Number of loans doubled, and a start was made on B2B lending. External funding of €8.5 million received.
Blue Finance’s business performance in Denmark has taken great leaps forward during the start of the year. Consumer loans granted by Blue Finance Denmark ApS more than doubled year on year and despite strict regulation the company posted a profit in the first quarter of 2022. A start on corporate lending and a new subsidiary established for vehicle wholesale operation further strengthened the growth outlook for the rest of the year.
Blue Finance Denmark ApS had a strong start to the year and business performance has taken great leaps forward in recent months. Our Danish subsidiary started operations in 2019 and already last year successfully increased revenue by 78% (€3.3m) compared to the corresponding figure (€1.8m) in 2020. During the first quarter of this year, the company outperformed its target and revenue was €780k. Despite strict Danish regulation and a delay in the start of corporate lending to the spring, Blue Finance Denmark returned a profit in the first quarter. Constantly growing lending volumes have been an important factor in the company’s good performance. The amount of loans granted in Denmark during the first part of 2022 alone more than doubled compared to a year earlier.
“Our success in Denmark is a combination of serval factors, says CEO of Blue Finance Denmark,” Nicolai Dam. “We have been able to create a strong brand and a strong product that furthermore is valued by our customers – our score on Trustpilot is as high as 4,7 / 5.”
Start of corporate lending and vehicle wholesale operation
In April, we launched a vehicle wholesale operation in Denmark under the Blue Automotive Sales brand. This model gives us an extensive network of vehicle traders, who will pay a daily premium for an exclusive right to sell the vehicles purchased by Blue Automotive Sales.
“We have already made the first agreements with Blue Automotive Sales and we can expect new ones to be signed every week from now. We have a good product and there is really good potential for profitable business in this market, both in the short term and above all in the long run,” says Dam.
At the start of the year, a start was made in Denmark also on scaling up the corporate lending business with personal guarantees under the Broaden brand and this resulted in the first loans being granted soon after. Successful consumer credit in Denmark gives us every reason to expect good results also in corporate lending going forward. The Danish SME market is around €91 billion, 44% greater than Finland’s ~ €63bn.
Significant financing enables growth
The Danish business can expect significant growth for the rest of the year. So that we can respond to growing demand for consumer credit and corporate lending, our Danish subsidiary has agreed a total of €8.5 million in external funding. This is intended to above all accelerate growth in consumer credit as well as corporate lending and was received in two tranches. The first tranche was transferred for our use in January this year and we received the second in April.
“A key element in Blue Finance’s strategy is to enable investments in markets like Denmark, where there is future growth potential. The financing now obtained will thus improve the entire group’s profitability,” says CEO of Blue Finance Group, Lauri Lehtonen.
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