December 26, 2021

Emma’s Credit, operating under the trade name CreditGO, is a Czech provider of short-term, non-bank loans with a single lump-sum repayment. The company was founded in 2014 and is licensed by the Czech National Bank to operate as a non-bank consumer credit provider. It provides loans in CZK with an average maturity of 18 days and principal amounts ranging from 500 to 20,000 CZK.
Short maturities and low individual loan amounts are key to this model. Rapid capital turnover shortens the period during which funds are exposed to risk, and the large number of small loans ensures high granularity and low concentration risk in the portfolio.
For unsecured consumer loans, which are not backed by any tangible collateral, the provider’s own stake is the primary tool for aligning the interests of the provider with those of investors. CreditGO retains a 5% stake in the loans it finances (skin in the game), and thus shares in any potential losses on each loan. This gives it a direct incentive to carefully assess applicants’ creditworthiness and rigorously collect on receivables.

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