From 0 to 23 billion in 5 years

A start-up that broke new ground by digitising municipal lending in Germany is celebrating its 5th anniversary: Loanboox. With 23  billion euros in closedfinancings in seven countries, the financing platform started off successfully and is rapidly developing its offerings further.

Since its launch in 2016 in Zurich as a platform for municipal finance, borrowers have completed more than 2,100 transactions with a volume of 23 billion euros in seven countries. A team of 40 employees serves 3,000 registered municipalities, cities, public institutions, large companies as well as institutional investors and banks and is rapidly developing the platform.  

“The high demand shows the need for efficient debt capital markets,” comments Philippe Cayrol, CEO of Loanboox. “In 2021, we enabled the creation and expansion of municipal infrastructure, such as kindergartens and school buildings, broadband expansion and road construction. It makes us proud to make the debt capital markets easier and faster for all market participants, while contributing in a small way to tomorrow’s society.” 

The idea behind Loanboox was radical and bold: to create a digital marketplace for large loans. Borrowers submit their loan requests online, professional investors bid on them – saving time and creating transparency. ”The largest requests so far are 450 million euros. As the business matures, we are also seeing an increasing rush from very established borrowers” adds Cayrol.  

 

A lot has happened since the first days. Loanboox has developed automation and analysis tools for its clients. Advisory services such as financing planning and support for more complex mandates complement the services. 150 active capital providers benefit from more efficient processes, data insights and co-development of new products.  

In the last 6 months, the company has celebrated a number of firsts on its platform: The first sustainable loan, the first secured financing and the first transactions in Eastern Europe. These developments pave the way for a successful and sustainable future, both for clients and Loanboox.   

About Loanboox

The fintech Loanboox is Europe’s leading platform for debt financing and is represented in six countries. Four years after going live, the 20 billion mark in closed volume has been broken. Since its launch at the end of 2016, more than 1600 deals have been completed. Clients are municipalities, municipal companies and municipal utilities as borrowers, institutional investors and banks as capital providers. You can find more information about Loanboox here.

Contact details for questions

loanboox GmbH
Ralf von Cleef, Managing Director
Andrea Gazzetto, Marketing Communications Managerin
Neue Weyerstr9, 50676 Köln
0221 – 98654220, info@loanboox.de 

On site for you. We look forward to seeing you again!

On site for you. We look forward to seeing you again!

Digitally and by phone, we have been at your side over the last few months. Finally, we meet again in person.

From one day to the next, there was a home office instead of an office, digital meetings instead of meetings in person, digital contact instead of face-to-face meetings. Communication had to be scheduled, technically implemented and precisely planned. We proved last year that this works.

But what we also sensed: The exchange at a face-to-face meeting is hard to replace.

We are all the more excited to see you and talk to you at several events after more than a year. You will meet us at these state working conferences of the Professional Association of Municipal Treasurers:

What are the current challenges in your work? How can we support you in simplifying processes and further digitalising the treasury? We will listen to you and continue to be at your side.

You can make an appointment to talk to us at one of the events here. We look forward to meeting you!

New budgetary crisis? – Communal finance report 2021 of the Bertelsmann-Stiftung

The Corona-Crisis in Germany had a massive impact on everyone, including communes. They needed a large financial assistance package from federal and state governments. The generated surplus is solely based on those aids. Without them, the biggest deficit in history would be standing in the budget books!

Meanwhile, the communal investments reached an all-time high. Whether or how these can be realized, is not predictable. Find out more.

The communal finance report published by the Bertelsmann Stiftung analyses, which financial burdens for communes arose during this crisis and what impact the governmental financing aides had.

Do you want more details? You can download the entire report from the Bertelsmann Stiftung for free.

“Pandemic lifters” on site: municipalities urgently need financial resources

„Cities cannot close the gap alone,” says Markus Lewe, Vice-President of the German Association of Cities and Mayor of Münster in an interview with SWR-Aktuell. The municipalities lack the necessary financial resources. The German Association of Towns and Municipalities also knows that a bailout is needed for 2021 and 2022.

9 billion in tax revenue will be missing from the coffers of the municipalities this year and next year. This is the assumption of the German Association of Cities. But it is precisely at this time that financial resources are all the more important to solve the effects of the pandemic on the ground. The German Association of Cities is therefore calling for the federal government to compensate for the shortfall in tax revenues. The Federal Minister of Finance, Olaf Scholz, has so far said “no”.

For the municipalities, which are accompanying people through and out of the pandemic, this answer could have serious consequences: They are threatened with the cancellation of voluntary services that are so groundbreaking for the future. Especially the support of sports clubs, holiday and leisure activities and the cultural scene are important for families and children who have suffered most from the pandemic.

You can listen to the SWR interview with Markus Lewe and presenter Andreas Böhnisch here.

Securing future benefits

Last year, not only the federal government helped out the cities and municipalities, but the states were also very cooperative. The municipalities expect the same in the future, especially since the legal entitlement to primary school care will again generate costs that are the responsibility of the cities and municipalities. The principle for the distribution of financial burdens is actually “he who orders, pays”.

The uncertainty remains

In a position Paper, German Association of Towns and Municipalities also calls for a second bailout and underlines the importance of municipal investments as an economic driver. According to the paper, municipal investments account for about two-thirds of the state’s total investment activity.

Will there be another decision on the bailout fund before the federal election? Probably not. It remains to be seen to what extent the new government will respond to the demands of the German Association of Cities and Towns and the German Association of Municipalities.

Happy Birthday Direct loan!

Happy Birthday Direct loan!

One year ago, Loanboox and Deutsche Kreditbank AG (DKB) launched the “Direct Loan”. The summary: With more than 200 loans totalling 2.5 billion euros, we were able to support municipalities in obtaining liquidity quickly and unbureaucratically.

A product that turns classic processes around

On 31 March 2020, Loanboox and DKB will jointly launch a fundamentally new, digital solution for taking out and granting municipal liquidity loans. What exactly is so new about this solution? It is no longer the municipality or the municipal corporation that obtains the offers in the traditional ways by telephone or in writing. With the direct loan, it is the other way round. The lenders proactively post their offers, i.e. loan conditions with different terms and corresponding interest rates, on a daily basis. The municipality can compare the offers directly online. After selecting the desired volumes and terms, the loan is bindingly concluded on the platform. This is quick and, above all, transparent.

Positive resonance

53 municipalities have already used the direct loan, including cities such as Frankfurt am Main or Mönchengladbach. They all benefit from the advantages. “The direct loan ensures market transparency. The daily updated offers are comparable at a glance and can be concluded directly online if required,” says Rainer Lohse, treasurer of the city of Frankfurt am Main. Smaller municipalities such as Wipperfürth have also had positive experiences. Michael Berger from the municipal treasury: “The direct loan product gives me a direct, daily updated overview of the conditions available on the market”.

 

Keeping up with current developments

Is everything really online? No, because the direct exchange with our customers is and remains important. Thanks to their feedback – from both investors and municipalities – the functions of the online direct loan are constantly being optimised. And above all, the support we offer in case of questions remains personal.

If you would like to contact us, we are available by phone (+49 221 9865420) or via Mail (direktdarlehen@loanboox.de).