Lithuanian company Autofino, which provides car loans in the form of financial leasing, joins the ranks of originators on our investment platform. As the car remains in the company‘s property, it serves as a way of securing investors’ investment. Autofino is going to offer its loans on Bondster with a maturity of 1-5 years, buyback guarantee and return between 10-13% p.a.
Autofino provides long-term second-hand car leasing services for individuals and small businesses with an option to buy the vehicle at any point. This is a secured form of financing because the company maintains the ownership of the vehicle which can always be sold to recover the money. A typical vehicle is 10+ years old with an average price of EUR 3500, therefore it depreciates relatively slowly and is liquid. As a result, this business model is less risky than standard lending.
The company was created in 2018 in order to enter a high yielding market segment which was dominated by a single player. The company was structured in a lean and efficient manner by standardizing and automating all major operations. The team consists of 5 people: 2 co-founders, 2 investors and 1 employee. As a result, the company broke even in 2018 and grew in profitability in 2019 and 2020. In 2020, the net income grew by 237% to EUR 67,306.
“We plan to offer 1yr-4yr loans which yield 10-13%. We will also plan to offer some interest-only loans. All loans will have a 60 day buy-back guarantee,” says Autofino’s CEO Rokas Ignotas.
You can find more information about the company HERE.