The French Market for Peer-to-Peer Lending
France has been the largest market for alternative finance in continental Europe since 2013. In the latest report from the Cambridge Centre for Alternative Finance (CCAF), France had a funding volume from alternative finance of €661.3 million, which corresponds to a market share of 19.6% in continental Europe. In a worldwide perspective, this places France as the country in the world with the seventh-largest funding volume from alternative finance. From this funding volume, €410.7 million came from P2P lending, which also places France as number 1 in continental Europe in this category, closely followed by Germany. However, looking at the whole European region, France still has a long way to go before catching up on the United Kingdom.
In this article, you will find a complete list of all peer-to-peer lending platforms in France, followed by a presentation of the latest data on the French market for P2P lending.
Table of Contents
Best P2P Lending Platforms in France
Here, you will find a list of the top peer-to-peer lending platforms in France. Under each platform, you will find a brief description of the platform and the type of P2P 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.
October facilitates crowdfunding in the area of SME business lending to French, Spanish, Italian and Dutch companies at a minimum investment of €20. The platform exclusively offers SME business lending but helps finance a range of different purposes such as digitizing businesses, refinancing, going international, expanding team, and optimizing production among others. October was founded in 2014 by Olivier Goy and Benjamin Netter as a French company. The office and company is located in Paris, France but the platform also offers financing to companies in Spain, Netherlands and Italy. All loans are in Euro(EUR).
October offers a €20 bonus to all new lenders, to get the bonus you must invest a minimum of €500. Use this link before registering to activate the bonus.
Any citizen in Europe 18 years old or above with a EU bank account can invest on October. The platform is also open for institutional investors.
All French, Spanish, Dutch and Italian registered companies with a financing volume of €30,000 to €5,000,000 and a duration of 3 months to 7 years.
Credit.fr facilitates crowdfunding in the area of SME business lending to French companies. Each lender can invest from €50 to €2,000 per project. The platform was created to offer financing for equipment, intangible needs, and working capital to different sectors such as healthcare, hotel and catering, industrial, and service sectors among others. Credit.fr was founded in 2014 as a French company. In June 2017, Credit.fr partnered with the Tikehau Capital group which then became its majority shareholder. The office and company is located in Levallois-Perret, France and only facilitates loans to French SME companies. All loans are in Euro(EUR).
Any natural or legal person can register. Natural persons must be at least 18 years old. Institutional investors are allowed on the platform.
Any French SME which have at least 3 years of trading history, generates a turnover of at least € 150,000 and has a positive equity. The companies can borrow from € 20,000 to € 2,500,000 for a period between 12 to 60 months.
Raizers facilitates crowdfunding in the area of SME business lending and real estate lending to French and Swiss companies at a minimum investment of €1,000. The platform offers financing for business development, working capital, rehabilitation of properties and purchase of real state among others. Raizers was founded in 2014 by Grégoire Linder as a Swiss company. The headquarter is located in Paris, France but also offers financing to Swiss property and SME companies from their office in Switzerland. All loans are in Euro (EUR) and Swiss Franc(CHF).
WeShareBonds facilitates crowdfunding in the area of SME business lending and real estate lending to French and Spanish companies at a minimum investment of €50. The platform offers financing for business development, recruitment, digital transformation, working capital among others. WeshareBonds was founded in 2015 by Cyril Tramon and Yoann Coumes-Gauchet as a French company. The office and company is located in Paris, France but also offers financing to property and SME companies in Spain. All loans are in Euro(EUR).
Finexkap facilitates crowdfunding in the area of invoice lending for French companies at a minimum investment of €50,000. The platform offers working capital with three different financing solutions for the invoices: Cash Immediate, Cash Market and Cash Reverse. Finexkap was founded in 2012 by Arthur de Catheu and Cedric Teissier as a French company. The office and company is located in Paris, France and mostly offers to finance invoices from French companies. All invoices are in Euro(EUR).
Professional investors with a minimum of €50,000.
