Flex Funding is the leading marketplace lender for SMEs in Denmark and the Faroe Islands.

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.

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.

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.