TrustBuddy’s highly successful SME P2P lending provider Geldvoorelkaar (GVK) has started a cooperation with “Credit Passport“, the online tool for entrepreneurs in need of financing. With Credit Passport, the quality of the loan applications can be improved significantly, leading to more successful financing rounds via GVK.
GVK receives hundreds of loan applications every month. Out of these applications, 60% are not even passing the first step, simply because the application is incomplete. Out of those applications that are complete and are actually evaluated by GVK, more than 50% do not meed GVK’s requirements.
Says GVK’s CEO Martijn van Schelven: “What we find is that many of the applications are already dismissed at an early stage, because the plan is not well-developed or is incomplete. This is partly due to a lack of knowledge of the applicants. They often do not know what information is relevant to a funding request.”
The added value of Credit Passport in a funding request for GVK is the objective information provided by the Credit Passport about the entrepreneur and his business. Information on the financial solvency of a company is usually easily available, but information about the “soft side” of the entrepreneur is less available. Credit Passport offers various tests which evaluate the business profile and attitude of the entrepreneur. It also gives a picture of how the entrepreneur actually runs his company. How does he, for example, deal with innovation and human resources? By adding such information to the business plan, an overall picture of the entrepreneur emerges. GVK can then make a more informed decision.
In order to support entrepreneurs in making a funding application that is ready to be placed on GVK crowdfunding platform, Credit Passport will be used in the early stages of the application process. Going forward, GVK will together with its affiliated accountants and advisors, undergo an intense SME credit coach training with the help of Credit Passport. In the future, once a project is posted on GVK’s website, the results of the Credit Passport test will be visible on the dashboard.
We see this new cooperation as yet another sign that GVK is at the forefront of SME P2P lending in Europe. The company is the largest player of its kind by loans funded and is enjoying strong demand by both companies in need of financing and investors who want a decent return on their investment. Over the last days, GVK had projects ranging between EUR 150k – EUR 300k that were filled within the same day of their release.
We eagerly await the launch of TrustBuddy’s Nordic SME P2P lending product www.crowdfundingsociety.com. With GVK’s experience and an abundance of interesting SMEs in the region, we believe changes are high that Crowdfunding Society will become a success.