French companies with a trading history of at least 4 – 18 months that has invoices with a value of minimum €1,000. There is a large range of criteria for which invoices can be financed. For example it can’t be overdue, must comply with applicable law such as LME, is confirmed and payable and there can not be a dispute with the client regarding the invoice among others.
Younited Credit facilitates crowdfunding in the area of consumer lending to individuals in France, Italy, Portugal and Spain at a minimum investment of €1,000. The platform offers financing for the purchase of different vehicles such as cars, boats and motorcycles and for consumers personal projects. Younited Credit was founded in 2009 by Charles Egly, Geoffroy Guigou, and Thomas Beylot as a French company. The office and company is located in Paris, France but also offers financing to consumers in Spain, Portugal and Italy. All loans are in Euro(EUR).
Any natural or legal person above 18 years old that resides or have the nationality from a country of the European Economic Area and is able to invest a minimum of € 1,000 at registration.
French, Italian, Portuguese and Spanish citizens with a financing need from €1,000 to €50,000 and a duration from 16 to 84 months.
Bolden facilitates crowdfunding in the area of SME business lending to French companies at a minimum investment of €20. The platform offers alternative financing to dynamic SMEs for working capital needs and development projects. Three different products are offered depending on the needs; Bolden Advance(1 to 12 months and up to €50,000), Bolden Lending(12 to 84 months and up to €3m) and Bolden Leasing(36 to 60 months and up to €3m). Bolden was founded in 2014 by Tristan Grué as a French company. The office and company is located in Paris, France and exclusively facilitates loans to French VSE and SME companies. All loans are in Euro(EUR).
Any natural or legal person can register. Natural persons must be at least 18 years old.
Any commercial company domiciled in France and registered in the Trade and Companies Register can request funding.
The criteria for applying for a loan is:
- A minimum of 6 months of activity
- Have positive equity.
- Have a turnover of more than € 60,000.
- The amount borrowed must be justified by a solid project and be in line with the repayment capacity of your business.
Unilend facilitates crowdfunding in the area of SME business lending to French companies at a minimum investment of €20 and maximum of €2,000 per project. The platform offers 2 types of financing: Cash flow(stock, recruitment, marketing expenses, etc) and Investments(works, creation of a new point of sales, acquisition of machines, etc.) for business development. Unilend was founded in 2013 by Francois Prioux and Nicolas Lesur as a French company. The office and company is located in Nancy, France and exclusively offers financing to property and SME companies within France. All loans are in Euro(EUR).
Unilend offers a €15 bonus to all new lenders, to get the bonus you must have your account validated and invest a minimum of €200 within 60 days. Use this link before registering to activate the bonus.
Any citizen from the European Economic Area, Switzerland, Monaco or San Marino with 18 years old or above and with a French bank account.
French companies with a turnover of more than €100,000. The companies can borrow from €10,000 to €500,000 for a period between 3 months to 5 years.
Alternative Finance in France
For a current view of the European market for peer-to-peer lending and equity crowdfunding, you can visit our data-section for a monthly updated overview of platforms denominated in Euros. However, another valuable source of data to visit for a view on the historical development of alternative finance and crowdfunding in France is the Cambridge Centre for Alternative Finance (CCAF), who published their first report on the European market for alternative finance in 2015. The latest and fourth report was published in 2019 was called “Shifting Paradigms” and looks at 45 European countries (of course including France) and 269 platforms. The report primarily covers the four main types of crowdfunding: lending-based crowdfunding, equity-based crowdfunding, reward-based crowdfunding and donation-based crowdfunding. Because the report uses survey data the latest data available is from 2017.
The total French market for alternative finance in 2017 was €661.3 million up from €444.5 million, which corresponds to a growth rate of 48.8%. In the figure below, you can see the market development in French crowdfunding and alternative finance from 2015-2017. In 2016, the yearly growth rate was 39.8%.
France accounted for 19.6% of the market in continental Europe in 2017. In comparison to the French funding volume €661.3 million, next on the list in the European Union was Germany with a total funding volume of €595.5 million, followed by the Netherlands with €279.9 million. In a worldwide perspective, France is the seventh-largest market for alternative finance.
