The businesses taking loans are carefully selected by FundedByMe.
To borrow money through FundedByMe, the company has to:
- be a Swedish limited liability company (Aktiebolag)
- be in the market for at least 1,5 years
- have a minimum annual turnover of SEK 150 000
- have a Risk indicator higher than (B-)
- have positive business projections.
FundedByMe first checks the Bisnode and UC rating of each company wishing to borrow money. The companies with high risk of bankruptcy are declined due to investors protection. Lenders have an access to information (Risk Indicator and Risk Rate by Bisnode) to make their investment decisions complying with the level of their risk acceptance.
Based on high scoring requirement FundeByMe loan-based crowdfunding is not a last resort solution for Swedish companies that are looking for funds. The companies with high Probability of Default (PD) values are being declined and cannot apply for funding in peer-to-peer model on the FundedByMe platform.