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

If you are a Swedish investor interested in P2P lending, there are several great platforms available to you. Here are some of the top options for investing in peer-to-peer lending in Sweden at the moment:

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

Despite being a relatively small country, Sweden houses a significant number of P2P lending platforms that cater to various sectors such as small businesses, real estate, personal loans, and more. Below are some of the most notable P2P lending platforms in Sweden:

  • SaveLend
  • FundedByMe
  • Toborrow
  • Tessin
  • Lendify
  • Brocc
  • Trine

History of peer-to-peer lending in Sweden

Peer-to-peer (P2P) lending in Sweden began as an alternative financial solution to traditional banking systems. It gained traction globally after the 2008 financial crisis, and Sweden followed suit as people sought to explore alternative lending and investment opportunities. This innovative platform enables individuals and businesses to lend and borrow money directly from each other, bypassing traditional financial intermediaries like banks.

The P2P lending market in Sweden has evolved over time, with the emergence of several platforms such as Lendify, SaveLend, Toborrow, and Kameo. These platforms cater to a variety of borrowers, including individuals seeking personal loans and small and medium-sized enterprises (SMEs) in need of business financing.

Comparison to other markets

P2P lending in Sweden has experienced steady growth over the years, with an increasing number of borrowers and investors embracing this alternative financing option. However, compared to other markets, the Swedish P2P lending market is relatively small. For instance, the UK is one of the largest P2P lending markets globally, with platforms like Zopa, Funding Circle, and Ratesetter leading the way.

In comparison to neighboring Nordic countries, Sweden’s P2P lending market is more mature and developed than Norway, Denmark, and Finland. However, the overall market size in these countries is still relatively small compared to more established markets like the UK or the United States.

Best foreign platforms for P2P lending in Sweden

To find the best P2P lending platform in Sweden, investors should focus on platforms that offer low fees and high returns. Here are some of the most favored platforms in Sweden:

  • Lendermarket: This user-friendly platform provides a range of P2P lending options and is a popular choice among Swedish investors due to its low fees and high-return P2P loans.
  • Esketit: This platform specializes in short-term loans and offers investors an opportunity to invest in projects with high potential returns.
  • Reinvest24: This platform provides crowdfunding opportunities for equity investments in real estate projects across Europe.
  • AxiaFunder: This unique platform focuses on litigation crowdfunding and is a great choice for Swedish investors who want to invest in different lawsuits.
  • PeerBerry: This platform offers various P2P lending options, including personal, business, and real estate loans, along with a buyback guarantee for investors.

These P2P lending platforms provide Swedish investors with access to low-cost loans and the potential for high returns. Investors should research each platform to determine which one best fits their investment goals.

P2P lending regulations in Sweden

In Sweden, peer-to-peer (P2P) lending is governed within the financial services sector and monitored by the Swedish Financial Supervisory Authority locally known as Finansinspektionen. P2P lending platforms are required to comply with various laws and regulations, including obtaining necessary licenses, adhering to restrictions, and providing consumer protection.

As a member of the EU, Swedish investment-based and lending-based crowdfunding services related to business financing must be licensed as Crowdfunding Service Providers, in line with EU legislation (Regulation 2020/1503).

An exhaustive list of fully regulated Crowdfunding Services Providers is available here.

FAQ about P2P lending for Swedish investors:

In Sweden, using foreign P2P lending platforms has its benefits. Firstly, it allows lenders to tap into a larger pool of potential borrowers and a wider range of investment opportunities. On top of that, foreign platforms may offer more competitive rates and terms compared to domestic lenders. By utilizing European P2P lending platforms, investors can access a diverse and international pool of investors, which can increase the liquidity of their investments and reduce investment risk.

One of the major benefits of using a P2P lending platform within Sweden is the increased accessibility it provides to local borrowers and lenders. This is particularly advantageous if you wish to contribute to your local community. Furthermore, local platforms offer more personalized services to Swedish borrowers who are well-acquainted with the local market, taxes, and regulations. By using a local platform, you can also avoid the additional costs associated with transferring funds from foreign lenders, which are usually incurred due to exchange rate fluctuations. However, this factor will depend on the currency you intend to invest in.