Finnest, an SME or “Mittelstand spezialist,” is helping Austria-based Biogena to fund its expansion in Germany. Finnest is a new online lending platform that accepts both individual and institutional investors. Finnest allows investors the ability to lend money to smaller businesses in a rate-auction process. Investors receive a higher rate of return – and perhaps some perks. The company gains access to capital at a competitive rate while without the bank hassle.
The company was founded by Günther Lindenlaub and Joerg Bartussek. Lindenlaub is a former corporate banker from Raiffeisen Bank International. Bartussek was previously a manager for eBay. The Vienna-based company recently raised € 1 million to help expand their services beyond German-speaking countries.
The Austrian manufacturer of food supplements and micronutrient preparations will use the capital to finance the roll-out in Germany including the creation of Biogena Stores around Germany.
“With its strong market position, its tradition, its impressive growth of 30% and its very good credit rating, Biogena fits exactly into the scheme of established medium-sized companies, which allows us to offer attractive financing alternatives,” explains Günther Lindenlaub, co-founder of Finnest.
Biogena is the Austrian market leader in the in their sector of business. The company was founded by Dr. Albert Schmidbauer in 2006 and today produces more than 100 million nutrient capsules while generating over € 20 million of annual sales. With this most recent project at Finnest, Biogena is once again relying on financing through the Viennese SME specialist.
“For innovative companies, crowdfunding is becoming a normal part of the financing mix. Together with Finnest, we have already carried out one of the largest online financing projects in the Mittelstand, “says Dr. Schmidbauer.
The minimum amount for an investment is €1,000 with a term of 4 years. An interest rate of between 3% to 5% will be set.
Last month, Finnest claimed a record in SME financing by facilitating €1.5 million in 8 weeks for a well-known organic juice producer – Voelkel GmbH. Earlier this month, a four-star hotel raised €600,000 by crowdinvesting. Jakob Forstnig, Trattlerhof Hotel Managing Director, said;
“Crowdinvesting via Finnest simply fits into the financing mix of a company such as the Trattlerhof.”
With their model of combining elements of classic corporate finance with marketing effects and loyalty programs from crowdfunding, Finnest is able to provide financing to a well-established and prominent firms with excellent credit.
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