Overdue, bad debts and default of peer

To justify "overdue"

So-called overdue, in the financial field refers to The borrower did not perform debt-servicing obligations in accordance with the agreed or committed time-points , to be blunt, is to borrow money, not in the agreed time also, before mainly used in bank loans and credit card fields.

for banks, Overdue refers to the circumstances in which the borrower fails to repay or pay the interest in full in time on the bank's final repayment date or interest payment date. This is usually the case, the bank will temporarily list the borrower as a collection object, and within 7th to call to remind the borrower if the top up in 7th, the bank generally will not charge late fees, but if not paid for more than 7 days, the bank will formally listed this loan as "collection" and charged late fees.

Credit card overdue is not the last repayment date, but to the next month of the bill is not yet overdue , once the cardholder is overdue, the bank will be from the next day five out of 10,000 interest, overdue accounting compound interest, so the longer the overdue time, the higher the daily interest.

P2P industry, the rate of overdue does not have a unified computing standard, the current high rate of utilization is from the China Microfinance Union peer-to-Industry committee published the "personal to personal (peer-to-peer) microfinance Information advisory services industry self-Discipline Convention", the formula is " The total amount of non-residual capital over 90 days overdue/may result in 90 days + expected cumulative total contract ", that is, currently has more than 90 days overdue, is a molecule, the remainder of the more than 90 days of overdue, is the denominator , and those who cannot produce more than 90 days overdue, then is excluded from the denominator ( If the expiry date is less than 90 days or is currently in the normal borrowing period of the loan).

by flipping through the quarterly, semi-annual and yearly reports, we will find that this kind of report format is generally concise and more visually presented. Among them, the content of the disclosure is mainly concentrated in the cumulative turnover, the number of registered users, for investors to earn income, the average annual income and so on can give the platform a luster of the part, and for the overdue rate, bad debt rate, operating income, net profit and other indicators more intentionally bypassed. At present, the report will be formal, true disclosure of relevant content for the overseas or new Sanbanxi listed platform.

Besides avoiding it, There are also platforms that deliberately depress the percentage of metrics such as overdue rates , which, of course, includes both reasonable and malicious low-voltage. Reasonable down there are several methods: 1, because the platform on-line time a lot, all the borrowings are not due, so declared their own overdue rate of zero; 2, the platform secured by the third party, the guarantee company compensation part does not count into the overdue rate; 3, Platform Mortgage category items, because there is sufficient value collateral, so not into the overdue rate; The platform uses its own funds or risks to replace overdue borrowings. Malicious suppression mainly refers to unreasonable expansion of the denominator of the rate of delay, including: 1, the history of all the turnover as the denominator; 2, all the backlog as the denominator, so that the overdue rate will look very low.

in March this year, the Chinese Internet Finance Association, which was not formally listed, had issued a " The Internet financial Information Disclosure specification (first draft), which makes a requirement for the disclosure content of peer-to-peer institutions , including the cumulative default rate, platform project overdue rate, the near March project overdue rate, Loan overdue amount, compensatory amount, loan overdue rate, loan bad debt rate and other operational information. In June, the Shanghai Mutual Gold Industry Association issued the Guidelines on Information disclosure, requiring peer-member units to regularly disclose the main, product, business, financial and other five categories of 49 information, including the transaction overdue, the main products more than 90 days overdue amount and more than 90 days overdue rate.

At this point, it is hoped that the regulatory layer will be able to make the calculation method and the disclosure method of the peer platform's overdue rate as soon as possible, and standardize the requirements and standards, which would be of great help to the healthy development of peer industry.

Bad debts and default

A lot of analysis of peer-to article, often the expectation and bad debts are not identified or directly equivalent, this is not right, in fact, there is a difference. Overdue meaning, as explained above, its important point of time is more than 90 days, that is, about three months. and So, overdue does not mean bad debts.

The so-called default refers to the borrower's failure to repay the loan principal and interest in accordance with the contract, which is a broader concept, overdue and bad debts, in fact, are in breach of contract, because they do not comply with the contractual time to repay. The difference between the two is that although the overdue repayment time is not complied with, but after the repayment period of 90 days-120 days after the period is still, and bad debts are more than the agreed repayment date 120 days after the repayment is not, and may not have been back.

Overdue, bad debts and default of peer