Debitos GmbH and the LOANCOS Group have entered into a strategic partnership. Its aim is to facilitate access to the German market for non-performing loans (NPLs) for both domestic and international investors.
According to the NPL Barometer published by the German Federal Association for Loan Purchase and Servicing (BKS), the volume of non-performing loans at German banks will rise to around EUR 41 billion by the end of 2025. The area of commercial real estate financing is particularly affected.
In view of this development, banks are under increasing pressure to reduce their NPL portfolios. The so-called NPL backstop rule provides an additional regulatory incentive. It obliges banks to gradually increase write-downs on their NPLs within certain periods – in the case of unsecured loans, to 100 percent after three years at the latest. For loans secured by real estate, 100 percent must be recognized after nine years and for loans secured by other collateral, 100 percent must be recognized after seven years at the latest. This regulatory requirement increases the pressure on banks to sell non-performing receivables at an early stage.
Established platform and approved servicer
The partnership now concluded between Debitos and LOANCOS responds to this market situation with a holistic solution approach. Debitos is an established online marketplace for the secondary market trading of credit receivables. The company is a member of the European Commission’s NPL Advisory Panel “Investors can use our platform to acquire NPL portfolios in Germany and many other countries. They then often ask us for local servicing partners with the appropriate authorization in accordance with the Credit Servicer Directive of the European Union. LOANCOS is the ideal partner for us in Germany, as it has a very broad base, is independent and has held the relevant license from BaFin since 2024,” explains Timur Peters, Managing Director of Debitos GmbH.
The companies in the LOANCOS Group have this license: LOANCOS GmbH specializes in processing residential real estate and consumer loans, while Proceed Portfolio Services GmbH (PPS) handles commercial real estate and corporate loans. Both companies are licensed by BaFin as credit servicers in accordance with the German Secondary Credit Market Act (KrZwMG). It is a prerequisite for servicing, collecting or restructuring receivables in Germany on behalf of third parties. LOANCOS is also a member of the Bundesvereinigung Kreditankauf und Servicing e.V. (BKS), which was closely involved in the consultation process for the KrZwMG.
Strong partner for international investors
“The combination of servicing capabilities, excellent market knowledge and regulatory expertise of the LOANCOS Group as well as the high market penetration of Debitos on the banking and investor side make us a strategic solution provider for banks and lenders on the sell side as well as for domestic and international investors on the buy side,” says Dr. Clifford Tjiok, Chief Commercial Officer and member of the Management Board of the LOANCOS Group.
As part of the partnership, Proceed Portfolio Services GmbH (PPS) will take over the operational servicing of commercial loan portfolios. “The regulatory requirements of the KrZwMG pose new challenges. Together with Debitos and our sister companies within the LOANCOS Group, we offer investors a legally compliant and simple solution for entering the German NPL market,” explains Tilo Knebusch, Managing Director of Proceed Portfolio Services (PPS).
About Debitos:
Debitos is the leading online transaction platform for the sale and trading of non-performing loans in Europe. The platform enables banks, companies and financial service providers to structure the sale of receivables to a broad network of international investors. Debitos is also a member of the European Commission’s NPL Advisory Panel. www.debitos.com
