Verdant Capital backs Bfree with $3m for distressed debt acquisitions
The Verdant Capital Hybrid Fund has completed a $3 million investment loan in Bfree.
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Verdant Capital has announced that its Verdant Capital Hybrid Fund has completed a $3 million investment loan in Bfree. The funding will be used for distressed loan portfolio financing, with Bfree acquiring such portfolios from financial institutions in Africa.
Founded in 2020, Bfree is a credit collection company operating across Africa. Distressed loan portfolio financing remains relatively underexplored on the continent, due to factors such as the lack of effective collection, lack of accurate date for valuation of distressed loan portfolios, loan transferability issues, price variations, and ineffective judicial procedures.
Bfree’s collection services aim to address the difficulties associated with large-scale recovery efforts in the retail and small and medium-sized enterprise lending sectors. The company uses a proprietary loan portfolio pricing model designed to predict repayment rates. Since its launch, Bfree has worked with over 6.6 million borrowers, managing an estimated loan portfolio value of more than $740 million across its markets.
The investment aligns with the fund’s mandate to support financial institutions and improve outcomes for borrowers in default, with the aim of increasing repayment rates, improving credit scores, and enhancing customer satisfaction. By purchasing distressed portfolios that might otherwise be written down, Bfree also provides capital and liquidity to financial institutions, allowing them to focus on their core lending operations.
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