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What are the debt collection costs?

Why are the debt servicing costs deducted from my repayments and not the borrower?

The collection fees that we or any other lender, agency, or court can charge a borrower are capped by law, meaning we cannot charge them the total amount. The fees collected from a borrower reduces the write-off and increases your cash flow.

When are the debt servicing costs deducted?

Generally speaking the costs are deducted when the payment is made to your Bondora account. From the Reports section you can see the amount received and the deductions made from the specific loan.

How can I calculate my overall Debt Servicing Costs?

  1. When logged in to your investor account, go to the Cash Flow tab
  2. Under filters, select only ‘Debt servicing cost – Total,’ and ‘Principal and interest received – Loans in default.’
  3. Download the Excel file and divide the Sum of the ‘Debt servicing cost – Total’ by the sum of the ‘Principal and interest received – Loans in default.’ This will give you the ratio of your debt collection costs.

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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.