Statistics About P2P Lending in France
The total alternative finance volume in France in 2017 was split between twelve different business but for our purpose, we will focus on the numbers reported on P2P consumer lending, P2P business lending, and balance sheet business lending, which are the three peer-to-peer lending business models identified by CCAF in the French market. In total, peer-to-peer lending accounted for 62% of the market of which €293 million came from P2P business lending, €87.7 million came from P2P consumer lending for €87.7 million, and €30 million came from balance sheet business lending.
Below, you will find a figure showing how P2P lending has developed in France from 2015-2017.
When it comes to peer-to-peer lending in continental Europe, France had the highest funding volume of all countries with a total funding volume of €410.7 million, closely followed by Germany with a funding volume of €396.7 million. However, again France has a long way to go before catching up with the United Kingdom’s total peer-to-peer funding volume of £4,660 million.
Taxation on Peer-to-Peer Lending in France
Income from P2P lending is categorised as investment income in France and it is possible to deduct losses on crowdfunding operations by individuals not acting in a professional or commercial capacity. For a closer examination of the French tax system, please visit this overview created by the French authorities.
P2P Lending Regulation in France
Since there is still a lack of common rules for crowdfunding in the European Union, regulation of peer-to-peer in France is based on national legislation. However, this might change in the foreseeable future as the European Commission in March 2018 presented a proposal for a regulative framework on crowd and P2P finance as part of their Fintech Action Plan.
France was one of the first countries to introduce the legal status of crowdfunding (financement participative), which was done by modifying the Financial and Monetary code. There are two legal statuses of crowdfunding in France: Crowdfunding intermediary – IFP (Intermédiaire en financement participatif) for lending-based crowdfunding platforms and Crowdfunding advisor – CIP (Conseiller en investissement participatif) for investment-based crowdfunding platforms including mini-bonds.
Below, you will find an overview of some of the most important aspects of the regulatory framework for lending-based crowdfunding in France. These highlights can also be found in the impact assessment accompanying a proposal for a regulative framework on crowd and P2P finance presented by the European Union in March 2018.
- Bespoke Regime: Yes
- Scope of lenders and borrowers: Consumers-to- Businesses; Business-to-business; Consumer-to-consumer (only if loan application for educational project)
- Entry into force: 1 October 2014
- Authorisation: Registration with ORIAS (association in charge of a single register of finance intermediaries). The ORIAS has to check if the platform responds to the legal requirement (knowledge and competence, duty and professional indemnity insurance). Checks are carried out on a declarative basis. Platforms regulated by the ACPR and supervised by the DGCCRF for consumer protection purposes. No ex-ante authorisation required.
- Money handling: Platforms may provide payment services and, when doing so, must follow the specific rules applying to their other status allowing for such a service (credit institution, payment institution, electronic money institution…)
- Minimum capital requirements: None (but have to take professional indemnity insurance).
- Type of loans: Loan cannot exceed 1 M€, with a fixed rate and a maximum duration of 7 years. Only natural persons are allowed to lend on an IFP platform, with a maximal amount of 1,000 € per project.
- Business continuity requirements: IFP must define and organize any arrangements to ensure business continuity, including in the event of the failure of the platform.
- KYC rules (suitability or appropriateness; AML checks): Platforms are also subject to anti-money laundering rules. Neither appropriateness nor suitability test is foreseen.
- Size of loans: €1 million per year per project (duration up to 7 years).
- Maximum investable amounts: Lender can finance up to €2,000 per project if financing is in the form of a loan with interest and up to €5,000 per project for an interest free loan.
- Disclosure to investors by borrower: Disclosure requirements imposed on the platform.
- Information requirements & risk warnings by platforms: Warn the lender about the risks an provide to lenders: with tools to assess the possible loan amount they can afford given their income and expenses; the relevant elements enabling them to assess the economic viability of the project, in particular the business plan.
- Due Diligence: Platforms must perform due diligence in selecting the projects and disclose the pre-determined criteria used in the selection process.
- Conflict of interest: –
- Professional requirements: Good repute and professional qualifications/experience.