Lithuanian invoice finance provider DEBIFO will now offer new investment options through the Mintos platform.
Riga-based peer-to-peer lending platform Mintos announced today the expansion of its investment opportunities through a collaboration with DEBIFO, an invoice finance online company based in Lithuania. The agreement will allow investors to purchase invoices issued not only by SMEs, but also by large corporations.
Founded in Janaury 2015, Mintos lends money to borrowers in Latvia, Lithuania and Estonia. The loans themselves are backed by either homes or cars, and are not dissimilar in size and term to Zopa or RateSetter loans. The advertised return stands at 13.3% per annum to date. More than 3,850 investors from 32 countries are registered on the platform, with investment opportunities worth more than €10m.
“For most of the small and medium enterprises in the Baltics, receiving client payments in time is critical in order to ensure continuous operations. While many of these companies have large, reliable and stable business customers, they typically set payment terms of up to 60 days or more, which makes it hard for small businesses to survive”
Founded in April 2015, DEBIFO offers invoice finance solutions for SMEs in Lithuania. The platform enables businesses to free up frozen working capital by lending funds against outstanding invoices. The estimated average net annual return for investments through the platform is approximately 13%. According to the platform, its clients operate across various sectors, such as production and trade of chemical products, trade of industrial equipment, production of beverages and many more.
DEBIFO’s CEO Justas Saltinis added:
“We see how peer-to-peer lending platforms develop as a significant alternative financing source for financial market participants all over the world. By joining Mintos platform, we have an opportunity to diversify our capital structure. At the same time, we are pleased to be the first company of its kind to offer private individuals the opportunity to invest in outstanding invoices issued by SMEs”
According to the Liberum AltFi Volume Index (Continental Europe), the European marketplace lending space delivered YoY growth in excess of 100% in 2015. A significant measure of this growth has been contributed by the Baltic States platforms, including the likes of Mintos, Bondora, Investly, EstateGuru and TWINO. The Baltic States platforms have also been surprisingly prolific in their expansion efforts.
Looking to the year ahead, AltFi Data recently used historic data to project the likely loan origination volumes of the many European platforms in 2016. The Baltic States lenders stand out from the long list of platforms. Mintos’ is expect to move from €12m to €40m (233%) by the close of 2016.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.