We’re excited to share a new claim type from our trusted Loan Originator, Hoovi. Hoovi is an Estonian SME lender and will soon introduce a new category of claims; loans in recovery under the “Collection Claim” category on our platform.
What Are Collection Claim Loans?
These loans represent loans issued by Hoovi that are in recovery but have predictable cashflows, and the majority are backed by real estate collateral. While they are classified as in recovery due to default status, they provide a steady cash flow and follow the same junior share logic as Hoovi´s standard loans. We are excited to offer this new asset class and balanced investment opportunity for those seeking higher potential returns.
Key Features of Hoovi’s Collection Claim Loans
- Collateral: The majority is secured by real estate, providing additional safeguards against risks.
- Junior Share: 37%, offering a calculated risk-reward balance.
- Expected Maturity: up to 60 months, perfect for long-term financial strategies. However, most of the loans have an Early Buyback date of 1 year, giving investors the flexibility to decide whether to continue investing in high-return loans.
- Loan Type: “Collection Claim,” highlighting the status of active recovery efforts in place.
- Buyback Guarantee: The Collection Claims come with a quarterly payment schedule and 60 DPD buyback guarantee. If the claims do not perform as expected, Hoovi will purchase the loans back.
Why Consider Collection Claim Loans?
- Real Estate Security: Tangible assets ensure value remains recoverable even in default scenarios.
- Higher Returns: Non-performing loans often come with elevated yields, compensating for the associated risks.
- Recovery-Driven Strategy: Hoovi actively manages collateral claims to maximize recovery outcomes for investors.
- A Key Reminder: Who Holds the Collateral?
It’s important to remember that while these loans are secured by real estate, Hoovi retains the collateral rights. Income and its investors do not directly hold the collateral. If the borrower defaults, Hoovi will execute recovery efforts to ensure efficient claim processes.
Getting Started
If you already invested in Hoovi’s loans, update your auto-invest strategy to include the “Collection Claim” category for seamless access to these new opportunities. For new investors, this is a good chance to explore a new investment option. Hoovi will start listing Collection Claims with a 13.5% p.a. interest rate.
At Income, we’re committed to connecting you with innovative and secure investment opportunities that align with your financial goals. Stay tuned for the first listings in this category and more updates soon!
