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LANDE Platform Performance Report – September 2024

You're reading the September 2024 edition of LANDE's Platform Performance Report, which we publish monthly to highlight our progress in loan issuance and debt collection and provide insight into other platform or team developments. 

The total amount farmers borrowed through the LANDE platform across our three markets in September 2024 was €1,151,903 across 42 projects (avg. project value €26,788). The breakdown by country is as follows:  

The share of loans issued in September that were backed by either land/property or machinery in each market was the following: Romania 94%; Lithuania 100%; Latvia 93%.  

Land/property and machinery-backed loans have had the lowest historical default rates: 3.72% and 4.06% respectively, with all defaults in these categories undergoing steady recovery process (no bad debt). 

92 new investors registered on the LANDE Platform in September. 

LANDE investors earned a total of €139,904 in interest in September, with the all-time total having now reached €2 million. 

The Investor Relations team reported a stable number of customer support tickets submitted in September compared to the previous month, with no significant issues generating high ticket volumes. 

The technical team is focused on making improvements across business processes including implementing automations for the legal and sales functions. Additionally, we have updated the method for calculating NAR (net annual return) for investors in order to better reflect investments made rather than deposits. To follow regulatory requirements and enhance the security of our platform we've also introduced the investor knowledge questionnaire which facilitates a simulation of their ability to bear losses.  

There are several active campaigns that help boost investment returns: an extra cashback offer for investments over €500 (find details on your profile dashboard) and the 1% referral bonus you get for recommending our platform to a friend using the unique referral link you can find on your dashboard (applies to the investments made by the referred user in the first 30 days). 

If you're new to the platform, sign up to get 3% cashback on all investments you make in your first 30 days. 

Loan repayment statistics  

At the end of September, there were 1,168 projects funded through the LANDE platform, of which 507 had been repaid in full while 661 were active, with their repayment status detailed below (+comparison with previous month):

90+ loans with collateral consisting of livestock and harvest hold the highest shares of delays, which is why we have been moving away from these collateral categories and focusing more on securing projects backed by land and/or machinery. 

Repaid principal totalled €469,617 in September, while the all-time total has reached €10.1 million.  

More real-time portfolio data can be found on our statistics page.  

Debt collection stages 

 

Below is a breakdown of debt collection stages for delayed loans. Most of the 90+ loans are already in the enforcement phase with bailiffs engaged in recovering the value of the collateral.

Details about debt collection stages can be found here. 

Market highlights 

Latvia: 

September was a relatively quiet month in terms of loan repayments. In the coming months, many projects have repayment deadlines, and the team is already actively communicating with borrowers to understand their ability to repay the loans on time. In cases where borrowers are unable to fully repay the loan, we are seeking solutions such as refinancing the loan with other creditors, restructuring the project by requesting stronger collateral, or, in the worst-case scenario, initiating forced recovery of the loan when the client does not communicate or refinancing is not an option. 

Romania:  

Farmers who have faced challenges due to recent drought conditions have been willing to offer additional collateral for a loan extension and are committed to covering the interest payments, which enhances LANDE's security regarding pledges. Moreover, clients are anticipating subsidy payments in late October or early November, and several have already received approval for compensation related to drought-affected crop losses.

Lithuania: 

There is an increasing number of requests for early loan repayments, and farmers are planning it more effectively. Many existing clients are taking out additional loans, generating an upsale boost. Starting from the end of October, farmers will begin receiving subsidies from the National Payments Agency (NMA), and a large number of farmers have either sold or are selling their harvest. This is reflected in the fact that most recent applications have been focused on farm development—purchasing land or machinery, as well as implementing new NMA projects. The sale of the harvest and the start of subsidy payments are also resulting in LANDE clients repaying loans fully or making timely interval payments. We are keeping a close eye on market trends and will soon place advertisements on the websites of partners who sell machinery, giving our clients the opportunity to quickly obtain financing for equipment purchases.

21.10.2024
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