Real estate companies save an average of CHF 250’000 per transaction via Loanboox

Real estate companies save an average of CHF 250’000 per transaction via Loanboox

by | Dec 8, 2022 | Media

Loanboox expanded its business activities in spring of this year and has since also been offering its services and tools in the real estate sector. After nine months a very positive interim conclusion can be drawn: Real estate companies and housing cooperatives have saved on average 40% per transaction with Loanboox Real Estate during the turbulent market situation; CHF 250’000 per transaction.   

The market situation is uncertain, lenders are more cautious, interest rates have risen sharply and are volatile. This is a difficult situation for many real estate companies and housing cooperatives. Loanboox, the leading financing platform, has set itself the goal of setting new standards in the industry and supporting customers in financing and loan management with innovative technology and customised services when it entered the market for mortgage financing of investment properties in spring 2022. 

«Real estate companies and housing cooperatives have saved an average of 40% in the last nine months thanks to Loanboox Real Estate – that’s CHF 250’000 per transaction. Every request was successfully completed.»

Says Patrick Zurfluh, Head of Real Estate Financing at Loanboox. The volumes concluded via Loanboox Real Estate ranged between CHF 2 and 22 million, with durations between 3 months and 15 years. 

Borrowers benefit from the advantages of the digital platform (efficient processes, data room, offer comparison, audit trail and expansion of the lender network) and professional, personal advice. Lenders, on the other hand, appreciate the broad access to attractive financing opportunities, the high quality of the financing dossier and the lean processes. 

«The financing requests from Loanboox Real Estate are professionally prepared and reduce our processing effort considerably. The factsheet and the platform allow us to make quick decisions and submit our financing offer easily», says Michael Müller, Director at UBS.  

The order book at Loanboox Real Estate is well filled, says Zurfluh: «More than 10 transactions are due in the next few months. The debt management tools are also in demand. Various large real estate investors want to get a comprehensive and digital overview of their loan portfolio with our technology. This enables them to make data-driven decisions.» 

ContaCt

Loanboox
Martina Bühler, CMO
Patrick Zurfluh, Head Real Estate Financing
Talacker 50, 8001 Zurich   
+41 55 220 78 29, press@loanboox.com

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Real estate companies now refinance via Loanboox

Real estate companies now refinance via Loanboox

by | Jun 10, 2022 | Media

Loanboox, the leading financing platform, has modernised debt financing for the public sector. The company now also offers its services to housing cooperatives, real estate funds and real estate companies. For this purpose, Loanboox has added the experienced real estate financing expert Patrick Zurfluh to the team.  

To date, municipalities, cities and large companies have concluded 2’500 loans via Loanboox. Due to the high demand, the financing platform is now also offering its services to housing cooperatives, real estate funds and companies. 

The first pilot transactions have already been concluded in recent months. A housing cooperative from the canton of Zurich has saved 20% of its financing costs and more than halved its workload. With its new offering, Loanboox combines the advantages of the digital platform (digital offer comparison, efficient processes and access to a big lender network) with professional, personal advice. 

For this purpose, the financing expert Patrick Zurfluh joins the team as Head of Real Estate Financing. Patrick Zurfluh previously worked for Raiffeisen and Credit Suisse as a real estate financing specialist and explains:

«When working there, I noticed: Real estate financing should be simpler and more cost-efficient. That’s why I have joined Loanboox. I’m looking forward to helping real estate companies get their best financings.»

For lenders, Loanboox also creates advantages, by enabling wider access to opportunities and streamlined processes. In the digital data room, all documents and necessary information are available in one place and clearly synthetised. This eliminates the need for multiple back and forth between borrowers and lenders. Fair communication and clear deadlines are an advantage for all parties. Loanboox is open to partnerships with interested associations or organisations. 

ContaCt

Loanboox
Martina Bühler, CMO
Patrick Zurfluh, Head Real Estate Financing
Talacker 50, 8001 Zurich   
+41 55 220 78 29, press@loanboox.com

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Strong growth in 2021 for Loanboox

by | Jan 24, 2022 | Insights, Media

The leading European debt financing platform Loanboox reports a strong business year 2021, with 700 closed deals and doubled revenues. The Fintech recorded the fastest growth in Germany and concluded its first deals in Eastern Europe.

