Stikcredit

Stikcredit was launched in 2021 under the name Afranga, which later went offline temporarily to meet ECSP license requirements. Afranga is now back online, along with Stikcredit, and both act as marketplaces for investing in loans. They connect investors with Bulgarian borrowers, with all loans issued by the parent company, Stik Credit JSC, based in Shumen, Bulgaria.

Stikcredit remains unlicensed, while Afranga received its ECSP license to operate in the European Union in December 2023. Stikcredit stopped accepting new investments and will close once all loans are fully repaid. Afranga will continue operations.^[1]

EU citizens or residents with an EU residence permit can invest and fund their accounts after completing the platform’s verification process. Since 2021, Afranga and Stikcredit have facilitated over €50 million in loan investments and raised about €89.25 million, with an average monthly volume of €19.72 million.^[2] The platform has 2,348 investors.^[3]

• Stikcredit and Afranga connect EU investors to loans from Stik Credit JSC, which underwrites business, personal, and real estate loans for Bulgarian borrowers.
• Investors can choose from three types of loans: business loans, personal loans, and real estate loans. The minimum investment is €10.
• Stikcredit offers loans with durations from less than one month to 23 months at a 10% interest rate.
• Afranga offers loans with durations from 12 to 36 months at a 16% interest rate.
• Stikcredit offers a buyback guarantee for its loans, whereas Afranga does not.

Stikcredit will cease its activity once all loans in its portfolio are fully repaid. The platform no longer accepts new investments, as all new offerings are now published on Afranga.

Stikcredit provides two types of investments in consumer loans, categorized as:

• Instalment loans
• Short-term loans

Afranga offers a wider array of loan types, including:

• Business loans
• Personal loans
• Real estate loans

Stikcredit and Afranga serve as an interface connecting investors in the European Union with loans starting from a minimum investment of €10, issued by their parent company, Stik Credit JSC.^[4] The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit or Afranga, which facilitate lending to borrowers through the Bulgarian platform Stikcredit.bg.

Stikcredit loan durations range from less than one month to 23 months. On Afranga, loan durations range from 12 to 36 months. Investments are structured as amortized loans, with monthly repayments covering both principal and interest. On Stikcredit, investment sizes range from €25 to €3,834, while on Afranga, the current investment size is €250,000.^{[5] [6]}

Stikcredit includes a buyback guarantee. If a loan is delayed by over 60 days, the loan originator repurchases it and returns the initial investment along with any accrued interest.^[7] Afranga does not offer such a guarantee, and invested capital remains at risk.^[8]

Stikcredit and Afranga both offer a secondary market for early investment exits. Stikcredit also provides an auto-invest feature for queuing new investment opportunities on the platform, whereas Afranga does not. Since the loans are offered via the Bulgarian platform, Stikcredit.bg, it is reasonable to assume that Stikcredit and Afranga have some control over the supply of loans made available to investors.

Stikcredit does not deduct any taxes from investment returns. However, Afranga is subject to withholding tax subject to specificity of each loan.^[9]

Among its active campaigns, Stikcredit currently offers a 10% interest rate, whereas Afranga offers 16%.^{[10]  [11]} While statistics on loan portfolio delays or defaults haven’t been shared, both platforms have collectively paid out €1.5 million in interest to investors since inception.

Stikcredit and Afranga do not impose any fees on investors. Opening an account is free of charge, as are both depositing funds into it and withdrawing to a bank account. There are also no service fees. However, on the fundraiser side, Afranga charges project owners a flat due diligence fee of €3,000 and a success fee of up to 10% per annum. The platform collects these fees from fundraisers and acts as a broker at the parent company level, Stik Credit JSC. The parent company generates revenue via fees, and interest income spreads.^[12]

The Stikcredit and Afranga team are composed of Stefan Topuzakov, Chairman of the Board of Directors and Executive Director, Svetlin Sabev, and Kristian Georgiev, both members of the Board of Directors. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 Under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, Head of Marketing, who brings prior experience from various marketing roles.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.^[13]

Stikcredit has raised a total of €156K in funding over one round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[14]

With the ESCP license obtained, Afranga now offers business loans, unlike Stikcredit, which provides access to consumer loans only, allowing investors to lend directly to companies. Business loans are more secured, flexible and transparent. Investors can choose flexible repayment schedules and may receive an early repayment fee if a loan is paid off early. Interest starts accruing once the loan is funded.^[15]

