On Tuesday, German marketplace lender for SMEs, creditshelf, announced it is extending the maximum term of its arranged loans from 36 to 60 months. The online lending platform also reported that the maximum loan amount will double from previous €2.5 million to €5 million with loans still remaining unsecured, thus allowing borrowers to have more financial flexibility.
creditshelf reported that by extending the loan amount and maturity, it can now provide further financing opportunities for its clients. Small and medium-sized companies. creditshelf Managing Director, Daniel Bartsch, stated:
“Our clients are still reporting considerable difficulties in convincing their principal banks of their investments, and the financing of smaller corporate takeovers is not always smooth. SMEs, especially in the current phase of technological change and ownership succession, depend on larger financing, which is what we are responding to with our new offer.”
The company also noted:
“For the new loan option with a maximum term of five years, companies pay a monthly repayment. Flexible increases during the term of the loan are possible subject to adequate financial performance. The investors on the platform – professional and institutional investors such as family offices, alternative investment funds or even banks – benefit from a wider range of investment opportunities. For borrowers, the choice means greater flexibility. Loans with a term of twelve months or less may continue to be repaid either monthly or in arrears.”
In regards to what the new year will hold for creditshelf, the lender revealed it expects a total of a three-digit million volume of financing. Bartsch added:
“With the expansion of the loan offer, we are strengthening our position as the digital SME lender in Germany and consistently pursuing our growth course of recent years.”