Do you want to make money investing in peer-to-peer lenders? Let’s check out the loan originator Stikcredit, listed on Mintos, Viventor, and Bondster.
Stikcredit is an online lender, currently with over 14,000 active clients. Stikcredit has a great reputation among peer-to-peer investors, as it’s listed on popular platforms like Mintos.
In this article, we’ll go into the details and financials of Stikcredit, as well as how you can get a share of their profit through their own Seedrs campaign.
What Is Stikcredit?
Stikcredit is a European FinTech company that provides short-term loans online. They’re founded in 2013 in Bulgaria and have over 100 employees. They provide loans to individuals between €50 and €2500 for a period up to 24 months.
Stikcredit is supervised by the Bulgarian National Bank. This means that they are regulated by a European banking and financial services regulator, which is a great thing in the FinTech sector.
The loans of Stikcredit are listed on big platforms like Mintos, Viventor, and Bondster. Since its first listing on a peer-to-peer platform over two years ago, they have proven themselves to be trustworthy and reliable.
How Does Stikcredit Work?
Stikcredit has developed its own robust system which helps them yield great results. Users can submit their applications online through any device and their sophisticated scoring algorithm decides to approve or reject a loan in an instant.
Their system performs anti-fraud checks, checks for credit history, tax and social security liabilities, employment records and income, and social media profiles. Their self-learning scoring algorithm assigns every client to a particular risk profile, which improves the loan recovery rates over time.
While I am always rather skeptical of the use of these algorithms, it seems to work. Stikcredit has managed to achieve a net profit margin of 50% (!!!) since inception. This means that each euro in revenue generates 50 cents of profit.
The company is structured to be 100% online. While they do have physical offices, no physical offices are required for their future expansion. Their goal is international expansion and scaling, which makes this a viable business model.
Want more detailed information? Check out the below YouTube video.
Let’s Talk Numbers
Where would this article be without numbers? The most important ones being:
- Stikcredit has over 14,000 active clients and over €26 million in issued loans. Over 65% of customers return to Stikcredit.
- The loan issuance volumes have increased from €400K per month in January 2019 to €1,1 million per month in August 2020.
- Stikcredit has reported over €1,6 million net profit in 2019, which are audited by an independent party. They are on track to make that over €2,0 million in 2020.
- Recovery rates are at 100% of the cash granted within 4 months of the loan issuance and 134% overall.
- For 2020, the net profit margin is maintained above 50%. Even after the COVID pandemic, the profit margin for the first half of 2020 is 56%.
For more details, see their financial statements:
Why Am I Telling You All This?
You’re probably wondering why I’m telling you all of this. After EstateGuru and Crowdestor have offered an equity campaign on Seedrs, many more companies are following their lead. Stikcredit is also listing a Seedrs campaign, where you can buy a part of their company and get part of their profits.
Seedrs is a crowdfunding platform that lists many successful crowdfunding projects. They have their own due diligence structure, you buy a part of the company, and they offer a secondary market where you can sell your investment when needed.
Stikcredit is a loan originator that is invested in on popular platforms like Mintos. They’ve made over €1,6 million profit in 2019 and are on track to make over €2,0 million profit in 2020. Currently, they have plans to expand internationally to grow their presence every further.
When you buy into their campaign, you get a part of their future profit. Check out the Stikcredit funding round on Seedrs to read all the additional information.
Final words from Stefan Topuzakov, Co-Founder of Stikcredit: “At Stikcredit we have combined technology and finance together into a robust online business model providing short-term consumer loans to underbanked customers. Technology makes our decisions quick, accurate, and consistent. Digital finance becomes an evergrowing part of our lives and Stikcredit is perfectly positioned to ride the wave of global FinTech expansion”.
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