Stikcredit saw strong earnings growth until FY22, with a net profit of BGN 3.95 million (€2.01 million), mainly due to higher interest and charge income. However, FY22 also saw a sharp rise in loan impairment losses to BGN 9.10 million (€4.65 million), hurting net profit. In FY23, while interest income stabilized, net profit rebounded to BGN 5.73 million (€2.92 million), driven by a notable drop in loan impairment losses to BGN 7.10 million (€3.63 million), suggesting better asset quality or risk management.^[16]

1. Afranga: “Blog - Switching your investor account from stikcredit.eu to afranga.com? What you need to know”
2. P2Pmarketdata: “Stikcredit Statistics”
3. Afranga: “Homepage”
4. Stikcredit: “What is the minimum amount that can be invested?”
5. Stikcredit: “Invest - Term and Loan Amount”
6. Afranga: “Invest - Term and Loan Amount”
7. Stikcredit: “Help: What is a buyback guarantee and how does it work?”
8. Afranga: “Help: Is my investment protected by any financial compensation scheme?”
9. Afranga: “Help - Is there withholding tax on Afranga?”
10. Stikcredit: “Invest - Interest Rate”
11. Afranga: “Invest - Interest Rate”
12. Afranga: “Price List - Project Owner Fees”
13. Stikcredit: “Annual Report 2023 - Corporate Information - p16”
14. Crunchbase: “Stikcredit - Financials”
15. Afranga: “Blog - About Business loans”
16. Stikcredit: “Loan Originators - Documents - Company Presentation”

Stikcredit was launched in 2021 under the name Afranga, which later went offline temporarily to meet ECSP license requirements. Afranga is now back online, along with Stikcredit, and both act as marketplaces for investing in loans. They connect investors with Bulgarian borrowers, with all loans issued by the parent company, Stik Credit JSC, based in Shumen, Bulgaria.

Stikcredit remains unlicensed, while Afranga received its ECSP license to operate in the European Union in December 2023. Stikcredit stopped accepting new investments and will close once all loans are fully repaid. Afranga will continue operations.^[1]

EU citizens or residents with an EU residence permit can invest and fund their accounts after completing the platform’s verification process. Since 2021, Afranga and Stikcredit have facilitated over €50 million in loan investments and raised about €89.25 million, with an average monthly volume of €19.72 million.^[2] The platform has 2,348 investors.^[3]

• Stikcredit and Afranga connect EU investors to loans from Stik Credit JSC, which underwrites business, personal, and real estate loans for Bulgarian borrowers.
• Investors can choose from three types of loans: business loans, personal loans, and real estate loans. The minimum investment is €10.
• Stikcredit offers loans with durations from less than one month to 23 months at a 10% interest rate.
• Afranga offers loans with durations from 12 to 36 months at a 16% interest rate.
• Stikcredit offers a buyback guarantee for its loans, whereas Afranga does not.

Stikcredit will cease its activity once all loans in its portfolio are fully repaid. The platform no longer accepts new investments, as all new offerings are now published on Afranga.

Stikcredit provides two types of investments in consumer loans, categorized as:

• Instalment loans
• Short-term loans

Afranga offers a wider array of loan types, including:

• Business loans
• Personal loans
• Real estate loans

Stikcredit and Afranga serve as an interface connecting investors in the European Union with loans starting from a minimum investment of €10, issued by their parent company, Stik Credit JSC.^[4] The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit or Afranga, which facilitate lending to borrowers through the Bulgarian platform Stikcredit.bg.

Stikcredit loan durations range from less than one month to 23 months. On Afranga, loan durations range from 12 to 36 months. Investments are structured as amortized loans, with monthly repayments covering both principal and interest. On Stikcredit, investment sizes range from €25 to €3,834, while on Afranga, the current investment size is €250,000.^{[5] [6]}

Stikcredit includes a buyback guarantee. If a loan is delayed by over 60 days, the loan originator repurchases it and returns the initial investment along with any accrued interest.^[7] Afranga does not offer such a guarantee, and invested capital remains at risk.^[8]

Stikcredit and Afranga both offer a secondary market for early investment exits. Stikcredit also provides an auto-invest feature for queuing new investment opportunities on the platform, whereas Afranga does not. Since the loans are offered via the Bulgarian platform, Stikcredit.bg, it is reasonable to assume that Stikcredit and Afranga have some control over the supply of loans made available to investors.

