Lendix, #1 SME lending marketplace in France, finances projects from € 30,000 to € 5,000,000 with maturity from 3 to 84 months. How is a project presented on the platform? Discover the 4 major steps to select a company before opening the subscription to lenders.
1) General eligibility criteria
Lendix financing solution is open to companies with the following characteristics:
▪ Commercial company (SA, SARL, SAS …)
▪ Headquarter in Metropolitan France
▪ Turnover exceeding € 250,000
▪ Profitable and showing a sufficient reimbursement capacity
The fit with these eligibility criteria is automatically evaluated by our “eligibility test” according to the information available in our databases.
At the end of this test, 3 results are possible:
1) The company is “eligible” and a member of the Borrower Relations team contacts the manager directly to investigate the need for financing.
2) The company is “pending documents”. This means that we don’t have the necessary elements in our databases. A member of the Borrower Relations team then contacts the manager to discuss his project and validate his eligibility.
3) The company is “not eligible” due, for example, to an insufficient turnover or because the application doesn’t concern a commercial company (craftsman, self-employed, liberal profession …). Of course, the manager has the opportunity to contact a member of the Borrower Relations team to provide additional information regarding his request that we would not have in our possession.
2) The credit analysis
Between 24 and 48 hours after the eligibility test and following the gathering of the financial elements by the Borrower Relations team, the project is handed over to a credit analyst.
The overall goal of the analyst will be to ensure that the company applying for financing has a sane financial health and demonstrates ability to pay back its loan, using in particular information from the “Fichier Bancaire des Entreprises » and Infogreffe. The analysis focuses on the following:
– Company’s market: existence of subsidiaries or sister companies and track record of the manager
– Increase in turnover and profitability: the financial solvency of the company is assessed through EBITDA and equity analysis
– Sustainability of the company (years in business) and its stability (frequency of change of the management team)
3) Telephone interview
Then, a telephone interview is organized with the company’s executive or the Chief Financial Officer to ensure that the analyst fully understands the project and the situation of the company and validates the various aspects of the credit analysis.
Following to this telephone interview, the analyst draws up an investment note to prepare for the credit committee, which is the last step before the project is put online. This document includes the scoring that determines the interest rate: A+, A, B+, B, C.
4) The Lendix Credit Committee
The Lendix Credit Committee is made up of 3 permanent members. It’s a committee which meets as soon as necessary: the members review the investment note of the project and decide in favour or against submitting this project to Lendix community. 2 out of 3 members must be provide positive recommendation for the project to be accepted and put online on the platform.
At the end of this committee, a proposal for a loan contract is drawn up which includes the definitive and detailed components of loan: rate, duration, amount.