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

Last updated - 13 November 2019

Mintos lenders can default or close down - choosing the best lenders is important

In 2017, Mintos lender Eurocent failed, and defaulted on its Mintos ‘buyback guarantee’ commitments. This is likely to lead to signifcant losses for Mintos investors as a high proportion of Eurocent customers defaulted on their loans. Other lenders have been quietly removed from Mintos recently, with the lenders closing down their operations – including Dindin and BIG Microfinance. We had raised concerns about both of these companies – thankfully Mintos lenders were repaid in full in these cases. 

These events have inevitably led investors to pay more attention to the quality of the other lenders on the Mintos platform. That led us to create this page – our Mintos lender ratings. Our goal is to provide investors with key information on each lender, and a rating score to help highlight those that are lowest and highest risk. 

Below we discuss some of the recent loan originators that have defaulted, or are likely to. Check out our new post where we discuss this trend, and the 5 things Mintos investors should know.

Potential new default - Metrokredit

On 8th November Mintos reported some concerning news about Russian lender Metrokredit. It seems that the business had lost its licence to lend to new customers, and the existing portfolio will be put into run-off. Mintos stated that they had downgraded Metrokredit from B- to C because of their new ‘limited competitive position’ which seems to us quite a mild assessment of the actual situation the business seems to be in. We had given Metrokredit a score of 11/100, one of the lowest on our tables. Given that the business is heavily loss making and has a huge negative equity position we will be very surprised if all the outstanding loans on Mintos are repaid to investors in full. If Metrokredit does default, we would not be surprised if there was almost zero recovery for investors.

Latest default - Rapido

The latest lender to default on Mintos is Rapido. Unlike the case of Aforti (see below) Mintos has issued a notice of default (see their announcement here) which indicates to us that they see zero chance of the company avoiding insolvency and liquidation.  We must say that the behaviour in respect of Rapido by Mintos raises a lot of questions. On 22 October it announced that it was downgrading Rapido from B- to C because of a business strategy change that had affected profits. However it must have been aware at the same time that there were fundamentally bigger issues taking place at the company because on the very next day it announced a suspension of Rapido loans because the lender had stopped sending repayments to Mintos (i.e it had defaulted on its obligations). We have asked Mintos to explain how it came to give a minor downgrade to a lender the day before it was suspended, and will publish their response.

In any case, we hope very few of our readers were investors in Rapido loans, or the Invest & Access product that likely contained Rapido loans. Our rating of Rapido was 16/100, one of our lowest scores. Why? The business had been consistently loss making over three years, had negative equity, and a very small loan portfolio. We expect the final losses on Rapido loans, as a result, to be at least 75%, likely higher. Thankfully, the amount of loans outstanding on Mintos is reported to be relatively small, so this should not affect most investors too heavily.

Previous default - Aforti

On 7th August 2019 Mintos announced that it was suspending primary and secondary market loan purchases relating to Aforti Holdings of Poland due to non-payment of collections to Mintos. You can read the statement here. In October Mintos provided an update on the situation that actually generated a lot more questions than it answered, which was followed up with a more detailed post here. Effectively we consider these events to represent a default, with around €2.1m of loans outstanding, almost all of which are currently 60+ days in arrears. 

 

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.

All Figures in EUR million (profits annualised where appropriate):

