February 3, 2017,

Why isn’t the Portfolio Manager investing my funds faster?

Bondora Go & Grow

Editorial team

Bondora investors often ask why their Portfolio Manager is not investing funds or investing at sufficient speed. The reason is the popularity of the higher rated loans. Naturally, many of our investors are eager to fund borrowers with a less risky credit profile. Resultantly, the AA, A, and B rated loans are exceedingly popular. With competition for these investments so high there are only so many opportunities to go around.

As we recently discussed in our latest portfolio performance review, the AA and A rated loans, which are available only in the Estonia market, have since Q1 of 2015 delivered realised net returns of 12,59% and 12,08% respectively. This combination of a substantial return and lower risk is attractive to all our investors. B rated loans in Estonia and Finland for the same period has generated realised net returns of 15,04% and 7,39% respectively.

To better understand the relationship between the supply and demand of high-rated loans, we calculated a variable that reflects the bid competition for each rating. Simply put, we take the total number of bids made per rating and divide by the total winning bids per rating.

Competition is high for lower risk loans

In the graph below, the steep decline of this curve represents the strong competition to fund higher rated loans versus those carrying more risk at the right side of the graph. Most notable in this data is the big drop in demand between AA and A rating. The other takeaway is that higher competition starts with the B rating. The competition factor can be loosely divided into two groups – high competition for AA, A, B rating loans and lower competition for C, D, E, F, HR loans.

Bid Competition Factor per Bondora Rating

Small bids are often outbidded

For investors this means that the likelihood of getting invested into AA-B rating loans is better when they raise the bid sizes in their Portfolio Manager settings. Portfolio Managers with minimum or small bid sizes trying to invest into AA-B or even C rating loans often tend to be pushed to lower position in the investment priority list, being outbidded by higher bid amounts. As a result, lower bids are left out of the investment. This is why some investors may experience their Portfolio Managers not investing their funds in desired speeds. The best strategy is to stay in the market and adjust your Portfolio Manager strategy or settings.

Bondora Go & Grow

Editorial team

At Go & Grow, our Editorial Team combines years of fintech experience with a passion for financial education. We’re here to share trustworthy insights, platform updates, and easy-to-understand investment tips for everyone.

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Frequently Asked Questions

How is Bondora regulated?
Bondora Capital’s business model is unique, with no direct precedents in the market. As such, there is currently no specific regulatory license that directly applies to our Go & Grow product. However, we work proactively with regulators across the EU to ensure full compliance with all applicable local laws and regulatory frameworks.

To support this, we regularly publish financial updates, audited annual reports, and disclosures, reinforcing our commitment to transparency and investor trust.

At the same time, Bondora Capital is subject to all relevant general regulations, including (but not limited to) the Estonian Consumer Protection Act, the Law of Obligations Act, the Commercial Code, the Accounting Act, the Competition Act, and the General Data Protection Regulation (GDPR).

Additionally, Bondora AS, a member of the Bondora Group, operates as a Licensed Credit Provider under the supervision of the Estonian Financial Supervision and Resolution Authority. In Finland, we operate through a licensed branch regulated by the Finnish Financial Supervisory Authority. We also hold an operating license in Latvia, supervised by Latvijas Banka, and have recently received regulatory approvals to operate in both Denmark and Lithuania.
Are Bondora AS's loans secured?
Bondora issues unsecured loans, meaning credit customers are not required to provide collateral. This approach allows us to offer a faster, simpler, and more accessible lending experience.

Risk is mitigated through multiple layers of protection. Our underwriting process is powered by predictive, data-driven models, trained on deep datasets collected over 17 years. Each borrower is carefully evaluated using a wide range of creditworthiness indicators before any loan is issued.

With Go & Grow, your investment is automatically diversified across hundreds of thousands of loans in multiple countries. This significantly reduces individual borrower risk and adds a layer of protection against regional or geopolitical events.

In the rare event of non-payment, we follow a structured recovery process, working with professional debt collection agencies and, when needed, escalating cases through local legal channels to pursue repayment.
What happens when a borrower doesn't repay?
At Bondora, we do a lot to prevent repayment issues before they happen. Our advanced data models carefully assess each borrower’s creditworthiness, using historical data and predictive analytics to minimize the likelihood of default from the start.

If a payment is delayed, we act quickly but thoughtfully. From the first day of the delay, we reach out to the customer via email, SMS, and automated calls to remind them of their delayed payment and offer flexible options to get back on track. The aim is to find a solution together, whether that means a new payment date or a short-term adjustment.

If the situation doesn’t resolve, we may involve our internal teams or trusted partners to continue the dialogue and explore further options. In some cases, if communication is unsuccessful, the matter may be escalated to the local legal system in line with standard procedures. Legal steps are always a last resort, and the goal is to find the best possible outcome for everyone involved.

Throughout this process, our focus remains on recovering outstanding amounts responsibly and respectfully while protecting investors’ interests.

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What are temporary partial payouts?
Under normal conditions, your Go & Grow withdrawal is paid in full with a single transaction near-instantly. However, in rare and extraordinary circumstances, partial payouts may be activated temporarily. This means your withdrawal will be split into smaller, daily payments until the full amount has been delivered. Only one €1 withdrawal fee applies once you’ve received the full amount.

This protective feature was built into Go & Grow from the start to help maintain stability and safeguard investor returns, so you can stay on track and stay earning, even when the world feels uncertain.

In Bondora’s 17-year history, partial payouts have only been activated once.

While we aim to keep Go & Grow fully liquid, this feature ensures that when conditions require it, your investments remain protected and continue to work for you.
What happens to my investments if Bondora goes bankrupt?
Your money is protected. Even in the highly unlikely event that Bondora Capital becomes insolvent, your investments remain yours. Investors legally own the loan claims, not Bondora Capital.

This means Bondora’s financial situation does not affect the legal ownership of those claims—they continue to belong to the investors. The claims are not part of Bondora’s bankruptcy estate.

Risks related to Bondora as a company are separate from the risks associated with your investment portfolio. Simply put, if Bondora disappears, your investment doesn’t.