LoanBook, a Spanish marketplace lending platform, has successfully secured its initial £650,000 funding target from more than 200 investors through equity crowdfunding platform Crowdcube. Founded in 2013, LoanBook claims to be Spain’s largest marketplace lending platform, with a 4-year track record of working capital lending to Spanish SMEs and 40% market share.
“We have chosen to focus on short-term working capital loans (typically 3-12 months) as this is the product SMEs most value. It’s where we see the best risk/return for our investors – who also value the liquidity which S/T lending offers – and because the business processes involved in S/T lending can be almost entirely automated, allowing us to drive down costs and scale our business efficiently.”
The lender also revealed that it has financed more than €40 million of loans since launch and has doubled its volumes in each of the last three years, whilst achieving annual net returns of over 5% for the investors. The company noted it has every confidence in maintaining that growth and performance in the future.
Prior to achieving its Crowdcube funding target, LoanBook announced it has formed a partnership with Sage, a cloud computing, payroll and payments software company, to offer Sage’s Spanish customers a direct, in-product channel to request working capital loans from €25,000 to €250,000.
“Sage’s customers will benefit from a streamlined borrowing process as LoanBook will have access to customer data in order to improve the quality and speed of its underwriting – a key improvement for many SMEs seeking credit.”
All funds from the Crowdcube campaign will be used to continue LoanBook’s platform growth and development. It is currently set to close mid-January.
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