Lendermarket now offers loans from multiple lenders
When Lendermarket launched it only offered loans from one loan originator – the Creditstar group. Recently, the site added more lenders to the platform. They have added three new loan originators so far – Crediface, Credory, and Quickcheck. In this post, we look at each of the lenders appearing on the Lendermarket site, and provide our rating scores out of 100 using the same methodology as our Mintos scoring system. As for our Mintos ratings, we intend to update this page regularly. So please continue to check back when Lendermarket adds more lenders and when any new financial statements become available for each loan originator.
Lendermarket lenders - key financial information
|P&L - latest
|P&L - prior year
|P&L - 2 years ago
Lendermarket lenders - our rating scores
|Last score change
How safe is each loan originator?
Creditstar is a European lending group. It operates in 8 countries and focuses on providing various unsecured credit products to people. We have been providing rating scores for Creditstar for over 5 years, as it was active on the Mintos platform before it launched Lendermarket. At one point it was one of the highest rated loan originators. It achieved this rating because of its strong record of profitability. It has reported high levels of profit in each of the last 6 years. However our scores have been falling over the last few years. Why? First, we have lost some confidence in its finance team, which seems to us to have been too aggressive in some of its accounting policies. The company was also late to appoint a credible firm as auditor. There have been delays in publishing audited financials. However the most important reason is that Creditstar seems to have growing liquidity issues, which has led to delays in it repaying investors on the Mintos platform. It has also been significantly increasing the rates that it pays to investors on the Lendermarket platform, which is usually a sign of funding stress. The company says that it has plans to raise additional equity capital during 2023, and issue more bonds, which should address the liquidity issues. If you take the view that Creditstar is a fundamentally sound business, and the liquidity issues will be resolved, it is possible to earn high yields (above 15% currently). However that extra return definitely comes with some risk attached to it.
CrediFace is a very small lending company that operates in Peru. It provides online loans to the 'underbanked population'. This generally means customers that are either higher risk or do not have strong credit ratings. Although CrediFace has been operating since 2016, it has only been able to grow its loan portfolio to €1m as of June 2022. This is well below the level needed for most lending companies to be viable. The company has close to zero in shareholders equity. For profitability, it has broken even in the last two years that it has been operating. The management presentation provided by the company is low in quality and does not provide a good impression of the business. Our initial score for CrediFace is only 21/100, indicating that it is a high risk lending group.
Credory is an interesting new Estonian lending company. It lends only to businesses, and every loan is secured on real estate. The loan purpose can be for small developments, bridging, or for company expansion purposes. The loan to value ratio is an average of 65% with a maximum of 75%. The company launched in Q4 2020 and has grown its loan portfolio to €3.5m so far. So far no Credory borrowers have defaulted, which is great, but it is still early days... The loans offered by Credory on Lendermarket all come with a buyback guarantee, and have rates in the region of 9-10%. Using our scoring matrix, Credory achieves a score of 44/100. The main reason it loses marks is for its short track record and the small size of its balance sheet currently. However given that the company is new, has already reached break even, and its loans are all secured, the risk of Credory loans is a little lower than a score of 44 suggests.
QuickCheck is a Nigerian lender that specialises in loans to people and to small businesses. The loans are unsecured and have a typical duration of only 30 days. There appears to be a solid management team at the company, with the senior team having experience at companies such as IBM, McKinsey and CERN. The management presentations provided are very professional and have some useful content. However they don't explain why the business reduced lending volume in the last year, which led to the business making losses in the most recent period reported (1H 2022). It suggests that they potentially had some problems with either loan performance or liquidity issues. However on a positive note, the company successfully raised a $4.9m equity round in August of 2022, which was expected to allow the company to continue to grow strongly again. Our score for QuickCheck is 53/100.
Join Lendermarket and earn a 1% bonus
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