Digital Lending offers a fast and flexible alternative to the traditional banks.
Digital Lending matches lenders with approved borrowers in a safe and regulated environment and creates legal contracts between those parties.
Since Digital Lending companies operate online, they can run with lower overhead and provide services more efficiently than traditional financial institutions. As a result, lenders can earn higher returns, while borrowers can access funds much more quickly than they would through traditional banks.
There is no cap on the total you can lend to businesses on Flender. You can lend from €50 to €300,000 on each loan request although investors typically create a diverse portfolio to spread risk across a range of loans.
Interest rates available through Flender can vary depending on type of campaign and the rate the borrower is willing to pay.
Please note that Flender’s Grade V product has a higher rate as there is a higher risk attached. These deals will be bespoke in nature (eg. project finance) and may be exceptions to our standard credit criteria.
Please note that Flender will always complete the necessary due diligence and credit risk assessment to ensure that we are satisfied that the clients have demonstrated affordability for the loan facility.
The loans you make on Flender are what are known as fully amortising loans with fixed repayments. In this type of loan, each repayment from the borrower is made up of both capital and interest. Because capital repayments are being made each month, the amount of capital outstanding is reduced each month.
Interest is charged monthly on the outstanding capital. And because the outstanding capital is less each month, so is the amount of interest charged each month.
For example, if you lend €1,000 to a business at a 10% interest rate for 36 months, that 10% is charged each month on a reducing amount of capital. Therefore in this example you would receive approximately €162 in interest payments. This amount is shown as “potential return” on our loan calculator.
Flender collects funds from borrowers monthly by direct debit. To allow time for funds to clear, your returns may be credited to your investor account up to ten days after collection from borrowers.
Flender Pension Accounts differ from standard Flender accounts in a number of important ways: