Bank vs government bonds: two ways of “loaning” in comparison

 

Bank vs government bonds: two ways of “loaning” in comparison

Second leg of the journey between investment instruments comparable to P2P loaning

Second leg of our journey to discover the pros and cons of the marketplace loaning compared to comparable investment instruments. Today the subject of the analysis will be the government bonds , recipients of faithful love from the Italians, not surprisingly known also as the Bot-people in their role as investors.

Government bonds are debt securities issued by a state that, in a nutshell, asks the indistinct public to finance it in exchange for an interest, which will correspond over time. The classic adage that concerns the tool is that it is risk free, that is risk-free – an adage that is not necessarily more so adherent to reality since 2009, the year of the explosion of the first sovereign debt crisis in Europe, a crisis in which government bonds were involved with the insolvency of unsuspecting nations belonging to the EU and that therefore should have been within the security parameters regarding the debt and deficit established by the Maastricht Treaty. A bubo that has discovered a nerve in the Western world: that the debt-to-GDP ratios are all over 100% against the 60% required by the Eurozone rules .

Today, since the crisis we are emerging, not only government bonds are no longer considered risk-free, but they do not do much, and have been for a long time in the order of zero point: they have made almost nothing.

But let’s go in order and try to understand better what we are talking about.

A definition

Government bonds are securities that a State issues to finance itself and obtain the resources necessary to fulfill its duties of producing services such as education, health and defense. These are bonds: that is a loan that entitles those who subscribe to the repayment of capital plus interest, which can be paid through the detachment of periodic coupons or through the issue discount, which is defined as the difference between issue price and price at the end of the security. Government bonds may have a maturity between 3 months and 50 years. The Italian government bonds that interest us here are issued periodically by the Ministry of the Economy and Finance and their duration and interests are the categories on which they can be classified. You switch from BOTs (Ordinary Treasury Bonds), which have a duration of 3 to 12 months and are zero coupons (do not correspond to coupons) to the Treasury Credit Certificates (CCT) and the Zero Coupon Treasury Certificates (CTZ) : respectively, the first 7-year maturity with semi-annual coupons at variable rates and the latter with a maturity of 24 months and without coupons. Until the Poliennial Treasury Bonds (BTP) with a duration of 3, 5, 10, 15, 30 and 50 years and fixed coupons every six months.

Recently, the Italian BTPs have been launched, with a duration of 4, 6 or 8 years and annual coupons paid every six months and there are inflation-linked forms, which provide that capital and half-yearly coupons are revalued on the basis of price changes.

Subscription mode

In common with the product of Bank the government bonds have the nature of loans: only in our case the sums lent are intended for SMEs, while in the case of BOT, CCT and BTP the recipient of the loan, as widely explained, it’s Italy. Our product can be purchased online through a very simple registration procedure starting from the home of the site, it does not provide for intermediation of third parties, although it is subject to internal control and to the supervision of Consob and Bankitalia. Government bonds can be purchased at auction at the primary market or on the secondary market, which in the case of government bonds is the MOT, managed by Borsa Italiana. In both cases, securities must be purchased through a bank or a financial intermediary, with the payment of commissions that are higher when operating in the secondary market. Bank provides a single commission equal to 1% of the amount invested, but if you choose to go to the managed portfolio, built by us with a diversification in the order of 1%, it is lowered proportionally to the extent of the investment. Even our securities are resold on the secondary market to other loaners.

PERFORMANCE and Taxation

The yield on government bonds, we mentioned at the beginning, is the sore point of this instrument. In the course of our monthly survey of BTPs with a five-year maturity, we observed that the expected coupon is 0.95%, equal to a return net of the preferential tax rate of 12.5% ​​of euro 83 on a capital invested 10 thousand euros . This is the sum that the investor would receive at the end of the life of the security, so only if he held it in his portfolio until maturity. Normally, the return on BTP is much higher as the yield curve moves: a 30-year maturity will have a higher level of remuneration than one with a maturity of 2 years, as the duration is directly correlated at risk.

