The real estate lending crowdfunding platform Trusters, a subsidiary of CrowdFundMe, has made the new Investor Report available. The total collection since the launch, which took place in 2019, amounts to €54,660,650 for 327 projects launched and financed.
Overall, in reference to the 224 completed projects, €32,246,350 were collected with total repayments (principal plus interest) equal to €34,859,212, a significant increase from the result of the previous report (€27,027,765 as of 10/07/2023 ).
The average annual interest is equal to 9.12%, also in this case an increase compared to the previous figure (9.06%), while the average duration of the loans was 11 months.
“ In 2023 our KPIs are constantly growing and the investments proposed by the portal are proving to be increasingly profitable – declares Andrea Maffi , CEO of Trusters – When we joined the CrowdFundMe group we saw a development opportunity, for the benefit of society and its investors. The numbers prove us right and we expect that this synergy will lead us to record further growth in 2024 and in the years to come.”
Read more about Trusters report and find the most important business news of the day with the Born2Invest mobile app.
85% of loans repaid without delay
The projects concluded without delay were 191, equal to 85.71%, while 9.38% of the projects were concluded within 3 months of the expected date, with total refunds of €2,865,199.82 and an average interest of 13%. ,81%. The remaining 4.91% refers to projects concluded in extra extension, with total refunds of €1,287,198.97 and an average interest rate of 2.84%.
Only one project was recorded which ended in default in 2020, the investment amount of which was €200,000.00. In this one case, the project’s investors lost 100% of their invested capital.
Current projects of Trusters
Among the projects currently underway, those that do not foresee delays represent 77.67% for a total of €17,539,100.00 collected and an expected interest of 11.31%.
Two projects are in a state of extension, with a total capital raised of €510,000.00.
Finally, 21 projects are in extra extension status. The investment amount for extra-extension projects is €4,365,200.00. These represent 20.38% of ongoing projects.
The reasons for the delays
36.37% of the delays were caused by the lengthening of the expected timescales for the completion of construction. In these cases, the time estimate initially calculated has undergone variations due to unforeseen events during the design or execution of the project, for example, delays in deliveries of raw materials or non-availability of materials.
29.09% of delays were caused by the persistence of restrictions imposed during the pandemic period, which had a significant impact on all parties involved in construction projects.
Furthermore, in 29.09% of cases, the cause was the delay in sales. Following this, 5.45% of cases suffered delays due to the disbursement of tax credits.
Monitoring of issuing companies
At the conclusion of the report, Trusters underlines its extreme attention in monitoring and reporting also for companies in extra extension, for which it uses professionals to best assist its investors where necessary.
Furthermore, from 2023 the company reveals that the audit and financial reporting processes of the broadcasters promoting the initiatives have been further strengthened.
In particular, stringent selection methods have also been introduced through Modefinance, a company with authoritative and proven experience in the sector, which provides an independent financial rating.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in Crowdfunding buzz. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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