Stockholm, 2012-02-03 13:57 CET (GLOBE NEWSWIRE) -- In line with and even slightly exceeding expectations, TrustBuddy reports a total amount of “issued loans”, reaching Kr. 52.5 million for 2011. With a range of between 500 and 5000 Kroner for each single loan, the amount of loans this figure represents is substantial. The number of rejected loans is approximately 60 %, indicating that TrustBuddy is reaching a wide audience and has a high level of attention in its target group, with a huge potential for growth in its current markets.
Of the issued 52.5 million kroner in loans, TrustBuddy is pleased to announce that close to 30% of this amount were interest-free loans; a total of 15.7 million kroner. These are regular loans turned to pure “Buddy loans” by the borrower repaying the loan within the initial 14 day period, whereby there is no interest and other fees charged. Loan applicants are strongly encouraged by TrustBuddy to use this option, and are automatically sent a reminder by SMS within the end of the 14 day period to increase awareness of this free opportunity. As the idea behind TrustBuddy was indeed helping other Buddies across a social media lending platform, the company feels that it has come a long way to being the “helping Buddy” it set out to be, whilst maintaining class leading profitability and loss-prevention.
With borrowers taking out an average of more than 2 loans per year, the free loan period both helps to keep overall costs down and provides members with an often needed short time liquidity, as an interest-free alternative to other payday loans.
The target for issued loans for 2012 is more than 200 million Kroner and TrustBuddy estimates that around 60 million Kroner could be issued as cost-free loans. With losses on loans continuing to stay below 1%, and a 12 % interest from the remaining 99% of interest bearing loans, there is a substantial upside in lowering the criteria for lending. This would in turn increase both turnover and profits at the cost of a slightly higher loss rate, outweighed by the increased profits both to TrustBuddy and to the funding investors. However, due to the combination of current market circumstances and a sincere wish for avoiding putting people in debt they can’t handle; TrustBuddy has chosen to focus on maximum safety for its funding capital. Thus, TrustBuddy is maintaining its high membership requirements and credit score values, knowingly growing slower than it otherwise could.
TrustBuddy is presenting the preliminary report on 28 February 2012.
Further information, please contact:
Jens Glasø VD TrustBuddy International AB
+47 40 40 47 50, investorcare@trustbuddy.com
http://trustbuddyinternational.com/
About Trustbuddy International AB (publ)
Trustbuddy International AB (publ) is one of the first in the world to focus on arranging loans
and capital provision between buddies in Scandinavia in an organised manner. The company is listed at
NASDAQ OMX First North in Stockholm. Mangold Fondkommission AB is Trustbuddy
International AB (publ):s Certified Adviser and market maker, contact number: +46 8-503 015 50.