Stikcredit does not deduct any taxes from investment returns. However, Afranga is subject to withholding tax subject to specificity of each loan.^[9]

Among its active campaigns, Stikcredit currently offers a 10% interest rate, whereas Afranga offers 16%.^{[10]  [11]} While statistics on loan portfolio delays or defaults haven’t been shared, both platforms have collectively paid out €1.5 million in interest to investors since inception.

Stikcredit and Afranga do not impose any fees on investors. Opening an account is free of charge, as are both depositing funds into it and withdrawing to a bank account. There are also no service fees. However, on the fundraiser side, Afranga charges project owners a flat due diligence fee of €3,000 and a success fee of up to 10% per annum. The platform collects these fees from fundraisers and acts as a broker at the parent company level, Stik Credit JSC. The parent company generates revenue via fees, and interest income spreads.^[12]

The Stikcredit and Afranga team are composed of Stefan Topuzakov, Chairman of the Board of Directors and Executive Director, Svetlin Sabev, and Kristian Georgiev, both members of the Board of Directors. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 Under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, Head of Marketing, who brings prior experience from various marketing roles.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.^[13]

Stikcredit has raised a total of €156K in funding over one round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[14]

With the ESCP license obtained, Afranga now offers business loans, unlike Stikcredit, which provides access to consumer loans only, allowing investors to lend directly to companies. Business loans are more secured, flexible and transparent. Investors can choose flexible repayment schedules and may receive an early repayment fee if a loan is paid off early. Interest starts accruing once the loan is funded.^[15]

Stikcredit saw strong earnings growth until FY22, with a net profit of BGN 3.95 million (€2.01 million), mainly due to higher interest and charge income. However, FY22 also saw a sharp rise in loan impairment losses to BGN 9.10 million (€4.65 million), hurting net profit. In FY23, while interest income stabilized, net profit rebounded to BGN 5.73 million (€2.92 million), driven by a notable drop in loan impairment losses to BGN 7.10 million (€3.63 million), suggesting better asset quality or risk management.^[16]

1. Afranga: “Blog - Switching your investor account from stikcredit.eu to afranga.com? What you need to know”
2. P2Pmarketdata: “Stikcredit Statistics”
3. Afranga: “Homepage”
4. Stikcredit: “What is the minimum amount that can be invested?”
5. Stikcredit: “Invest - Term and Loan Amount”
6. Afranga: “Invest - Term and Loan Amount”
7. Stikcredit: “Help: What is a buyback guarantee and how does it work?”
8. Afranga: “Help: Is my investment protected by any financial compensation scheme?”
9. Afranga: “Help - Is there withholding tax on Afranga?”
10. Stikcredit: “Invest - Interest Rate”
11. Afranga: “Invest - Interest Rate”
12. Afranga: “Price List - Project Owner Fees”
13. Stikcredit: “Annual Report 2023 - Corporate Information - p16”
14. Crunchbase: “Stikcredit - Financials”
15. Afranga: “Blog - About Business loans”
16. Stikcredit: “Loan Originators - Documents - Company Presentation”

Stikcredit was launched in 2021 under the name Afranga, which later went offline temporarily to meet ECSP license requirements. Afranga is now back online, along with Stikcredit, and both act as marketplaces for investing in loans. They connect investors with Bulgarian borrowers, with all loans issued by the parent company, Stik Credit JSC, based in Shumen, Bulgaria.

Stikcredit remains unlicensed, while Afranga received its ECSP license to operate in the European Union in December 2023. Stikcredit stopped accepting new investments and will close once all loans are fully repaid. Afranga will continue operations.^[1]

EU citizens or residents with an EU residence permit can invest and fund their accounts after completing the platform’s verification process. Since 2021, Afranga and Stikcredit have facilitated over €50 million in loan investments and raised about €89.25 million, with an average monthly volume of €19.72 million.^[2] The platform has 2,348 investors.^[3]

• Stikcredit and Afranga connect EU investors to loans from Stik Credit JSC, which underwrites business, personal, and real estate loans for Bulgarian borrowers.
• Investors can choose from three types of loans: business loans, personal loans, and real estate loans. The minimum investment is €10.
• Stikcredit offers loans with durations from less than one month to 23 months at a 10% interest rate.
• Afranga offers loans with durations from 12 to 36 months at a 16% interest rate.
• Stikcredit offers a buyback guarantee for its loans, whereas Afranga does not.

