Milan-based peer-to-peer platform BorsadelCredito.it has originated more than €1.3m in loans in its first six months.
Italian small business lender BorsadelCredito.it has reached the €1.3 million in cumulative loans originated in its first six months of operations. The company has provided financial support to over 100 SMEs and has achieved an average annual return of 5.59% for its lenders since inception.
Founded in October 2013 as a digital brokerage platform by Ivan Pellegrini, Alessandro Andreozzi and Antonio Lafiosca, Borsadelcredito.it received a licence to operate as a payment institution from the Bank of Italy last year, and officially opened as an online marketplace lending platform last September.
The company provides investors with annual returns ranging from 5% to 7%, with a minimum investment amount of €5,000. The average length of the investments goes from 12 to 36 months. To be considered for a loan, firms must have at least one year of activity, €50,000 of gross revenue and no troubling signs when it comes to Credit Bureau checks. Last but not least, the safety of investor funds is bolstered by the payment of an “insurance fee” by SMEs, which goes towards a Protection Fund – a pool of capital designed to prevent the loss of investor money in the instance of default.
BorsadelCredito revealed that half of the loans that have been facilitated to date have been disbursed in Northern Italy (with over one quarter in Lombardy alone). The other half are concentrated in the Central and Southern part of the country, as the map below shows.
Number of loans disbursed per region; Source: BorsadelCredito.it
A similar set of observations apply to the platform’s investor base, which is mainly concentrated in the North, with one third of the total based in Lombardy and Piedmont. In terms of the types of businesses serviced, the company has catered to many different industries, including service providers – the blue slice in the graph below that accounts for 35% of the total amount of loans originated; retailers – the purple slice; and wholesalers – the green slice.
Breakdown of industries serviced. Source: BorsadelCredito.it
This news follows on from the closing of a €1m funding round led by Italian venture capital firm P101 last January. The company employed the capital to increase its loan origination volumes and to strengthen its strategic position within the still nascent Italian peer-to-peer space.
Ivan Pellegrini, BorsadelCredito.it CEO, concluded:
“2016 will be a year of strong growth for fintech and particularly for P2P lending. Hence, it is critical to invest in new technologies to offer Italian borrowers and investors new instruments to access cheap credit and higher returns.”