Interview to MytripleA

MytripleA, a crowdlending access platform where Spanish businesses that need financing come together with individual or institutional investors willing to lend their money, has given us an interview.

About MytripleA

MytripleA is a crowdlending access portal in Spain. Crowdlending is the union between companies that need financing with investors willing to lend them their money in exchange for a return. MytripleA is the only portal where both companies and investors can access three different products: loans with the guarantee of a Mutual Guarantee Society, loans without this guarantee and factoring.

Crowdlending is the union between companies that need financing with investors willing to lend them their money in exchange for a return

What has been the evolution of the business these first years?

MytripleA began its activity in 2015 and in just 4 years, more than 60 million euros have been brokered between investors and companies in more than 1,000 operations.

If we look at the end of 2018, MytripleA had a year-on-year growth of 111% in brokered volume compared to the previous year, reaching a volume of more than 27 million in 2018 during that year.
So far in 2019, more than 14 million euros have been financed between loans and invoice advances.

What difficulties does the Spanish company have when accessing bank financing?

Many Spanish companies have Difficulties in accessing bank financing given that the banks have closed the faucet to financing and access to it is more complex, especially for smaller companies or with greater indebtedness.

These companies see a possible way to continue with their financing needs in alternative financing via crowdlending or crowdfactoring.

What is the degree of knowledge of alternative financing by Spanish SMEs?

According to the latest study by DBK Informa, it is estimated that in 2018 crowdlending, crowdfunding and crowdfactoring platforms channeled operations for a global value of 430.5 million euros. This figure represented an increase of 63.1% compared to the previous year, having doubled on average each year when compared to that obtained in 2014.

At MytripleA, we have doubled the volume financed in 2018 compared to the previous year and more than 60 million euros have been intermediated since the start of the activity. These data on the growth of the sector indicate that the degree of knowledge is increasing given that more and more companies resort to this type of alternative financing.

What customer profile does MytripleA serve?

At this point we must differentiate between two types of audiences, investors and companies requesting financing.

In the case of investors, there are very different profiles. We can differentiate between institutional investors and private investors and between investors with a lot of knowledge and people with less investment experience. Anyone can invest their money through the platform and they all invest under the same conditions. With a minimum investment of €50.

If we look at the companies that request financing, they are generally medium-sized companies, although small or large companies also obtain financing. There are no restrictions regarding the sector or activity, therefore there is a wide variety of activities among the companies financed.

What different products does MytripleA offer to companies?

Companies through MytripleA can obtain loans of up to 7 years and the factoring or invoice advance service.

What is the profile of the investor that finances the operations?

There is variety in terms of investor profiles, being able to be both private and institutional investors.

How is MytripleA different from other crowdlending companies?

The main difference is the products that can be accessed, since it is the only access portal to crowdlending where companies and investors can access loans and factoring.

In addition, it is the only crowdlending portal where investors can access Safe investments by Mutual Guarantee Societies. The investments that have this guarantee are classified by the Bank of Spain as “Without appreciable risk”.

How do you see the future of alternative financing and Crowdlending in Spain?

Observing the data and evolution over the years of this type of platform, all the studies predict a notable development potential in Spain for the crowdlending and crowdfactoring product.

Regarding companies, the development of collaboration agreements between platforms is expected, as well as the creation of alliances with banks.

The challenges of crowdlending in a broader way, round in relation to regulation, the production of the following improvements and adaptations of Law 5/2015 for the Promotion of Business Financing that regulates us, such as being able to offer a secondary market to investors where they can sell their shares in the loans at any time or tax improvements when investing through crowdlending as happens in other countries such as England.

What are the objectives of MytripleA?

We have the clear objective of "democratizing" the Spanish financial system so that investors can make their savings profitable and SMEs can finance themselves without having to go through a bank. By skipping the bank, all that bank margin is distributed between the SME and the investor so that both parties win. Another of our objectives is to continue consolidating ourselves as leaders in the crowdlending sector in Spain.