Default Rate Disclosure Information

Disclosed pursuant to Article 20 (1) of Regulation (EU) 2020/1503

The information presented in this document helps the Platform's investors make informed decisions on participation in the crowdfunding projects on our Platform. The historical loan default rates and expected default rates are calculated and presented as required by Regulation (EU) 2020/1503 on European crowdfunding service providers for businesses, to enable investors to compare Capitalia statistics with that of other crowdfunding service providers. In order to estimate the likelihood of a loan defaulting based on its risk grade, Capitalia discloses the expected default rates of each risk grade.

Definition of default

For the purposes of calculating default rates, a loan is deemed to be in default if the borrower (“Company”) has failed or in all likelihood will fail to voluntarily fulfill its obligations under the Loan Agreement, as indicated by the following circumstances:

• The Company is past due more than 90 days on any material Loan payment;
• The Company is declared insolvent, or in-court restructuring of the Company is approved, or similar legal measures limiting recovery of the Loan are implemented;
• The Company is in serious breach of the Loan Agreement or any Collateral agreement, which means it will not be able or willing to voluntarily fulfill its obligations under the Loan Agreement.
• Capitalia has approved a distressed restructuring of the loan towards a Company facing or about to face difficulties in meeting its financial commitments.

Late loan payment is considered to be material if the unpaid amount exceeds EUR 100 or 20% of the scheduled payment, whichever is greater.

Calculation of default rate

The default rates are initially calculated for each calendar year over the period indicated below, by dividing the number of loans defaulted in the year by the number of non-defaulting loans at the start of the year. Next, the 1-year default rate is calculated as a simple average of yearly default rates.

Historical default rates

Calculation is based on the annual default rates over the period of 2021 to 2023. That data is last updated on 2024.01.04.

Number of observations used for the calculation:
Defaulted loans over the whole period: 46
Sum of number of non-defaulted loans at the beginning of the periods: 758

Expected default rates and the outcome statement

The expected default rates of Capitalia loans are estimated as simple average of the default rates over the last 3 years. If there have been major changes in macroeconomic conditions that might significantly affect the loan portfolio performance, Capitalia may adjust expected default rates accordingly. The expected and actual default rates are published once a year. Calculation methodology is the same as for the historical default rates as described above.