Five years ago, Loanboox entered the market with the vision to make debt capital markets more efficient, transparent and fast. To date, municipalities, cities and large organisations closed 2’400 loans with a total volume of more than CHF 26 billion. These financings enable valuable projects for our societies, including renewable energy, renovation of hospital infrastructure or new kindergarten buildings. In 2021, the growing activity from users resulted in a doubling of the fintech’s revenues.

Internationalization speeding up

The Fintech’s internationalization strategy pays out: “We achieved the strongest growth by over 200% in Germany, where cities such as Mönchengladbach, Frankfurt or Königswinter profit from accessing money more quickly and at very competitive rates” comments Philippe Cayrol, CEO of Loanboox. Thanks to a new innovative product, the company also enabled first transactions in Portugal, Poland, Bulgaria, Romania and the Czech Republic in 2021.

Broadening of services

Apart from its international expansion, Loanboox is constantly innovating by creating automation and debt management tools as well as deeper analytics for its customers. The Fintech offers a broader service for borrowers, including debt planning and transaction support on large financings. 150 active lenders profit from digitalized processes, data insights and from a lean co-creation of new products.

Strengthened advisory board

To support the strong growth journey of the company, Loanboox strengthens its advisory board. Frank Mattern, former Senior Partner at McKinsey & Company and independent advisor and board member at various international companies (e.g. Morgan Stanley Europe SE and Centerbridge Partners Europe), reinforces the team with his extensive experience and network.

About Loanboox

Loanboox is the leading European platform for debt financing for professional organizations and a member of the business community Leaders for Climate Action. More information about Loanboox, see here.

Contact persons

Loanboox
Philippe Cayrol, CEO
Martina Bühler, CMO
Talacker 50, 8001 Zurich, Switzerland  
+41 55 220 78 29, press@loanboox.com

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Results of the World Climate Conference: What the financial industry has to do with it

Results of the World Climate Conference: What the financial industry has to do with it

by | Nov 30, 2021 | Borrow, Invest

The World Climate Conference COP26, which ended mid-November, delivered important results against climate change. We show these and explain what sustainable finance means and what role the financial sector is playing in the fight against climate change.

The goal of the 26th World Climate Conference COP26 in Glasgow was to advance measures to achieve the goals of the Paris Agreement and the UN Framework Convention on Climate Change.

Achieving Net Zero: The contribution of the World Climate Conference COP26

The Glasgow Climate Pact was adopted at COP26 – almost 200 countries agreed to it. Aside from the one-sentence explanation of keeping the temperature rise below 1.5°C, these are the main points discussed by the delegates:

  • Coal will be “phased down”.
  • $500 billion to developing countries in the next 5 years to help them cut emissions and cope with the impacts of the climate crisis.
  • A database, communications and reporting system (Santiago Network) for countries and organisations to identify and catalyze opportunities and mobilize assistance to address loss and damage from climate change.

Some countries and NGOs described the results as “disappointing”. However, most countries agreed that the deal was balanced at this point, given their differences. The New Zealand chief negotiator summarized it as follows: “The text represents the ‘least bad’ result.”

More information about COP26 and its results can be found here.

Explanation of terms: Net Zero

Net Zero (net zero emissions) means that, through various measures, humans remove the same amount of the greenhouse gases they produce from the earth’s atmosphere. Accordingly, net zero means climate neutrality. The goal of global climate policy: to achieve Net Zero respectively climate neutrality by 2050.

Sources: Avenir Suisse and IPCC

What is the connection between the measures mentioned and the financial world?

The importance of sustainable finance

The way the world is currently managing its economy is not sustainable. The ecological level is overstretched and has reached its capacity limits. The financial sector has a central role to play in fighting climate change. On the one hand, enormous sums must be invested to promote sustainable measures, such as renewable energies. This is in order to achieve the UN’s Sustainable Development Goals. On the other hand, huge amounts of money are still flowing into organizations, projects and investments that do not meet sustainability criteria.

What role does finance play in net zero?

One of the key objectives identified in the run-up to COP26 was to mobilize finance. The Glasgow Financial Alliance for Net Zero (GFANZ) was launched to raise standards, drive ambition and ensure that Net Zero commitments are transparent, credible and consistent. Trillions must flow from the private and public sectors for Net Zero to be achieved.

