We offer short-term, high interest
Statement from the Danish FSA
consumer loans and credits
Repay Finance A/S offers short-term, high interest rate consumer loans and credits to private individuals in Denmark.
The aim is to meet the consumers’ increasing demand for user friendly and easily accessible loans online. This market has grown rapidly over the past several years, with the number of directly comparable loans growing by 50.000 a year in Denmark alone.
Repay has primarily focused on the Danish market, where we have provided nearly 32.000 loans to consumers over the past three years, for a total of €20,5mn.
Since January 2017, the value of monthly loans has grown by 321 % from € 280k to € 1.18mn. With more than 62.000 loan applications received and with a credit approval rate of only 35 %, Repay focuses on safer lending and a stricter credit policy than the market average, where 48 % of applications were approved on average in 2017. Quarterly marketing costs have grown by 106 % from € 254k in Q1 2018 to € 468k in Q4 2018. Over the same period, quarterly loans provided grew by 53 % from € 2.84mn to € 3.66mn. Over this period, the relative costs of marketing to loans provided grew from 8.93 % in Q1 2018 to 12.78 % in Q4 2018, with a yearly average for 2018 to date of 10.51 %, up from 6.58 % in 2017. This is a direct result of the stricter credit scoring, resulting in more loan applications being denied, and more work being put into identifying the best borrowers among the applicants.
More than 25 % of the borrowers, who pay back their loans, take a new loan with Repay.
A new loan product “Bonuslån” has been introduced by the group to the market. The product is in direct competition with Repay’s leading brand “Turbolån”, offering identical loans under a different brand name. The new brand was introduced in late June 2018, and monthly loans of this product grew from € 76,000 in its first full month in July to €860,000 in December. This was achieved without hindering the steady growth of the main brand in the same period, proving that there is room in the market for further expansion. Any borrower that is already active in Turbolån is automatically declined at Bonuslån – and vice versa.
Additional loan products will be introduced into the market during 2019, with directly comparable and noncomparable loans, in order to both expand in the current market and to be able to target consumers whom the current portfolio of products does not appeal to. Revenue has grown faster than expenses, resulting in a growth in both Gross margin and Operating margin from 2017 to 2018. Quarterly gross profit has increased by almost 220 % since Q4 2017, growing from € 447,293 in Q4 2017 to € 1,399,184 in Q4 2018 Combined with a continued rapid growth in Denmark, Repay is also planning expansions to several other European markets, including Poland and Sweden in 2019.