Twino is planning to launch a loan supermarket for business borrowers in Latvia.
Sanita Zitmane, head of Twino’s Latvian lending company Moneza, said it is becoming increasingly difficult for small – and medium-sized enterprises (SME) in the country to access bank finance.
She said the platform wants to launch a loan supermarket for business clients this year.
“Our goal is to become the leading provider of alternative financial services in Latvia in the SME segment by 2024,” she said in a blog post on the European peer-to-peer lender’s website.
“Small enterprises play a very important role in the growth of Latvian business development. However, in recent years, it has become increasingly difficult for companies to qualify for a loan in the banking sector.
“The rapid and dynamic pace of business requires quick decision-making when attracting financing, which the current banking sector is unable to provide, so we see good potential for becoming a leading player in this segment.”
She also revealed that despite credit ratings of more than a third of businesses in Latvia declining during the pandemic, Moneza increased its SME lending by 16 per cent last year.
“The industry has tightened its standards, becoming more choosy about its borrowers,” she added.
“In the meantime, market players are looking for ways to expand their businesses by exploring diverse loan opportunities – such as loan consolidation services and credit lines.
“We also see that borrowers have become more cautious. The average loan amount has decreased, indicating that borrowers are assessing their need for a loan more carefully.”
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