Dutch P2P firm Geldvoorelkaar partners with debt marketplace CrossLend

Dutch crowdfunding platform Geldvoorelkaar has partnered with German debt marketplace CrossLend to secure the institutional backing it needed to participate in the Netherlands’ emergency loan scheme.

CrossLend connects crowdfunding platforms with institutional investors and recently facilitated a deal between a European institutional investor and Geldvoorelkaar.

Thanks to this institutional investment, Geldvoorelkaar is the first peer-to-peer lending platform in the Netherlands to have received accreditation to deliver government-backed loans during the pandemic.

Unlike the comparative emergency scheme in the UK, Geldvoorelkaar’s retail investor base will also be able to invest in government-backed business loans via the platform.

Geldvoorelkaar connects entrepreneurs looking for funding with investors seeking a higher return than that offered by mainstream banks.

Read more: Institutional investment: Caution or confidence?

Geldvoorelkaar said CrossLend’s network of institutional investors would help it broaden its reach and widen its lending pool as it looks to expand its support for small- and medium-sized enterprises (SMEs) over the coming years.

“The collaboration opens up a new way to expand our funding options, allowing us to help create more institutional funding across Europe,” said Edwin Adams, director and founder of Geldvoorelkaar.

“It also gives us new perspectives on the market. Thanks to our new partnership, we can call ourselves the first in the Netherlands to be seeking new options in the crowdfunding market.”

Read more: Banco BNI Europa to invest with CrossLend

Since being founded 10 years ago, Geldvoorelkaar has facilitated more than €237.5m (£211.6m)
in credit to around 1,700 SMEs across a range of sectors.

CrossLend was founded in Berlin in 2014 and has offices in Frankfurt, Vienna, Luxembourg and London.