Who are the most solid lenders on Mintos? Our Mintos lender ratings

Last update - February 2018

A Mintos lender recently blew up

In June 2017, Mintos lender Eurocent announced that it was in serious financial difficulties. We covered these problems in a recent post. Eurocent has now defaulted on its Mintos ‘buyback guarantee’ commitments. It looks increasingly likely that Mintos investors will suffer some losses. 

This has inevitably led investors to pay more attention to the quality of the other lenders on the Mintos platform. Last year, we listed 9 lenders that we would not touch right now. We have now broadened our analysis to cover all of the Mintos lenders. We highlight the lenders with the strongest features. We continue to be big fans of the Mintos platform, however we are allocating most of our capital to the highest rated lenders listed below.

It has been difficult up to now to compare each lender on the Mintos platform

Unfortunately, the information provided by Mintos about each lender is not consistent. Some lenders have not provided any information since March 2016. Others provide very regular updates. Information is provided in different currencies, languages and accounting policies. The quality of information provided varies enormously. Some information is audited, in many cases it isn’t. There should be minimum standards of reporting and disclosure. At the moment, Mintos allows the lenders to choose what they disclose. This results in lenders failing to disclose important information that may not be convenient for them, such as a history of losses, or rising levels of bad debts.

Key financial information of each Mintos lender

The table below captures the key financial information for each lender. This can be useful to quickly lookup the profile of each lender, and compare the strengths and weaknesses of each one.

We have excluded from the analysis Pangmaobao, as no useful or recent financial information has been provided by Mintos about them. In the interim we would avoid allocating funds to their loans.

All Figures in EUR million:

Mintos LenderReporting periodLoansEquityP&L - latestP&L - prior yearAudited
MogoSep 201786.613.49.56.0No
ID FinanceSep 201757.418.66.67No
Credit StarMarch 17/ Dec 1647.712.81.61.3No
Capital ServiceDec 201611.
iute creditDec 20167.
Banknote / Money MetroJune / Sep 1713.
AgrocreditJuly 20177.
AcemaMarch 20163513.12.51.7No
CreamfinanceDec 201621.
IFN Extra FinanceDec 20167.
BIG MicrofinanceDec 201611.
Mozipo Dec 20166.
AasaDec 201644.328.61.8-3.0Yes
AfortiMarch 20172.
CapitaliaDec 20163.
LendoDec 201611.73.0-1.6No
EcoFinanceJune 20171.
ITF GroupDec 20161.
HipocreditDec 20160.60.10.0-0.3No
DebifoMarch 20172.
Kredito GarantasDec 20161.
EuroOneOct 20171.41.4-0.5-0.7No
Get bucks / MybucksJune 20177811.4-13.8-7Yes
Varks.amDec 20176.50.4No
RapicreditDec 20160.90.20-0.1Yes
DindinOct 20170.50.9No
PimpayJune 20172.6-0.50.1No
SeboDec 20172.20.6No
Kredit24June 20172.
InvipayDec 20163.50.10-0.1No
Watu CreditNov 20171.5No
BinoSep 20174.6-0.9No
Cash CreditDec 201631.40.2-0.1Yes

Our Mintos lender ratings

Our Mintos lender ratings are based on 5 characteristics – profitability, capitalisation, size, track record and the quality of their reporting. We have allocated marks out of 20 for each metric, giving a total score out of 100. 

Top rated Mintos lenders

Mogo and ID Finance earned the equal highest scores. Mogo is a popular lender on Mintos as the loans are both secured by vehicles and most receive buyback guarantees. Mogo reported very good results in Q1 17 and appears to have a successful business model. ID Finance is another lender that is well capitalised and has produced strong results over the last 2 years. 

We think investors can have some confidence in any lender achieving a score of 60 or better. Lenders meeting this benchmark include Credit Star, Capital Service, iute Credit, Banknote, Cream and IFN Extra Finance. We particularly like the quality and frequency of reporting by Credit Star and Capital Service, and allocate some capital to their loans. 

Aasa recently released their 2016 results which showed impressive growth and a move into profitability, resulting in their score improving significantly and they are now well above our 60 score threshold. We have also recently upgraded the score of Banknote / Money Metro following strong results during 2017.

Our views on the new lenders

Mintos have introduced many new lenders recently including  Dindin, Bino, Pimpay, Sebo, Watu, Kredit24, Invipay, Varks.am and Rapicredit. In our view, many of these new lenders are high risk, with a very limited track record and poor levels of disclosure. We don’t see any advantage in including these in a Mintos portfolio until they have been able to grow significantly larger and demonstrate profitability and a credible lending record.

We are surprised for example, that a company like Bino, that only started lending in 2017 would be invited onto the Mintos platform, particularly when no information about the capitalisation of the company is available. Several of these companies have not provided any information on their profitability, which implies to us that they are likely to be loss making currently. It is almost impossible to determine how likely these businesses will be able to honour their buyback guarantees in the future.