On the secondary market it is possible to observe in real time the yield of the BTP: at the time of writing, for example, the ten-year BTP makes 1.91%, always gross of taxes and commissions. As our readers know and can observe from our periodic statistics , the performance of our instrument is constantly around 5% (gross of taxes, but net of the Protection Fund effect, which covers any outstanding loans).

THE RISK

The last point leads us directly to the question of risk. Whether it is for loans granted by Bank, or for BTPs, it lies in the possibility that the applicant is insolvent, or not repay his loaner. The important aspect is the mitigation of the risk assumed. In the case of Bank the investments are distributed on highly diversified portfolios and the SMEs are selected with very stringent rules which we have also recently discussed . The risk is also mitigated by the Protection Fund, the treasure that companies pay to cover any outstanding payments.

The risk of state insolvency is decidedly residual: it presupposes the failure of a State, which is, for obvious reasons, very unlikely. Not impossible, however, as history teaches: it happened on the occasion of the Argentinian default of 2001 and even closer to us, with Greece in 2015. With painful consequence in terms of losses for those who had bought the relative sovereign bonds.

 


Golden Partner of “Loan to Loan 2013”

 

Golden Partner of “Loan to Loan 2013”

Credit-to-credit-2013

The next major event will be held on November 28th and 29th in Rome, the most important event linked to the relationship between banks, businesses and families. ” Loano al Loano “, organized by ABI eventi , has for years been the event dedicated to the strategic theme of Loan to individuals and businesses, within a changing European and Italian regulatory environment.

Bank will be “Golden partner” of the event, and for this reason it will have an important role in the debates focused on business Loan. Specifically, the initiatives of the banking sector in support of SMEs will be evaluated and the opportunities arising from the use of European funds and the optimal use of the guarantee network existing in Italy will be analyzed.

Bank will bring to the conference the innovative experience, begun in recent months, to interact with companies seeking funding through its portal. The president of Bank, Angelo Blancato, will speak at one of the meetings organized with the major representatives of the world banks and companies. The topic concerns the possible strategies of banks to support healthy companies that have temporary economic, financial or market difficulties, with the aim of opening the way to new development prospects and preventing these difficulties from becoming a crisis.

Loan to Loan is therefore an important opportunity for all the protagonists of the sector to meet, discuss and network, in which to share analyzes, best practices, experiences and find solutions to relaunch the Loan market and thus boost the economic growth of our business. Country .

 


The two loan planets compared

 

The two loan planets compared

Speed, transparency, transversality. If we were to summarize in three keywords the experience of the entrepreneur asking for loan to Borsadelloano.it, we would use those in attack.

The disruptive power of P2P lending lies first and foremost in a new model of supply, which clearly differs from that of the bank and which represents an overcoming of all the major limitations of the latter.

To deal with the bank, for a small company, still means too often to confront a scenario more similar to that of the Fantozzi accountant than to the habits of the third millennium. Long waits even just to get an initial response, dozens of forms to sign and physical trips to be made at the local bank, documents to be printed with the worsening of paper waste and time. And again: opening hours of branches that almost always do not exceed 15.30, costs not clearly explained during the negotiation phase.

And finally, even if you could manage to jump without having to cover all the obstacles described, find out after weeks or months that our company has no access to financing. Or that we have been judged suitable but now that funding does not help us anymore: often an entrepreneur who asks for loan needs it quickly to carry out their own growth projects or to cover the cash needs, otherwise “the good train” risks passing.

So let’s try to build a benchmark of the P2P lending experience, comparing it with the banking one, starting from the key factor: time.

