New year’s greetings from the Lendahand team: reflections and plans for 2025

Dear impact investors,

The new year has begun—a perfect time for reflection and looking ahead.

Unfortunately, 2024 was a year in which our collective view of the world grew increasingly grim. Yet, it was also a year when we at Lendahand saw that there are still plenty of people who dare to look at the world with an open mind. A group of individuals who demonstrate trust in others by investing in people they don’t know, in parts of the world they may never have visited.

That trust was rewarded in 2024 with an average return of 6.6%—the highest return in Lendahand's history. This was a direct result of higher interest rates and the risk policy adjustments we made in 2023. Through the loans of 2024, we positively impacted the lives of approximately 150,000 people. This unique combination of tangible impact and solid financial returns is what makes Lendahand special.

Here’s a brief overview of the key events at Lendahand in 2024:

• At the start of the year, we introduced our new credit score: a visual representation of our tightened risk policy. We now mainly collaborate with solid financial institutions that have a deep understanding of their local communities. Directly lending to businesses has become less common, and when we do, we apply additional risk measures such as (partial) guarantees.
• In the spring, we launched Auto-Invest: a simple way to automatically reinvest repayments. With Auto-Invest, you essentially create your own fund with the main benefits being convenience and optimal diversification of your investments. Over 750 investors have already activated Auto-Invest, and that number continues to grow daily.
• In the second half of the year, sustainability projects returned to the platform. Roam Electric Motorcycles, with a 50% guarantee, and Spark Energy, with a 100% guarantee, were particularly notable. Their popularity was evident—every project was fully funded within a day, with Spark Energy even reaching full funding in just 2(!) hours.

Regarding payment arrears, no new arrears were added in 2024. However, we remain acutely aware that several loans from previous years are still in arrears. Behind the scenes, we are working hard to recover as much of these outstanding debts as possible. Early this year, we will provide a comprehensive update on the history and current status of these projects. This will be accompanied by a significant update to the financial dashboard, offering better insights into which loans are in arrears and the expected returns per loan. It’s a bit like the tax office: we can’t make it fun, but we can make it easier.

What lies ahead in 2025?

• Interest rates are declining globally. We’ll see how well we can maintain competitive rates on our platform—this is certainly a priority for us.
• Over the past year, you’ve filled out several surveys sharing what you’d like to see improved at Lendahand. Increased liquidity consistently topped the wish lists. We’re still working on a solution—stay tuned.
• As loans to financial institutions now constitute a larger portion of our offerings, the selection can sometimes feel a bit uniform. We’re working to diversify, for example, with new impact labels and investments that focus more on sustainability, like Spark Energy. In 2025, expect more standout investment opportunities. The condition remains, however, that they are solid.

I wish you a healthy and happy 2025. Let’s continue to extend opportunities to people we don’t know but who can truly benefit from them—fully in line with our refined company mission. We’ll do our best to deliver another strong return.

On behalf of the Lendahand team,
Arno Hoogenhuizen