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Lendermarket Analysis

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Last updated in May 2022.

What is Lendermarket?

Lendermarket is a new proprietary platform of a large and established credit originator - Creditstar. The platform launched in 2019 and is registered in Ireland but runs from Credistar’s offices in Tallinn, Estonia. A total of €295.98m has been funded via the platform - see Lendermarket statistics for more historical performance insights.

Key Takeaways

  • A complex legal structure of the platform and its parent company, seemingly owned by a sole entrepreneur, although fuelled by bond investments
  • Short-term personal loans from mature European markets issued by Creditstar subsidiaries
  • High interest rates and an average ROI of 13.8% with a buyback guarantee on all deals

Who is Behind Lendermarket?

Aaro Sosaar seems to be the brain of both Lendermarket and the whole Creditstar Group - he is also the current CEO. He seems to be the sole owner of Estonia-based SA Financial Investments, which holds 100% shares in both Lendermarket and the Creditstar Group. It is unclear why Lendermarket is registered in Ireland since it seems clear that the company is run from Estonia.

The company hasn’t sought any equity funding but has issued several rounds of corporate bonds listed on the Baltic NASDAQ.

Financial reports are available for both Lendermarket and Creditstar. The platform lost about €400,000 between June 2019 and December 2020. The Group, however, made healthy profits in 2019 (€5.3m) and 2020 (€5.5m). GrantThornton audits their financial reports.

Lendermarket's Investment Product

Lendermarket offers short-term personal loans (microloans or payday loans) from Creditstar Group’s subsidiaries in seven European countries. In terms of credit volumes, Poland is the largest market (€34.7m issued to date), followed by Estonia (€15m), Finland (€9.8m), Spain (€3m), the Czech Republic (€1.3), and Sweden and Denmark (under €1m). Most loans mature in just 30 days, although some long-term options are available (up to even seven years). Loan volumes range from as little as €100 up to several thousand. Investments are unsecured, but the platform offers a 60-day buyback guarantee on all deals.

Investors can use an auto-invest feature. There is no secondary market available, but the short investment horizons make it possible to exit the platform in a relatively short time.

How Much Can You Earn?

Lendermarket advertises a 13.8% average annual return on investment. Interest rates range from 10% to 16%.

The platform doesn’t charge any fees to investors. The fee structure applicable to borrowers isn’t available on the website. You can increase your initial returns by 1% using the bonus.

Other Considerations

Lendermarket has featured among the fastest-rising marketplace lending platforms in our monthly report series for several months. It also suffered less amid the Ukraine crisis than its peers exposed to Eastern European markets.