Latvia’s Magnetiq Bank has provided a EUR 2 million loan to Estonian fintech company Placet Group, which operates in the alternative lending sector.

The loan will support the company in further developing its lending services in Estonia by ensuring stable working capital.

Placet Group is an alternative lender in Estonia, offering flexible loan solutions to individuals and businesses.

The loan will help the company improve its resource allocation and support its continued growth in the lending segment.

Part of the funding will also be used to refinance existing obligations, which is expected to improve the company’s long-term financial sustainability.

“The funding provided to Placet Group aligns with our strategic commitment to support financial technology companies in the Baltic region that have sustainable business models,”

said Jakub Wieclaw, Chairman of the Board at Magnetiq Bank.

“We view this cooperation as a step toward strengthening the Baltic financial ecosystem by supporting companies that combine technological solutions with responsible lending standards. Placet Group’s experience and market insight allow them to respond to consumer needs while maintaining high lending standards,”

he added.

Gennadi Krotov, CEO of Placet Group, commented,

“With more than 18 years of experience in the financial sector, we’ve developed a solid understanding of balancing customer needs with long-term business goals. This partnership with Magnetiq Bank will allow us to enhance our service offering and provide reliable financial solutions to the market.”

Featured image credit: edited from freepik