8LENDS

23,000USDC

100% of 23,000 USDC

Repaidon Oct 15, 2025

Funded date: Jun 18, 2025
Repaid date: Oct 15, 2025
Loan period: 4 months
Annual interest: 21.50 %

Scaling short-tenor SME and consumer lending

The €8M facility is drawn at ~€2m a month over four months in €100k tranches and recycled throughout the term into SME working-capital loans, factoring, guarantee transactions and capped B2C loans.

23,000USDC

100% of 23,000 USDC

Risk score: A4 months21.50 %Repaid

Rapid Finance JSC is a registered company in Bulgaria, located at: Sofia, Krasno Selo district, Borovo St. 52, Entrance G, Floor 1. The share capital amounts to 1,050,000 BGN (approximately 536,000 EUR) and is fully paid. The company operates under the Bulgarian Credit Institutions Act and is registered in the Bulgarian National Bank (license BGR00501, Order No. BNB-123689 dated 02.10.2024).

The company specializes in providing microloans to the following categories of clients:

Individuals — microloans for personal needs.
Legal entities — microloans for businesses.
Legal entities with factoring — financing secured by sale and purchase/delivery contracts; financing of receivables confirmed by issued Invoices.

The company actively utilizes its website to offer services to clients, ensuring a convenient and accessible interaction process.

About the Owner

The company is owned by Dimitar Velislavov Chohadzhiev, a prominent entrepreneur with extensive experience in both public administration and private business. Previously, he served as Deputy Minister of Economy, Energy, and Tourism of Bulgaria, a role that provided him with deep insights into regulatory frameworks and economic development.

After his tenure in government, Mr. Chohadzhiev shifted focus to the private sector, successfully managing and owning several businesses in Bulgaria. His portfolio includes leadership roles in financial services, project management, and leasing companies. His strategic approach combines knowledge of public policies with a hands-on understanding of market dynamics.

Interest Rates and Loan Terms

Rapid Finance JSC offers microloans tailored to the specific needs of its clients, with clearly defined interest rates and repayment terms for different categories of borrowers:

For Individuals:
Interest rate: 0,6-0,7% per day, equivalent to an annual percentage rate (APR) of 220-250%.
Loan term: 15 to 45 days with the possibility of extensions by 7, 14, or 30 days. These short-term durations are intentionally chosen to offer greater flexibility to clients, distinguishing Rapid Finance JSC from competitors who often have rigid repayment schedules.
Loan amounts: 300 to 1000 BGN (approximately150 to 500 EUR).. These loan sizes represent a strategic hypothesis, targeting clients with smaller immediate needs. Competitors in the market tend to focus on larger minimum loan amounts, leaving this segment underserved.
Key features: Competitive terms compared to market alternatives in terms of loan duration and amounts, flexibility towards customers and fast decision-making process, comprehensive and sophisticated risk analysis.
Key requirements towards Customers: proof of residence and registered home address, clear credit history, absence of offences and criminal records, confirmed permanent income, presence of pledges/collaterals and other acceptable guarantees to back up a desired loan.

For Legal Entities (without factoring):
Interest rate: 3-3,5 % per month, equivalent to an annual percentage rate (APR) of 36-42 %.
Loan term: Minimum 3 months, maximum 12 months, adjustable in 1-month increments.
Loan amounts: 10,000 to 50,000 BGN (approximately 5,150 to 25,600 EUR), with an option for increments/increase of the loan amount up to 20%.
Early repayment option with minimum contractual interests’ coverage occurred on the Loan Amount.
Key feature: Flat interest rate providing transparency and predictability for business clients, flexibility and customized approach towards each individual business customer.
Key requirements towards Business Customers: proper KYB process, verification of beneficial owners and management, brief valuation of ongoing business along with business plan for further development, sustainability checks, clear credit history of the Applicant, analysis of financial statements and risk assessment, absence of court litigations and ongoing tax debts, presence of pledges/collaterals and other acceptable guaranties to back up a desired loan.

