We would like to provide an important update on our ongoing efforts to address the repayment concerns related to ClickCash (CC). After persistent discussions with ClickCash management, we have successfully formulated a specific plan to proceed with the repayments in December of 2023. Our primary objective is safeguarding your invested capital and ensuring that ClickCash meets its obligations. Here are the key points of our plan:
- Reorganising ClickCash Debt payments: To address the concerns of our investors and the challenges with timely payments, we have agreed to reorganise ClickCash’s debt towards our investors with the help of Income.
- Monthly Repayment Commitment: Starting from the next month, ClickCash is committed to repaying a fixed amount of €5,000 per month. This commitment aims to ensure a steady and predictable flow of repayments to our investors.
- Income as a Bridge Payment: In case ClickCash is unable to meet the €5,000 minimum repayment requirement, Income will step in and act as a bridge payment to cover the difference from its own pocket. It’s essential to clarify that this assistance from Income is limited to ClickCash and will not affect other lending companies
- Priority on Principal Repayment: Our repayment plan prioritises the principal amount, ensuring that the capital you invested is returned as a first priority. Any remaining funds will be allocated towards interest. Currently, the principal amount that remains in recovery is €147,991.79. Income is willing to move in and support the payment schedule from its funds to a) provide investors a clear schedule for repayments and b) to allow investors to get back, at minimum, their invested principal. If the ClickCash collection provides enough funds over the principal, then the interest payments will also be paid to investors.
- Security Mechanisms: We would like to emphasise that our security mechanisms, while not leading to legal escalation at this point in time, remain in place. ClickCash’s situation is problematic due to the small size of its loan book, and a full-scale legal action with associated costs would consume a significant portion of the outstanding book. Given ClickCash’s cooperation and the solution we have on the table, we have chosen not to employ these mechanisms, but legal action remains a viable option.
- Enhanced Loan Originator Selection Process: We have learned valuable lessons and identified risks with small loan books that hinder the working of our security mechanisms. After encountering the problems with ClickCash, we have amended our internal processes and rules for selecting upcoming Loan Originators (LOs). We now have more stringent loan book size commitments and preconditions for onboarding, aiming for LOs with loan books large enough to cover the legal costs.
We are grateful for your continued trust and patience as we work through these challenges together. Rest assured, we remain fully dedicated to safeguarding your investments and delivering on our commitment to you.
Thank you for being a part of our community, and we will continue to keep you updated on the progress of ClickCash’s repayments.
You can find more information regarding the ClickCash repayments here.