Consumer Loans

The company does not depend on hard-asset collateral: its protection rests on its equity base, BNB registration and compliance, a diversified SME book and ongoing principal recycling. B2C loans are unsecured, and the sector is competitive, with players such as Easy Credit, Viva Credit and Credirect.bg.

Credit expansion and risk controls

• Maintain pricing bands; prioritise secured B2B; tighten eligibility for new factoring; scale guarantees with a call-rate target of ≤ 3–5%.
• Problem-loan ratio target of 8–9% by Q4 2026, via early warning, segmented collections, cohort and expected-loss back-tests, and automatic throttles on breaches.
• Portfolio mix: B2B at 55–65% of issuance; factoring and guarantees at 5–10% of SME exposures; B2C remains disciplined and capped.

Crypto-mining SMEs

The company is entering secured working-capital loans (3–9 months) to crypto-mining SMEs, collateralised by rigs (ASIC/GPUs) at an LTV of ≤ 50–60% of orderly-liquidation value, with selective guarantees for leases and performance and factoring where eligible. Guardrails: a sector cap of ≤ 10% of B2B, strict KYC/KYB/AML, and counterparty and energy-cost tests.

Rapid Finance began active lending before 2025 and accelerated issuance throughout the year. As of September 2025 it shows a sustained scale-up in B2B (non-factoring and factoring) and strong growth in B2C short-dated lending: €9.52m issued in January–September, with quarterly growth of +463% from Q1 to Q2 and +27.6% from Q2 to Q3.

Quarterly issuance by product (principal disbursed)

Q2 marked the step-change in scale, with corporate onboarding and the retail ramp-up. Q3 saw continued growth, with a shift towards B2C and a lower factoring share as pricing and underwriting tightened for new clients.

Trends by product

• Overall issuance: €0.69m → €3.88m → €4.95m per quarter; momentum broadened from corporate to retail as digital funnels and scorecards improved.
• B2B non-factoring: €0.21m → €1.30m → €1.72m; steady growth with larger SME tickets and rolling renewals.
• B2B factoring: €0.31m → €1.48m → €1.24m; strong volumes in Q2, with the Q3 moderation reflecting selective onboarding and updated pricing for new clients.
• B2C: €0.17m → €1.10m → €1.99m; the fastest growth, consistent with short-dated, repeat-use behaviour and conversion gains.

Mix and pricing

• The B2C share rose from 25.0% (Q1) to 28.3% (Q2) and 40.2% (Q3); B2B remains the anchor at ~60%, with non-factoring gaining weight.
• Factoring for new clients is priced at 2.0–2.5% a month; legacy pricing of 1.25–1.50% a month may continue for existing clients. Retail pricing is stable at 0.60–0.70% a day.
• B2C generates faster cash-in; B2B builds relationship depth and larger tickets.

The 2025–2026 strategy is to scale short-dated lending where conversion is strongest — B2B working capital and disciplined B2C micro-lending under caps — and to add safer, fee-rich SME tools: factoring at 2.0–2.5% a month for new clients and guarantee transactions, with decisions kept strictly data-driven and digital-first distribution at the core.

• Funding programme: €8,000,000, drawn at ~€2m a month for four months via 20 tranches of €100k a month, with recycling throughout the term.
• Portfolio growth: consistent quarterly issuance increases, a rising share of repeat clients, and unit economics within target after losses.
• Technology: a pragmatic IT roadmap, from a data warehouse to a mobile app.

Programmatic funding, the IT roadmap, entry into collateralised crypto-mining SME lending and disciplined risk governance together support rapid but controlled portfolio growth while keeping the short-cycle, digital model of the company.

European alternative finance

The European alternative finance sector is projected to grow at a CAGR of 8%, surpassing €240 billion by 2030. Growth is driven by the SME financing gap, as limited access to bank credit increases demand for alternative lending; by digitalisation, as AI-powered risk assessment streamlines loan approvals; and by regulatory support for non-bank financial institutions that also safeguards stability.

Bulgaria

Bulgaria’s non-banking financial sector is valued at BGN 1.2 billion (~€613 million), with corporate lending making up 60% of the market. SMEs drive over 60% of employment but struggle with traditional credit access, which keeps demand high. Competition is strong, with players such as Easy Credit, Viva Credit and Credirect.bg, and the Bulgarian National Bank enforces compliance in transparency and risk management.

Rapid Finance AD seeks an €8,000,000 committed facility to expand short-tenor, high-turnover lending to SMEs and to scale fee-rich secured products (factoring and guarantee transactions). The facility is designed for rapid deployment and recycling under strong portfolio controls.

Proceeds prioritise secured, short-dated SME exposures and fee-rich receivables and guarantee products. The design delivers timely deployment, predictable cash flows and disciplined risk management, positioning the company to scale responsibly in Bulgaria’s non-bank lending market.

Rapid Finance AD secures the €8,000,000 facility through its fully paid-in share capital and the strength of its performing loan book, complemented by revenue-backed recycling. As of August 2025 the company maintains a ~€6.0 million loan book that generates recurring cash flows supporting debt service. The capital base and regulatory status remain unencumbered and in good standing.

Rolling reinvestment of collections sustains liquidity, lowers lender risk and supports disciplined growth across SME lending and the capped B2C business.

Rapid Finance AD is a Bulgarian joint-stock company (AD) headquartered at 14 Tsar Osvoboditel Blvd., Floors 5–6, Sredets District, Sofia, and registered in the BNB Public Register of Financial Institutions (code BGR00501). As of the latest corporate update, its statutory capital is BGN 3,000,000 (approximately EUR 1,533,876), fully paid in.

Products and services

• Consumer microloans (B2C): unsecured personal loans with small ticket sizes and short maturities; underwriting combines automated scoring with targeted manual verification.
• Business microloans (B2B): working-capital facilities tailored to SME cash-flow seasonality and documented use of proceeds; tenor limits and concentration caps apply.
• Factoring and receivables finance (B2B): financing against verified trade receivables and supply contracts, including invoice-confirmed receivables, with eligibility criteria by debtor, sector and ageing.

Why short-dated lending

Short-dated lending occupies a growing and under-served niche where borrowers value speed, clarity of terms and predictable instalments. Shorter maturities give faster risk feedback and portfolio seasoning, tighter cash-flow matching between collections and new disbursements, lower loss volatility thanks to reduced exposure time, and more frequent repricing points that protect unit economics when rates change. In B2B, recurring working-capital needs and invoice-backed cash flows create repeat usage and relationship depth; in B2C, conservative ticket sizes and robust collections yield attractive risk-adjusted returns when scaled with disciplined underwriting and digital distribution.

Rapid Finance AD is registered as a financial institution under Bulgarian law and operates under the supervision of the Bulgarian National Bank. The registration was granted after a review of its application, business structure and compliance with applicable financial regulations.

Authorised activities under the Credit Institutions Act:

• Granting credits with funds not raised through accepting deposits or other repayable funds from the public.
• Acquisition of claims on loans and other forms of financing related to loans (including factoring, forfaiting, etc.).
• Financial leasing.
• Guarantee transactions.

The company maintains policies covering AML/CFT, consumer protection and financial risk management, and its registration confirms its standing as a supervised financial institution in Bulgaria’s alternative lending sector.