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| revenue =
| revenue =
| num_employees = 120
| num_employees = 120
| parent = Rocket Internet
| parent = [https://www.rocket-internet.de/ Rocket Internet]
| homepage = [http://www.lendico.com/ www.lendico.com]
| homepage = [http://www.lendico.com/ www.lendico.com]
}}
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Revision as of 09:41, 11 July 2014

Lendico Global Services
Company typePrivate
IndustryFinance, Software
FounderDr. Dominik Steinkühler, Dr. Clemens Paschke, Philipp Petrescu, Dr. Christoph Samwer
Headquarters
Berlin
,
Germany
Area served
Germany, Spain, Poland, Austria, South-Africa
ProductsPeer-to-peer lending
Number of employees
120
ParentRocket Internet
Websitewww.lendico.com

Lendico is a multinational company, operating a peer-to-peer lending platform. The company was founded in December 2013 [1] by the incubator and venture capitalist, Rocket Internet [2]. After launching in Germany, the company expanded into Spain, Poland, Austria and South Africa. Using the crowdfunding model, the company based in Berlin, Germany [3], aims to create a direct link between investors and private borrowers.

History

Lendico was created in December 2013 by Dr. Dominik Steinkühler, Dr. Clemens Paschke, Philipp Petrescu and Dr. Christoph Samwer. Inspired by the business model of the US peer-to-peer lending platform Lending Club [4] and UK based company Zopa [5], Lendico is a marketplace that enables the link between borrowers and investors. During the first 5 months of 2014, the company established itself in Austria [6], Spain [7], Poland and South Africa [8], replicating the expansion plan usually used by its creator, Rocket Internet.[2]

Business Model

Lendico collects a fee from borrowers and investors[9]. Borrowers are charged a one-time fee for the origination of the loan. Investors are charged a fee of each received payment. All loans are unsecured personal loans and range between €1,000 - €25,000 in Germany [10]. The interest fee is calculated on the basis of the borrower’s credit score, credit history, desired loan amount and the borrower’s debt-to-income ratio [11]. Lendico determines whether the borrower is creditworthy and assigns to its approved loans a credit grade that determines the payable interest rate and the fees. The loan period can range between 1 and 5 years and be repaid at any time.[12] Borrowers can apply for loans by entering their personal details and presenting their project: the amount they would like to borrow and the reason for borrowing money. From this information, Lendico is attributing a risk grade to accept or not the demand and fix an interest rate[13]. Only 10% of application are received on the platform[14]. Once borrowers have been approved, investors can browse the loan listings and choose which ones to invest in; with a minimum amount of €25 per project[15]. The loans projects are staying up to two weeks on the platform to get funded.[16] Investors are earning money from interest payed by borrowers. Those interest vary from 2.43% in Germany up to 21.56% in South Africa, depending also on the credit grade assign to the borrower. Lendico collect an origination fee on each loan, ranging from 0,5% up to 7% of the borrowed amount; and collect a fee on investors' return ranging from 0,45% up to 1,5%, depending on the maturity of loans and their country of origination[17].

For the moment, Lendico offers their loan marketplace exclusively for residents of Germany, Spain, Poland, Austria and South Africa.

See also

References

  1. ^ Adepoju, Paul (7 February 2014). "Africa Internet Holding launches Lendico marketplace in South Africa". Human Ipo. Retrieved 23 April 2014.
  2. ^ a b Seibel, Karsten (15 May 2014). "Warum jetzt sogar Online-Banken von gestern sind". Welt. Retrieved 6 June 2014.
  3. ^ Neuhaus, Carla (15 June 2014). "Woran Berliner Start-ups arbeiten". Tagesspiegel. Retrieved 21 June 2014.
  4. ^ "Rocket Internet is getting ready to launch peer-to-peer lending platform "Lendico"". Venture Village. 30 October 2013. Retrieved 8 June 2014.
  5. ^ Hesse, Martin (31 March 2014). "David gegen Goliath". Spiegel. Retrieved 23 June 2014.
  6. ^ Räth, Magdalena (7 April 2014). "Lendico leiht Geld in Österreich (Update: und in Südafrika)". Gruender Szene. Retrieved 18 June 2014.
  7. ^ "Préstamos privados, facturas y bonos, alternativas al crédito bancario". El Pais. 9 February 2014.
  8. ^ Mungadze, Samuel (16 April 2014). "A form of online stokvel". Financial Mail. Retrieved 25 May 2014.
  9. ^ "FAQ". Lendico. Retrieved 2 June 2014.
  10. ^ Michelle, Kuepper (2 December 2014). "Rocket Internet's P2P lending venture Lendico has lift-off". Venture Village. Retrieved 20 June 2014.
  11. ^ Heismann, Günter (12 April 2014). "So funktioniert der Kredit vom Nachbarn". Wirtschafts Woche. Retrieved 15 June 2014.
  12. ^ Heismann, Günter (12 April 2014). "So funktioniert der Kredit vom Nachbarn". Wirtschafts Woche. Retrieved 15 June 2014.
  13. ^ "FAQs for borrowers". Lendico. Retrieved 27 June 2014.
  14. ^ Mungadte, Samuel (9 Avril 2014). "Lendico opens loan facility". Business Day. Retrieved 27 June 2014. {{cite journal}}: Check date values in: |date= (help)
  15. ^ "FAQs for Investors". Lendico. Retrieved 27 June 2014.
  16. ^ "Borrower - Getting Started". Lendico. Retrieved 27 June 2014.
  17. ^ "General FAQ". Lendico.
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