Growth in Bondora Group’s lending volume depends, to a great extent, on Bondora Group’s ability to obtain adequate funding from a variety of sources, which may include institutional investors, retail investors and banks. It is possible that these financing sources (i) may not be available in future; (ii) may not be able to provide the level of funding that Bondora Group may require; or (iii) may be prohibitively expensive and/or propose overly onerous terms. European and international credit markets have experienced, and may continue to experience, heightened volatility and severe liquidity disruptions stemming from the the 2008 global financial crisis, and accompanying global economic slowdown, including the European sovereign debt crisis. These and other related events have had a significant impact on the global financial system and capital markets, and may make it prohibitively expensive for Bondora Group to diversify its funding sources. Increased costs or greater difficulty in diversifying its funding sources may negatively impact Bondora Group’s ability to finance an expansion of its lending volume, which may have a material adverse effect on its business, financial condition, operational results or prospects, or cash flow.
Bondora Group does not currently rely on institutional investors, whose activities would likely increase funding level volatily, to meet its financing needs. Capital has a strong retail investor base, comprised of more than 15,500 clients. A large and geographically diverse investor base enables Capital to maintain a level of financing that can continue to support a profitable operation.