  • The response times of a P2P lending platform such as ours are 24 hours for the outcome of the request and a few days (often only 3) for the loan to be physically disbursed to the applicant’s account. On the other hand, on the other hand, bank response times are between 8 and 12 weeks, up to three months for the entrepreneur to know the outcome of their request. In the 24 hours sufficient to the Borsadelloano.it team to understand if a company is eligible for the loan, quantitative analyzes on the balance sheets, on the trend and on big data, which prepare for direct contact, are carried out thanks to a proprietary algorithm. the businessman. P2P lending platforms are able to reduce processing time, keeping the quality of company selection very high, since the analysis of thousands of discrete data is managed by algorithms and technology, which also facilitate the analyst’s final work.
  • The experience of P2P lending is completely digital against the physical one of the bank: the whole process, from registration to the portal, up to the sending of financial statements and to the communication of the Iban takes place online as far as we are concerned. A process that takes about 10 minutes, starting from clicking on the link “ask for a loan”, and with a minimum amount of documents required: from here triggers the mechanism that will give its first result within 24 hours. In the bank, it is necessary to stand in line at the counter or to make an appointment with the consultant who will deal with opening the file, will have to physically bring the required documents and comply with a series of bureaucratic requirements. All during the opening hours of the branch, which are generally between 8 and 16, from Monday to Friday. Access to the product of Borsadelloano.it is unlimited: 24 hours a day and seven days a week, from your desk wherever it is.
  • Another sore point of the bank loan is the hidden costs , totally unrelated to the P2P lending that bases its model on transparency . The costs for the entrepreneur are known and expressed clearly, while often there are numerous hidden costs in the bank that are not shown in the rate of the individual transaction, but weigh heavily on the company’s balance sheet.
  • The offer of P2P lending is transversal, against that limited in size and sectors of the banks : Borsadelloano.it, for example, is aimed at companies in every sector and in every dimension (subject to the minimum parameters of 12 months of life and 50 thousand euros in turnover). Our business is born precisely to fill the gap caused by the fact that banks tend to finance less and less contained requests, in particular the amounts below 100 thousand which do not produce margins for banks and which are typical of micro-enterprises in the original target of Borsadelloano .com. In general, the banks have tightened the loan lines for small and medium-sized businesses, as shown by the data on the monthly loan report produced by the Unimpresa Study Center, which elaborates the Bank’s surveys. According to which the loan crunch for Italian companies does not stop: bank loans to companies, in the last year, have fallen by almost 50 billion euros (-6.34%), over 20 billion less loans short and 31 billion long term.
  • The last aspect is the security of the providing institution. And that’s where P2P lending and banks finally converge . P2P lending platforms are framed in our system as payment institutions, subject to supervision and authorized by the Bank of Italy, just like banks.

 

 


How to take advantage of the best facilities for access to loan

 

How to take advantage of the best facilities for access to loan

facilities-borsadelcredito

Accessing a facility may be important to have more opportunities to access loan. Whether it is non-repayable subsidies, contributions on the cost of financing or tax relief, it often makes it possible to lower the costs of debt management and thus access better economic conditions.

Beyond the obvious advantages , however, it is not so obvious to be able to take advantage of these facilitated conditions. The main problems concern:

  • the research: ” where do I find the most interesting facilities?”
  • the typology: ” which facilitation is more suitable for the purposes of my company?”
  • the question: ” how to fill in the request? are they able to answer all requests? “

The usefulness of a professional support
Also for the benefits, as well as loan requests in the bank, structuring the best of the demand and presenting the company at its best is essential for obtaining a positive feasibility. This is why we believe that access to a company’s loan is more likely to be successful if supported by a professional. It is also on the basis of this conviction that we have created a portal dedicated to the meeting between companies and professionals such as consultants and accountants, who increasingly offer support services for access to loan: Borsadelloano PRO .

Where to look for the best facilities
On the web, the sites dedicated to entrepreneurs looking for facilitations exist, but they are sometimes not updated or not independent.
With Borsadelloano.it there are several ways:

  • for entrepreneurs, the verification of the best benefits is made after the request for access to loan, with the support of the assigned consultant, which indicates any interesting public notices to which the company can apply;
  • for professionals, the subscription to Borsadelloano PRO allows access to a database of facilitations updated daily and with national coverage, with a quick and intuitive search panel.

