A new peer-to-peer lending platform in Germany – Finmar – will specialize in offering loans to business owners.
Rather than keep the identity of the borrower private, as is typical of peer-to-peer lenders, Finmar will ask borrowers to reveal the purpose of the loan they are seeking. The logic is that such active and open use of the platform will advance the reputation of the businesses who are borrowing, and convince suppliers, business partners and customers to become loan creditors.
Borrowers will be required to post a video illustrating their loan request and to reach out to their community. Finmar see community ties as an important aspect of their model. If the platform could frequently generate local and regional loans they would be treading unfamiliar territory for peer-to-peer lenders, for whom the location of borrower and lender is usually of little to no relevance.
Clas Beese, founder and managing director of Finmar, believes their unique model will see Finmar establish itself quickly in the peer-to-peer lending market. The platform, which launched in November, will have to compete with another recent entrant in Lendico, backed by copycat extraordinaire Rocket Internet. Finmar have distinguished themselves as the first peer-to-peer lending platform in Germany to focus on peer-to-company lending.
Finmar will arrange loans of 2,500 to 25,000 Euros for terms of 6 to 60 months for business owners. Interest rates will range from 6 to 11 percent – Finmar set the rate depending on the Schufa credit grade of the business owner. The platform charge borrowers a 5.95% origination fee for the loan. Lenders can invest anything from 250 Euros upwards and are not charged any fees. Only residents of Germany can borrow or lend via the platform.