“Peer to Peer” (P2P) platforms operate on the principle of co-financing, where a large number of investors contribute relatively small amounts of money to fund loans. Where exactly the money goes depends on the company; some focus on real estate, others lend to start-up businesses, while some find even more specific niches.
One of the most popular areas is consumer loan financing. Accordingly, the platform either attracts non-banking sector partners who then grant loans at a certain interest rate or, as in the case of “Nectaro,” utilizes other companies within the group to issue loans.
“We attract retail investor money from Latvia, the Baltics, Europe, and offer them financial instruments secured by assets – in this case, the loans issued,” explains Kotlere, noting that “Nectaro” is a small part of the US-based Dyninno Group, which offers services and solutions in the travel, finance, entertainment, and technology sectors. The financial sector also includes credit institutions.
To find out more about what Sigita Kotlere discussed in the interview, click here.
(The interview is in Latvian).
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