p2c lending

Finbee Adds Business Loans

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finbee logoP2P lending marketplace Finbee has so far offered consumer loans only. Now Finbee is extending the product range to SME loans. Finbee sources the applying companies through a separate website and will focus on small loans up to 15K EUR and a term of 12 months. For most business loans rates will be fixed without an auction (which Finbee uses to set interest rates for consumer loans). Different to consumer loans, investments into business loans will not be covered by the Finbee compensation fund (CSF), if the loan defaults. Each loan application will be individually assessed, by assigning risk grade from A+ to D, where A+ is a low risk loan, D – high risk loan, based on reputation of the management (20% of risk grade), financial sustainability (60% of risk grade), market situation (20% of risk grade).

Audrius Griskevicius, head of SME lending, told P2P-Banking: ‘SMEs in Lithuania have very limited access to financing. As result of this, the government issued a law, allowing p2p lenders to issue loans for small business. Finbee took an active role in development of necessary regulation and we are very proud to be the first one to receive a license of p2p lending to SMEs.’

The first business loan listing is online. Magava wants to borrow 10K EUR working capital for 12 months at 15% interest rate. Investors have to complete a self assessment survey before they can invest into business loans.

Victory Park Capital will invest 420M in P2P Lending Loans on Funding Circle USA

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fundingcircle-logo-2012US asset manager Victory Park Capital will invest 420 million US$ over the course of the next 3 years in p2p loans to SMEs in the US via p2p lending marketplace Funding Circle USA. This agreement follows an earlier deal where Victory Park Capital agreed to lend 150 million GBP via Assetz Capital over the next five years.

With a single institutional investor planning to fund these volumes, these are staggering numbers.

 

Fundedbyme Launches P2P Loans To Swedish SMEs today

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fundedbyme-logoSwedish p2p equity platform Fundedbyme expands the product portfolio offered to p2p lending today. Typically loans are between 25 and 25,000 EUR. They pay yearly interest, a percentage of the profit and a possible exit bonus. Anyone can lend money to a p2p lending campaign on Fundedbyme. The minimum bid size is 50 EUR per loan. Daniel Dabocy, CEO of Fundedbyme on the reasoning of entering p2p lending: ‘The idea behind our business is to link investors with entrepreneurs in the most efficient way. That is why we talk with both parties very much. When we started to get regular feedback that they would be interested in something between equity-based and reward-based crowdfunding we thought about p2p business lending. And it turned out this is what they need. Now we are launching the product and I am pretty sure results will confirm that we took the right decision.’ (Source).

Fundedbyme says they have (for their equity offer) signed up 47,000 investors, so they are confident they will fund the new loan offers.

I just checked. Right now there are 4 loan-based offers open for funding on the site.

Fundedbyme loan offers

Every company needs to have a turnover of at least 15,000 EUR in early turnover, and have been registered for at least 1.5 years. In addition to this, the information from credit bureaus UC and Bisnode both have to give the company a favourable risk rating. Loans over 40,000 EUR have a personal guarantee. Continue reading →

Interview with Asger Trier Bing, CEO of Lendino

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Interview with Asger Trier Bing, CEO of Danish service Lendino.

What is Lendino about?

  • Lendino is a marketplace lender for loans to SMEs in Scandinavia ranging from 20K-2M USD.

What are the three main advantages for investors?

  • Investors get a higher return than from similar asset classes.
  • Investors are enabled to invest in companies that appeal to them (CSR).
  • Investors can invest in their own local area or in a company of a friend.

What are the three main advantages for borrowers?

  • Borrowers get a lower interest on their loan, which will benefit them through decreased funding costs
  • It is faster and easier to apply for funding at Lendino than at a bank.
  • Borrowers can build a stronger relationship with customers who invest in their loans

What ROI can investors expect?

  • Investors should expect a net return of 5-8 percent

How did you start Lendino? Is the company funded with venture capital?

  • Lendino was launched in 2013 by Andreas Christensen and Asger Trier.
  • The vision is to improve finance.
  • The company has been funded by the founders until today.
  • A VC round is ongoing and is expected to close within 30 days.
  • It has a  mix of Danish and UK investors onboard. Continue reading →