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CrediNord

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We are changing how small businesses are getting funded.

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Funded 5 Jan 2023
€450,000 target
€490,845 from 0 investors
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Business overview

Location Helsinki, Finland
Social media
Website www.credinord.com/
Sectors Finance & Payments Digital B2B
Company number 2994963-1
Incorporation date 7 Jun 2019
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Investment summary

Type Equity
Valuation (pre-money) €3.7M
Equity offered 10.93%
Tax relief N/A
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Business highlights

  • Active in Finland, Sweden and Netherlands
  • Raised nearly €3,000,000 of funding to date
  • Term sheets from institutional investors
  • Revenue up to date over 3.000.000 €
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Key features

  • Secondary Market
  • Nominee investment min. €15.00 +
  • Direct investment min. €50,000.00 +

Idea

Introduction

CrediNord is a fintech company that provides small business loans of up to €100,000 to SMEs. Technology enables us to provide SMEs with fast, transparent, and easy funding. Since 2019, CrediNord has originated business loans of more than €10m across 3 countries, which generated a revenue of more than €3m.

CrediNord offers 2 different loan products:

1. Merchant Cash Advance (MCA). This innovative business loan is offered to SMEs in the Netherlands. We recently launched this product and our plan is to enter other European markets with this as well. We are in the process of determining the legal process for launch in additional countries already. MCA is a loan that is suited for merchants who accept card payments from customers with a point-of-sales card terminal. CrediNord offers those merchants a business loan, which the merchant automatically repays as a percentage of its sales.

2. Line Of Credit. This loan is offered to SMEs in Finland and Sweden. LOC is a traditional business loan product, which the customer repays in monthly instalments.

Substantial accomplishments to date

Since founded 2019, CrediNord's mission has been to offer European SMEs more convenient and easier ways to get financing.

After successfully launching in Finland in 2019, CrediNord expanded its lending-operations to Sweden 2020. In 2020 CrediNord also became official AISP license holder. We believe that this enables many new opportunities for the company, which include offering new and more innovative loan products to European SMEs.

2022 has been a big year for CrediNord. We launched our new innovative Merchant Cash Advance product in the Netherlands with our new POS-partner. The pilot in the Netherlands was successful and our goal is to enter either Belgium or Switzerland next. After that, further countries are in scope.

In 2022 we also switched to a new core banking system, which enables as to scale up our operations further.

Since the CrediNord was founded, we have:

- Expanded our lending operations to Finland, Sweden, and the Netherlands.

- Raised funding of almost €3m.

- Originated business loans of more than €10m, which generated a revenue of more than €3m.

- Received term sheets of institutional debt investors.

Monetisation strategy

The revenue of CrediNord consist of several revenue streams.

Our two main revenue streams consist of our two loan products, the Merchant Cash Advance and the Line Of Credit.

The Merchant Cash Advance is based on fixed fee. Whenever the merchant is receiving payments through its point of sales terminal, CrediNord charges a certain percentage of the sales, typically around 10%. The upcoming payments are allocated towards the fee first and after the fee is fully paid, the payments are allocated towards the principal.

Our second main revenue stream is generated by the Line Of Credit. This product is based on a monthly interest rate. The debtor pays back the loan monthly, with the monthly payment consisting of repayment of principal and an interest payment.

Besides the two loan products, we also generate revenue by selling the leads. We are selling the leads of companies we do not wish to finance to other lenders.

Use of proceeds

CrediNord is raising capital to continue its growth in Europe with the Merchant cash advance product.

CrediNord is already operating in Finland, Sweden, and the Netherlands and with the help of the new capital our target is expand into new markets in Europe next year.

Main part of the raised capital, around 60%, will be used mainly into customer acquisition and other operative costs. Rest of the raised capital, around 40%, will be used on lending and junior financing to enable senior debt facilities.

Key Information

Material Debt

The current outstanding debt from CrediNord Ltd. is €3.0M, which has been used to increase the loan book and for other business purposes.

In these bonds, the advance rate is 100%, so the funds can be used as junior funding for bigger debt facilities or directly as funding for increasing the loan book.

CrediNord has been financing their loan book with these short-term loans until now.

The annual interest rates for the outstanding debt are between 6% and 13% - a breakdown can be seen below, dependent on the size and maturity of the bond (6-24 months).

The interest rate is paid by the company to the debt investor monthly. These junior debts are also in near future useful for utilizing the senior debt facilities, to scale up the volumes.

The funds from the round will not be used to repay these loans.

Share Classes

The Company has three classes of shares: A Shares, B Shares and C Shares. All investors in this round will receive B Shares. B Shares are voting, have a priority in respect of dividends and have a 1x non-participating preference on a winding up. A Shares are held by the Founders. There are no C shares currently in issue.

Fractional Shares

Please note that the share price for this round is €150.00. Due to this high share price, we have decided to allow investors to hold fractional shares. This means that we have reduced the investment multiple to €15.00 (representing 1/10th of a share), with the minimum investment being €15.00.

As these shares will be held via the Seedrs Nominee, fractional entitlements are possible.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for CrediNord has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 11 November 2022 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €3,666,450

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

Nominee investment

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Nominee investment.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

Learn more here

Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

Warning

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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