Natland a EC Financial Services - Non-bank Loans
From financing and crisis management of 2012 all the way to a strong and stable market player of today
Situation on the Market for Consumer Loans
During the low growth era after the financial storm of 2008 there are 2 types of demand for consumer loans:
- Short term liquidity problems by people previously hit by recession
- Bringing consumption forward by people participating in the improving labour market
Bank loans remain inaccessible for most small clients.
There are almost 60 thousand non-bank providers of consumer loans:
- They operate outside of direct oversight and regulation by the central bank
- Business plan often aims at earning late fees or contracted operational fees, and getting collateral from defaulting clients
There is room on the market for a standard business plan based on repeating repaid loans and preventing insolvencies
2011 ExpressCash Enters the Market
The business plan has two pillars, concentrating on a long-term relationship with:
- The client: a cooperating borrower can have all contractual or late fees waived. The client has a motivation to cooperate and to return.
- Salespeople: success fees are transparent and fair to all, without short-term quick acquisition drives which undermine concentration on the long term.
Founders’ initial investment is insufficient to finance further expansion from southern Moravia to Bohemia
2012 Natland Enters to Finance Expansion
Natland provides a loan of EUR 2 million, payable by the end of the year and secured by financial instruments
Natland acquires 10% of shares
Investment results in doubling the volume of loans, via SouthBohemian District the company expands also to Prague