Zencap

Zencap Global Services
Private
Industry Financial Services, Software
Founder Dr. Christian Grobe, Dr. Matthias Knecht
Headquarters Berlin, Germany
Area served
 Germany, Spain, The Netherlands
Products Peer-to-peer lending
Number of employees
 65
Parent Rocket Internet
Website www.zencap.de

Zencap is a multinational company, operating a peer-to-peer lending platform, which allows private savers to lend money directly to small and medium sized businesses in Germany, Spain, and the Netherlands.[1] Using the crowdfunding model, the company based in Berlin, Germany[2] aims to create a direct link between private lenders and small businesses seeking loans.[1][3][4][5] As of December 2014, Zencap had facilitated 5 million Euro in loans to small and medium sized firms.[6]

Origin

The company, based in Berlin, was founded in March 2014[7][8] by Dr. Christian Grobe and Dr. Matthias Knecht, with support from Rocket Internet.[1][7][9]

Lending

The business model resembles the US peer-to-peer lending platform Lending Club[10] and UK-based company Funding Circle.[11] Zencap facilitates small business loans from 10,000 to 250,000 euros.[1] To qualify, companies have to be trading for at least two years, have solid financials and have total revenue of more than a 100,000 euros. Nominal interest rates range from 3.99% to 15.64%.[12] Zencap determines whether the borrower is creditworthy and assigns a credit grade that determines the payable interest rate and the fees. Zencap itself charges borrowers a 1% to 4.5% origination fee. The loan period can range between 6 and 60 months while the loan can be repaid without an early repayment fee at any time.[13] Conditions vary between countries.

Small businesses, freelance professionals and sole traders[14] can apply for loans by submitting an application which is reviewed by Zencap credit analysts. Tagesspiegel quoted founder Christian Grobe, "We are very strict with the risk assessment."[1] Once approved, businesses post their loan request on the Zencap marketplace, where private lenders are able to choose which businesses they want to lend money to.[15] After the business accepts a loan, they make one repayment each month. The loan capitalization is typically made up of a large number of individual investors each bidding small amounts on hundreds of different businesses to spread their risk. Because investors choose to which businesses they lend, and since the interest rate varies between businesses, returns for lenders using Zencap also vary from person to person.[16]

See also

References

  1. ↑ 1.0 1.1 1.2 1.3 1.4 Neuhaus, Carla (15 June 2014). "Woran Berliner Start-ups arbeiten". Tagesspiegel. Retrieved 12 December 2014.
  2. ↑ Neuhaus, Carla (15 June 2014). "Woran Berliner Start-ups arbeiten". Tagesspiegel. Retrieved 12 January 2015.
  3. ↑ Hackmann, Felicitas (7 February 2014). "Zencap is the latest investor-investment matching platform — now with credit, not equity". Human Ipo. Retrieved 12 January 2015.
  4. ↑ "Rocket Internet’s Credit Marketplace Zencap Will Help SMEs Ditch Bank Loans". Human Ipo. 31 March 2014. Retrieved 12 December 2014.
  5. ↑ "Zencap crea una "nueva alternativa" de financiación para las pymes andaluzas". Retrieved 2015-01-12.
  6. ↑ "Geld leihen von Privatpersonen: 5 Millionen Euro erfolgreich finanziert". Zencap. Retrieved 13 February 2015.
  7. ↑ 7.0 7.1 Drost, Frank Matthias (22 May 2014). "Jungunternehmer finanzieren den Mittelstand". Welt. Retrieved 12 January 2015.
  8. ↑ http://www.deutsche-startups.de/verzeichnisse/startups-a-z/zencap-deutschland-gmbh/
  9. ↑ Räth, Georg (31 March 2014). "Das neue Rocket-Startup – Lendico für den Mittelstand". gruenderszene. Retrieved 10 January 2015.
  10. ↑ "Rocket Internet announces new startup Zencap". Venture Village. 1 April 2014. Retrieved 12 January 2015.
  11. ↑ Hesse, Martin (31 March 2014). "David gegen Goliath". Spiegel. Retrieved 12 January 2015.
  12. ↑ "FAQ". Zencap. Retrieved 1 January 2015.
  13. ↑ Jarotschkin, Viktor (5 September 2014). "Innovative Mittelstandsfinanzierung mit Zencap". fuer-gruender.de. Retrieved 1 January 2015.
  14. ↑ "Renditen & Gebühren". Zencap. Retrieved 1 January 2015.
  15. ↑ "Start-Up-Schmiede will den Mittelstand finanzieren". Handelsblatt. 30 March 2014. Retrieved 10 January 2015.
  16. ↑ "Zencap erweitert Kreditnehmerkreis". Zencap. Retrieved 1 January 2015.

External links