Lendermarket originator Dineo outlines expansion plans

Lendermarket originator Dineo is targeting €500,000 (£432,613) of lending on the Dublin-based marketplace by the end of the year.

Dineo is a Spanish consumer lender which is part of the Cash Converter Group. It joined Lendermarket’s marketplace in May this year.

Ramón Carazo, chief financial officer of Dineo, and Conor Gibney, chief executive of Lendermarket, participated in a Lendermarket webinar at the beginning of July.

“While Dineo currently only deploys a fraction of its loan portfolio on Lendermarket, they view this as a testing phase to familiarise themselves with the platform,” Lendermarket said in a blog post, reporting on the webinar.

“Their immediate plan is to advertise their company on the platform and gradually increase their loan volume.

“Dineo aims to finance half a million euros by the end of the year and launch a new product in the first quarter of the following year, which would require a minimum of €1m.”

Read more: Lendermarket seeks new loan originators

Depending on the success of the new product – more details of which were not disclosed – Dineo may seek investment of up to €2m next year.

“But it all depends how this product works, as we don’t want to demand any money if we’re not performing in operations,” said Carazo on the webinar. “Also because of the controls we have with Lendermarket, you review our financials on a monthly basis and we cannot finance more than we can. So it’s for us, but also for investors and for Lendermarket that you put a limit, to protect your investors.”

Read more: Lendermarket applies for crowdfunding licence from Central Bank of Ireland

Lendermarket is offering Dineo loans of up to 90 days to its investors, with interest rates ranging from 10 per cent to 15 per cent.

Investors will be offered a buyback guarantee after 60 overdue days, which is also covered by a group buyback guarantee.