Its success highlights the growing popularity of peer-to-peer lending among Spanish investors and borrowers.
James Buckland, Founding Partner of LoanBook, commented:
“Achieving €330,000 in loans in a month is an endorsement of the hard work that we have put in over the last few months in providing borrowers and investors with an efficient and transparent service, as well as products that meet their needs. Crowdlending is increasingly complementing bank financing for small and medium-sized companies in Spain and we are pleased to be able to support them.”
According to Buckland, “based on the current level of interest from borrowers and investors, we are confident that we will be able to grow our loan volumes significantly throughout 2015.”
LoanBook has chosen its record month to launch a new product. Due to the improving macroeconomic outlook for Spain, it has launched a new high yield credit product, which offers returns to investors of up to 12%. This new product complements LoanBook’s current offering of term-loans, credit-lines, and trade-receivables.
LoanBook defines high yield loans as those that it rates as below B. The higher yield product caterers for the increasing investor demand for loans that offer an interest rate in excess of 8%.
Johnathan Ransom, Director of Investment Management and Operations at LoanBook, explained:
“Our gradual progression into marginally higher risk segments is based on our confidence in the gradually improving macroeconomic situation in Spain, our increasing confidence in relation to the information we have available to assess and monitor SME performance, and our ability to provide our investors with large enough volumes to achieve suitable levels of diversification.”