In this way the entrepreneur is guaranteed professional support both in the search for the best facilitation and in completing the application for access.

What is the best loan facility for businesses?
Depending on the type of company, its geographical location, age or social structure, there may be various types of interesting facilities.
But we will never tire of saying that the main facility for access to loan for companies is the State Guarantee Fund (Law 662/96). This is because the possibility of having the Italian State as guarantor for access to loan is an advantage for both banks and companies. We have often talked about the State Guarantee Fund in this blog and on our site: to understand how it works we refer you to our guide on Borsadelloano.it .

 


Loaning Circle ready for listing:

 

Loaning Circle ready for listing: £ 1.65 billion IPO

The P2P pending lender for businesses announced this with a blog post: it will land on the London Stock Exchange by the end of the year (probably already in October)

The announcement was made through the Net, where everything starts and where everything is done for FinTech. In a blog post , loaning Circle , the British who changed the world of loans to small and medium-sized businesses in the Old Continent, officially declared in early September that it will be the first European FinTech to enter the market . A decision that represents a loanamental step in the group’s growth path: a dizzying path that saw loaning Circle, from its foundation 8 years ago to today, lending “more than 5 billion pounds to 50 thousand companies worldwide”, guaranteeing to investors “interesting returns while supporting job creation in the United Kingdom, USA, Germany and the Netherlands.”

The IPO, which could be launched as early as October, will cover new and existing shares and will also be open to retail investors. The objective of the listing on the London Stock Exchange is a collection of 300 million pounds, which will be used to strengthen the budget and grow brand awareness: thanks to these proceeds it will be possible to attack new geographical markets. But among the side effects there will also be a practical demonstration from the point of view of the maturity, transparency and governance of the company: this at least is the message of loaning Circle for investors and applicants. And it is certain that this event will again change the face of FinTech in Europe, probably dragging behind other quotations – Zopa and LendInvest are the best candidates. And by placing the loan portals in the marketplace on the same ground as traditional banks, at least in Britain.

loaning Circle, in particular, has in fact already been replaced by the City banks in the SME loans sector – those that traditional institutes finance less and less and which, through a referral scheme, automatically direct the platform. Yet it has not yet reached break even : according to the documents it presented for the listing, the financial statements showed a red of 35.3 million in 2017 and 46.6 million the year before. But this does not seem to discourage investors who are eagerly awaiting the evolution of the story of this FinTech unicorn so as to be ready to aim for up to 1.65 billion pounds . At this value, Anders Holch Povlsen, owner of the Heartland A / S holding and the fast fashion Bestseller chain, said he was willing to buy 10% of the shares.

In 2015 loaning Circle had quoted the loaning Circle SME , the P2P lending loan for SMEs that in the first year had divided a dividend of between 6 and 7% and aimed at a yield of between 8 and 9% when fully operational ( we talked about it here ). In short, really a hen with golden eggs.

How could the structure of the company change after the listing? To try to hypothesize it, it is first of all necessary to look at the current corporate structure . According to AltFi , which cites the official documents presented by loaning Circle to the LSE, the largest shareholder is Index Ventures, with a 20% stake, followed by the venture capital Accel and Union Square Ventures, which respectively own a share of 9, 1% and 7.3%. Samir Desai, CEO and co-founder, has a 7.7% share, while the other co-founders James Meekings and Andrew Mullinger, respectively 4.7% and 4.2%. If we take the maximum valuation of 1.65 billion pounds, the share of Desai would have a value of 127.5 million.

The thousand employees are in turn members: but they will not be able to participate in the IPO. As well as the large shareholders who will only have the opportunity to sell 25% of their share (if more than 0.25% of the total value of the group). This 25% will not end in the float but will be secondary capital. Furthermore, for the members of the board and management, a lock-in period of 365 days is envisaged, during which time they will not be allowed to trade in the stock, which is instead granted to employees. The lock-in lasts 180 days for large shareholders who do not have significant roles on the board.

