Lower interest rates on alternative lending will increase competition

As interest rates are consistently decreasing all over the world, this trend will take root in Lithuania as well and will open up more favorable opportunities for business borrowing. Especially from alternative sources of borrowing.

"We notice that the crowdfunding platforms operating in Lithuania have been reducing interest rates recently. This increases competition not only between alternative lending platforms but also with unions, which until now, traditionally, could offer more favorable conditions. The last PROFITUS-financed projects with record low-interest rates (6%; 7.5%) show that investors are willing to lend at lower interest rates, but with low risk," says PROFITUS founder Viktorija Vanagė.

Lower interest rates on alternative lending will increase competition with conventional lenders and improve conditions for business and real estate developers to borrow. There is also potential: in Lithuania, alternative lending accounts for only about 1% of the borrowing market, while in Latvia or Estonia, this share reaches about 5-6%.

"Lietuvos bankas strictly supervises the market and tolerates low risk. We also follow the path of low-risk tolerance, which is why we can offer safe projects to investors. Predictable returns and trust and security are very important in our market," Victoria is convinced.

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