More than 40% of loans from microfinance organizations (MFOs) are issued through marketplaces. Sellers primarily borrow money for short terms to cover cash flow gaps, according to the Central Bank of Russia’s website.

«This business segment accounts for 44% of loans issued by this category of MFOs. Sellers typically borrow money for short terms to cover cash flow gaps. Such loans are quickly repaid, significantly increasing the volume of MFO lending,» the regulator’s website notes.

However, according to the Central Bank, marketplace loans have a lesser impact on portfolio growth, as the average receipt for them is significantly lower than in other business segments.

At the same time, in the first half of the year, businesses received 29% more microloans from entrepreneurial finance MFOs than the previous year. The main driver of growth was active lending to sellers on marketplaces.

Sellers generally borrow money for a short period to cover cash shortfalls, the Central Bank noted.