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LendSecured Analysis

Rank #69
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Agricultural Loans
Real Estate Loans
Business Loans
Direct Marketplace Lending
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Last updated in May 2022.

What is LendSecured?

LendSecured is a marketplace lending platform focused on financing the agricultural sector. It opened for investors in early 2021 and has since funded €2.60m worth of loans to date - see LendSecured statistics for more historical performance insights.

Key Takeaways

  • Privately held, long-established, and profitable company - the online lending platform being an addition to previous business activities
  • Low-LTV and carefully selected agricultural loans with land or asset collateral and medium maturities (6-24 months)
  • The average historical return of 11.4%

Who is Behind LendSecured?

LendSecured was founded by Nikita Goncars (acting CEO) and Edgars Tālums. They had previously run a mortgage and agricultural lending service business Latvijas Hipotēka Ltd.

LendSecured is operated by Secured Finance MGMT, of which the two founders own all shares (50/50). According to unaudited statements, the company made approx. €42,000 profit in 2021 (up from about €9,000 in 2020).

LendSecured's Investment Product

LendSecured offers business and real estate loans in the agricultural sector. Most loans have maturities of between 6 and 24 months. Loan repayment structures vary depending on the deal, from the monthly principal and interest repayments to bullet loans. All investments are secured with collateral such as real estate, land or the underlying asset/produce (e.g., grains). LendSecured emphasises the low LTV ratios (40% on average) on their loans and a strict project selection process (only 5% of incoming applications are accepted).

There is a secondary market available to sell or buy loans. According to the platform, the development of an auto-invest function was put on hold, awaiting new EU-level regulation, which will provide some technical, regulatory standards for auto-lending.

How Much Can You Earn?

LendSecured states that its investors have earned, on average, 11.4% annually to date. Interest rates are typically between 10% and 12%.

New users can make a 1% bonus on initial investments. According to the platform’s terms and conditions, investors incur no fees, but the borrower fee structure isn’t disclosed.

Other Considerations

Apart from its low-risk emphasis, its niche is LendSecured’s key selling point. In an interview with P2PMarketData, LendSecured CEO - Ņikita Gončars tells us how they realised the sector’s potential:

[...] And the more we investigated this sector, the more we saw that it is highly underfinanced. According to a European Investments bank’s report, the financial gap for EU agriculture is around 40 billion EUR. It is a huge problem for the EU, which banks are not able to solve because of high regulatory demands and inner bureaucracy. This is a great opportunity for crowdlending. We already saw how it happened in construction business lending, with big platforms evolving like EstateGuru, Lendinvest etc. Agriculture is the next big problem we can address and solve!