CrowdLending (Business) - Croatia

The total transaction value in the Crowdlending (Business) market market in Croatia is expected to reach US$2.71m in 2024.
When looking at a global scale, China leads with the highest transaction value of US$16bn in 2024.
In Croatia, CrowdLending platforms are gaining popularity among small businesses seeking alternative capital raising options in the financial market.

Definition:

Crowdlending platforms, otherwise know as lending-based Crowdfunding enable small and medium-sized enterprises to get loans from single or multiple, private and institutional investors via an online brokering platform. On credit platforms such as Funding Circle, OnDeck, Kabbage and Lending Club, businesses can obtain small loans up to a set maximum value. As a rule, financing requests are analyzed by the provider via an internal scoring system and are checked against additional minimum requirements such as turnover. Subsequently, these financing requests can be invested in by private and institutional investors at an appropriate interest rate determined by the credit rating of the company. This makes it possible for SMEs to borrow quickly and easily, as the basic requirements for obtaining finance are more flexible compared to traditional bank loans.

Alternative financing for SMEs and freelancers (bank-independent loans)
Small business loans issued by single or multiple private and institutional investors (non-banks)
Online loan request, scoring and approval

Traditional bank loans
Consumer loans and credit card transactions
Business-to-Business credit scoring and rating services
Online marketplaces for consumer loans (see Marketplace Lending)

The CrowdLending (Business) market in Croatia is experiencing significant growth and development.

Customer preferences: In Croatia, businesses are increasingly turning to CrowdLending as a source of financing. This is driven by the convenience and accessibility of online platforms, which allow businesses to easily connect with potential lenders. Additionally, businesses appreciate the flexibility and speed of the CrowdLending process, as it offers a quicker turnaround time compared to traditional lending institutions.

Trends in the market: One key trend in the CrowdLending market in Croatia is the diversification of lending platforms. As the market matures, new platforms are emerging to cater to different types of businesses and lending needs. This increased competition is driving innovation and leading to the development of specialized lending platforms that offer unique features and benefits to borrowers. Another trend is the growing interest from institutional investors in the CrowdLending market. As businesses in Croatia continue to embrace this alternative financing option, institutional investors are recognizing the potential for attractive returns. This influx of institutional capital is fueling the growth of the market and providing businesses with access to larger loan amounts.

Local special circumstances: Croatia's small and medium-sized enterprises (SMEs) play a crucial role in the country's economy. However, these businesses often face challenges when it comes to accessing traditional bank loans. CrowdLending provides a viable alternative for SMEs to secure financing and support their growth. The government of Croatia has also recognized the importance of CrowdLending for SMEs and has implemented supportive policies to encourage its development.

Underlying macroeconomic factors: The growth of the CrowdLending market in Croatia is also influenced by macroeconomic factors. The country has experienced steady economic growth in recent years, which has created a favorable environment for businesses to seek financing. Additionally, low interest rates have made traditional bank loans less attractive, leading businesses to explore alternative financing options like CrowdLending. In conclusion, the CrowdLending (Business) market in Croatia is growing rapidly, driven by customer preferences for convenience and flexibility. The market is witnessing the emergence of specialized lending platforms and increased interest from institutional investors. Local special circumstances, such as the importance of SMEs and supportive government policies, further contribute to the growth of the market. Overall, the macroeconomic factors of steady economic growth and low interest rates are also favorable for the development of the CrowdLending market in Croatia.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Crowdfunding is the collective effort of a large number of individuals who network and pool small amounts of capital to finance a new or existing business venture. Each campaign is set for a goal amount of money and a fixed timeframe, each day is counted down and the money raised will be tallied up for visitors to follow its success. The size of the global crowdfunding market is growing and the largest markets are North America and Asia.