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PlusPlus Capital/Investor Relations/News/OPERATIONAL UPDATE REGARDING COVID-19


2020 March


In the extraordinary situation caused by the outbreak of the coronavirus and actions taken by governments to limit its’ spending PlusPlus Capital acts responsibly and in compliance with rules and recommendations from authorities in all countries. Protecting employees and continuing operations will remain our priorities.

PlusPlus has been built to operate successfully in all phases of economic cycles including recession and is now working according to the plan prepared for operating in turbulent environment.



Developing of technology and IT-driven digital operating model secures full business continuity regardless the degree of strictness of the restrictive measures governments impose to people and companies. This enables performing essentially all business functions from distance and guarantees that PlusPlus will stay fully operational across the extraordinary situation in Estonia, Latvia, Lithuania and Finland, the four home markets.



As the COVID-19 virus continues to spread, PlusPlus is working on the assumption that the macroeconomic situation will worsen in the coming months.

Over the 10 years of operations PlusPlus has always operated on the assumption that offering affordable payment solutions will not only ensure better client relations, but also generate higher returns for the company. PlusPlus stays committed to its’ strategy and will offer flexible restructuring options for clients who need relief. As a result, the temporary contraction in collection will be more than offset by longer schedules and better returns over the rest of the life of existing agreements.

As unemployment grows, amount of client payments declines. According to the model we use, incoming cash flow will temporarily decrease by 20-30 per cent.

PlusPlus has fully taken account of this scenario and is well prepared to continue performing well in changed circumstances Incoming cash flows is sufficient to cover everyday running costs like salaries, rent, etc., even if collections will be temporarily negatively affected.



On a longer run economic downturns may generate attractive purchasing opportunities. Supply of non-performing loans will grow as default rates in banks soar and portfolio prices will drop accordingly.

PlusPlus was established in 2010 shortly after the end of the global financial crisis and as our track record confirms, the portfolios purchased in post-crisis environment have generated superior returns due to lower purchase prices and gradually improving solvency of clients in recovery phase.

However, for the time being there will be a lot of uncertainty in the market and PlusPlus will not engage into new investments before visibility improves. We expect that the change in the market may take as long as 6-12 months.

We will honor valid forward flow contracts and carefully monitor market dynamics to promptly react on new developments. The management of PlusPlus is convinced that the company is fully equipped to continue operating smoothly and delivering solid performance for the investors.


Should you have any concerns or questions, please contact us.

Stay safe and healthy!