The investor will only be able to acquire loans originated by Bondora to the extent that a sufficient number of eligible loans, satisfying the criteria set forth in the credit policy, are available for assignment by Bondora Capital. The availability of suitable investment opportunities for the investor will depend, in part, upon lending market conditions and the degree of competition among lenders. The markets in which Bondora operates are competitive and rapidly changing.
As the lending industry continues to evolve, Bondora may face increasing competition for potential borrowers from traditional rivals or other intermediaries, including, for example, global direct lending funds. These competitors may have different risk tolerance standards or economic arrangements, which may afford them an advantage over Bondora. There can be no assurance that Bondora will be able to compete effectively with other lenders in originating loans. In addition, other lenders may charge prospective borrowers lower fees, which may reduce the number of loan requests received by Bondora.
Accordingly, there can be no assurance that: (i) sufficient applications for loans will be received by Bondora that satisfy the criteria set forth in the credit policy; or (ii) Bondora will be able to compete effectively with other lenders, whether they are traditional banks, alternative consumer lenders or lending platforms.
Finland, Estonia and Spain are sizable markets; it is estimated that only a fraction of their potential is currently being tapped by Bondora, suggesting that a sufficient volume of loans will be available. Marketing tests indicate that volumes could be increased from current levels by three times without undermining the aggregate application risk profile.