Lendico enters Dutch SME loan market from new hub in Amsterdam

Promising SME loan market and success of consumer product lead to expansion in the Netherlands

Only three minutes from the Amsterdam Stock Exchange, Lendico recently opened its new Dutch expansion hub. The first result is the introduction of loans to small and medium-sized businesses (SMEs). Using their successful online marketplace, the new Amsterdam team kicks off with loans of up to €150K and interest rates starting at 3,79%. The current local conditions are ideal: the Dutch market for SME loans up to €250K measures €15B and saw a new issuance growth of €234M in the first half of 2015. Expanding to SME lending builds on the success of the Dutch consumer loan product, that has seen €65M in loan requests in the first 14 months. Fast development of new product lines and their rollout to local expansion hubs strengthen Lendico’s position as the prime solution for alternative financing. The new products offer investors a growing selection of asset classes and varied portfolio options. As of today, Dutch investors can bid on both consumer and SME loans via Lendico.nl.

Entering a developing market

Crowdfunding and crowdlending platforms in the Netherlands have raised €41.8M for businesses in the first half of 2015[1]. In a market that is worth approximately €136B, of which € 15B in loans under €250k[2], this shows a huge potential for Lendico. The Dutch National Bank recently published numbers for the first half of 2015, showing an increase in demand for SME loans of up to €250K, a trend that is expected to continue in the coming months[3]. Lendico will kick off with SME loans ranging from €10K to €150K, knowing that the average crowdfunded amount for businesses lies at €89K per project[4].

Clemens Paschke, co-founder and CEO Lendico Netherlands:

“After the success of SME loans in Germany, where we have already issued millions since May 2015, the Dutch market is a natural next step. Lendico’s successful entry in the Dutch consumer lending market (September 2014) has provided us with a solid base of retail investors. Backed up by institutional investors and an equity funding round of €20M earlier this year, the confidence to expand our SME product to the Dutch market couldn’t be higher.”

Chances in the Dutch market

The potential for alternative financers like Lendico is huge in The Netherlands. Research shows that the number of companies with up to 49 employees has risen strongly since 2010[5]. The financial crisis however, made banks more reluctant to provide financing to SMEs. Due to increased regulatory costs and extensive reserve requirements[6], Dutch banks have seen their profit on smaller loans evaporate since the start of the credit crunch. This has led to stricter application conditions for a sector that is commonly seen as the engine of the Dutch economy, providing for 60% of the GNP[7].

Successful model

Being an online lending marketplace, Lendico can support SMEs in their financing needs and aid the sustained growth of their companies. With state-of-the-art IT systems, a focus on automatization and low overhead costs, Lendico is able to offer a winning product, both to SME firms and investors. Lendico continues to restore the balance between interest rates and investor returns, like it has done for the last two years in seven countries on three continents. Since its start in Germany in 2013, Lendico has processed over €1.7B in consumer and SME loans via its online platform (325.000 users).

Fast and simple processes

Lendico offers the same level of service for SME applicants as it already does for its consumer clients: a simple, online application process, followed by a fast and fair scoring. The proprietary risk-assessment model is combined with external information from renowned partners like Graydon, Creditsafe, Focum and BKR. Loans can be open for funding on Lendico’s online marketplace in less than 48 hours after the applicant has provided all documents. Retail investors register once via a simple online application and can start bidding immediately from their personal dashboard. With a minimum of € 25 for consumer loans and € 100 for SME loans, Lendico’s platform is well suited to both experienced and novice investors. Within days after the loan is fully funded, Lendico pays out to the company and passes on the monthly loan repayments to the investors.

[1] Douw&Koren, 2015

[2]De Nederlandsche Bank, 2015

[3]De Nederlandsche Bank, 2015

[4]Douw&Koren, 2015

[5] Statistics Netherlands , 2015

[6]Social Economic Counsel of the Netherlands, 2014

[7]Panteia, 2015

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About Lendico

LUnternehmensfinanzierungen. Schnell. Einfach. Günstig.

Lendico wurde 2013 in Berlin gegründet. Unser Ziel: Mittelständischen Unternehmen ermöglichen, ihr volles Potential zu realisieren. Mit schnellen, einfachen und flexiblen Firmenfinanzierungen. Unsere Motivation: Der Erfolg unserer Kunden.

Das Team hinter Lendico steht für ausgefeilte Technologie, ein tiefgreifendes Finanzverständnis, schlanke Prozesse, jahrelang angewandte Expertise und nicht zuletzt die Courage Neues zu wagen. Unsere Finanzexperten stehen als persönliche Ansprechpartner für alle Finanzierungsfragen zur Verfügung.

ING & Lendico

In den vergangenen 50 Jahren hat die ING in Deutschland bewiesen, dass sie anders ist. Und das beweisen wir auch – wenn auch noch nicht so lange. Deswegen sind wir überzeugt, dass sich die Unternehmensstrategie der ING in Deutschland und das digitale, sehr effiziente Geschäftsmodell von Lendico sehr gut ergänzen und wir zusammen stärker wachsen können.