The quotation is close. And so the next step of the European FinTech, more and more recognized and recognizable, increasingly an engine of growth of the real economy.

 


Bank Opinions 2019 assignment of the fifth: personal loans and conditions

 

We discover and the assignment of the fifth, the conditions of personal loans and the opinions of customers on the web. Perhaps the group is not among the most publicized, but this institute provides excellent products with a wide reliability and transparency, meeting the needs of its customers.

ibl

banca operates in the personal credit sector and is a reliable and transparent reality in the Italian financial landscape. Among the market leaders in credit and in the sale of the fifth, founded in 1927, with more than 80 years of experience, it guarantees quality products with a team of consultants that follows you in every step and helps you to choose the most suitable for you. The main advantage of is its ability to meet the needs of its customers with personal loans and deposits accounts suitable for everyone.

assignment of the fifth: what is it and how to ask?

The strength of is the assignment of the fifth : what is it? Simply a loan, dedicated to public and private employees or retirees, reimbursed through one-fifth of your salary. It allows you to obtain a loan by paying an installment equal to a maximum of one fifth of your salary or pension by delaying the installment from a minimum of 24 months to a maximum of 120. All you need is your paycheck or your pension slip, it is not request no motivation on the destination of the loan and the installment is deducted directly on your salary.

Rates are extremely convenient , insurance coverage is provided and you can request it immediately online or by booking an appointment via the site at the branch office. Do you want an example of the rates applied? If you request, for example, a loan of € 16,000, you can repay the loan in 120 installments of € 175 a month with a fixed TAN of 4.65% and a fixed TAEG of 5.82%.

ibl assignment of the fifth

personal loans and conditions: what are they?

In addition to the transfer of the fifth, with you can also ask for other types of personal loans each with different conditions and suitable for different financial needs. From loans with delegation to consolidation, fifth and personal loans , really offers you everything you need. The personal loan is a loan that allows you to choose the conditions you prefer, the installment you find most appropriate to your needs, and the duration. Request it is very simple, fast and fast, just fill out the online form and ask for a quote on the web, or make an appointment at the branch. The loan is repaid with a deduction from the current account or postal bills. The interest rates are fixed and convenient , the installment is constant and defined according to your conditions and needs. You can request from a minimum of € 2,000 to a maximum of € 60,000 to be repaid from 24 to 120 months.

opinions: what do customers think about the web?

I looked for the opinions of online but I must say that there are not many. Rather there are many newspaper articles about his movements in Piazza Affari. Usually the lack of comments on the web about a financial institution can mean two things: that the group has just started its activity (and it is not the case of since its foundation dates back almost a century ago), or that people have nothing to complain about. We know very well, in fact, that people tend to write and review more when they live a negative experience than positive. So the signs are a good omen. In any case I would like to know your opinions: if you are already an customer, write in the comments and let us know what you think!

Whether you are looking for excellent conditions for the sale of the fifth or for personal loans , surely is a financial reality on which to rely and to try: excellent products and high reliability. Leave your opinions in the comments if you share this opinion!

 

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Consumers are growing more often with loans

building 1080594 1920

Consumers can nowadays find it harder to get to a house and therefore opt for a renovation of their own home more often. This renovation must be financed. You can do this with savings, but also with the money you receive when you take out a loan. More and more consumers choose to finance a renovation by means of a loan.

12% increase

In the first three months of 2018, the number of renovation applications increased by 12 percent compared to the same period in 2017. An average loan is about 15,000 euros. In 2017, this average loan amount was slightly higher, at 16.364 euros.

Especially single people use a renovation loan. Over 46% of applications are made by single people. 26% of applications come from cohabiting, the remaining percentage comes from households with children. They borrow less money for a renovation.

