Equity capital – EUR 40 000. Permit issue (licensing) time – from 1 month.

Consumer credit providers and Peer to Peer (P2P) lending platforms help consumers find financing for their individual needs. Consumer credit provider provide financing from their own capital. P2P platforms accumulate funds offered by third party lenders and provide consumer loans. Consumer credit providers and P2P platforms offer fast and easy consumer financing as alternative to complicated bank financing.

Fast and easy licensing, friendly regulation

Latest amendments to the Lithuanian Consumer Credit regulation allows fast and easy licensing of Consumer Credit Providers and P2P platforms. Usually it takes a bit more than 1 month  to be included in to the Public List of Consumer Credit Providers or Peer to Peer (P2P) platform operators. Bank of Lithuania (Regulator) currently considered as one
of the most business oriented and progressive regulators in EU/EEA area.

Passporting of Consumer Credit and P2P license in European Union (EU/EEA area)

Lithuanian Consumer Credit and Peer to Peer (P2P) operator licenses issued by the Bank of Lithuania are considered as Lithuanian national licenses issued by EU member state financial regulator. Passporting of Consumer Credit or Peer to Peer services within the EU/EEA can be achieved combining Consumer credit license with Electronic Money Institution, Payment Institution or other passportable license.

List of documentation to be provided for Consumer Credit licensing

For the inclusion in to the Public List of Consumer Credit or P2P Platform Operators following documentation need to be provided:

– Application for entering on a Public List of Consumer Credit Providers or P2P Platform Operators.

– Information on the public register in which the supervisory authority can verify basic personal data and information on the shareholders and managers, proving their compliance with the requirements.

– Rules for assessing the creditworthiness of borrowers.

– Information on registers and information systems referred to for the purposes of assessing the creditworthiness of borrowers.

– Business continuity plan (business plan).

– List of consumer credit intermediaries acting on behalf of a consumer credit provider, if any.

Business Continuity Plan and Rules for Assessing the Creditworthiness of Borrowers are the most complex documentation to be prepared during the licensing procedure. The plan should provide measures and procedures ensuring that Consumer Credit Providers activities carried out continuously, without interruption, ensuring a smooth administration of the Consumer Credit contracts and continuing contractual obligations fulfillment in cases of unforeseen circumstances. Being the most experienced financial licensing advisor ECOVIS ProventusLaw assists in preparation of the Business Continuity Plan, other licensing documentation, accounting, reporting, audit and setting up all Consumer Credit business.

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Kęstutis Kvainauskas

Lawyer, attorney at law, partner of the law firm.

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