What is Pret d’Union about?
PRÊT D’UNION is the first and sole peer-to-peer lending platform accredited by the French Central Bank.
Thanks to an innovative disintermediation model, PRÊT D’UNION enables private individuals and institutional investors to lend money to borrowers directly through a secured bond marketplace, offering above-market returns on savings and low interest rates on consumer loans. Each party gets a better deal, bypassing mainstream financial institutions.
PRÊT D’UNION was founded in October 2009. In March 2011 the company obtained a broker license from the AMF (Autorité des Marchés Financiers – SEC equivalent); in July 2011 the company obtained a credit institution license from the French Central Bank. The marketing campaign has been launched in January 2012.
In 26 months the company has issued over €80 million in loans (€11 million in 2012, €43 million in 2013). For 2014, Pret d’Union plans to issue over €90 million in new loans.
Since its inception, PRÊT D’UNION has raised €18 million in equity. PRÊT D’UNION also enjoys the benefits of the French Research Tax Credit (CIR).
What are the three main advantages for lenders?
Pret d’Union propose 4 types of investment products:
– Fund #1 (Conservateur Court – Conservative & short duration) which invests in consumer credit with initial maturities of 2 years and 3 years granted to A Borrowers.
– Fund #2 (Conservateur Long – Conservative & long duration) which invests in consumer credit with initial maturities of 4 years and 5 years granted to A Borrowers.
– Fund #3 (Equilibré Court – Balanced & short duration) which invests in consumer credit with initial maturities of 2 years and 3 years granted to B Borrowers.
– Fund #4 (Equilibré Long – Balanced & long duration) which invests in consumer credit with initial maturities of 4 years and 5 years granted to B Borrowers.
The format of our funds is pretty similar to LC Advisors’ funds. However we added a few features: an ISIN code (FR0011605690 for Fund #2) and weekly quotes on Bloomberg (ticker PDUALNG:FP).
Yields for Lenders range from 4.4% p.a. to 7.4% p.a.
Chart 1: Purpose of loans (PU Conservateur Court)
What are the three main advantages for borrowers?
For Borrowers, the three main advantages are:
– better rates,
– fixed interest rates and constant monthly repayments (no revolving loans),
– A quicker process.
Which marketing channels do you use to attract lenders and borrowers? Can you share the current CPA?
To attract borrowers we mainly use: emailing, aggregators, banners, affiliates … (CPA below 200€ per borrower).
To attract Lenders, it’s mainly “word of mouth” and PR. Continue reading