The cheapest way?

Or borrowing for a renovation is the most advantageous way, there are opinions about dividing. Of course you pay an interest rate on this loan, so you end up spending more money than the entire renovation cost. The cheapest way is to use savings, but if this does not work then a loan application offers the solution.

Do you have a loan?

Do you already have a loan right now? Then chances are that our credit specialists can help you reduce the rent and / or shorten your term. This saves you on your loan and you lose less in total for your renovation. Pleasantly arranged!

 


The statistics for October: 200 loans exceeding € 5 million have been exceeded

 

Statistics for October: 200 loans exceeding 5 million

Fotolia 112465076 Subscription Monthly M

In October 2016 the total disbursement of BorsadelCredito.it reached almost five million and broke the 200 loan threshold. In detail, 213 loans were granted for a total of 4,969.546 euros , compared to 4.2 million in September: a great leap forward.

The average interest rate was 5.68% , gross of taxation (which we note varies between 23% and 43% based on the lender’s income), higher than that of the British p2p which in October 5.22%, based on the Liberum AltFi Returns Index , the index that brings together the four main UK platforms.

Also in October the lenders’ investment was completely protected by the Protection Fund , since the actual losses remained far below expected losses.

The comparison with the yields of the other asset classes is ruthless: the deposit accounts tied to November 1, 2016 offered an average yield of 0.67%, corresponding to a gain of 50 euros net of withholding tax of 26%, on a ticket of admission of 10 thousand euros. The five-year BTP recorded a return of 0.35% – equal to 31 euros of gain, net of a 12.5% ​​concession; while corporate bonds made up 2.45% on average over the 12 months – equal to € 181 of net income. 5.68% of BorsadelCredito.it corresponds to a net profit of between 324 and 437 euros out of 10 thousand euros invested .

Statistics October-borsadelcredito

Returning to the lender, a look in detail shows that to drive loan applications is always Lombardy (at 57) followed by Campania (30) and Puglia (29), Lazio has obtained 25 loans, 13 Veneto, 11 Tuscany, 10 Emilia Romagna and Piedmont.

The most active sector is services , with 30.5% of the total market, followed by trade (with a slice of 23.5% of the disbursed), industry and production (15.5%), wholesale trade (12.7%) and Construction (10.8%) share the largest shares. The rest, a marginal 7%, is parceled out among all other sectors.

 


5 tips for the smart financial adviser: what to do for the company you represent to obtain the loan

 

5 tips for the smart financial adviser: what to do for the company you represent to get the loan

Fotolia 56517385 Subscription Monthly M

Instrumental investments or marketing. Stock stocks to cope with the hot periods in terms of sales. A new project that requires a network of super powerful PCs, professional advice to reorganize the production line, and so on and so forth. Small businesses that want to emerge in the difficult market of these years are forced to invest . Often, however, if the dimensions are micro or even small and the needs of the same cash, they find the resistance of the banks that instead on these dimensions do not make profits and send them back to the sender. A waste of time and energy also for the consultant who accompanies companies in the search for liquidity. The lending marketplace is born precisely for this kind of loans and companies but, obviously, the loans are disbursed after a careful analysis of the solvency of the subject. To the consultant (or company) who does not want to make mistakes, we suggest five tips to have our yes.

Here they are:

1) Respect the minimum requirements . That is to be in target, that is a company with a turnover of at least 50 thousand euros and one year of life, which has produced, in essence, at least one accounting document;

2) Regularity in payments . Make sure that the company or the entrepreneur are not prejudicial, that there are not, that is, protests or non-payments;

3) Analysis of budget fundamentals . Check that the applicant company is healthy based on the main items in the financial statements: performance of turnover, repayment capacity, impact of financial charges on turnover, length of payment times, financial independence;

4) Point on the web . Verify that the company has visibility on the web: the more the company performs on social networks and takes care of its reputation on the web, the more it is suitable for the p2p lending tool;

5) Conscious entrepreneur . Evaluate that the entrepreneurial profile is transparent and corresponds to what is declared publicly and that the entrepreneurial project is interesting for the growth of the company.

