About
SinoLending is a peer-to-peer (P2P) platform for small and medium enterprise (SME) loans in Mainland China. SinoLending intends to create a platform that is able to originate loans for qualified SMEs by allowing direct investments from financial institutions and individuals. The Company is capable of dis-intermediating banks to create lower rates for borrowers, while simultaneously generating high returns for lenders. They generate revenue by charging an origination fee for borrowers and a service fee for lenders, while facing zero liability as a middleman because they do not act as a lender.
Thesis
SinoLending can be thought of as a Chinese-based “Lending Club”. They strive to provide Chinese citizens the opportunity to attain sufficient monetary backing to act upon their business ideas, once they have excelled past the early stages.
People
SinoLending is comprised of a talented team of individuals that has the determination and connections to combat the complexity of the political environment in China. Soul Htite was the Co-Founder of Lending Club, where he built the world’s largest P2P technology platform, making him the perfect individual to head SinoLending.
Key Board Members:
- Jianxin Zhang (Deputy general manager of COAMC’s Hangzhou Branch + a former credit card department director at Bank of China)
- Chaomei Chen (Lending Club chief credit officer + former chief credit officer at JPMorgan Chase)
Product
SinoLending’s product is previously unparalleled in China’s history, empowering legitimate entrepreneurs to pursue their business ideas. Incorporating a team of individuals who have business experience in China and former members of the Lending Club founding team, SinoLending can accurately determine the credit worthiness of Chinese SMEs. SinoLending provides financially stable small and medium-size businesses the liquidity to help reach their expansion goals by matching individual lenders across the world up with Chinese firms seeking capital for upcoming events or milestones. This allows businesses to borrow at a fraction of the cost of other avenues, while also giving lenders a strong rate of return.
Potential
SinoLending fills a unique void in the Chinese economy because they are able to take advantage of the different demographics within China by creating an extensive peer-to-peer lending network. With its world renowned economic expansion over the past 30 years, it is evident that China’s population thrives on opportunity, but sometimes struggles to find the financing to back their ideas. SinoLending solves this problem and we believe this will translate to an enormous upside in the future.
Megatrends
- Demographics
- Globalization
- Consolidation
- Brands
How Big Can This Be?
Sino Lending has limitless potential, largely because it intends to undercut government loans, which average 24-28% interest, and pawnshops, which can charge up to 40% interest.
Predictability
“Lending Club” became the world’s largest peer-to-peer lending company and generated 10% month-to-month growth. We believe that SinoLending will be capable of generating the same level of predictability.
Risks
The largest risk facing SinoLending is the inherent political complexities of the Chinese policy environment. (Sino has partnered with the Bank of China to combat this concern.)