Stikcredit will cease its activity once all loans in its portfolio are fully repaid. The platform no longer accepts new investments, as all new offerings are now published on Afranga.

Stikcredit provides two types of investments in consumer loans, categorized as:

• Instalment loans
• Short-term loans

Afranga offers a wider array of loan types, including:

• Business loans
• Personal loans
• Real estate loans

Stikcredit and Afranga serve as an interface connecting investors in the European Union with loans starting from a minimum investment of €10, issued by their parent company, Stik Credit JSC.^[4] The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit or Afranga, which facilitate lending to borrowers through the Bulgarian platform Stikcredit.bg.

Stikcredit loan durations range from less than one month to 23 months. On Afranga, loan durations range from 12 to 36 months. Investments are structured as amortized loans, with monthly repayments covering both principal and interest. On Stikcredit, investment sizes range from €25 to €3,834, while on Afranga, the current investment size is €250,000.^{[5] [6]}

Stikcredit includes a buyback guarantee. If a loan is delayed by over 60 days, the loan originator repurchases it and returns the initial investment along with any accrued interest.^[7] Afranga does not offer such a guarantee, and invested capital remains at risk.^[8]

Stikcredit and Afranga both offer a secondary market for early investment exits. Stikcredit also provides an auto-invest feature for queuing new investment opportunities on the platform, whereas Afranga does not. Since the loans are offered via the Bulgarian platform, Stikcredit.bg, it is reasonable to assume that Stikcredit and Afranga have some control over the supply of loans made available to investors.

Stikcredit does not deduct any taxes from investment returns. However, Afranga is subject to withholding tax subject to specificity of each loan.^[9]

Among its active campaigns, Stikcredit currently offers a 10% interest rate, whereas Afranga offers 16%.^{[10]  [11]} While statistics on loan portfolio delays or defaults haven’t been shared, both platforms have collectively paid out €1.5 million in interest to investors since inception.

Stikcredit and Afranga do not impose any fees on investors. Opening an account is free of charge, as are both depositing funds into it and withdrawing to a bank account. There are also no service fees. However, on the fundraiser side, Afranga charges project owners a flat due diligence fee of €3,000 and a success fee of up to 10% per annum. The platform collects these fees from fundraisers and acts as a broker at the parent company level, Stik Credit JSC. The parent company generates revenue via fees, and interest income spreads.^[12]

The Stikcredit and Afranga team are composed of Stefan Topuzakov, Chairman of the Board of Directors and Executive Director, Svetlin Sabev, and Kristian Georgiev, both members of the Board of Directors. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 Under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, Head of Marketing, who brings prior experience from various marketing roles.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.^[13]

Stikcredit has raised a total of €156K in funding over one round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[14]

With the ESCP license obtained, Afranga now offers business loans, unlike Stikcredit, which provides access to consumer loans only, allowing investors to lend directly to companies. Business loans are more secured, flexible and transparent. Investors can choose flexible repayment schedules and may receive an early repayment fee if a loan is paid off early. Interest starts accruing once the loan is funded.^[15]

Stikcredit saw strong earnings growth until FY22, with a net profit of BGN 3.95 million (€2.01 million), mainly due to higher interest and charge income. However, FY22 also saw a sharp rise in loan impairment losses to BGN 9.10 million (€4.65 million), hurting net profit. In FY23, while interest income stabilized, net profit rebounded to BGN 5.73 million (€2.92 million), driven by a notable drop in loan impairment losses to BGN 7.10 million (€3.63 million), suggesting better asset quality or risk management.^[16]

1. Afranga: “Blog - Switching your investor account from stikcredit.eu to afranga.com? What you need to know”
2. P2Pmarketdata: “Stikcredit Statistics”
3. Afranga: “Homepage”
4. Stikcredit: “What is the minimum amount that can be invested?”
5. Stikcredit: “Invest - Term and Loan Amount”
6. Afranga: “Invest - Term and Loan Amount”
7. Stikcredit: “Help: What is a buyback guarantee and how does it work?”
8. Afranga: “Help: Is my investment protected by any financial compensation scheme?”
9. Afranga: “Help - Is there withholding tax on Afranga?”
10. Stikcredit: “Invest - Interest Rate”
11. Afranga: “Invest - Interest Rate”
12. Afranga: “Price List - Project Owner Fees”
13. Stikcredit: “Annual Report 2023 - Corporate Information - p16”
14. Crunchbase: “Stikcredit - Financials”
15. Afranga: “Blog - About Business loans”
16. Stikcredit: “Loan Originators - Documents - Company Presentation”

