Default Rate Loans
1. Introduction
Within the framework of European legislation on crowdfunding services—specifically Regulation (EU) 2020/1503 and Delegated Regulation (EU) 2022/2115—Spreds, as an authorized service provider, is required to provide annual transparency regarding the performance of loans facilitated through its platform.
This transparency is provided through:
- An annual publication of the default rates of the lending-crowdfunding projects offered on the platform over at least the preceding 36 months.
- An outcome statement within four months of the end of each financial year, showing the expected and actual default rate of all loans, per risk category, along with an explanation of the assumptions used.
2. What Do We Mean by Default?
Spreds considers a default to have occurred with regard to a particular loan offered on the crowdfunding platform when either or both of the following events have taken place:
- Spreds considers that the project owner is unlikely to pay in full, or otherwise fulfill its credit obligations related to the loan concerned, without recourse to actions, such as realising security;
- the project owner is more than 90 days past due on any material credit obligation related to the loan concerned.
For the purposes of paragraph 1, point (a), the following elements shall be considered as indicators of unlikeliness to pay:
- a distressed restructuring of the credit obligation related to the loan concerned has occurred where this is likely to result in a diminished financial obligation caused by the material forgiveness, or postponement, of principal, interest or, where relevant, fees;
- the project owner has applied for, or has been placed in, bankruptcy (or similar protection such as a judicial dissolution), where this would avoid or delay repayment to investors of a credit obligation related to the loan concerned.
For the purposes of point (a), a distressed restructuring shall be considered to have occurred where concessions have been extended towards a project owner facing or about to face difficulties in meeting its financial commitments.
This interpretation is in accordance with European technical standards and provides a uniform basis for comparison between platforms.
3. Reporting Period
This publication takes into account all lending-crowdfunding projects offered on the platform over the past 36 months (counted from 1 January 2026) that resulted in the conclusion of a loan agreement.
As of today, this concerns seven projects. Spreds will update this publication annually.
4. Overall Actual Default Rate
Methodology behind the default qualification
Spreds calculates the simple average of the observed 1-year default rate over the entire historical observation period (of 36 months) using non-overlapping 12-month observation windows. Spreds applies windows that each start on 1 January of a calendar year and end on 31 December of the same year. The figures in this document therefore reflect the situation as of 31/12/2025.
The 1-year default rate is published based on the following formula:
- The denominator consists of the number of non-defaulted loans observed at the beginning of the 12-month observation window.
- The numerator includes all loans considered in the denominator that had at least one default event during the 12-month observation window.
Overall actual default rate of loans offered on Spreds
The above formula results in the following calculation:
|
Loans in default
(numerator)
|
Non-defaulted loans
(denominator)
|
Actual default | |
|---|---|---|---|
| 2023 | 0 | 1 | 0% |
| 2024 | 0 | 2 | 0% |
| 2025 | 0 | 7 | 0% |
As of today, there are seven loans currently outstanding, all concluded following crowdfunding campaigns offered on Spreds. Six loans have an annual repayment schedule. One loan has a bi-annual repayment schedule.
The overall actual default rate over the entire 36-month period is 0%.
5. Actual and Expected Default Rate per Risk Category
Methodology behind the risk categories
For the calculation of the actual and expected default rates, Spreds assigns each individual loan to a specific risk category within its existing risk management framework, taking into account all relevant factors that could negatively affect the performance of the loans.
Five quantitative parameters have been defined to support the risk classification:
- Number of years the company has been in existence (experience)
- Solvency: (equity / total liabilities) × 100
- Revenue
- EBITDA
- Debt/EBITDA ratio
A value is assigned to each parameter, which results in an A, B, or C score for the relevant parameter:
| Parameter | A-score | B-score | C-score |
|---|---|---|---|
| Constitution | > 5 years | 3–5 years | < 3 years |
| Solvency | > 25% | 10-25% | < 10% |
| Revenue | > €500k | €250k to €500k | < €250k |
| EBITDA | > €100k | €50k to €100k | < €50k |
| Debt/EBITDA ratio | < 5 | 5-10 | > 10 |
Next, the number of A, B, and C scores achieved across the 5 parameters is examined, and based on this outcome, each project is assigned to a risk category:
- Risk category A: if at least 3 parameters receive an A score.
- Risk category B: if fewer than 3 parameters receive an A score, but at least 3 parameters receive an A or B score.
- Risk category C: if at least 3 parameters receive a C score.
Methodology behind the default qualification
For the publication of the actual and expected default rates of all loans in accordance with Article 20(1), point (b)(i), of Regulation (EU) 2020/1503, the simple averages of the observed 1-year default rate by risk category over the entire historical observation period (of 36 months) are calculated, using non-overlapping 12-month observation windows.
The 1-year default rate per risk category is published based on the following formula:
- The denominator consists of the number of non-defaulted loans observed at the beginning of the 12-month observation period within the risk category for which the default rate is calculated;
- The numerator includes all loans considered in the denominator that had at least one default event during the 12-month observation period.
Actual and expected default rate per risk category of loans offered on Spreds
The above formula results in the following calculation:
2023
| Risk category |
Loans in default
(numerator)
|
Non-defaulted loans
(denominator)
|
Actual default | Expected default |
|---|---|---|---|---|
| A | 0 | 1 | 0% | 0% |
| B | 0 | 0 | 0% | 0% |
| C | 0 | 0 | 0% | 0% |
| Total | 0 | 1 | 0% | 0% |
2024
| Risk category |
Loans in default
(numerator)
|
Non-defaulted loans
(denominator)
|
Actual default | Expected default |
|---|---|---|---|---|
| A | 0 | 2 | 0% | 0% |
| B | 0 | 0 | 0% | 0% |
| C | 0 | 0 | 0% | 0% |
| Total | 0 | 2 | 0% | 0% |
2025
| Risk category |
Loans in default
(numerator)
|
Non-defaulted loans
(denominator)
|
Actual default | Expected default |
|---|---|---|---|---|
| A | 0 | 7 | 0% | 0% |
| B | 0 | 0 | 0% | 0% |
| C | 0 | 0 | 0% | 0% |
| Total | 0 | 7 | 0% | 0% |
The above calculations result in the following summary table:
| Risk category | Actual default | Expected default |
|---|---|---|
| A | 0% | 0% |
| B | 0% | 0% |
| C | 0% | 0% |