We have improved the options for you who invest in consumer credits by dividing SBL Finans Consumer loans into two parts. One credit type to maximize your return and one to protect you against credit losses. SBL Finans Consumer loans 80% has an interest rate of 15% and a forward flow agreement for overdue credits of 80% of the nominal amount. This creates an investment opportunity with high returns at a slightly higher risk.
SBL Finans Consumer loans 100% has an interest rate of 8.5% and a forward flow agreement that gives you the right to sell overdue credits at 100% of their nominal value. Through this credit type, we create an investment opportunity for those who want to ensure not to suffer from credit losses.
You can choose to invest in the repurchased credits again through the credit intermediary Billecta debt collection; after the due loans have been added to a portfolio and valued according to a model that takes future cash flow into account.
Bundling many loans in one portfolio makes it more likely to reach the expected return on investment as overdue consumer loans can take a very long time to collect, and some never are paid.
This handling contributes to further diversification. SaveLend believes that this is the most transparent and clear approach to giving a correct view of credit losses.
Investing in loans is always compatible with the risk of credit losses. Previously, credit losses were presented first after debt collection, which led to the misunderstanding that credit losses did not exist.
With the new way, capital is released to be reinvested and continues to generate returns instead of being locked over a long period. Worth remembering in regard to this is that credit losses are deductible on the tax return.
It is also important to point out that SaveLend does not receive any income from repurchasing these loans.