The lending marketplace thus becomes the fastest and most transparent tool for financial solutions for small businesses for business consultants.

 


When the giants enter into alternative loans to companies

 

When the giants enter into alternative loans to companies

amazon lending

Reflectors on the lending market to companies that banks do not finance. A profitable sector

Loans to SMEs – especially if disintermediate – are an increasingly interesting business. This is demonstrated by two recent news concerning two very different operators: the world’s largest e-commerce and one of the world’s fifty largest banks. The first is Amazon , in which the founder Jeff Bezos decided to open a credit marketplace at the beginning of this decade. The novelty lies in the numbers: to date it has disbursed 3 billion dollars in loans to over 20 thousand SMEs , one billion only in the last year. Amazon Lending , which provides loans to small and medium-sized businesses that sell their products on Amazon, has existed since 2011: an algorithm identifies solid companies by analyzing the data concerning them and sends to those with a satisfactory rating the invitation to apply for a loan . The loans are disbursed on the same day, taken from the balance sheet of the online commerce giant, and the installments withheld from the account of the debtor companies with total control of the financial situation. In the event that the accounts of the debtor companies are dry, Amazon freezes the goods of the insolvent company, immobilizing it in the warehouse, and unlocks it only after payment of the installment. Loans with a maximum duration of 12 months, with amounts between 1000 and 750 thousand euros and rates between 6% and 17%.

Rates all in all in the average of the markets to which it is addressed, which certainly did not scare companies. And that make the business very profitable for Amazon: first of all because the colossus assigns creditworthiness by drawing on data that already exists, relating to its own reselling companies, and therefore at virtually zero cost; secondly because it collects conspicuous interests paid by companies, and finally because contributing to grow companies drives sales and earns more commissions on sales. The countries where Amazon offers this service are the United States, Britain and Japan, but the intention is to extend it soon to Canada, France, Italy, Spain, India and China.

In Spain, meanwhile, the bank has set up a very unique digital system of loans to SMEs. The Spanish banks have long understood the need to make agreements with FinTech: already in 2014 Santander had signed an agreement in the United Kingdom with Funding Circle, the platform specialized in p2p lending to small businesses, with the aim of directing to the lender alternative the smaller companies that turn to the bank and that the bank can not satisfy. And itself, 750 billion euros in assets, one of the 50 largest banks in the world , is clear that it can not escape the disruption of FinTech: the CEO of the Spanish bank Carlos Torres Vila had talked about how “is changing rapidly the way to relate to customers “and that startups” operate in small niches and they do it at lower costs and with greater value for the customer. “Admitting that just at startups he looked to offer customers innovative services.

Not by chance, in March 2016 acquired the Finnish online bank Holvi, focused on SMEs and in 2014 the US Simple. Today it has decided to launch a startup in the new digital business division, with which to offer an alternative financing channel for small and medium-sized businesses . It will be called Trust.u and it will be aimed at SMEs with less than 30 months of life who struggle to hear from banks, offering them a 100% digital service based on a new model of risk calculation, which also takes into account the social aspect. In practice, to start operations, the PMI, which does not necessarily have to be a customer, must register with the platform and enter some data that will allow the Trust.u algorithm to assign a rating to the company. Finally, the platform evaluates, precisely on the basis of credit quality, how much of the financing requested will be provided by the bank and how much must be made by the circle of family members and friends of the entrepreneur. The company must take care of obtaining from its circle of knowledge the sum requested under the established conditions and only subsequently will the loan be activated by Trust.u which will handle all payments. Interest ranges from 4.23% to 10.47% of TAEs, against rates of other similar alternative solutions ranging between 15% and 50%. In short, everyone wants to finance SMEs . And SMEs start looking with interest at these innovative formulas.