funding gap emerging markets
Mexico

Creze 10

  • Creze
  • Local partner investment
  • + 479 other investors
  • Partner Creze will use the EUR 200,000 to finance 15 SMEs in Mexico active in the retail, construction and transportation sector. This will contribute to reduce the SME financing gap, create jobs and improve livelihoods. Approximately 25% of the companies funded by Creze are female owned. **please note: this project contains an exchange rate risk EUR/USD)**

    €200,000
    Amount
    6.00%
    Interest
    36 months
    Maturity
    1 months
    Repayments
    USD
    Currency
    Amount€200,000
    Interest6.00%
    Maturity36 months
    Repayments1 months
    CurrencyUSD
      90%
      Still €19,140 needed, 32 days to go
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      Invest from €10
      Average investment
      Based on all Lendahand historical investments
      Complete funding
      Project will be fully funded

      Summary

      Loan (not notes)

      In this case, you will not acquire notes in an issuing entity, but you will provide a loan. While loans and notes both constitute financial instruments there are a few legal differences between the two instruments namely:

      • Loans are signed both parties (ie the Borrower and the Lender/Investor);
      • The contractual terms of a loan are more comprehensive than that of a note;
      • Loans impose obligations on Lenders/Investors and
      • Loans cannot be traded amongst Lenders/Investors.

       

      Project terms

      • Currency:                                            EUR
      • Amount:                                             200,000
      • Maturity:                                            36 months
      • Repayment schedule:                      monthly and linearly amortizing
      • Grace period on repayments:         18 (only on notional repayment)                           
      • Interest rate:                                      6% p.a. (no grace)

      Click here for an example repayment schedule.

       

      Summary

      Creze (officially Prestadora de Servicios Ciclomart, SAPI de CV) is a balance sheet lender founded in 2015 and based in Mexico City that originates loans to small and medium sized enterprises (SMEs) across Mexico. As of the end of April 2021, Creze has disbursed over $68m USD since inception, with an outstanding book of just over $17m USD (note that the net portfolio did not grow compared to 2020 due to Covid). The average loan amount is $19,500 USD, the average loan term is 12 months, and almost 90% of loans are paid biweekly.

      The company offers a single core loan product aimed at providing working capital to SMEs but lend across most industries. Creze is a technology-enabled lender that has built an origination platform inhouse that allows for a fully online and digital loan application process with 24-48 hour approval times.

      Creze is backed by two reputable family offices in Mexico and has attracted several institutional lenders, including Lendahand’s co-financing partner, that originated this deal for the Lendahand platform.

      Creze is registered as a Mexican SAPI and has over 60 employees. The founding management team is well seasoned and composed of a mix of entrepreneurs and ex-finance/micro-finance people.

      Mission

      To be the leader in SME financing in Latin America by facilitating access to financial products that promote the growth of a market segment that is widely considered the motor of the economy.

      Use of Proceeds

      The proceeds of this project will be used by Creze to finance approx. 15 MSMEs in Mexico active in the retail/industrial/technology/construction/transportation/telecom sector. This will contribute to reduce the MSME financing gap, create jobs and improve livelihoods. Approx 25% of the companies funded by Creze are female owned.

      The underlying loans provided to Creze’s customers, will be held in a sub trust in Mexico assigned to the Lendahand crowd as collateral. Lendahand’s co-financing partner will monitor the performance of the receivables and the sub-trust. This makes for a relatively complex structure, but one that does protect the Lendahand investors. In case of bankruptcy by Creze, these assets cannot be accessed by Creze and the subtrust agent will continue to collect from the assigned receivables that are indirectly owned by Lendahand crowd. The pledged collateral asset value will be 1.2x the loan provided by the Lendahand crowd.

      Note re this project’s money flow, which is different from normal: the funds raised on this platform will be channeled via a special purpose vehicle that will invest the funds further, ultimately providing an indirect loan to Creze.

      Company nameCreze 10
      CEODiego Creel
      Founded2015-01-01
      LocationMexico City
      SectorWholesale / Retail
      Turnover€6,900,000
      Employees60
      Credit Score3.17

      Impact

      Mexico has 4 million SMEs, representing 60% of the formal productive employment in the country. Yet more than half of these SMEs don’t have access to the financing they need. Financial institutions like Creze help them overcome this hurdle by offering quick and flexible loan solutions through their digital lending platform.

      Even entrepreneurs who can’t present formal credit history are welcome to apply for a small loan. Creze’s goal is to leave no SME behind in the funding gap. They offer entrepreneurs a fully online and digital loan application process with 24-48 hour approval windows. Their working capital loans enable SMEs to create jobs, grow their businesses, thusly reducing poverty.

       

      SDGs impacted

      With this project you are contributing to the following Sustainable Development Goals:

      SDG 1 - No poverty

      SDG 8 - Decent work and economic growth

      Read more about the impact you can make through our platform and the SDGs on our impact page.

       

      Related blog posts

      Read the introduction of Creze as a new investment opportunity here.
       

      Want to learn more about how financial inclusion can thrive entrepreneurship? Read here.

      • With this investment 15 jobs are created
      • With this investment 75 lives are improved

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      We have already contributed for Creze 10

      Trees van den Hoogen
      Eugene Cix
      Mohamed Gamal
      Arjen Mulder
      Marc Sierink
      + and another
      479
      investors