Lendermarket seeks new loan originators
Peer-to-peer lending marketplace Lendermarket is seeking to onboard new loan originators, as it aims to diversify its offer on the platform in the coming year.
The Dublin-based company currently works with four loan originators, which are based in Peru, Nigeria and Estonia, but it is now looking to expand its offering with new lenders based in the UK, Europe and further afield.
“One of our top priorities for this year is to bring additional diversification to the platform for our investors,” said Lendermarket’s chief executive Endrik Eller (pictured).
“We believe that in order to have a healthy portfolio it has to be well-diversified, and we are striving to offer just that to our investors.”
Read more: Lendermarket offering 2pc cashback on Creditstar’s long-term loans
Lendermarket is mainly targeting small- and medium-sized lending companies which have a loan portfolio of between €5m (£4.43m) and €50m. It is particularly interested in companies in the European Union and in the emerging markets of Africa, Latin America and South East Asia. However, Eller added that he is open to partnering with UK-based loan originators “if it is the right opportunity”.
In order to qualify for inclusion on the Lendermarket platform, lenders should be able to offer double-digit returns to investors, with loan terms of no more than five years.
Read more: Lendermarket increases Creditstar returns to 18pc
Lendermarket’s existing loan originators have been effusive about their experience with the platform, describing the process of collaboration as “flawless”, “seamless”, and “swift”.
After onboarding Estonia-based Creditstar in 2019, the company went on to grow its business tenfold, and other companies have seen a similar boost.
“Lendermaket runs a smooth operation and therefore our collaboration has been flawless,” said Raido Reiska, co-founder of Credory.
“The funding of our loans has given us more access to new capital and Lendermarket has also increased our visibility to investors.”
Read more: Lendermarket investors earned €5.6m in interest last year
“Through a seamless onboarding and integration process, Lendermarket offers a valuable platform to create the requisite liquidity needed for growth and profitability,” added Ebenezer Ekiko, head of treasury at QuickCheck.
“The high quality bespoke and professional service is highly commendable. Response and turnaround time for service delivery is also swift.”
Lendermarket generates its income by charging a fixed fee from the loan originator, which varies depending on the amount of money that has been raised by the platform.
“The exact commercial model depends on the country and the type of loans that the loan originator provides,” explains Eller.
“Taking into account the conditions and economic situation of the country they operate in, every loan originator decides what interest rate they offer to Lendermarket’s investors – we are not involved in the decision process.”
By joining the Lendermarket platform, P2P lending platforms can increase their exposure to retail investors and reduce the need for traditional bond financing. Joining the platform involves a quick and cost-effective legal and administrative process. Personalised marketing campaigns are available for all originators, as well as support for their next stage of growth.
Furthermore, Lendermarket’s loan originators can access the marketplace’s growing investor base. By the end of 2022, it had more than 12,000 users, and a platform value of €44m.
Prospective loan originators can contact Lendermarket by emailing partnerships@ lendermarket.com.