Stikcredit was launched in 2021 under the name Afranga, which later went offline temporarily to meet ECSP license requirements. Afranga is now back online, along with Stikcredit, and both act as marketplaces for investing in loans. They connect investors with Bulgarian borrowers, with all loans issued by the parent company, Stik Credit JSC, based in Shumen, Bulgaria.

Stikcredit remains unlicensed, while Afranga received its ECSP license to operate in the European Union in December 2023. Stikcredit stopped accepting new investments and will close once all loans are fully repaid. Afranga will continue operations.^[1]

EU citizens or residents with an EU residence permit can invest and fund their accounts after completing the platform’s verification process. Since 2021, Afranga and Stikcredit have facilitated over €50 million in loan investments and raised about €89.25 million, with an average monthly volume of €19.72 million.^[2] The platform has 2,348 investors.^[3]

• Stikcredit and Afranga connect EU investors to loans from Stik Credit JSC, which underwrites business, personal, and real estate loans for Bulgarian borrowers.
• Investors can choose from three types of loans: business loans, personal loans, and real estate loans. The minimum investment is €10.
• Stikcredit offers loans with durations from less than one month to 23 months at a 10% interest rate.
• Afranga offers loans with durations from 12 to 36 months at a 16% interest rate.
• Stikcredit offers a buyback guarantee for its loans, whereas Afranga does not.

Stikcredit will cease its activity once all loans in its portfolio are fully repaid. The platform no longer accepts new investments, as all new offerings are now published on Afranga.

Stikcredit provides two types of investments in consumer loans, categorized as:

• Instalment loans
• Short-term loans

Afranga offers a wider array of loan types, including:

• Business loans
• Personal loans
• Real estate loans

Stikcredit and Afranga serve as an interface connecting investors in the European Union with loans starting from a minimum investment of €10, issued by their parent company, Stik Credit JSC.^[4] The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit or Afranga, which facilitate lending to borrowers through the Bulgarian platform Stikcredit.bg.

Stikcredit loan durations range from less than one month to 23 months. On Afranga, loan durations range from 12 to 36 months. Investments are structured as amortized loans, with monthly repayments covering both principal and interest. On Stikcredit, investment sizes range from €25 to €3,834, while on Afranga, the current investment size is €250,000.^{[5] [6]}

Stikcredit includes a buyback guarantee. If a loan is delayed by over 60 days, the loan originator repurchases it and returns the initial investment along with any accrued interest.^[7] Afranga does not offer such a guarantee, and invested capital remains at risk.^[8]

Stikcredit and Afranga both offer a secondary market for early investment exits. Stikcredit also provides an auto-invest feature for queuing new investment opportunities on the platform, whereas Afranga does not. Since the loans are offered via the Bulgarian platform, Stikcredit.bg, it is reasonable to assume that Stikcredit and Afranga have some control over the supply of loans made available to investors.

Stikcredit does not deduct any taxes from investment returns. However, Afranga is subject to withholding tax subject to specificity of each loan.^[9]

Among its active campaigns, Stikcredit currently offers a 10% interest rate, whereas Afranga offers 16%.^{[10]  [11]} While statistics on loan portfolio delays or defaults haven’t been shared, both platforms have collectively paid out €1.5 million in interest to investors since inception.

