Maclear Project Consumer Loans
- Written by
- Just P2P
- •
- Updated May 10, 2025
Score A
Rapid Finance JSC is a microfinance company registered in Bulgaria, with a share capital of 1,050,000 BGN (536,000€). It operates as a credit institution under license No. BGR00501, specializing in providing microloans to individuals and businesses, with smaller loan amounts than those offered by competitors.
The objective is to raise funds to issue short-term microloans to pre-selected individuals and businesses, including factoring services for corporate clients. The company aims to fill a market gap by offering flexible financing options with loan amounts starting at 40 BGN, lower than competitors’ minimum thresholds.
Investment terms
Total project value : 50,000€
Period : 9 months
Interest rate : 15%
The 50,000€ loan will be distributed between loans to individuals (25%) and businesses (75%), including factoring arrangements. Despite a 15% interest rate slightly lower than other recent projects, it remains very competitive for investors, especially given the relatively short repayment period.
Risk metrics
Debt/Equity Ratio : 0,27 (Low risk)
LTV (Loan to Value) : 27% (Low risk)
Credit History Score : 10/10 (Excellent)
The risk profile of this investment is remarkably strong across all key indicators. The debt-to-equity ratio of 0.27 indicates minimal leverage and strong financial stability. Similarly, the LTV ratio of 27% suggests robust collateral coverage. The perfect credit history score of 10/10 reinforces the company’s excellent creditworthiness, placing this investment in the highest tier of reliability.
Business profile
Geographic Location : Bulgaria, EU member state
Industry Sector : Microfinance, Consumer/Business Lending
Collateral Type : Share Capital
Rapid Finance operates in Bulgaria, an EU member state with a growing microfinance sector estimated at €613M/year. The company targets a specific market segment by offering smaller loan amounts than competitors, starting at 40 BGN (approximately €20) for individuals.
The collateral is based on the company’s share capital, thus providing adequate security given the low LTV ratio. The company is relatively new but is led by Dimitar Velislavov Chohadzhiev, who brings significant experience from both public administration (as former Deputy Minister of Economy) and private business leadership.
Positive / Risk factors
Positive factors
- Excellent risk metrics
- Perfect credit history score
- Substantial share capital (solid guarantee)
- Unique market positioning
- Diversified loan portfolio (individuals/businesses)
- Experienced leadership (government/private sector)
- EU market with clear regulatory framework
- Monthly interest payments (regular returns)
Risk factors
- New entrant in a competitive market
- Relatively high projected default rates (18% for individual loans, 12% for business loans)
- Short operating history and limited track record
- High APRs for individual loans = questions about borrowers’ repayment capacity
- No physical collateral assets
- Potential regulatory changes
Score A
The risk metrics are exceptional: very low debt-to-equity ratio of 0.27, low LTV at 27%, and perfect credit score of 10/10. While the status as a new market entrant with limited track record presents some uncertainty, the substantial share capital of 536,000€ provides significant security against the requested loan amount of 50,000€.
The projected default rates, although relatively high, appear to be conservatively estimated and are offset by the company’s strong financial foundation and diversified lending strategy. Overall, this represents a low-risk investment opportunity with attractive returns within the short 8-month timeframe.
