14.73%
- average duration: 31 days
- repaid: 40 (out of 67 sold)
- default rate: 0.00%
Invoice discounting (United Kingdom) - July volume: £30,000
- total volume: £78,000
- net return per 30 days: 1.34%
- net annualised return: 16.35%
- average duration: 30 days
- repaid: 10 (out of 18 sold)
- default rate: 0.00%
Your capital is at risk. Past performance is not necessarily a guide to future performance.
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