HELSINKI, Finland, Oct. 14, 2015 (GLOBE NEWSWIRE) -- "This deal is by far the biggest in our history so far and certainly sets us far above most of the competition," says Tommi Lindfors, Chairman of Euroloan Group. "It is a massive improvement for us, which secures our funding requirement for the next couple of years and provides the means for us to grow at a rate that hitherto was not possible. The size of the deal was reflected in the fact that advisory was provided by six international law firms, with Attorneys-at-Law TRUST and DLA Piper representing Euroloan in an excellent manner."
"I believe both parties are very pleased with the deal. We at Euroloan have been forced to step up, both on the individual level and as an organization," Mr. Lindfors continues. "Euroloan has shown that it is capable of meeting very strict asset quality criteria. The investment firm is very professional and demanding in securing the interest of their investors, and we have worked hard to meet their requirements. Everything we do has been closely scrutinized, so this feels like a big stamp of approval."
Mr. Lindfors adds that "receivables that Euroloan's Consumer Finance business generates can now be sold directly, for cash, at a good rate, freeing up capital and greatly increasing our capital turnover rate and growth potential. This deal enables us to focus on our core strengths, using our state-of-the-art, fully automated lending systems to generate much bigger volumes and getting new customers. We have now secured most of our planned funding base of EUR 100 million. Having ample funding, we can leverage our superior scalability and the low transaction cost we have achieved through automation and using the best financial technology available. The main factor limiting our growth is now solved, and there is virtually no limit on how much we can grow during the next couple of years. As always, we will maintain strict scoring and customer selection criteria to ensure strong performance."
The deal is expected to have a noticeable effect on the income statement of Euroloan Group PLC. Higher lending volumes, which are now possible with an increased funding base, are expected to improve long-term profits. Turnover per lending volume will decrease some while financing costs per lending volume will decrease significantly. With current receivables being sold after origination the capital turnover rate of the Group is also expected to increase substantially.
Euroloan Group PLC (Euroloan) is a rapidly growing international finance group specialized in financial technology (FinTech). The group's headquarters are located in Helsinki, Finland, with offices in Stockholm, Sweden and Warsaw, Poland. Euroloan has developed the most efficient financing business models and systems in the market. Euroloan's fully automated and internationally scalable cloud banking services provide real-time credit solutions for consumers and E-Commerce. Euroloan has consolidated its market position and increased its market share continuously since the company was established in 2007 . More information about Euroloan Group is available at www.euroloan.com , Finland www.euroloan.fi , Poland www.euroloan.pl and in Sweden on www.euroloan.se .
For more information, please contact:
Euroloan Group PLC
Tel +358 10 217 1003
Source: Euroloan Group Oyj