For asset-based business lending, we aim to build long-term relationships with our originators, borrowers and owners of the projects. All involved parties stand to benefit then and only then when the risk-taker (the originator) is generating and retaining sufficient amount of proceeds. Typically, originator’s business models are not fit for modern banking, both in terms of availability of funds per se, the structure of project origination as well as the speed and methods of interaction with the originators. All originators (borrowers) are small and medium sized companies aimed for turnover and working capital growth, with proven business models and liquid and short-term maturity asset-based collateral.
For real-estate-based transactions, Decamel chooses the projects which have solid collateral with sufficient LTV, mostly using first-rank mortgages, to ensure secure funding in real estate lending. This is especially useful for entrepreneurs who struggle with the cumbersome banks polices, and provides the opportunity for investors to invest at yields exceeding 10% per annum. Currently, the borrowers and properties are in Latvia, Germany and Spain. All originators (borrowers) are relatively small and medium sized companies.