German peer-to-peer lending platform Creditshelf has reached break even for the first time in its history after growing its revenues by 43 per cent year-on-year in the first quarter.
The platform, which focuses on small- and medium-sized enterprise (SME) loans, said its core earnings improved significantly to €555,100 (£474,092) in the first quarter, up from a €718,200 loss in the same quarter last year.
The net result after financial expenses was also positive for the first time in company history and stood at €514,600, up from a €727,400 loss in the same quarter last year.
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Creditshelf saw its revenues grow by 43 per cent year-on-year to reach €2.37m in the first quarter, driven by a 10 per cent rise in new business volume and strong margins.
The platform said the positive margin development resulted from large, long-term loans and attractive yields for working capital loans and merger and acquisition financing.
Creditshelf has predicted a growing need for liquidity in the SME sector, due to supply chain issues and rising energy prices, which should further increase demand for its loans over the course of the year.
Dr Tim Thabe, chief executive of Creditshelf, said the platform sees opportunities for alternative finance providers in the current market and is looking to broaden its investor base to support further growth.
Thabe said that Creditshelf is in “numerous promising talks with institutional investors”.
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“The first quarter of 2022 clearly shows the scaling potential of our business model,” said Dr Daniel Bartsch, chief financial officer of Creditshelf.
“Over the course of the year, we want to take advantage of the growth opportunities that lie ahead of us and make additional investments.
“At the same time, our portfolio is behaving very robustly, even against the backdrop of the war in Ukraine.
“This underscores the quality of our risk analysis and active selection of promising business models in the German SME sector. I am very confident that we will further strengthen the refinancing side and continue our growth path.”