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Ghada Teima

Ghada Teima is a Global SME Finance Lead Specialist with the World Bank Group’s Finance and Markets Global Practice.

Study Visit to Dynamic Credit: Creating investment opportunities at the speed of a fintech disruptor

Oct 21, 2019
Study Visit to Dynamic Credit

During the Global SME Finance Forum 2019, ten study visits were organized to different Dutch cities. One of them was to Dynamic Credit, an asset management and direct lending firm founded in 2003 in New York. While the opening of the Amsterdam office in 2009 started the international growth, the strategic partnership with Aegon in December 2017 provided an opportunity to expand into SME lending. The Dynamic Credit SME lending platform -operated by the Dynamic Credit in the Netherlands, serves Dutch SMEs through the Dynamic Business Loan. 

The product is designed for entrepreneurs who are looking for receiving credit fast and fair conditions and competitive rates. Dynamic Credit’s unique proposition is that the company offers rates and quality one would expect from a bank, but at the speed of a fintech disruptor. Dynamic Credit offers business loans bypassing banks in the process. SMEs apply for a Dynamic loan through one of the affiliated partners. They focus on originating relatively small loan sizes from a broad range of sectors spread across the Netherlands. 

Due to the strict underwriting criteria, accompanied by data-driven credit decisions and experienced SME specialists, the bulk of the company’s portfolio is composed of implied Baa and Ba-rated companies. The asset management arm of the Dynamic Credit works on unlocking the SME loans segment to institutional investors by targeting a diversified and highly granular SME loan exposure. The company leverages its expertise and direct experience in SME lending to create investment opportunities in both new origination and the secondary trading markets. The company’s diversified loan strategy offers an opportunity to invest in direct loans as well as buy loans across a number of originators. 

Learn more at https://dynamiccredit.com