One of the most promising continental alternative finance providers has now completed a significant capital raise.
LoanBook – the peer-to-business lending marketplace for Spanish SMEs – has raised a grand total of €690,000. LoanBook was relatively mum on its plans for the money, only stating that it will be used to strengthen the platform’s unique model. That model features an early-stage focus on sophisticated investors, a diverse range of products (loans, pagarés and lines of credit), and a personal touch approach with prospective borrowers. We recently produced a detailed profiling of the innovative Spanish platform – which may be viewed here.
In regard to the recent fundraise, James Buckland – Founding Partner of the platform – commented:
“The take-up of our capital raise by commercial and investment banking executives is great news for our growth, but also a recognition of the strong commercial characteristics of our products. LoanBook has raised the largest amount of capital of any Spanish peer-to-business lender for SMEs, and is also the only one that allows investors to participate in loans and pagaré discounting through a single online marketplace.”
As part of the funding round, Antonio Viola Roca will join LoanBook as a Non-Executive Director. Mr. Viola is a seasoned banking professional, having previously held senior positions at BBVA, Altitude Investments Ltd. and MoraBanc. Mr. Viola commented:
“I am excited about the challenges that lie ahead of us. In a context in which loans to SMEs are gaining momentum for their high performance, low volatility and attractive risk profile, it is our duty to provide a wide range of products, and the highest efficiency in our operations, to the investors and companies that place their trust in LoanBook.”
LoanBook’s cumulative lending figure now stands at €1,850,000. That amount is spread across loans to 22 small businesses. The platform has thus far provided its investors with average, annualized net returns of 6.5%. The current default rate is 0% – but bear in mind that LoanBook’s portfolio is still very young. Nonetheless, this is certainly one of the platforms to watch within the European space.