Stikcredit and Afranga do not impose any fees on investors. Opening an account is free of charge, as are both depositing funds into it and withdrawing to a bank account. There are also no service fees. However, on the fundraiser side, Afranga charges project owners a flat due diligence fee of €3,000 and a success fee of up to 10% per annum. The platform collects these fees from fundraisers and acts as a broker at the parent company level, Stik Credit JSC. The parent company generates revenue via fees, and interest income spreads.^[12]

The Stikcredit and Afranga team are composed of Stefan Topuzakov, Chairman of the Board of Directors and Executive Director, Svetlin Sabev, and Kristian Georgiev, both members of the Board of Directors. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 Under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, Head of Marketing, who brings prior experience from various marketing roles.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.^[13]

Stikcredit has raised a total of €156K in funding over one round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[14]

With the ESCP license obtained, Afranga now offers business loans, unlike Stikcredit, which provides access to consumer loans only, allowing investors to lend directly to companies. Business loans are more secured, flexible and transparent. Investors can choose flexible repayment schedules and may receive an early repayment fee if a loan is paid off early. Interest starts accruing once the loan is funded.^[15]

Stikcredit saw strong earnings growth until FY22, with a net profit of BGN 3.95 million (€2.01 million), mainly due to higher interest and charge income. However, FY22 also saw a sharp rise in loan impairment losses to BGN 9.10 million (€4.65 million), hurting net profit. In FY23, while interest income stabilized, net profit rebounded to BGN 5.73 million (€2.92 million), driven by a notable drop in loan impairment losses to BGN 7.10 million (€3.63 million), suggesting better asset quality or risk management.^[16]

1. Afranga: “Blog - Switching your investor account from stikcredit.eu to afranga.com? What you need to know”
2. P2Pmarketdata: “Stikcredit Statistics”
3. Afranga: “Homepage”
4. Stikcredit: “What is the minimum amount that can be invested?”
5. Stikcredit: “Invest - Term and Loan Amount”
6. Afranga: “Invest - Term and Loan Amount”
7. Stikcredit: “Help: What is a buyback guarantee and how does it work?”
8. Afranga: “Help: Is my investment protected by any financial compensation scheme?”
9. Afranga: “Help - Is there withholding tax on Afranga?”
10. Stikcredit: “Invest - Interest Rate”
11. Afranga: “Invest - Interest Rate”
12. Afranga: “Price List - Project Owner Fees”
13. Stikcredit: “Annual Report 2023 - Corporate Information - p16”
14. Crunchbase: “Stikcredit - Financials”
15. Afranga: “Blog - About Business loans”
16. Stikcredit: “Loan Originators - Documents - Company Presentation”

Stikcredit was launched in 2021 under the name Afranga, which later went offline temporarily to meet ECSP license requirements. Afranga is now back online, along with Stikcredit, and both act as marketplaces for investing in loans. They connect investors with Bulgarian borrowers, with all loans issued by the parent company, Stik Credit JSC, based in Shumen, Bulgaria.

Stikcredit remains unlicensed, while Afranga received its ECSP license to operate in the European Union in December 2023. Stikcredit stopped accepting new investments and will close once all loans are fully repaid. Afranga will continue operations.^[1]

EU citizens or residents with an EU residence permit can invest and fund their accounts after completing the platform’s verification process. Since 2021, Afranga and Stikcredit have facilitated over €50 million in loan investments and raised about €89.25 million, with an average monthly volume of €19.72 million.^[2] The platform has 2,348 investors.^[3]

• Stikcredit and Afranga connect EU investors to loans from Stik Credit JSC, which underwrites business, personal, and real estate loans for Bulgarian borrowers.
• Investors can choose from three types of loans: business loans, personal loans, and real estate loans. The minimum investment is €10.
• Stikcredit offers loans with durations from less than one month to 23 months at a 10% interest rate.
• Afranga offers loans with durations from 12 to 36 months at a 16% interest rate.
• Stikcredit offers a buyback guarantee for its loans, whereas Afranga does not.

Stikcredit will cease its activity once all loans in its portfolio are fully repaid. The platform no longer accepts new investments, as all new offerings are now published on Afranga.

Stikcredit provides two types of investments in consumer loans, categorized as:

• Instalment loans
• Short-term loans

Afranga offers a wider array of loan types, including:

• Business loans
• Personal loans
• Real estate loans

Stikcredit and Afranga serve as an interface connecting investors in the European Union with loans starting from a minimum investment of €10, issued by their parent company, Stik Credit JSC.^[4] The parent company acts as an underwriter for Bulgarian borrowers. Investors enter into loan agreements with Stikcredit or Afranga, which facilitate lending to borrowers through the Bulgarian platform Stikcredit.bg.

