Sweden listed P2P lending provider TrustBuddy just announced its second signed framework agreement with a major institutional investor, covering an initial EUR 12 million. The capital can be allocated to all of TrustBuddys markets by demand.
The company writes: “With the continued strong growth TrustBuddy enjoys in its existing markets, and the need for P2P funding capital upon entering new markets, the company welcomes strong institutional investors in an effort to promote quicker loan origination growth. TrustBuddy believes that the US model of 50% institutional capital and 50% retail capital is a viable future target, but currently less than 5% of the P2P loan funding is institutional capital. ”
TrustBuddy has initially called EUR 3 million of the EUR 12 million allocation, aiming to use this extra capital for further increasing its growth rate.