For institutional investors


Flex Funding is the leading marketplace lender for SMEs in Denmark and the Faroe Islands. It is our strategy to expand our platform and service to additional Nordic markets in 2019.

See how institutional investors funding supports our SMEs

Flex Funding, who is the leading marketplace lender in Denmark, operates a lending platform that allows investors to lend money directly to SMEs, without holding loans on its balance sheet. SME borrowers benefit from fast, flexible and competitively priced SME loans. Investors (private and institutional) benefit from a new asset-class with favourable yields. Flex Funding is a payment institution under the Payment Services Directive (PSD2) authorised by the Danish Financial Supervisory Authority (FTID 22025).

Access to high returns with a flexible investment solution

We have since we started in 2015 secured our investors a stable and attractive annual return. Our track record is stellar compared to peers and industry benchmarks. By investing through Flex Funding, institutional investors have access to finance SMEs in the Nordics on a common marketplace. We offer institutional investors flexible investment solutions. From direct lending on our platform to direct investments based on securitized notes with ISIN-codes.  

SME lending

Flex Funding focuses exclusively on SME lending. Borrowers must have a trading history of at least two years. Loans originated through the platform are fully amortised, with fixed interest rates and duration ranging between six and 60 months. Loans are generally guaranteed by personal guarantees and secured by collateral. The SMEs are attracted by simple, fast and affordable loans as an alternative to the complex processes in the banks.

Best practices in terms of credit risk evaluation and assessment

Flex Funding considers that its success, reputation and ability to continue to attract and retain investors is highly dependent on its ability to maintain the attractive rates of returns it has historically allowed investors to achieve. Flex Funding is therefore committed to best practices in terms of credit risk evaluation and assessment, with a view to ensuring accurate and optimized pricing. 

The credit assessment processes comprise a combination of proprietary and automated, data-driven assessment, as well as manual assessment. Flex Funding believes that this mix enables us to enhance precision—in an asset class where credit bureau scores are not a very predictive indicator of a borrower’s probability of default—with efficiency.

Investment in Danish kroner

All loans are originated in Danish kroner for the time being. The Danish krone is the official currency of the Kingdom of Denmark, Greenland and the Faroe Islands. The krone is regulated by the ​​​​​Danmarks Nationalbank, which is the nation’s central bank, and it has the currency code of DKK and the symbol kr. The krone is divided into 100 ore. The krone is pegged to the euro because of Denmark’s participation in ERM II, an agreement established on 1 January 1999 to manage the risks associated with currency fluctuations. Because of this agreement, the Danish currency is pegged at 7.46038 krone per euro and is allowed to fluctuate 2.25% higher or lower than this exchange rate.

Compliant with the EBA Guidelines

Flex Funding is a payment institution under the Payment Services Directive 2 authorized by the Danish Financial Supervisory Authority (FTID 22025). Strong governance, risk management and controls are vitally important to the long-term sustainability of the platform and to be wholly compliant with the EBA Guidelines under Directive (EU) 2015/2366 (PSD2) on the information to be provided for the authorization of payment institutions. As such, and in line with the guidelines, Flex Funding always seeks to be in compliance with the EBA Guidelines, to embed and develop a strong risk and compliance culture across the business.

Independent third party assessment

Flex Funding is the first Scandinavian marketplace lender to provide independent third party performance metrics for investors, in cooperation with industry benchmark leader Brismo. Click on the Brismo fact field to read more about this.

Brismo metrics

Press release

Key performance data

Annualised net return achieved from Flex Funding loans v Brismo UK Lending Index

Flex Funding performance vs UK index from Brismo

Source: Brismo, 2019

Historical borrower characteristics

Historical borrower characteristics chart

Source: Flex Funding, 2019

For further information


Henrik Vad

Phone +45 70605200

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