The 20,000 retail lenders of the October platform – formerly Lendix, which allows SMEs to borrow directly from private and institutional lenders without having to go through banks – have expressed a massive vote their willingness to support European companies impacted by the Covid-19.
The spread of the virus is likely to have serious consequences for businesses, ranging from slowing production to volatile cash flows and future financial difficulties.
European Fintech born with the ambition to facilitate the growth of companies by simplifying their financing, wants to go further and be on the front line to help companies to preserve jobs and recover quickly in this unprecedented context.
It announces a 3-month freeze on capital repayments for 523 European borrowers, without any formalities or administrative processes for companies.
This means that their loan maturities will be extended by 3 months and the community of retail and institutional lenders will receive interest only for April, May and June 2020.
The capital freeze will be automatically activated without any administrative formalities. This initiative is applied consistently in all countries where the platform is active. It is independent of any support that national governments may decide to undertake in the coming weeks.
The platform is proud to have the support of its institutional investors and more than 20,000 individual lenders who have expressed, through a massive vote, their willingness to help the real economy in these difficult times.
The 3-month freeze on capital repayments also affects October’s management, which automatically lends to all projects alongside individual lenders. To date, more than 12 million euros have been lent by the company’s management. Alignment of interests is a rule that has forged October’s culture, based on transparency and common interests. In addition, as a sign of additional commitment, October will waive the levies of its monthly fee during the freeze period.
“We want to take concrete steps, supported by our lenders, to help European companies in this exceptional situation. We also know that the best chance to get our investment back is for companies to overcome the crisis. The preservation of their cash flow is therefore essential for the economy as a whole,”Olivier Goy, founder and CEO of October
October is fully operational and 100% digital by essence, allowing them to operate remotely. Thus the platform remains open and can evaluate all incoming loan applications based on credit risk, as it was the case before Covid-19. It is taken into account the potential impact that the current situation could have on certain industries, but the risk is assessed on a case-by-case basis.
October has already financed more than 720 SME development projects of all sizes and sectors, for a total amount of 400 million euros. October operates in France, Spain, Italy, the Netherlands and Germany
The next40 platform is one of 40 high-potential French technology companies with the ambition to become world-class technology leaders. The company is supported by Partech, CNP Insurance, Matmut, Allianz, Idinvest, C.I.R. Spa and Decaux Frères Investissements, among others.