Peer-to-Peer (P2P) Lending in Denmark – Top 5 Platforms 2023

If you’re a Danish investor interested in P2P lending, you’ll want to know about the top platforms available for investing. Here are some of the best peer-to-peer lending platforms currently available in Denmark:

Best local platforms for peer-to-peer lending in Denmark

Despite its relatively small size, Denmark boasts a significant number of P2P lending platforms that cater to a wide range of financing needs. These platforms specialize in diverse areas such as real estate, sustainability, personal loans, green energy, and others. Below are some of the most notable P2P lending platforms in Denmark:

Flex Funding
Kameo
The Many
Lendino
Fundbricks

The first Danish P2P lending platform was Flex Funding which was founded in 2013.

History of peer-to-peer lending in Denmark

Peer-to-peer (P2P) lending, a relatively new concept in the financial world, began to take root in Denmark around the mid-2010s. This innovative approach to lending connects individual borrowers directly with investors, bypassing traditional financial institutions such as banks. The first P2P lending platform in Denmark, FlexFunding, was launched in 2013, paving the way for the growth of this industry in the country.

The emergence of P2P lending in Denmark can be attributed to several factors. Firstly, the global financial crisis of 2008 led to a decrease in trust in traditional banking systems, creating a demand for alternative financing options. Additionally, the advancement of technology has made it easier to develop online platforms that can facilitate transactions between borrowers and lenders.

Since the launch of FlexFunding, several other P2P lending platforms have emerged in Denmark, such as Lendino, Kameo, and Fundbricks. These platforms cater to various market segments, including consumer loans, business loans, and property loans.

Comparison to other markets

The P2P lending market in Denmark is still relatively small compared to other countries. But the industry has been growing steadily, with an increasing number of borrowers and investors participating in P2P lending. This growth can be attributed to factors such as low-interest rates in traditional savings accounts, the ease of using online platforms, and the potential for higher returns on investments.

In comparison to neighboring countries, Denmark’s P2P lending market is smaller than that of Sweden, Norway, and Finland. But Denmark still has a lot of platforms compared to the number of people in the country.

Nonetheless, Denmark’s P2P lending market is expected to continue growing, driven by an increase in demand for alternative financing options, technological advancements, and a supportive regulatory environment. As the market matures, it is likely that Denmark’s P2P lending industry will continue to evolve and potentially play a more significant role in the financial landscape, both nationally and in the Nordic region.

Best European platforms for P2P lending in Denmark

To find the best P2P lending platform in Denmark, investors should consider both fees and potential returns. Some of the most popular platforms available in Denmark include:

Lendermarket: This platform offers low fees and a variety of high-return P2P loans for investors.
Esketit: This platform is popular for short-term loans with high potential returns.
Reinvest24: This platform focuses on crowdfunding equity investments in real estate projects in Europe.
AxiaFunder: This platform focuses on litigation crowdfunding, great for investors looking for something different.
PeerBerry: This platform offers a range of P2P lending options, including personal, business, and real estate loans, with a buyback guarantee.

Investors should research each platform to determine which one is the best fit for their investment goals. By investing with these platforms, investors gain access to low-cost loans and the potential for higher returns.

Peer-to-peer lending regulation in Denmark

In Denmark, the regulation of peer-to-peer (P2P) lending falls under the jurisdiction of the financial services sector, which is supervised by The Danish FSA (DFSA) locally known as Finanstilsynet. P2P lending platforms are required to adhere to a variety of laws and regulations, such as licensing requirements, limitations, and consumer safeguards.

Being a member of the European Union, Danish investment-based and lending-based crowdfunding services related to business financing are required to obtain licenses as Crowdfunding Service Providers, in accordance with EU legislation (Regulation 2020/1503).

A comprehensive list of fully regulated Crowdfunding Services Providers can be accessed here.

FAQ about P2P lending for Danish investors:

Using P2P lending platforms from other countries in Denmark offers several benefits. Firstly, it allows lenders to reach a larger pool of borrowers and also offers a wider range of investment opportunities. Moreover, foreign platforms may offer more competitive interest rates and better terms compared to domestic lenders. By utilizing European P2P lending platforms, investors can tap into a more diverse and international network of investors. This can help increase investment liquidity and reduce investment risks associated with certain loans.

One of the key benefits of utilizing a domestic P2P lending platform in Denmark is the enhanced accessibility it offers to Danish lenders and borrowers. This is particularly advantageous if you are keen on supporting your local community. Furthermore, local platforms can provide more customized services to Danish borrowers who are well-versed with the local market, taxes, and regulations. In addition, using a domestic platform can lower the costs associated with transferring funds from foreign lenders because of currency exchange conversions. However, this ultimately depends on the currency in which you want to invest.