What is Lenndy about?
Lenndy is the first lending marketplace in Lithuania that connects loan originators with individual and institutional investors. At Lenndy, investors can invest in asset-backed loans and get a 12-15% return.
What are the three main advantages for investors?
- Loans are secured by buyback guarantee and collateral as well as personal guarantees.
- 12-15% annual return.
- No investment amount limits and no platform fees for investors;
What are the three main advantages for loan originators?
- Easy and transparent opportunity to obtain working capital by selling part of their existing loan contracts to investors (like Mintos).
- Advanced IT integration with credit management systems capabilities.
- Ability to grow reputation and brand awareness internationally.
What ROI can investors expect?
Currently, investors at Lenndy earn 12.53% average annual interest. Earnings usually depend on investment strategy and risk awareness. That is, when investors chooses to invest only in loans secured with buyback guarantee and collateral, they can expect to earn around 12% return. When investors seek 13-15 % annual return, they should consider adding invoice financing and business loans to their portfolio.
Is the technical platform self-developed?
Lenndy IT system is self-developed from scratch. IT development company was hired to complement in-house developers. It is very dynamic in order to react to market changes, adapt to multiple financing models and investorsâ€™ needs and comply with all legal requirements.
How reliable is the credit rating / credit history data available?
Loan originators collect information about borrowers from reliable credit agencies as well as public registers. We do not use standardized credit rating yet but we already have a developed model for it that will be introduced in the near future.
Company was founded in late 2015 and secured seed investment from an angel investor. Currently, Lenndy is negotiating with several angel investors and venture capital companies for another financing round that will be used to expansion and further product development.
What was the greatest challenge so far in the course of launching Lenndy?
Our goal was to create an investment instrument that would be attractive to investors, which would be liquid and would supplement any investment portfolio for great diversification. Loans market is massive, but only a fraction of it was available for investors. We know we have a great tool and we are looking forward to reaching individual and institutional investors across the whole Europe and beyond.
What is the current state of regulation in Lithuania?
Parliament of the Republic of Lithuania passed the Law on Crowdfunding, which was created by the Bank of Lithuania and the Ministry of Finance. The Law also describes Lending Marketplace as a crowdfunding model and Lenndy had already started the procedures of involvement in a list of crowdfunding operators.
Which marketing channels do you use to attract investors and borrowers?
Lenndy uses gentle digital marketing to attract investors from Europe and already has about 1000 investors who funded around 90 loans. Lenndy is growing very fast, even though we do not engage in heavy marketing. We believe it is a result of trustful model and word-of-mouth marketing. The word is spreading quickly in Lithuania, therefore we are preparing for international growth.
Is Lenndy open to international investors?
Yes, Lenndy rolled out English language and we have already started working on German and other languages.
Where do you see Lenndy in 3 years?
Lenndy has a target of at least 10 loan originators across Europe to improve portfolio diversification for our investors. In the following years we are planning to introduce portfolio buyout functionality which would allow investors sell their whole portfolio at once, secondary loans market where investors could buy and sell individual loan claim rights and many other features. We see Lenndy as transparent, innovative and trustworthy international lending marketplace.
P2P-Banking.com thanks Arturas Stukalo for the interview.