We also have some concerns and doubts about some of the countries the new lenders are operating in, including Kazakhstan, Kenya, Moldova, Columbia, Armenia and Russia. These countries are not investment grade and Mintos investors are not earning substantially higher returns to invest in these countries. For example, the Kenya government bond has a yield of over 13%, higher than Mintos investors are receiving to fund loans made there by a tiny startup business (Watu). 

Lastly, we have doubts about the ability of these businesses to manage the currency risk they face. These businesses are lending in local currencies, and borrowing in euros. If there is a significant depreciation of these currencies (which frequently happens), we are concerned that these businesses might be exposed. None of the lenders have disclosed if, or how, the currency risk is being managed.

Our views on some of the lower rated lenders

Of the lower rated lenders, Kredito Garantas, Debifo and ITF Group were all included in our 2017 list of 9 lenders we would avoid right now

Lendo is the number 2 lender on Mintos by amounts borrowed. Lendo is a startup with no real trading history prior to 2016. It has received a reasonable amount of equity to use to get to a break-even profit level. One concern we have is that the business lost €1 million during 2016 due to FX differences between the Euro and the Georgian Lari. This suggests that their FX exposure has not been fully hedged.The Lari continued to depreciate during 2017, and we have concerns that Lendo may have made further losses as a result.

Mintos has recently confirmed to ExploreP2P that the obligations of Getbucks are guaranteed by its parent, MyBucks. As a result, we have provided the financial information and a score for the parent MyBucks. In January 2018 MyBucks announced substantial losses, and we have revised our ratings accordingly. The MyBucks share price has fallen almost 50% over the last 12 months, and the business appears to be facing substantial challenges, including an average cost of funding of 16%.

Hipocredit is a startup mortgage business. It used to be an affiliated company of Mintos, however it is now owned by new shareholders. During 2016 the previous owners of Hipocredit appear to have withdrawn €500k of equity, leaving it with only €135k. It’s not clear why this was done.  The business made a small profit in 2016. We cannot recommend purchasing Hipocredit loans currently, as they have recently been selectively buying back loans from Mintos investors (which they are allowed to do under the assignment agreement with Mintos investors). This has resulted in Hipocredit ‘cherry picking’ the best performing loans, and leaving behind investors with defaulted loans. 

Lenders receiving marks in the 40-59 range need to be treated with caution. Some of them are small but promising, and others will need to demonstrate a successful lending record and profitability, to be rated higher. We would suggest only allocating a modest amount of funds to investors in this category right now.

23 thoughts on “Who are the most solid lenders on Mintos? Our Mintos lender ratings

    • Oscar Harrington Post authorReply

      Thanks Matteo. Yes we plan to keep this updated (it has been a popular post).

      • tbee Reply

        Thx Oscar
        this is really helpful especially when it is kept up to date
        e.g. mogo jetze offers car loans in other countries and these do not seem to return as reliably back

  1. Alex Reply

    Hi Oscar,
    I’ll attempt to explain why I came to your site.
    I have a company in one of the European countries and the way taxes work here is that when you withdraw profits (via either salary or dividends) the taxes you pay are very high. However, if you don’t withdraw, there is no tax.
    I currently have a situation where the company has more funds than can be invested back in the business. Due to the nature of the business there are limited ways in which to expand the primary operation. As a result, I have 100k EUR+ in available funds on the company bank account. I haven’t taken this profit for reasons above (taxes you pay once you draw funds from the company).
    Because of all this I started to look for alternative ways to invest excess funds and came across lending platforms. Mintos is especially interesting due to guaranteed returns. I have been reading a lot about this topic lately and if I understand correctly, if I stick to loans with buyback guarantee, the only risk is the lender not being able to pay outstanding obligations similar to Eurocent? Furthermore, if I stick to lenders you rated high, is there still some risk in this and if so what is it?
    Also, I am looking to invest approx. 50k EUR. Would you say that’s feasible?

    Furthermore, how would you allocate the funds between lenders (my criteria is EUR only and buyback guarantee only, target 11% ROI)? For example: 20% Mogo, 20% ID Finance, 20% Aasa, 20% Banknote, 20% Cream. Or some other proportion? How would you calculate this proportion based on the overall score of each lender?
    Thanks for reading and for such a useful post.

    • Oscar Harrington Post authorReply

      Hi Alex. For loans that have buyback guarantees, the risk comes from a situation like Eurocent as you correctly identified. That is, the borrower firstly defaults, then the lender is unable to fulfil the buyback guarantee. These risks are correlated – if a lender has many loans that are defaulting, that also makes them less able to fulfil the guarantee, as they will be suffering high losses, and the company could fail. That’s why it is important to monitor the level of profit and equity for each lender. There is still a risk that a highly rated lender could fail, it is just a reduced risk. Allocating your investment to multiple lenders is a good idea, to diversify your risk. You could use our scores to allocate your investments, but make sure that end up with a portfolio that has good diversification in terms of geography, loan types etc.

