The Danish Market for Crowdlending
According to data from The Global Alternative Finance Market Benchmarking report published in 2020 by the Cambridge Centre for Alternative Finance, Denmark had a total alternative finance and crowdfunding funding volume of DKK 943.9m (€129.2m) in 2018. This represents a significant year-on-year growth of 197.1% compared to 2017, which can largely be explained by the inclusion of peer-to-peer property lending in Denmark. Here, Denmark ranked second in Europe with a funding volume of DKK 335.8m (€46.0m) only surpassed by the UK. According to our data on the Danish market for P2P lending and equity crowdfunding (P2P is often also referred to as crowdlending in Denmark), only DKK 60.5m or 6.3% of the total crowdfunding volume in 2018 came from local Danish crowdlending platforms.
Below, you will find a complete list of all crowdlending platforms operating in Denmark, followed by a presentation of the latest data on the Danish market for P2P lending.
Table of Contents
Best Crowdlending Platforms in Denmark
Here, you will find a list of the top peer-to-peer lending platforms in Denmark. Under each platform, you will find a brief description of the platform and the type of peer-to-peer lending available for investing on the platform. The list is sorted alphabetically, but to promote platforms contributing to transparency in the market, we have placed the platforms sharing data about their funding volume and other relevant statistics on the top. If you see a platform missing, please feel free to submit the platform by using the submit formula located in the sidebar of this page.
Flex Funding facilitates crowdfunding in the area of SME business lending in Denmark at a minimum investment of 200 DKK. The platform offers financing for purposes such as expansion, renovation, marketing, refinancing among others. Flex Funding was founded in 2013 by Henrik Vad as a Danish company. The office and company is located in Charlottenlund, Denmark and exclusively offers financing to Danish or Faroe Island registered SME companies. All loans are in Danish Kroner(DKK).
Kameo Facilitates crowdfunding in the area of real estate lending in Norway at a minimum investment of 500 DKK. The platform offers different kinds of real estate loans such as building credit, housing loans, bridge loans, renovation, business loans, rental property among others. Kameo was founded in 2014 by Sebastian Harung as a Swedish company. The headquarter and company is located in Stockholm, Sweden but the platform also offers financing from its offices in Denmark and Norway. Loans are in Danish Kroner(DKK), Norwegian Kroner(NOK) and Swedish Kronor(SEK).
Any Danish person or company registered in Denmark can invest on Kameo.
Any Danish real estate company or company with real estate to put as collateral can apply on Kameo if the following conditions apply:
- Established as a Limited company
- Positive equity
- Be able to present updated financial information no older than three months
- Have submitted at least one annual report
- Can obtain approved credit rating from UC, Bisnode or similar
Lendino facilitates crowdfunding in the area of SME business lending in Denmark at a minimum investment of 1.000 DKK. The platform offers financing for purposes such as generation shift, export, growth, working capital, order financing, assets among others. Lendino was founded in 2013 by Andreas Helgason Rex and Esben Bistrup Halvorsen as a Danish company. The office and company is located in Copenhagen, Denmark and exclusively offers financing to Danish SME companies. All loans are in Danish Kroner(DKK).
Fundbricks facilitates crowdfunding in the area of real estate lending to danish property professionals at a minimum investment of 10.000 DKK. The platform offers financing for development, renovation among others. Fundbricks was founded in 2018 by Anders Holm-Jensen, Thomas Rolin, Thomas Sonne-Schmidt and Thor Mønsted as a Danish company. The office and company is located in Hellerup, Denmark and exclusively offers financing to Danish real estate companies. All loans are in Danish Kroner (DKK).
Statistics on Crowdfunding and Peer-to-Peer Lending in Denmark
A valuable source of data to visit for a view on the historical development of alternative finance and crowdfunding in Denmark is the Cambridge Centre for Alternative Finance (CCAF), who published their first report on the European market for alternative finance in 2015. In 2020, the institute published its first global report on alternative finance, which included a total of 1,227 unique firms with 2,322 firm-level observations. Here, 5 firms were registered as domestic platforms and 14 were registered as foreign-based platforms operating in Denmark. The CCAF-report primarily covers the four main types of crowdfunding: lending-based crowdfunding/peer-to-peer lending, equity crowdfunding, reward crowdfunding, and donation crowdfunding. Because the report uses survey data the latest data available is from 2018.