Stikcredit loan durations range from less than one month to 23 months. On Afranga, loan durations range from 12 to 36 months. Investments are structured as amortized loans, with monthly repayments covering both principal and interest. On Stikcredit, investment sizes range from €25 to €3,834, while on Afranga, the current investment size is €250,000.^{[5] [6]}

Stikcredit includes a buyback guarantee. If a loan is delayed by over 60 days, the loan originator repurchases it and returns the initial investment along with any accrued interest.^[7] Afranga does not offer such a guarantee, and invested capital remains at risk.^[8]

Stikcredit and Afranga both offer a secondary market for early investment exits. Stikcredit also provides an auto-invest feature for queuing new investment opportunities on the platform, whereas Afranga does not. Since the loans are offered via the Bulgarian platform, Stikcredit.bg, it is reasonable to assume that Stikcredit and Afranga have some control over the supply of loans made available to investors.

Stikcredit does not deduct any taxes from investment returns. However, Afranga is subject to withholding tax subject to specificity of each loan.^[9]

Among its active campaigns, Stikcredit currently offers a 10% interest rate, whereas Afranga offers 16%.^{[10]  [11]} While statistics on loan portfolio delays or defaults haven’t been shared, both platforms have collectively paid out €1.5 million in interest to investors since inception.

Stikcredit and Afranga do not impose any fees on investors. Opening an account is free of charge, as are both depositing funds into it and withdrawing to a bank account. There are also no service fees. However, on the fundraiser side, Afranga charges project owners a flat due diligence fee of €3,000 and a success fee of up to 10% per annum. The platform collects these fees from fundraisers and acts as a broker at the parent company level, Stik Credit JSC. The parent company generates revenue via fees, and interest income spreads.^[12]

The Stikcredit and Afranga team are composed of Stefan Topuzakov, Chairman of the Board of Directors and Executive Director, Svetlin Sabev, and Kristian Georgiev, both members of the Board of Directors. Yonko Chuklev, the current Chief Operating Officer, has a background in fintech, venture capital, and tech governance. Chuklev has been recognized in Forbes’ 30 Under 30 list and has spoken at TEDx events. Also part of the team is Ivaylo Yovkov, Head of Marketing, who brings prior experience from various marketing roles.

Stikcredit is collectively owned by three shareholders, Kristiyan Georgiev Kostadinov and Stefan Nikolaev Topuzakov, each holding 47% ownership, and Ivaylo Lazarov Todorov, who holds the remaining 6% stake in the company.^[13]

Stikcredit has raised a total of €156K in funding over one round on Seedrs, an Equity Crowdfunding round raised on Oct 30, 2020.^[14]

With the ESCP license obtained, Afranga now offers business loans, unlike Stikcredit, which provides access to consumer loans only, allowing investors to lend directly to companies. Business loans are more secured, flexible and transparent. Investors can choose flexible repayment schedules and may receive an early repayment fee if a loan is paid off early. Interest starts accruing once the loan is funded.^[15]

Stikcredit saw strong earnings growth until FY22, with a net profit of BGN 3.95 million (€2.01 million), mainly due to higher interest and charge income. However, FY22 also saw a sharp rise in loan impairment losses to BGN 9.10 million (€4.65 million), hurting net profit. In FY23, while interest income stabilized, net profit rebounded to BGN 5.73 million (€2.92 million), driven by a notable drop in loan impairment losses to BGN 7.10 million (€3.63 million), suggesting better asset quality or risk management.^[16]

1. Afranga: “Blog - Switching your investor account from stikcredit.eu to afranga.com? What you need to know”
2. P2Pmarketdata: “Stikcredit Statistics”
3. Afranga: “Homepage”
4. Stikcredit: “What is the minimum amount that can be invested?”
5. Stikcredit: “Invest - Term and Loan Amount”
6. Afranga: “Invest - Term and Loan Amount”
7. Stikcredit: “Help: What is a buyback guarantee and how does it work?”
8. Afranga: “Help: Is my investment protected by any financial compensation scheme?”
9. Afranga: “Help - Is there withholding tax on Afranga?”
10. Stikcredit: “Invest - Interest Rate”
11. Afranga: “Invest - Interest Rate”
12. Afranga: “Price List - Project Owner Fees”
13. Stikcredit: “Annual Report 2023 - Corporate Information - p16”
14. Crunchbase: “Stikcredit - Financials”
15. Afranga: “Blog - About Business loans”
16. Stikcredit: “Loan Originators - Documents - Company Presentation”