Flex Funding launches standardised performance metrics in partnership with Brismo
Flex Funding, the leading Danish marketplace for SME loans, has today announced that they are working with Brismo to provide performance metrics for investors. Via granular loan level access to Flex Funding’s loan book, the London based data vendor will create monthly standardised and verified performance metrics that allow investors to perform a like for like analysis of lending track records. This will enable investors to review the performance of Flex Funding loans alongside other leading originators in the non-bank lending sector, and to compare risk and return characteristics across multiple geographies and asset types.
Commenting on the announcement Torben Bruun, Chief Commercial Officer of Flex Funding, said:
“Flex Funding are determined to allow our investors to make investment decisions based on the highest quality information. By providing performance analysis that has been verified by a third party, and is reported to a consistent industry standard, we can provide all our investors with the opportunity to appraise our return, and risk, within a wider capital markets context. We are proud of our performance, and we wanted to make it possible for new institutional investors to efficiently and reliably to compare our performance with lending peers based on the same trustworthy methodology. As we work to diversify our funding sources we trust this information will make more institutional investors interested in our loans as an attractive investment opportunity.”
Rupert Taylor, founder and CEO of Brismo, explained:
“We are delighted to welcome Flex Funding as our first loan originator from Scandinavia and we look forward to helping them to diversify their funding base as they scale their lending into new markets.”
Lending Performance Analytics
Brismo’s analysis includes a complete historic track record in a format that is free from distortions relating to inconsistent facilitation growth rates or default profiles.
Functions available include:
- Gross facilitation, net lending, change in outstanding principal
- Outbound lending rates and loan term
- Late payments including transition matrices, defaults, recoveries, recoveryperformance, and net loss
- Historic PDs and LGDs
- Net return, loss coverage and risk adjusted return
- Cohort analysis including return projections
All analysis can be segmented by facilitator, risk band, asset type etc.
About Flex Funding:
Flex Funding, the leading marketplace lender in Denmark, operates a lending platform that allows investors to lend money directly to SMEs, without holding loans on its balance sheet. SME borrowers benefit from fast, flexible and competitively priced SME loans. Investors (private and institutional) benefit from a new asset- class with favourable yields. Flex Funding is a payment institution under the Payment Services Directive (PSD2) authorised by the Danish Financial Supervisory Authority (FTID 22025). More information is available at https://flexfunding.com/.
Brismo is the market-leading provider of standardised loan performance data, delivering like-for-like comparability, improved market efficiency, and the only performance benchmarks in the industry.
We work with market-leading facilitators of a wide range of loan assets – from SME and consumer through to real estate and receivables – across all major geographies. We cover over 65% of UK and European marketplace lending and around 40% of US marketplace lending.
We bring efficiency to the market in loans by enabling loan facilitators to create credible performance metrics and investors to deploy capital more productively and cost effectively. More information is available at https://brismo.com/.