The Danish marketplace lender will allow Brismo to scrutinise its loan book.
Danish marketplace lender Flex Funding has announced a tie-up with data firm Brismo that will provide independent performance data for investors.
The London-based data company will provide standardised monthly performance metrics, allowing investors to compare like-for-like analysis of lending track records.
Brismo said the move will allow “investors to review the performance of Flex Funding loans alongside other leading originators in the non-bank lending sector, and to compare risk and return characteristics across multiple geographies and asset types.”
The data firm added that the type of information it collects includes breakdowns on late payments, defaults, recoveries, net losses and net returns. Flex Funding, founded in 2013, brings together private and institutional investors to invest in small and medium sized businesses.
Flex Funding chief commercial officer Torben Bruun said: “By providing performance analysis that has been verified by a third party, and is reported to a consistent industry standard, we can provide all our investors with the opportunity to appraise our return, and risk, within a wider capital markets context.
“As we work to diversify our funding sources we trust this information will make more institutional investors interested in our loans as an attractive investment opportunity.”
Brismo founder and chief executive Rupert Taylor said Flex Funding was the data firm’s “first loan originator from Scandinavia”, adding that “we look forward to helping them to diversify their funding base as they scale their lending into new markets”.
Brismo said it currently covers 65 per cent of UK and European marketplace lending and around 40 per cent of this type of lending in the US.