Interview with the Director of "Credital"

Go back Mon, 2017-11-13

Company Credital verslui is the loan operator which has joined the Lenndy platform the latest and provides loans for small and average business in Lithuania. Currently, Credital verslui has transferred the loans for investors for more than 150,000 EUR. Growing confidence in this loan operator is determined by high-quality portfolio management: currently investors have no delayed loans. We invite you to get acquainted with this loan operator and the founder of the company Linas Armalys.


  • Credital verslui is the company which provides loans for business. Is this description correct? Could you please comment on your activity model and characteristics?  

We provide business loans of up to 10,000 EUR which are usually intended to fund the working capital and it increases the growth of the company. We have several solid advantages:

  1. Our pricing is very transparent: we apply single agreement fee and monthly service fee of around 12 EUR for the loan of 1,000 per month (1.2%). We do not apply any other tariffs or hidden fees.
  2. Loans are granted for the companies which operate for at least 2 months. However, there are not many companies of such type because their guarantors are subject to high requirements. Two thirds of our funded companies operate for more than a year. In all cases the loan repayment is secured by the owners of the company and in 30% of cases there are two or more such guarantors.
  3. The loan may be returned earlier free of charge. And if the company is closed, the loan guarantor has a possibility to repay the loan in small instalments within 36 months.


  • Company Credital was established in 2015. How do you assess the company’s performance since its establishment?

We evaluate the results positively:

  1. We are growing fast: within 17 months we have provided loans of more than 2 million EUR. We have received more than 1.200 applications of the customers;
  2. We manage the risk well: within last 12 months only 1.6% of loans were not returned. But even in cases when the loan is not returned, more than half of them are successfully recovered by bailiffs or paid by the customers themselves;
  3. We have a very powerful team, capital base and are very transparent:
    • Currently, the level of our personal capital is 26% and we plan to keep it in the level of 20-30% for several years.
    • We are very proud of our team of the board members who ensure sustainable growth of our company. The team is presented in our website.
    • We are being audited annually by independent audit company and our accounting data is being evaluated quarterly. In this way transparency and reliability of the company is ensured for partners and investors.


  • In your opinion, what are the key factors for the company Credital which influence the growth of the company?

The working capital loans which we provide have a huge demand in the market. Banks and credit unions do not tend to provide small loans of up to 10,000 EUR and they usually require the Real Estate security, if they provide them. We provide loans online without securities, fast and comfortable. Therefore, the customers save their time and costs for property evaluation, mortgage and services of a notary public. Because of attention to the guarantors and financial data of the company we choose only reliable customers. Otherwise, we could not grow successfully. All these factors influence trust both from investment funds and from Lenndy investors. We really appreciate this trust and strive to maintain it.


  • Currently, you provide loans only in Lithuania. Are you planning to offer your services abroad?

We have development plans to neighbouring markets but our current aim is to get into Lithuanian market. There are still a lot of companies which have not heard about us and small business loan demand is still huge in the market.


  • How does your typical customer look like?

It is a company which operates for 1.5 years, has a verified business model, is profitable and in the phase of rapid growth but because of such growth it faces a large lack of working capital (it must buy more and more raw materials, employ more people and take more and more profitable orders). The shareholders of the company are individuals between 30-40 years old who are experts within their fields, have a good credit history and it is probable that they were hired employees with very good income before starting their own business.


  • What security measures do you take to protect your investments?

We provide loans with the surety of the owner of the company. We also sign a bill of exchange which significantly facilitates the process of recovery.

Before providing the loan the company and its guarantors are verified in various registers: we evaluate their credit history, historical income, Real Estate property registers, financial data of the company and so on. We monitor the companies whom we have granted the loans, i. e. we are informed about all important changes in activities of such companies (the data is received from external databases). In such a manner we react to difficulties and ensure timely recovery of the loan.


  • How does Credital portfolio look like? How many loans have you provided and how many delayed and not returned loans do you have?

Currently, our portfolio is almost 1.3 million EUR. We have more than 300 customers and we have provided loans of more than 2 million EUR during our period of operation. In our portfolio we have 3.7% of recoverable loans, i. e. we are recovering 8 loans from 300. Six of the mentioned 8 loans are being repaid successfully. We are constantly improving risk assessment model; therefore, the number of bad loans is decreasing consistently.


  • Why have you chosen to sell the loans in Lenndy loans market?

We have to fund further growth of the loan portfolio and we see that we might be attractive to Lenndy investors due to our well-managed credit risk. Moreover, we lay out only those loans to investors which have been repaid successfully for several months already and we do not have doubts in their reliability.


  •  What are the next plans of your company?

To successfully grow by increasing awareness of our services in the market. To consistently improve credit risk evaluation model. To establish good reputation of our company between the customers, partners and investors.


The questions were answered by the director of Credital verslui - Linas Armalys. Before establishment of Credital verslui Linas Armalys have been working in Swedbank, one of the largest banks in Lithuania, in the field of loan products development for 8 years. L. Armalys was the head of the Loan Product Development and Maintenance Department in Swedbank Unit for the Products of the Baltic States Group, as well as the Unit of Consumer Loans Development and Maintenance. In 2011 he was acknowledged as Swedbank employee of the year for successful development of business line.

Linas Armalys obtained a Business Administration Master’s Degree with Honours (MBA) from Lomonosov Moscow State University and a Bachelor’s Degree in Communication from Vilnius University.