The total Danish market for alternative finance and crowdfunding in 2018 was €129.2m up from €43.5m in 2017, which corresponds to a growth rate of impressive 197.1%. However, as noted earlier, this large increase can largely be attributed to the inclusion and growth of P2P property lending in the Danish data and earlier years have shown more modest growth rates in the overall crowdfunding market. In the figure below, you can see the development of crowdfunding and alternative finance in Denmark from 2015-2018.
If we focus on Danish platforms involved in the peer-to-peer lending market, we find three main players in Denmark: Flex Funding, Lendino and Kameo Denmark. The first active crowdlending platform in Denmark was Lendino, who raised money for the first loan in 2014. In 2015, Flex Funding joined also joined the market, and in 2018 the pan-Scandinavian platform Kameo started operating in Denmark as well. Below, you can see how the Danish crowdlending market has evolved since 2014.
If you want to see fresh data on the Danish market for crowdlending, please visit our data section where you will find monthly updated data on both crowdlending and equity crowdfunding in Danish Kroner, Euros, US Dollars and more.
Taxation on Peer-to-Peer Lending in Denmark
In Denmark, no special tax rules for crowdfunding has been established, why the general tax rules apply. Therefore, loan-based crowdfunding is viewed as regular loans where the interest earned by lenders is taxed as capital income, whereas repayments received from peer-to-peer lending is not subject to taxation. Capital income in Denmark is between 37% – 42% depending on total income. This also means that lenders do not get a deduction on the loan. If a borrower, however, defaults on a loan, it is possible for the lender to deduct the loss (if not closely related to the borrower). Remember, you are only taxed on your net capital income, so if you have interest expenses on other loans, e.g. your mortgage, you can deduct these expenses from your crowdlending income before being taxed on your interest.
For borrowers, it is possible to get a deduction on interest expenses, which is done by disclosing them on your advance statement (“forskudsopgørelse”) in box 485 and in your annual statement (“årsopgørelse”) in box 44. However, please notice that the receipt of the borrowed amount is not taxable income and the repayments on the loan do not give you a tax deduction.
You can read more on how crowdfunding and peer-to-peer lending is taxed in this brief guide published by the Danish Tax Agency. Also, you can find a guide on how to register your interest income from both Danish and foreign crowdlending platforms here.
P2P Lending Regulation in Denmark
The regulation on lending-based crowdfunding activities in Denmark distinguishes between whether the platform only transfers specific amounts of money between the project owner and the investor, or whether the platform also provides loans at it owns expense. The latter is also called balance sheet lending, which you can read more about here.
If a platform transfers loans and repayments between project owner and investor and the investor directly chooses which projects to invest in, the platform must have (as a minimum) permission to provide payment services from the Danish Financial Supervisory Authority. This authorization makes it possible to carry out activities that deal with payment intermediation between two parties. In the context of crowdlending, this could be to transfer funds in the form of a loan from an investor to a project owner – and to transfer interest and repayments from the project owner to the investor in return. This can be carried out in many ways and the specific setup of the payment service is crucial to what authorization is needed under the Payment Act.
If a platform receives deposits or other funds from investors that must be repaid and then provides loans at its own expense to projects chosen by the platform itself, the platform must have permission as a financial institution from the Danish Financial Supervisory Authority. Under the Danish Financial Business Act, this authorization makes it possible to receive deposits and other funds from the public to be repaid and to provide loans (e.g. deposits from investors) on its own account to projects. In this case, investors will have a claim against the platform on their deposit.
You can learn more about when a company is required to have an authorization as a financial institution and a more precise definition of key terms in this advisory opinion published by the Danish Financial Supervisory Authority. Furthermore, if you want to learn more about how peer-to-peer lending and other crowdfunding types are regulated in Denmark, a good source to visit is this orientation on crowdfunding, also published by the Danish FSA.