creditshelf launches first digital securitisation of SME loans together with CrossLend
creditshelf Aktiengesellschaft, a pioneer in the field of digital SME financing in Germany, is launching a partnership with the credit marketplace CrossLend to offer the first digital securitisation of SME loans in Germany. CrossLend acts as an investor on the creditshelf platform and purchases loan receivables as part of the regular lending processes. CrossLend then securitises the loan receivables and offers them in the form of a new product to a broad base of additional investors via its own channels. Initially, an institutional investor will invest a mid-single-digit million euro amount each month in creditshelf’s new business via CrossLend.
For this new offer, the loans are created in such a way that they can be passed on to institutional investors either immediately or with a delay. “With the flexible securitisation of SME loans, we are offering a new, innovative product,” says Dr. Daniel Bartsch, COO and founding partner of creditshelf. “The fully automated process increases the transparency of the resulting securities, creates flexibility and makes it possible to keep transaction costs low. This model opens up new groups of investors for us and thus also benefits our customers”.
The securitisation is processed via CrossLend’s digital securitisation platform. The Berlin-based Fintech company converts the loans into bonds in a flexible and transparent manner. “From the very beginning, our platform was designed to make the credit market more efficient, transparent and digital. The cooperation with creditshelf for the real-time securitisation of SME loans takes us a long way forward in this direction”, says Oliver Schimek, CEO of CrossLend. The partnership starts with a first institutional investor who will successively build up a loan portfolio of a mid-double-digit million euro amount per year through monthly investments in the new credit business of creditshelf via CrossLend. In addition, there are other institutional investors in the pipeline who would also like to invest in SME loans through this innovative solution. “We are pleased to be able to offer an additional sales channel through the cooperation with CrossLend and thus attract further institutional credit investors for us in the future,” creditshelf-COO Bartsch adds.