Pass Flash TPE: Younited Credit Further Looking into SME Lending

FACTS

  • Bpifrance, Crédit Mutuel de Bretagne, the Brittany region and Younited Credit teamed up on jointly launching “Pass Flash TPE”, a financing project addressing Breton SMEs.
  • This local service would make it possible to lend up to 10,000 to small businesses helping them afford immaterial investments and finance their working capital.
  • Repayment term: 4 years
  • Targets: Breton SMEs over three years old and hiring up to 9 employees.
  • These loans are granted for free. They may come in addition to existing, larger loans.
  • Supporting documents: balance sheets for the past two financial years to assess their financial health and creditworthiness.
  • Customer process: full-digital, even if banking branches from Crédit Mutuel de Bretagne are supporting the offer.
  • Following this local rollout, “Pass Flash TPE” would be implemented nationwide.

KEY FIGURES

  • September 2019: beginning of the test phase
  • More than 20 companies have already been granted loans
  • Max repayment term: 4 years
  • Rates not specified but preferential costs apply with help from the Brittany region.

CHALLENGES

  • Customer acquisition. In the National Institute of Statistics and Economic Studies' assessments (INSEE), SMEs account for roughly 2/3 of all French companies. Despite its local reach, this project could profit from the size of this market.
  • Supporting the local economy. Even if a nationwide rollout is considered for “Pass Flash TPE”, they will still aim at supporting SMEs and their employees at local scale.
  • Expanding the Credit-as-a-Service model. Younited Credit provides their partners with services from their platform as white-label offers.

MARKET PERSPECTIVE

  • Through taking part in the “Pass Flash TPE” project, Crédit Mutuel stresses their strategic focus on supporting SMEs and start-ups. Over the years, this long-term strategy led the banking group to announce several equity investments in FinTechs (Pumpkin in 2017, for instance).
  • “Pass Flash TPE” also materialises a partnership announced early this year between Younited Credit and Bpifrance.

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