DGAP-News: CrossLend GmbH / Key word(s): Miscellaneous
CrossLend supports alternative lenders across Europe to be accredited for government-guarantee schemes by building the bridge towards institutional investors
However, these programmes were mainly designed for regular banks, and many alternative lenders failed to meet the strict requirements for government-backed support schemes. This constraint is not only detrimental to the alternative lenders themselves, but also detrimental to beneficiaries of the support schemes - the many small and medium sized companies around Europe who depend on such support schemes. Even before the pandemic, SMEs have generally been underserved by regular banks, which is why alternative lenders stepped into the gap in the market to provide funding. But these days, this important source of funding is coming up against many new challenges.
As part of this effort, CrossLend has partnered with originators, who were previously only focused on retail investors, helping them to secure institutional funding. Through these partnerships, lenders have been able to raise the required level of institutional funding and demonstrate the necessary data analytics to participate in government-backed COVID-19 schemes, such as the UK's Coronavirus Business Interruption Loan Scheme or the Dutch BMKB-C scheme.
Both in the short-term and in the long-term, collaborations like these will enable even more funding to flow to businesses across Europe. CrossLend's technology will allow more and more originators and investors to expand their businesses across all European markets.
Among the shareholders of CrossLend are Mouro Capital (formerly Santander InnoVentures), ABN AMRO Ventures, the Luxembourg Future Fund (European Investment Fund; SNCI), CME Group, Lakestar, Earlybird, Northzone, Promus Ventures, Atlantic Labs and finleap.
17.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.