Portrait von Andi Burri

Image source: flickr

“The private sector is realizing that climate risks are very important for their portfolios and they need to align them to a more sustainable way of doing things.”

 

Patricia Espinosa, Executive Secretary of the UN Framework Convention on Climate Change

500 global financial services firms have responded and agreed to align $130 trillion – 40% of the worlds’ financial assets – with the goals set out in the Paris Agreement, including limiting global warming to 1.5°C. An encouraging sign.

In the next article, we will do a deep-dive on the roadmap and the role of institutional investors, governments and cities to financing Net Zero.

Stay tuned.

Uncertain market situation: challenges in municipal financing

by | Nov 1, 2021 | Borrow

Stagnating markets and rising interest rates are currently responsible for worry lines. Clear trend: no sign of it. While investors are groping in the dark, financial managers are facing new challenges with regard to municipal financing.

Global production and supply bottlenecks, the European energy shortage, and rising prices and inflation rates are among the factors causing uncertainty on the world market. While prices on the stock market are trending sideways, interest rates are rising due to inflation fears.

Rolf Biland, Chief Investment Officer of VZ VermögensZentrum, provides an insight and outlook on market developments.

 

Rolf Biland
Chief Investment Officer

VZ VermögensZentrum

 

How do you assess the current uncertainty on the markets?

Many investors have become accustomed to the comparatively steep upward trend of the stock markets over the months and the volatility level is also below the long-term averages – for these reasons, investors are reacting with increased uncertainty to the “more normal” investment environment that has prevailed since September.
The year 2021, like 2020, is an economic exception. The economy collapsed rapidly last year due to Covid-19, then recovered in a pendulum fashion and returned to strong growth. Despite the ongoing pandemic and its aftermath, growth in the developed world is expected to normalize further in a few months.

What are your expectations regarding market developments?

Provided there are no new crises and the central banks do not tighten their monetary policy reins sharply or unexpectedly, which I assume will be the case, this should not startle the markets either. As most companies in the industrialized countries have their costs under control and have increased the efficiency of their business models, I continue to expect a friendly trend on the financial markets – even if more fluctuations and phases of uncertainty are to be expected.

Rising interest rates: What does this mean for municipalities?

The general market uncertainty also has an impact on municipal financing. Compared with two months ago, it is clear that interest rates are currently rising slightly, as illustrated in the chart below.

Background knowledge explained: How is the yield curve composed and how can it be interpreted?

The yield curve is composed of the money market interest rate and the capital market interest rate. The money market interest rate (for terms of up to one year) is based on LIBOR, which will be replaced by SARON at the end of the year. From one year onwards, the capital market interest rate is used, which is based on the swap rate.
Short-term interest rates have hardly changed in recent months. Capital market interest rates, on the other hand, have risen significantly. As a result of the strong economic recovery, which is being additionally fueled by extensive government aid packages, fears of rising inflation are spreading around the world, leading to rising interest rates in the multi-year range.

Rolf Biland notes that the public sector was and still is strongly challenged by the pandemic – the tax burden will probably not decrease in the coming years due to the special expenses. Municipalities also have an additional burden, as they have to adapt to changing needs and behavior patterns of the population, such as mobility or home office.

Is there a reason to worry?

Loanboox co-founder Andi Burri also notes a certain uncertainty among municipalities, which is reflected in financing. But there is currently no cause for concern: Interest rates continue to be very attractive, and negative interest rates are possible for loans with terms of up to four years or even longer.

Portrait von Andi Burri

 «Especially in times of uncertainty, thorough liquidity and financial planning continues to gain importance.»

 

Andi Burri, Co-Founder & Managing Director Switzerland of Loanboox

In addition, in combination with the consistency of the municipality’s financial situation, it is important to form one’s own opinion regarding the development of interest rates, as this allows a strategy to be developed and pursued. In view of the matching maturities and the continuing uncertainty in the capital market, balancing or long-term maturities in the loan portfolio will be increasingly in demand in the coming months, Burri suspects.

How we can support you

In addition to requesting and processing financing, Loanboox also provides support in the planning and monitoring phase. Loanboox debt planning service helps to set up a clean strategy, evaluate its advantages and disadvantages and simulate costs. The intuitive debt management tool simplifies the management of loans and allows detailed analysis of maturities.

Feel free to contact us if you would like us to support you.