March 20, 2020
Today I received an email from Lender & Spender about the corona situation.
E-mail from Lender & Spender
We currently live in uncertain times due to the coronavirus. Everyone is concerned and is wondering what will happen in the near future. In this report, we therefore explain how we deal with this crisis at Lender & Spender.
We remain open and are extra alert
We will continue to provide loans when we believe it is responsible. We remain as critical as ever and are extra vigilant in these times so that we can quickly adjust our policies when circumstances require.
Due to the uncertainty, we do expect a decline in demand for loans in the coming period, which will temporarily reduce the scope for new investments.
Our approach for payment arrears remains the same as before: In the event of a missed payment, we contact the borrower to properly map the situation and make an appointment that matches the borrower’s situation. The goal is to arrive at a payment arrangement that can be met so that the borrower does not get further into financial difficulties. We will continue to use loan claims as a last resort.
The impact of the corona virus on your investment
An important advantage of investing in a portfolio of loans is that the return is much less volatile than, for example, the stock markets show. The return on your investment is mainly determined by macro-economic factors and not by market sentiment.
An investment in loans to Dutch consumers is also less sensitive to changes in macroeconomic factors than, for example, an investment in corporate loans. The reasons for this:
- The social safety net in the Netherlands ensures that people who lose their job or become ill receive a benefit with which payments can be continued.
- Consumers are less likely to go bankrupt than companies. Should a borrower lose his or her income, this is in many cases temporary and payment can be resumed at a later stage. The interest on the loan continues, so that you do not miss a return as an investor.
The impact of the coronavirus on macroeconomic factors such as unemployment is currently unclear. However, the developments have our full attention and we will continue to actively inform you in the near future.
We are there for you if you have any questions
The Lender & Spender team has been working from home since Monday. We are fully operational and there for you if you have any questions. You can reach us at contact@lenderspender.nl or on 085 – 888 8185 from Monday to Friday from 9:00 am to 5:00 pm.
