Based on current indications from our customers, we expect another jump in volume in the UK. Investors who would like to increase their portfolio are encouraged to deposit funds straight away so they can take part in the auctions. UK volumes are expected to eclipse Estonian volumes in the first half of the year.
Last month we closed the case on two defaulted invoices - one in Estonia (penalties still due) and another one in the UK (fully recovered). We continue to work on improving the collection processes. We're in the final rounds of hiring an in-house legal expert to help speed collection procedures along. Currently there is still one outstanding default in the UK, we are receiving weekly/biweekly partial payments and expect the debt to be cleared in the first quarter. A full recovery there would also mean a perfect recovery score for defaulted invoices in the UK.
Invoice discounting (United Kingdom)
month volume: £389,000
historical annualised return: 12.61%
average duration: 39 days
overdue rate*: 0.00%
default rate*: 1.51%
Invoice discounting (Estonia)
month volume: €868,000
historical annualised return: 11.19%
average duration: 35 days
overdue rate*: 2.01%
default rate*: 1.60%
* When an invoice is fully or partially overdue more than 45 days, the outstanding amount is counted as overdue. If more than 120 days have passed since the payment date, the outstanding amount is counted as defaulted. If a defaulted invoice is paid, it is considered recovered 100% (the rest will be written off if the collection is deemed unlikely).
* When an invoice is fully or partially overdue more than 45 days, the outstanding amount is counted as overdue. If more than 120 days have passed since the payment date, the outstanding amount is counted as defaulted. The share of defaulted invoices that have been repaid are marked recovered. Debts that cannot be recovered are written off. **Amounts that are not yet recovered or written off are being collected on.