Originally Posted by
JB@Squirrel
Hi Saamee, apologies haven't been on here for a while.
We wrote off a $20k loan over Christmas. We expect to collect on this one, but we have a policy of writing off at 90 days arrears and then recovering to the reserve fund. It is sitting with debt collectors and we have security. We also cover arrears through the reserve fund. A combination of this can make it appear a bit more volatile whilst the book isn't that large. What we have been showing is the cash balance in the fund as opposed to the cash balance plus receivables. It has since started to build up again and does so fairly quickly now.
We initially committed to keeping the reserve fund at 4.00% for the first 12 months so that the reserve fund would have a reasonable starting position. We are now through 12 months so it will build up under its own steam. The book has started to grow faster and recently passed $6m 100% retail funded. That growth will drop the reserve fund as a % of loans outstanding.
We launched a new web site in December so the reporting has changed a bit, mostly for the better.
The focus with the new web site has been on getting the borrower proposition simpler. You'll see we now have explicit borrower rates targeting high quality borrowers and we sped up the loan acceptance process to reduce latency for investors.
You'll see we put up the Squirrel Investor App for Android and iOS. Its version 1 and we have plans for v2.0 already. We'll hit you up for feedback on what you want when we're ready for the next App sprint.
We intend to put up a lot more reporting up on the reserve fund soon.