Non-performing loans ("NPL") are loans that are deemed to cause probable credit losses including individually assessed impaired loans, portfolio assessed loans past due more than 60 days and restructured portfolio assessed loans. Hoist Finance primarily purchases loans that are credit-impaired on initial recognition.

Our portfolio consists of three main asset classes, all focused on consumers and SMEs:

• Non-performing unsecured loans: an unsecured loan is a loan that is issued and supported only by the creditworthiness of the borrower and any guarantor, rather than by any type of collateral.
• Non-performing Secured loans: a secured loan is a loan in which the borrower pledges some asset as collateral for the loan, normally a mortgage, which then becomes a secured debt owed to the creditor who extends the loan.
• Performing loans: a performing loan is a loan in which payments of interest and principal are less than 90 days due.