Jakarta. Investree Radhika Jaya, a local startup working as a peer-to-peer lending marketplace, has set a revenue target of Rp 100 billion ($7.7 million) for June 2017.
Until now, the startup has successfully lent Rp 23.5 billion with zero percent bad loans. About 38 percent of the company's portfolio comes from the creative industries.
"We could say that the funds through Investree are distributed to help them develop their businesses in those industries," Investree cofounder and chairman Adrian A. Gunadi said in a press release on Wednesday (28/09).
As a marketplace, Investree provides a platform to help borrowers get their loan and help lenders invest their money. Investree has two loan products, for companies and employees.
For companies they use a system of invoice financing — a company can get loans to help them pay their invoices. To be eligible for a loan, the borrower must be a limited liability company, based in the greater Jakarta area, having operated for at least two years.
To determine the company's risk profile, it will be rated A1, B2 or C3, based on its age and relationship with the issuer of the invoice.
The interest rate ranging from 14 percent to 20 percent per year is based on the company's risk profile. The maximum amount a company can borrow is Rp 1 billion.
Employee loans are for people employed by companies that work with Investree. The interest rate for an employee loan ranges from 1.2 percent to 2.5 percent per month with maximum loans of Rp 50 million.
To anticipate delinquencies, or bad loans, the company performs silent confirmation and employs escrow mechanisms. To determine if an employee is capable of repaying the loan, Investree uses a rating system, which also includes social media scoring.
As a startup in the newly introduced peer-to-peer lending marketplace in Indonesia, Investree, plans to only focus on its two products for now.
"If we don't focus on fewer products, it will be hard for our company to develop efficiently. The two products that we have are what makes us different than other peer-to-peer lenders in Indonesia," Adrian said.
He added that from his work experience in the banking sector, he knows that those Investree targets are people who do not qualify for bank loans.
"We believe banks will not consider us as competition. It's important to us. That's why we are looking forward to collaborating with them," Adrian said.
Indonesia's Financial Services Authority (OJK) is currently drafting a new regulation regarding peer-to-peer lending in Indonesia, which is scheduled for the end of this year.