16 April 2024
PeerBerry's portfolio growth reflects increasing investment opportunities
The gradually growing PeerBerry portfolio, which currently amounts to EUR 109,99 million, shows expanding investment opportunities for our investors.
PeerBerry portfolio declined to EUR 106,1 million after delisting Polish loans from the platform at the end of 2023. To replace Polish loans, we have offered our investors to invest in Mexican and South African loans; also, we started funding lending businesses in Colombia, Tanzania, and Nigeria through 3-month term business loans offered by Aventus Group.
Longer term loans – lower need to reinvest
Although PeerBerry’s portfolio is growing, we need lower volumes of new loans this month to maintain further gradual growth, which is a temporal and quite unusual matter on our platform.
This situation arose because more of our investors have invested in longer-term loans, including 3 months term business loans. In the beginning, longer-term investments require a lower frequency of repayments, which is convenient for investors as it requires less effort to reinvest funds more often. Accordingly, lower volumes in repayments require fewer new loans for reinvestment. Under the current dynamic of invested funds and planned repayments, we forecast that this month, we will, in total, need to offer investors about EUR 50 million of loans to ensure further sustainable growth of our portfolio.
The impact of regulation on loans
Our business partners in all countries must comply with local regulatory requirements, which change over time. Loan companies must adapt to new requirements, which sometimes also impact the loan supply on our platform.
New regulatory requirements for companies issuing short-term loans have recently come into force in Kazakhstan. It includes some adjustments in the assessment procedure for borrowers and may partly affect the duration of loans. We may temporarily have slightly smaller volumes of Kazakh short-term loans on the platform, and later, we may see more longer-term Kazakhstan loans on the platform.
Apart from short-term lending and leasing companies, Aventus Group has a factoring company in Kazakhstan that funds local businesses. We will likely onboard this company to the platform in the coming months, so you can also benefit from investing in its business.
Heading towards further diversification
Our partners in all countries are growing, and we expect larger volumes of loans, especially from Spain, Romania, Mexico, and South Africa, in the coming months. In Q2/Q3, we plan to onboard more lenders from such countries as Romania, Spain, Mexico, and the Philippines. This will ensure more proportional volumes of loans from different countries and more possibilities for our investors to invest in.
Currently, we offer our investors to invest in loans issued in 12 countries. 22 legal entities offer investments in loans on our platform.
