Recognising a market niche and €9 billion funding gap, LendSecured has launched with the aim of getting capital in the hands of an often overlooked market, rural Europe.
Traditionally farmers in Hungary, Latvia, Estonia, Lithuania, Greece, Romania, Bulgaria, Croatia, and Spain struggle to source working capital; that which is necessary to fuel pre-harvest hiring, as well as acquiring the machinery needed to reap and sow, as it were.
With an innovative approach, LendSecured is helping farmers secure financing using their own grain as collateral.
LendSecured hopes to alleviate the process of investment funding in the agricultural sector, and with it, bring more opportunities for growth. The system is (relatively) simple: an agreement will be made between investors, farmers, and harvest buyers, with the harvest buyers buying the grain from the farmers and returning the interest to the lenders.
From an investors point of view, LendSecured makes it possible to support the development of rural Europe, and even choose between organic or non-organic farmers to invest in.
“By improving access to funds for the EU rural area, we are driving innovation and creating more respectable working conditions. At the same time, providing investors with a diversified portfolio, which happens to also be great alternatives to short-term loans,” comments Nikita Goncars, co-founder of LendSecured
“Investing in projects that also have added value to the EU economy brings together the ethos of responsible investing and mutual benefit, which we believe is the future of investing, and is in fact in line with UN sustainability development goals.”
Built by a team of former financial services providers, LendSecure offers security and transparency: no financing is held in LendSecurc accounts. The capital rests with BNP Paribas via LendSecure partners LemonWay. The platform is Anti-Money Laundering (AML) compliant, and only accepts payments from Single Euro Payments Area (SEPA) countries.
LendSecure is currently in the process of obtaining the EU crowdfunding license that was launched in November of 2020.