Violation of the repayment schedule is a natural component of loan investments. When borrowers become debtors, Fagura makes significant efforts to contact borrowers in order to collect outstanding payments and return the loans to maturity. Fagura has an internally trained team in recovering overdue loans and works on demand with external collection agencies or addresses the court.

Once the loans become overdue, we try to contact the debtors by email, telephone and letters to collect the payments. We often look at recent credit reports to understand the current status of borrowers. Depending on the circumstances, it is possible to work with borrowers to ensure immediate payment, to structure a new reimbursement schedule appropriate to a new situation or to take additional measures, all in an attempt to prevent further deterioration of the loan. For example, we can waive late payment fees at our discretion when increasing the chance of receiving the loan due from a borrower, or if the borrower promises to return an outstanding loan to the current status and fulfills this promise. As an investor, you are periodically informed about any maintenance and collection activity related to funded loans, accessing the "My Investments" link in your personal account and clicking on the status of the loan you are looking for.

The collection process is generally highly regulated. Our internal service team and professional debt collection companies collect payments from delinquent borrowers in accordance with the consumer protection law on service and collection activities. Under no circumstances will an investor be allowed to directly contact borrowers.

In addition to maintaining and collecting efforts, Fagura reports borrowing debts to credit bureaus every month. This information may adversely affect the credit history and the ability to obtain loans in the future, which can often stimulate borrowers to repay their loans set in the contractual terms.

Deviation from the contractual schedule is a natural component of investing in loans, and diversification is the best solution (we recommend building a portfolio of at least 100 loans) to reduce your exposure to an individual loan and to reduce volatility profitability of your portfolio. Learn more about diversifying your investment here.

Fagura does not provide investment advice and this information is not intended to be used as investment advice. Please contact your financial consultant if you have any questions or need additional information.