November 2, 2023 For investors | News

In October 2023, we added a new loan provider Loan2go from the Czech Republic to our Bondster platform offer. The company focuses exclusively on financing sole traders and small to medium-sized companies. The annual interest rate of loans offered for investment ranges between 10 and 11%. These loans come with a short maturity, which usually does not exceed 90 days.

Loan2go was founded in the Czech Republic in 2019 as part of the international Lidya Inc. group based in the United States. In February 2020, it started providing loans on the Czech market under the name Lidya Czech Republic. It specializes in short-term operating financing of small to medium-sized companies and sole traders. 

The goal of Loan2go is to quickly and easily finance the growth of their business by helping them cover their operating expenses. The company does not finance long-term investments, nor does it provide financing to consumers. In 2022, the company was taken over by Czech investors and continues to develop its business strategy under the new name Loan2go. 

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So far, the company has provided over 2,000 loans with a total volume exceeding 500 million Czech crowns. Loan2go scoring differs from the traditional banking model primarily in that it is based on an analysis of the applicant’s current cash flow. The company’s own digital platform enables it to assess applicants’ financial situation quickly and easily. Preparing a loan offer, which normally takes days, if not weeks in banks, takes only a few minutes with Loan2go. 

Loan2go then verifies the financial situation of the loan applicant by looking at the Non-Bank Register of Client Information which it is a member of. By using this approach, the company manages to keep the default rate below 1% while finding enough quality companies that, although well-managed, are usually unsuccessful with banks as they have, for example, a short history or young owners, a non-traditional business model, or cannot provide the guarantees banks demand.

Loan2go only requires bank statements for at least the last 3 months to assess a loan application. Signing the loan agreement and disbursing the funds takes place completely online, which allows the Prague office to provide financing to companies anywhere in the Czech Republic. 

What companies appreciate about Loan2go is the simplicity of application, free and non-binding financing offer, flexible early repayment and the possibility of obtaining loan funds within 24 hours. Entrepreneurs also welcome the time saved since there is no need to visit the company’s office. 

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Financing from Loan2go is primarily used by companies operating in transportation, logistics, services, wholesale and retail, including e-commerce. They use these loans to finance, for example, the purchase of stock, bridging the payment period of their invoices (which is often up to 90 days), their marketing expenses or the purchase of materials to carry out an order.

For 2023, the average amount of loans granted so far has been around 350,000 Czech crowns, with the terms of usually 30, 60 or 90 days. The short maturity allows Loan2go to respond very quickly to changes in the external environment (e.g. rising energy prices, war conflict, changes in interest rates, inflation, etc.) and to take these changes into account when assessing applications for financing and setting loan terms.

Investing in Loan2go loans will be attractive to investors who have a short investment horizon and prefer diversification between consumer and corporate loans. 

Since the very beginning, the company has been led by Libor Vaníček, who has over 25 years of experience in management positions in banking and insurance.

Bondster’s analyst team has assigned Loan2go a B- rating. 

Author of the article: Roman Muller

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