EstateGuru has financed 1040 loans to the amount of €153M since 2014. Geographically, 68,27% of them were in Estonia, 17,92% in Latvia, 12,24% in Lithuania, 1,37% in Finland, 0,1% in Portugal, and 0,1% in Spain.
“Although the majority of loans are currently financed in Estonia, we’re witnessing an increased inflow of loan requests from Spain, Finland, Portugal and Italy. By integrating different public databases into our data warehouse and using sophisticated valuation models, it’s possible to make quick and professional loan decisions and help small and medium sized companies all over Europe”, commented Daniil Aal, Head of Group Sales at EstateGuru.
“It’s a global trend that traditional banking is becoming more and more localized due to AML and KYC procedures, as it’s very expensive for them to handle those procedures cross-border. Although at the same time people and businesses are more and more borderless because we live in a borderless world enabled by technology and data“, added Aal.
While the German banking system takes on average 10 weeks to get a loan paid out to an SME, at EstateGuru it takes on average three working days. The majority of the loan projects are from bigger cities. The average loan sum in the Baltics is between €150 000 – €200 000. Outside the Baltics the average loan sum is considerably higher, starting from €500 000 and typically exceeding €1m. The average contractual loan term for the issued loans is 14 months, however the average loan term of repaid loans has been 10 months – a clear indicator that borrowers prefer the flexible repayment options provided by EstateGuru.
„Although the three Baltic countries are usually seen as a one homogeneous region, there still exist some noteworthy differences. For instance, in Estonia the secondary cities like Tartu, Pärnu and Narva also have very active real estate markets, while in Latvia, it’s mostly based in Riga. In Estonia, entrepreneurs can easily put their home up as collateral for a business loan, this however isn’t an accepted practice in Lithuania. We also see that legal and tax environments are different and in Estonia the enforcement procedure costs are lower for the creditor than in Latvia and Lithuania,“ commented Andres Luts, Baltic Risk Manager at EstateGuru.