      • Alex Reply

        Hi Oscar,
        Thank you very much for your reply.
        So would it be a good idea to invest 100k EUR in Mintos and split it in 8 parts:
        Mogo, ID Finance, Credit Star, Capital Service, Aasa, iute credit, Banknote, Cream.
        Eight equal parts would be 12500 EUR each but I would likely allocate more to larger companies regardless of the score. For example, I am familiar with Mogo, ID Finance and Cream Finance, but never heard of iute credit.
        You suggested that it’s important to have good diversification in terms of geography, loan types etc. Could you elaborate on what techniques you would use to achieve that goal?
        Thank you,

    • Oscar Harrington Post authorReply

      Hi Jonathan. Following discussions with Mintos, they have confirmed that there is a guarantee from Mybucks of the obligations of Getbucks, and we have therefore updated our information and ratings to take this into account. Mintos have also agreed to provide this information about the existence of the guarantee on their site.

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  3. Mark Reply

    Hi Oscar,
    I am a Mintos investor and I found your post very useful.
    I did some research and I realized that I am not putting enough emphasis on the quality of the lender. I also did some analysis on my loans and I found that ~55% of all my loans are with Mogo. This happened because of the high guaranteed rate (13%) they were offering on car loans. After reading your post, I think I should change the allocation across the following top 7 lenders:
    Mogo, ID Finance, Credit Star, Capital Service, Banknote, Iute credit, Get bucks
    (I purposely left out 2 top lenders Aasa and Cream Finance as they don’t have any loans that meet my criteria which is buyback & 11%+)

    Right now I can change this 55% allocation to Mogo quickly by adding new funds to Mintos which I intend to do. Question: How would you allocate ~60k EUR across these 7 lenders?
    Could you tell me what amount would you allocate to each or what formula would you use to calculate the amount that should be allocated to each lender?

    • Oscar Harrington Post authorReply

      Hi Mark, thanks for the question. There’s not really a right or wrong answer. However we would note that Mogo is probably one of the best Mintos lenders to be ‘overweight’ in given that they offer good returns and are currently a very profitable company. It is not important to allocate all your funds equally, and you could allocate some additional funds to lenders like Mogo or others who have better returns or loan availability. The important thing is to allocate loans to several different lenders, and if you allocate to the 7 you have identified you will definitely be on the right path. There are some other options outside of Mintos too – we published a new post about some other sites that offer buybacks today.

      • Mark Reply

        Hi Oscar,
        Thank you very much for your reply and happy new year. Yes, I figured that I am on the right path distributing among 7 “good” lenders however if I wanted to calculate the best allocation to each using “total score” how would I do that? Do you use your total score to decide how much to allocate to each lender?

        • Oscar Harrington Post authorReply

          Hi Mark. There isn’t a correct way as such, but if you agree with our ratings you could allocate a higher share to the higher rated lenders such as Mogo (i.e overweight them) and less to the lower rated lenders. Also take into account what interest rates are available on the primary / secondary market for loans from each lender and whether they offer the other loan features that you are looking for (such as maturity length etc).

  4. Rui Reply

    Hi Oscar,
    When i started investing in MINTOS i didn’t carefully select the lenders that were part of my autoinvest portfolio because i was coming from TWINO where there isn’t a lender concept(I got some more love for TWINO than you do).
    After reading your post i realized that my lending distribution was completely unbalanced with around 60% of my loans being linked with Lendo which is a low scorer in your analysis. I already tweaked my autoinvest portfolio and increased my Mogo loans percentage using the long term loans promotion.
    I’m still worried though about the Lendo loans though, they are all 12%+ and under 12 months, should i try to sell them in the secondary market or you think it should be ok to hold to them until their end?

    Thank you in advance for you advice,

    • Oscar Harrington Post authorReply

      Hi Rui. 60% is quite a large allocation to any single lender. Agree that it may be prudent to diversify a little more, and sell some.

  5. Mark Reply

    By the way, what is going to happen to Eurocent investors? Are they going to get their money back, at least the principal? I am assuming the loans are still valid even though the company cannot honor the buyback guarantee?

    • Oscar Harrington Post authorReply

      Hi Mark, it’s still unclear what will happen. A high percentage of the Eurocent loans have defaulted, with investors facing potential losses. Mintos have recently disclosed that Eurocent is in negotiations with an investor, which could improve the situation. We are currently trying to get more details from Mintos as the recent disclosure did not provide much detail. There’s a strong risk that investors will end up taking a loss in our view.

  6. Ve. Elanjelian Reply

    Dear Oscar – thanks for putting this together. I am a new investor in Mintos, and quite like how the site works.

    Actually, I came here while researching on Aasa, which is rated well above. I buy their loans and like the way their loans are structured.

    That said, I find the information available on the company a little patchy. Aasa claims to have operations in six countries, namely, Estonia, Poland, Finland, Sweden, Chile and Indonesia. However, I managed to find only three sites, one in Poland — https://www.aasapolska.pl/ — and two in Finland — https://www.aasa.fi/ and https://yleislaina.fi/ .

    It is also unclear who founded the company. In all likelihood it is Kimmo Rytkönen, CEO of Aasa Global, although it is unclear if he was part of the company in 2010, when it was founded in Finland.

  7. Seppo Reply

    Would like to have confirmation: is “Cream” and “Cream Finance” same loan originator?

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