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Capitalia is a Latvian lender to small and medium businesses that lets private investors co-finance its loans. It has lent to companies in Latvia, Lithuania, Estonia and Finland for about 15 years and has offered its loans to investors since 2017. Loans issued come to EUR 125.9 million, with EUR 18.1 million still active (as of 5 October 2026). It says it has more than 2,308 investors.
Capitalia assesses each company, grades the loan from A+ to D and publishes it. You invest from EUR 100 per loan, by hand, with an auto-invest tool, or through a managed portfolio service. A loan goes ahead only if the full amount is raised, usually within two weeks; otherwise the money goes back to investors within one business day. Each investor owns a share of the loan, and Capitalia signs the agreement, registers pledges and collects payments for investors. Repayments arrive on the 1st or 15th of each month. Loans offer 6% to 18% a year and run from 3 months to 5 years.
All funded loans carry a weighted average interest rate of 11.86% a year (as of 20 February 2026); the same page also states 11.66% for that date. After losses on defaulted loans and provisions for doubtful loans, the platform reports a weighted net return of 10.52% a year. By year of lending the net return falls from 13.98% for 2017 to 9.85% for 2025, with a low of 8.41% for 2021. Returns are before tax; for individuals, Latvian income tax is withheld at source.
Written-off loans are 0.12% of all loans issued. Including provisions for doubtful loans, losses are 1.74% of loans issued, or 1.14% a year (as of 20 February 2026). Defaults are much more common than final losses: on average 8.09% of loans outstanding at the start of a year defaulted within that year from 2021 to 2025 (96 of 1,187 loans, calculated from the platform's own figures). In 2025, defaults were above Capitalia's own expectation in four of five risk grades. On 5 October 2026, EUR 2.7 million of the EUR 18.1 million active book, about 15%, was more than 90 days late.
Capitalia loans go to small and medium businesses in Latvia, Lithuania, Estonia and Finland. The platform says loans may be secured by collateral or by a guarantee from the owner; some also carry a guarantee from the Latvian state development institution Altum. What secures each loan differs and is shown in its project description. A guarantee from an owner or from Altum is a promise to pay, not a claim on assets. There is no buyback and no reserve fund. Capitalia puts at least 1% of its own money into every loan and handles collection, restructuring, court cases and insolvency claims, covering the collection costs. It does not publish how much it has recovered from defaulted loans, but its write-offs so far are 0.12% of all loans issued, and 1.74% once provisions for doubtful loans are included (as of 20 February 2026). About 15% of the active book (EUR 2.7 million of EUR 18.1 million) was more than 90 days late on 5 October 2026, so the final result on those loans is still open.
The platform is run by Capitalia, SE, based in Riga. The Bank of Latvia decided in November 2023 to grant it a European crowdfunding service provider authorisation, and supervises it. Investors' cash is held in a wallet in their own name at Lemonway, a payment institution licensed in France, in client-money accounts with partner banks such as BNP Paribas, kept apart from Capitalia's own money. Capitalia publishes monthly operating disclosures and interim financial statements.
Investing is free today. Two withdrawals a month are free, and each further withdrawal costs EUR 3. From 1 January 2027, an account fee of EUR 1.90 a month for individuals and EUR 4.90 for companies applies to all open accounts, taken from uninvested cash; new investors get the first three months free. Borrowers pay Capitalia a fee of 1% to 5% of each funded loan plus a monthly management fee, shown in each project.
Your money comes back as the loans are repaid, so plan to hold each loan to its end. A secondary market exists only in a testing stage: investors will be told when they can use it. Cash in your wallet can be withdrawn to your bank account at any time.
Return: High. All loans paid 11.86% a year on average. Risk: Medium (higher means more risk). Write-offs are only 0.12% of loans issued, but losses including provisions are 1.74%, about 8% of loans default each year and about 15% of the active book is more than 90 days late, so losses could rise. Risk-return: Very High. After losses and provisions the platform reports 10.52% a year (February 2026).
License / Regulation: Capitalia, SE (Riga, Latvia) holds a European crowdfunding service provider authorisation under Regulation (EU) 2020/1503 from Latvijas Banka (Bank of Latvia), decided in November 2023. The licence number is not shown on the platform's pages. No deposit guarantee or compensation scheme covers the loans.
Yes. The Bank of Latvia decided in November 2023 to grant Capitalia, SE a European crowdfunding service provider authorisation, and supervises it.
Cash waiting to be invested sits in an Investment Wallet in your own name at Lemonway, a payment institution licensed in France, in client-money accounts with partner banks such as BNP Paribas, kept apart from Capitalia's money. Once invested, your money is lent to the business.
EUR 100 per loan. Capitalia lowered it from EUR 200.
All loans carry 11.86% a year on average; after losses and provisions the platform reports 10.52% a year (20 February 2026). Write-offs are 0.12% of loans issued and losses including provisions 1.74%. About 8% of loans default each year, and about 15% of the active book was more than 90 days late on 5 October 2026.
It depends on the loan: some have collateral such as a pledge, others an owner guarantee, some an Altum state guarantee. There is no buyback or reserve fund. Capitalia invests at least 1% of each loan itself and runs collection on investors' behalf.
Not yet. A secondary market is in a testing stage and not open to investors, so plan to hold each loan to maturity (3 months to 5 years). Uninvested cash can be withdrawn at any time; two withdrawals a month are free.
No fee on investing. Each withdrawal after the second in a month costs EUR 3. From 1 January 2027 an account fee of EUR 1.90 a month (EUR 4.90 for companies) applies, with three months free for new investors. Borrowers pay Capitalia 1% to 5% of each loan plus a monthly management fee.
For individual investors Capitalia withholds personal income tax under Latvian law; reduced rates may apply under tax treaties. Company accounts have no tax withheld. Check your own country's tax rules.
Your loan shares are claims on the borrowing company, and your cash is held at Lemonway apart from Capitalia. If a borrower fails, recovery depends on its collateral or guarantees and can take years. No compensation scheme covers the loss.