For Legal Entities (with factoring):
Interest rate: 1,25-1,5% per month, equivalent to an annual percentage rate (APR) of 15-18%.
Loan term: Factoring with regress rights (in case of non-payment by the customer, the financial claim is redirected to the Invoice issuer). Financing of receivables confirmed by issued and accepted Invoices

Rapid Finance was foundedMay 30, 2024

Start of active work/productionJan 1, 2024

Company's share capital1 533 876 EUR

Min target11,500 USDC

Investors31

Interest paymentsmonthly

Principal repaymentsbullet

Total payments4 months

Details

Portfolio Composition:

The loan issuance balance is projected to be 25% for individuals and 75% for legal entities. Within the corporate loan category, a significant portion is expected to involve factoring agreements:

Factoring loans: 60%
Standard business loans: 40%

Default Rates:

Based on conservative estimates, the average portfolio default rates are:

Individuals: 18%
Legal entities: 12%

Revenue and Profitability:

Using the interest rates, the projected income from issued loans is as follows:

Individuals: With an annualized APR of 220-250%, the gross interest revenue from individual loans is expected to contribute significantly, despite the higher default rate.
Legal entities: At APRs of 36-42% (standard loans) and 15-18% (factoring loans), corporate loans are expected to generate steady and predictable income due to their lower default rates.

Estimated Gross Revenue for Q1 2025:

From individuals: Approximately 75,000 EUR.
From legal entities: Approximately 420,000 EUR, with 250,000 EUR from factoring and 170,000 EUR from standard loans.

Adjustments and Rebalancing:

After evaluating the portfolio's performance and accumulated data, Rapid Finance JSC plans to reassess its strategy.

This may include:

Adjusting marketing efforts to target low-risk segments more effectively.
Increasing or decreasing the proportion of loans to individuals and businesses based on default trends.

Types of Loans and Annual Rates:

Loan for Individual Clients:
Amount: 26,400 EUR
Annual rate for investors: 18,5%
Purpose: To issue short-term microloans to pre-approved individuals for personal needs such as emergency expenses or urgent purchases.
Pre-approved Pool: Includes clients with verified needs such as medical expenses or utility payments, ensuring high demand and repayment potential.

Loan for Corporate Clients (Standard):
Amount: 68,000 EUR
Annual rate for investors: 19,5%
Purpose: To provide working capital and short-term financing for SMEs.
Pre-approved Pool: Includes businesses requiring funds for inventory purchases, equipment upgrades, or cash flow management.

Loan for Corporate Clients (Factoring):
Amount: 52,000 EUR
Annual rate for investors: 19%
Purpose: To finance pre-approved factoring agreements, helping businesses unlock cash flow tied to invoices.
Pre-approved Pool: Includes corporate clients with pending invoice payments, secured by existing contracts.

Repayment Terms

Rapid Finance JSC employs a structured repayment model to ensure transparency and predictability for investors. For each loan tranche:

Interest Payments: Investors receive monthly interest payments
Principal Repayment: The loan principal (full amount) is repaid in a single payment at the end of the loan period.

Current Collateral Situation:

Rapid Finance JSC is a new entrant in the microfinance market and, as such, does not yet possess significant physical assets or collateral guarantees. The company operates primarily with its capital base and financial resources. Despite this, the company’s fully paid share capital of 1,050,000 BGN (approximately 536,000 EUR) provides a solid foundation and assurance for all financial obligations.

Collateral as Security:

While the company does not offer physical assets as collateral, its share capital is more than sufficient to cover its current and planned obligations, including investor returns and operational expenses. This robust financial base ensures that investors’ interests are safeguarded.

Conclusion:

Although Rapid Finance JSC is in the early stages of its development and lacks significant collateral assets, the size of its share capital provides substantial security for its financial activities. This capital base not only supports the company’s operations but also instills confidence among investors and partners. As the company grows, it may consider expanding its collateral offerings to further enhance financial stability and investor trust.

Risk scoring

Total risk scoreA

Debt to equity0.30

LTV133%

Credit history10 / 10

Collateral typeShare Capital

Rating A (the third tier) rests on BNB registration and supervision, a fully paid-in capital of €1,533,876 and a performing loan book of ~€6.0 million.

