Creditstar Group’s audited Annual Report 2020

Creditstar Group
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Creditstar Group’s audited Annual Report 2020

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Some investors have sent us queries about the financial audit of Creditstar Group AS, the parent company of loan originators on the platform.

Although we are not financial auditors, we always review the reports presented to us as part of the due diligence process. Our working principles with loan originators are established in cooperation agreements, together with certain covenants we require loan originators to meet. We are happy to assure our investors that after reviewing the audit of Creditstar Group  we can ensure that our cooperation is stronger than ever. The financial statements show that the company is strong and the loan originator has not breached any agreed financial covenants.

While other international reporting standards allow use of the revaluation model, the Estonian GAAP does not foresee two separate methods for the recognition of intangible assets. Such revaluation is not in conformity with the Estonian standards even if the company would be dependent on technology in their digital credit underwriting operations (automated processes, algorithms and data analysis). Therefore, we requested additional information from the management of Creditstar Group.

Based on the comments from the management of Creditstar Group, the valuation report was prepared by a European investment banking firm focused on the financial technology sector, which is independent from Creditstar Group and its shareholders. It is to be noted that the valuation specialist found the value of Creditstar Group’s technological advancements higher compared to what is stated in the balance sheet. It was the management decision of Creditstar Group to follow conservative approach in recognising the intangible asset class at a lower value. Unfortunately the Estonian accounting standards only allow the recognition of intangible assets at acquisition cost.

We feel fortunate about the accomplishments of 2021. Creditstar Group AS has reached several important milestones to secure a strong position for next year:

  • Completing two successful bond issues in one year that were oversubscribed.
  • Significantly reduce the interest rates of both bonds. 
  • Conducting a successful audit with a top-tier auditing company, KPMG.
  • Creditstar DenmarkApS received a Consumer Credit Provider license and now they operate under supervision of Danish FSA.

These achievements give us confidence in the year to come and we are happy to continue providing attractive investment opportunities from Creditstar Group AS to the investors of the Lendemarket platform.

Find the audited Consolidated Annual Report 2020 here

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