Afranga Review: Regulated Bulgarian Platform for Business Loans, No Buyback
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Guarantees & features
- Secured: No
- Regulated: Yes
- Buyback Guarantee: Yes
- Secondary Market: Yes
- Auto Invest: No
- Cashback: No
- Investor Compensation: No
Afranga is a peer-to-peer lending platform founded in 2021 and headquartered in Bulgaria, regulated as a European Crowdfunding Service Provider by the Bulgarian Financial Supervision Commission. It focuses on business loans to SMEs, secured directly against the borrowing company's assets rather than relying on a platform-wide buyback guarantee.
What is Afranga?
Unlike most consumer-loan marketplaces, Afranga connects investors with loans made directly to small and medium-sized businesses for working capital, equipment or growth financing. Because the underlying loans are secured against company assets, investors hold a more direct claim on the borrower than on platforms that rely purely on an intermediary's promise to repurchase bad loans.
Key features
- Regulated status: Afranga holds an ECSP licence from the Bulgarian Financial Supervision Commission, bringing it under EU-wide crowdfunding rules.
- Asset-backed business loans: loans are secured by the assets of the borrowing company itself, giving investors a direct legal claim in case of default.
- Manual, hands-on investing: Afranga does not currently offer auto-invest, so investors select each loan themselves after reviewing its documentation.
Risk considerations
Afranga does not offer a buyback guarantee or a secondary market, which is a meaningful difference from many consumer-loan platforms — recovering funds from a problem loan relies on the underlying company's assets and legal process, which can take time. Business loans also carry a different risk profile from consumer credit, tied to the health of individual SMEs rather than diversified pools of small consumer loans.
Who is Afranga for?
Afranga suits more hands-on, experienced investors who are comfortable doing their own due diligence on individual business loans and who want exposure to SME financing rather than consumer credit, as one component of a diversified P2P portfolio.
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