D/E (Debt-to-equity) of 0.3 is low for a lender;
LTV of 133% means the €8M facility is larger than the ~€6.0 million loan book, so repayment relies on cash flows and recycling rather than hard assets;
Credit history score of 10/10.

Keep in mind:

There is no hard-asset collateral: security is share capital and the loan book;
lending volumes scaled up only during 2025;
B2C microloans are unsecured, and the market is competitive;
new crypto-mining SME loans add sector risk, capped at ≤ 10% of B2B.

Risk agenda

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.

Financials

Rapid Finance scaled its lending quickly through 2025, from €0.69m issued in Q1 to €4.95m in Q3 — €9.52m over the first nine months.

Issuance growth

Quarterly issuance grew +463% from Q1 to Q2, when corporate onboarding and the retail ramp-up kicked in.
It grew a further +27.6% from Q2 to Q3.

Product mix

The B2C share rose from 25.0% in Q1 to 40.2% in Q3.
B2B remains the anchor at ~60% of issuance, with non-factoring loans gaining weight.

Pricing

Factoring for new clients is priced at 2.0–2.5% a month.
Retail pricing is stable at 0.60–0.70% a day.

Market

European alternative finance is projected to grow at a CAGR of 8% and surpass €240 billion by 2030, driven by the SME financing gap and digital underwriting. Bulgaria’s non-banking financial sector is valued at BGN 1.2 billion (~€613 million), with corporate lending at 60% of the market and strong competition from established consumer lenders.

Lending performance 2025

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)

Category	Q1 2025	Q2 2025	Q3 2025	2025 YTD
B2B — non-factoring	€206,700	€1,300,000	€1,717,100	€3,223,800
B2B — factoring	€310,050	€1,483,300	€1,241,100	€3,034,450
B2B — total	€516,750	€2,783,300	€2,958,200	€6,258,250
B2C — consumer	€172,250	€1,098,090	€1,991,715	€3,262,055
All products	€689,000	€3,881,390	€4,949,915	€9,520,305

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.

Growth plan

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.

Market assessment

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.

Collateral breakdown

Performing loan book (revenue-backed recycling) · €6M€1.5M

Performing loan book (revenue-backed recycling)€6,000,000

Paid-in share capital€1,533,876

Total pledged€7,533,876Estimated values: the ~€6.0M loan book as of August 2025 and the fully paid-in share capital.

Rapid Finance is a lender, so the facility is not backed by machinery or property. It is secured by the company’s capital and the loans it has already issued.

1. Performing loan book — ~€6.0 million

As of August 2025 the loan book generates recurring cash flows that support debt service.
Collections are reinvested on a rolling basis, keeping liquidity in the business.

2. Paid-in share capital — €1,533,876

BGN 3,000,000, fully paid in and unencumbered.

The company’s BNB registration and compliance, and a diversified SME book, add to the lender’s comfort and repayment visibility.

Description of the loan

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.

Parameter	Value
Total facility	€8,000,000
Interest rate	21.5% per annum, on the outstanding principal balance
Deployment	€100,000 tranches, 20 per month for four months
Purpose	B2B working-capital loans (secured where applicable), vetted factoring, pilot-to-scale guarantee transactions, and B2C

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.

Loan collateral

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.

Collateral type	Estimated value, €
Revenue-backed loan recycling	6,000,000
Paid-in share capital	1,533,876

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

Borrower

Rapid FinanceSofia, Bulgaria · founded 2024

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

Reg No: 207852400rapidfinance.bg

About the company

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.

Licence and regulation

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.

Item	Detail
Regulatory authority	Bulgarian National Bank (BNB), Banking Supervision Directorate
BNB Public Register number	BGR00501
Company identification code (EIK)	207852400
Legal form	AD (joint-stock company)
Headquarters and correspondence address	Sofia 1000, 14 Tsar Osvoboditel Street, Floors 5–6, Lendmark Building
Registration / entry order	Order No. BNB-123689 dated 02.10.2024

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.