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How does debt collection work?

Debt servicing costs are only taken from the cash flow that is recovered from a delinquent loan; investors never pay these fees up front. These payments are used to cover the costs related to the collection of loans in a delinquent portfolio, in particular, the following fees are included:

  • State fees
  • Court fees
  • Success fees paid to debt collection agencies
  • Fees for the lawyers and any other costs related to the collection.

If no cash is recovered then no deductions are made.

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* Capital at risk. Investments made with Bondora are not guaranteed, nor is the preservation of value invested guaranteed. Please note that the yield achieved in past periods does not guarantee the rate of return in future periods. The yield of the Go & Grow Unlimited tier is up to 4% p.a. The yield for Go & Grow is up to 6.75% p.a. Before deciding to invest, please review our risk statement and consult with a financial advisor if necessary.