Projefi #2

Presentation of the company

Created in 2003, Projefi is active in the credit brokerage sector. The company, managed by Michel Pons-Palomba, has 34 employees and is based in Cannes. Projefi is the new name of EIG Finances, following the merge in 2017 with Up Finances, specialized in the same actitvity.

Mr. Michel Pons-Palomba, managing director, has overall 16 years of professional experience in the sector. Previously, he created the Projefi company.

The company’s main activity is: the distribution of loans (loan repurchase, mortgage loans for seniors, lombard loans, real estate loans, etc.) in metropolitan France and the French overseas departments, through the EIG Finance Réunion company.

The company works with banks in France and abroad such as Crédit Agricole, My Money Bank.

The managers own others companies in the same sector : EIG Assurance specialized in insurance brokerage and Patrimonium specialized in repurchase agreements and whose activity is complementary to Projefi.

Project Description

The company requests a loan of 120 000 € over 48 months to finance the digitizing of the customer credit process. This project will be realised this quarter.

As a reminder, the October lending community supported EIG Finances in september 2016 with 120 000 € to finance the open of two agencies in Paris and Bordeaux.

The amount offered on the platform is limited to 58 800€, which is in line with the regulatory limits.

Analyst’s Opinion

With a turnover of 3 619 000 € in 2018 and an experienced team, the company has a good track record combined with a two-digits operating margin.

The increase of the revenue in 2017 is linked to the merge with Up Finances company. The forecast is based on the expected performance of 2019.

The borrower has a correct repayment capacity with a forecast FCCR (Fixed Charge Cover Ratio *) at 1,13 and an excellent financial structure, with a forecast net debt / ebitda ratio of 0,6 and a net debt / shareholder equity of 65%.

The analysis of the project leads to a credit rating of B and a 5,65% annual interest rate.

*The multiple of FCCR at 1,13 means that the company has a safety margin of 13% relative to its ability to repay its credit maturities.

The expert opinion is given as an indication on the basis of the elements provided by the project holder and information from our databases (External data provider). This opinion is only an element of reflection in the decision making of a lender to participate in the financing of a project.

Strong points:

• Good historical performance based on diversified client base.
• Correct repayment ability with a forecasted FCCR of 1,13 reinforced by the support of the banks pool.
• Efficient customer sourcing thanks to a good referencing of websites and network of historical partner banks.

Point of caution:

• Direct competition from credit players.