Investing with Trine comes with the risk of capital loss due to non-performing loans. This can mean that repayments are delayed, the loan needs to be restructured or that the loan defaults. Trine manages the process of debt recovery and the default process on behalf of our investors. While our aim is to always find solutions that enable the borrower to fulfill their obligations of repaying the loan, there is always an element of risk.
As a part of our, work Trine is keeping a close dialogue with the borrowers from the moment they submit a loan application to when a loan has been fully repaid. The monitoring consists of the following:
Regular calls with the borrowers where we get the latest business updates. This allows our Investment Managers to assess their needs and challenges on a continuous basis.
Quarterly reporting by the borrowers based on their contractual obligations. This provides additional information on the progress of the company and enables the Investment team to evaluate certain key financial metrics, their financial and operational health as well as their ability to repay.
Delayed less than 10 business days
Trine will always inform investors if we know there will be a delay to repayments. However, the dates in an expected repayment schedule should be treated as preliminary and a few days delay in repayment is not unusual. Repayments are coming from around the world and this can mean bank transfers take longer than expected.
Delayed more than 10 days
After any delay to a repayment Trine will contact the solar company to find out more information. This will lead to:
An update to investors via email and in the repayment schedule;
New invoices sent out including late fees (interest rate + 2% p.a.);
Continued communication and monitoring of the company to decide whether we need to escalate it to the next level.
If the borrower is not giving Trine a plan on how to get back on track, Trine will escalate the situation and the most likely outcomes are:
Notifying the borrower that we accelerate the loan;
Identify a third party that can overtake the assets and continue operations
Transfer assets in a sale process
In parallel we are looking into any existing investment protection and paying this out to investors.
You can read about our debt recovery glossary here.
If you have any questions, you can reach out to us at firstname.lastname@example.org