Lenndy: Peer to Peer Short-term Eastern European business loans

Interview with Arturas Stukalo, CMO of Lenndy

Can you introduce yourself?

Lenndy is a P2P lending marketplace where investors around the world are able to invest in business loans already issued by multiple loan originators. Lenndy focuses on providing sufficient supply of short-term Eastern European business loans. This advanced P2P business model is already used by other established platforms like Mintos, Twino, ViaInvest, etc.

What have been the latest developments for Lenndy?

Lenndy platform is updated every day, because our team is working hard to give our investors

Arturas Stukalo
Arturas Stukalo

 

the best experience. The newest future allows investors employ their funds instantly, as there is no need to wait until a loan is fully funded.

What does Lenndy do?

Lenndy brings together investors and loan originators, who are selling claim rights of already issued business loan. Investors at Lenndy can invest in small and medium business loans that are backed with collateral, loan originator’s buyback guarantee and other tools to protect investors. The average annual interest rate currently is 12.53%.

Can you describe Lenndy in numbers?

  • The platform was launched in September 2016;
  • Over 2600 investors from 32 different countries registered at Lenndy;
  • Over 5.5 mln. EUR of investments;
  • Over 1000 loans funded;
  • Borrowers already repaid over 45% of all invested funds (2.5 mln. EUR) to investors. The number is relatively high due to a number of short-term loans at Lenndy;
  • Defaulted loans – 0%;

In which markets does Lenndy operate?

Investors from all over the world are welcome to use Lenndy lending marketplace. Most of the loans at Lenndy were issued in Lithuania. However, we are negotiating with Loan Originators from other countries.

What are the different kinds of loans are on offer on the Lenndy platform?

There are 4 type of loans at Lenndy:

  1. Loans secured by mortgage;
  2. Secured car loans;
  3. Invoice financing loans;
  4. Working capital business loans.

Are the loans listed on Lenndy sourced by Lenndy or third parties?

All loans are listed by third parties: First Finance, Credital and Simplefin. We have a strict Due Diligence policy for loan originators and only selected companies can sell loans at Lenndy. Lenndy screen and double check all loans before they are listed online.

Does Lenndy list asset-backed loans, and if so how are the LTV ratios checked?

Yes, 46 % of all issued loans have collateral (real estate or cars). The value of collateral is estimated by an expert as indicated for each loan. This may be a third-party certified valuation company or an in-house expert for the loan originator company.

How does the Lenndy buyback guarantee work on these the products?



If a loan with a buyback guarantee is delayed by 30 calendar days, payment is covered by the loan originator. If the loan is delayed by 60 calendar days, the loan is automatically bought back by the loan originator from the investor at the nominal value of outstanding principal, plus accrued interest income.

Is the buyback guarantee offered by Lenndy or by the loan provider?

Buyback guarantee is offered by Loan Originator. It is beneficial for investors and loan originator. Investors receive their investment with accrued interest and loan originator benefits from late payment fees once the loan is recovered which might take quite some time.

Why would an investor choose to invest in all of these markets or specific ones?

We believe that smart investors should diversify their portfolio as much as possible and try investing in different loans, different marketplaces and different countries.

What is the definition of a defaulted loan, when a loan does default are the debt collection costs deducted?

Loan is considered to have defaulted if loan agreement between the loan originator and the borrower is terminated. Depending on loan originator, loan agreement is usually terminated if a borrower misses 3-4 payments and does not agree to negotiate on a friendly settlement.

What would be the impact on the p2p lending market if there was a slow down in the economy?

We believe that banks will start reducing their portfolio and more companies will face financing difficulties, so they will search for non-bank loans in the market and interest rates will go higher. On the other hand, there will be more delayed loans so investors will have a slightly different return from investments. On Lenndy most loans are backed by real assets that will not lose that much value due to the economic slowdown. Investors who have such loans in their portfolios should be relatively well protected.

In particular, how would it impact Lenndy and the buyback Guarantee?

Buyback guarantee is provided by loan originators so it won’t make an impact to Lenndy. Lenndy would put more pressure on loan originators and ask for additional reserves to ensure buyback viability.

What can we expect from Lenndy in the next 18 months?

Lenndy will introduce investors with new updates (auto-invest, SEPA payments etc.) and new loan originators from neighbour countries (Latvia, Estonia, Poland, Czech Republic, etc.)

What is the best advice you have ever been given?

The best way to predict the future is to create it yourself.

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We thank Arturas Stukalo for the interview.