Summer 2021 – sign of accelerating demand for financing and crossing the 5000 auctions
The proplat.to service has had a summer of 2021, which certainly can’t be said to have been a holiday one. Both suppliers and investors are returning to us and we are doing our best to provide the best possible service. The increasing number of auctions (you can see actual volume of auctions on our Home Page) and partners brings with it the necessity to respond to their various requirements and specific needs, there is always something to invent and adapt. In July 2021, we crossed the 200 million CZK threshold of funded invoices and after 8 months of 2021 we are already exceeding the 2020 volume by more than 200%. So far, we have answered questions about the details of our portfolio in a rather general way; statistics from a small sample are never correct. We now have enough data and can analyze our services with sufficient quality.
So let’s take a look at how the proplat.to service is doing:
- In total, we have already financed invoices for more than CZK 220,000,000
Graph: Requested volume of financing; Average Interest; Expected volume
- Total number of registered partners – 1949
- Average weighted interest – 13.78 %p.a.
- In total, our partners have requested financing for more than 5,600 invoices
- Of the total number of auctions in 2021, the distribution in terms of customer rating was
- A1 – 0,67%
- A2 – 3,55%
- B1 – 11,09%
- B2 – 21,91%
- C1 – 29,67%
- C2 – 19,11%
- C3 – 14,01%
- We do not finance invoices from companies with D1, D2 and E ratings.
Graph: Number of auctions by the quarter, broken down by customer rating groups
The proplat.to service has been financing invoices for more than two years, so it is obvious that part of our agenda is communication with overdue customers and, where appropriate, debt collection. We provide recourse factoring, so we can state that for the time being we register invoices “overdue” rather than invoices “in recovery”. The financial statistics of invoices and loans “overdue” and “in collection” represent the current situation, which changes during the year depending on the success of the payment of the loan in a standard or non-standard way. On the other hand, it is essential to remember that this agenda simply belongs to factoring. As the volume of loans increases, the volume of loans in “in recovery” status is likely to increase and our daily work will be to resolve and minimise them.
We are currently dealing with 12 loans in the “In Recovery” status with a volume of approximately CZK 1.4 million. These loans are referred to a law firm, then, based on the evaluation, they are recovered in court or criminal charges are filed depending on the nature of each case. As part of the overall view of the composition of the active proplat.to loans:
- Average invoice due date 2021 – 50 days (max. 117 days)
- Average repayment period for overdue loans 2021 – 9.3 days (46 loans past due; max was 74 days past due)
- Total number of loans past due as of 2 September 2021 – 65
- Total overdue loans at 2.9.2021 – CZK 1,756,070
- Volume of loans overdue more than 28 days as at 2.9.2021- CZK 221,216
Table: Share of total overdue loans; Share of overdue loans >14D; Share of overdue loans >28D; Share of loans in recovery
Graph: Breakdown of loans by days past due
The volume of overdue loans therefore represents approx. 1.11% of the total invoice volume financed in 2021, while loans overdue for more than 14 days means 0.32% and for more than 28 days for 0.14% of the financing value. We also work with suppliers, the recipients of prefinancing, who are guarantors on individual loans under our contractual structure. We always proceed on an individual basis in an effort to maximize the chances of full or partial reimbursement. The number of problematic customers is small for a normal supplier and proplat.to also uses the possibility to suspend the financing of further invoices with a supplier who has a “detriment” in its portfolio. The suppliers thus address the situation together with us, as they themselves have a strong interest in our continuing to help them stabilise their operational financing.
For our suppliers and investors, we have secured a further upgrade to our system during the summer of 2021, the third this year, leading to a speeding up of certain transaction operations. You are probably already seeing this in terms of faster system response, for example, when working with filters on individual agendas. We are preparing additional features for suppliers to increase the convenience of entering invoices into our system and thus expand the potential of the solution. We are working on other forms of automation for investors, who are just as important as suppliers in our system.
From the reaction of our partners who have been working with us for almost two years now, it is certain that our service has its place in the market and we need to focus on improving and enhancing it. It is clear that the Czech economy and the market environment are helping us to do this and will continue to do so in the second half of 2021.