We are welcoming our newest loan originator - "Credital verslui" (www.credital.lt). This brand is operated by private company „Įmoka lengvai“, which has been successfully operating in Lithuanian non-banking lending business since the beginning of year 2016. Professional team with international lending experience met Lenndy requirements and after thorough due diligence we are ready to list loans issued by Credital on Lenndy platform for our investors.
Credital provides short-term (average loan term is 9 months) working capital loans to small businesses in Lithuania (companies that have been operating just over 2 months may apply). Loan amounts range from 1 000 EUR to 10 000 EUR. Over 600 businesses have applied for a loan since establishment of Credital. Currently, its portfolio consists of over 1 mln. EUR loans issued to 250 companies and default rate (payments overdue over 90 days) is just 2.9% of active portfolio.
Working capital loans are issued without a pledge of collateral, however, owners and managers of the company are thoroughly checked (creditworthiness, reputation, etc.) and they provide personal bills of exchange.
According to partnership agreement between Lenndy and Credital, loan may be listed on Lenndy marketplace if it is not overdue AND at least two scheduled payments have been paid on time. In addition, Lenndy manages Credital Paysera account, which is used for incoming loan payments and is listed in the loan agreement signed by Credital and a borrower. Credital will have at least 5% skin in the game in order to maintain good quality of the portfolio.
Credital has shown a huge growth in the last few months and is receiving more applications than ever. So far, they issue 50% more loans every quarter compared to the previous quarters.
“We believe that our partnership with Lenndy will enable us to provide financing to businesses with high potential and, in addition, join the sharing economy and enable investors earn 12% annual return. We aim to maintain well-diversified portfolio and earn investors’ trust by providing highest quality non-banking business loans in the market.” – says Linas Armalys, who is a director of Credital and has over 8 years of experience at “Swedbank”.
Investors should carefully assess their financial situation and risk awareness before investing at Lenndy. Some or all of the invested funds might not be repaid. Diversification might help reducing the risk.
You can learn more about all loan originators that list their loans on Lenndy here - https://lenndy.com/partneriai/