Mintos Lender Reporting period Loans Equity Profit - latest Profit - prior year Audited
Mogo Jun 2019 161.2 21.1 7.4 2.6 Yes
ID Finance Holding (Kazakhstan) Dec 2018 86.3 9.5 7.9 3.7 Yes
Creditstar Jun 2019 95.3 21.3 2.4 2.8 Yes
Capital Service Mar 2019 27.6 3.3 -0.5 -1.4 Yes
Kredit Pintar Dec 2018 4.8 8.6 5.9 No
Credissimo Dec 2018 17.2 16.3 3.2 5.0 Yes
IuteCredit Jun 2019 64.7 14.8 7.4 7.3 Yes
ExpressCredit Mar 2019 12.7 -3.4 -2.6 -1.6 No
Vizia / Banknote Jun 2019 26.5 6.5 4.0 4.6 Yes
Simbo Dec 2018 6.9 -0.1 0.8 -1.0 Yes
SOS Credit Jul 2019 1.2 1.2 0.2 0.2 No
Monego Dec 2018 4.1 0.4 -0.6 0 Yes
Tengo Sep 2018 4.1 -0.4 No
Cashwagon Dec 2018 20.9 5.3 -5.1 -6.3 Yes
Placet Group Dec 2018 32 15.9 3.5 3 No
Akulaku Nov 2018 67.4 48.4 -23.5 No
AgroCredit Dec 2018 5.2 1.8 0.2 0.1 No
Acema Mar 2017 38.6 14.7 2.0 2.4 Yes
BB Finance Group Dec 2018 14.2 4.9 -1.1 0.8 Yes
Creamfinance Dec 2018 51.2 12.4 1.6 -0.4 Yes
Extra Finance Dec 2018 4.6 2.0 0.1 2.0 No
Mozipo Group Dec 2018 11.1 -4.8 -2.5 -1.7 No
Aasa Dec 2018 73.2 -2000 -2000 -2000 No
Kredo.al Dec 2018 2.8 0.1 -0.8 -0.2 No
Aforti (In Default) Dec 2018 27.1 1.7 0.1 0.3 Yes
Dinero Dec 2018 4.1 2.0 -1.6 -0.2 Yes
Dozarplati Dec 2018 6.2 2.7 1.0 0.1 No
Capitalia Dec 2018 1.5 0.5 0.0 0.0 Yes
Credilikeme Dec 2018 0.4 1.1 0.1 -0.7 No
Lendo Dec 2018 9.8 -2.6 -2.0 -8.8 Yes
EcoFinance Dec 2018 4.9 1.7 0.1 0.4 Yes
ITF Group Dec 2018 2.5 1.2 0.2 0.2 Yes
EBV Finance Dec 2018 18.3 3 0.3 0.1 Yes
Hipocredit Dec 2018 5.3 0.2 0.1 0.0 No
Debifo Dec 2018 7.8 0.1 -0.1 0.2 No
Kviku Dec 2018 8.8 1.8 0.7 0.1 Yes
Rapido Finance (In Default) Dec 2018 1.8 -1.7 -1.7 -1.9 Yes
Tigo Dec 2018 2.1 -0.7 -0.8 -0.3 Yes
Peachy Oct 2018 4 -1.2 -0.7 -1.6 No
GetBucks Dec 2018 111 -2.6 -14.7 -12 Yes
Varks Dec 2018 16.6 3.7 6.8 -0.9 Yes
LF TECH Dec 2017 20.8 16 10 5.1 No
Credius Dec 2018 9.7 7.8 0.4 1.8 Yes
Rapicredit Dec 2018 2.8 0.1 -0.7 -0.4 Yes
Sebo Dec 2018 9.5 -0.2 1.8 -0.6 Yes
Kredit24 Dec 2018 2.4 -0.7 -0.7 0.7 Yes
Watu Credit Dec 2018 8.3 1.8 1.6 0.2 Yes
Bino Dec 2017 5.7 -1.7 -2 -0.1 No
Everest Finanse Dec 2018 102.6 31.6 -8.3 -6.6 Yes
Kuki.pl Dec 2018 72.7 5.2 -6.9 No
Stikcredit Jun 2019 3 2.7 0.8 0.5 No
E-Cash Dec 2018 0.6 0.2 -0.6 0.0 No
1pm Nov 2018 141.6 57.3 7.1 7.2 Yes
Esto Jul 2019 5.7 3.0 -0.1 No
Metrokredit May 2018 5.5 -4.9 -11.8 No
Zenka Aug 2019 1 1.3 -1.7 No
AlfaKredyt Dec 2018 4.9 1.3 0.3 0.2 No
Mikro Kapital Dec 2018 21.3 5.5 0.1 0 No
Fireof Dec 2018 3.8 0.9 0.0 No
ID Finance Spain Dec 2018 11.6 -0.9 0.1 -0.4 Yes
ID Finance Mexico Dec 2018 1.7 -1.0 -0.6 -0.4 No
Lime Zaine Dec 2018 10.3 3.3 0.6 0.6 Yes
Dineo Credito Dec 2018 8.6 1.3 2.2 2.8 No
Dineria Mar 2019 1.6 -1.4 -1000 No
Lendrock Dec 2018 0.5 1.1 -0.3 -0.2 No
Dziesiątka Finanse Dec 2018 4.4 2.0 0.2 0.0 Yes
Novaloans Mar 2019 1.2 1.3 0.9 0.5 No
Alex Credit Mar 2019 3.1 1.3 0.6 -0.3 No
CashCredit Dec 2018 8.5 2.2 0.7 0.1 Yes

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. Mintos have recently introduced their own ratings – from A (best) to D (default), which we have included as a comparison.

Latest rating changes - November 2019

Rating re-affirmed:

Creditstar published their 1H 2019 results. Overall no big surprises, with profits stable. We do note however that leverage is creeping up. No change to our overall score of 79. Creditstar have also launched their own P2P site now called LenderMarket. Check out our special offers page for details of their bonuses for new investors.

Latest rating changes - October 2019

Lendo

Lendo has finally published its audited 2018 figures. There are 3 things we thought important to highlight:
1. The figures previously provided by Lendo had indicated that it was profitable, with positive equity. We don't understand the basis for this because the audited results show heavy losses in both 2017 and 2018, and negative equity.
2. The auditors have qualified their opinion, as they were unable to verify assumptions used to calculate the loss provisions - the real picture could be even worse . Unsurprisingly they also noted that there were risks the company may not continue as a going concern
3. During 2019 Lendo was sold to another (better rated) lender, Varks.

Rapido

Rating has been changed from 16/100 to 'Default' (see comments above)

New: E-Cash

E-Cash is yet another new and extremely small lender with no real track record. It is based in Ukraine. The entire company is worth less than what many Mintos investors would expect to make as their annual bonus this year. We really don't understand how or why a company with only €200k of equity is able to access the Mintos platform. However that's not really your problem, unless you accidentally purchase their loans. Initial score of 26.

New: Stikcredit

Stikcredit is a much better addition to the Mintos platform than E-Cash. It is larger, has a longer and better track record, and is profitable. It also currently has strong capital ratios. The main downside is that it is still quite small, with a loan book of only €3m. Our initial score is 53.

Latest rating changes - September 2019

New: Zenka

Zenka is an app-based lender that has recently started in Kenya. It is very small, with only €1 million of loans outstanding. The small size and limited track record means that it is currently at the higher risk spectrum. One positive is that the company says it has its first monthly profit in August 2019, and Kenya is a market that is one of the world leaders when it comes to use of app based banking and mobile phone payment transfers. Our initial score is 41.

New: Esto

Esto is a new point-of-sale finance provider from Estonia. We like the business, even though it is very new and still proving itself. It claims to have reached profitability in August 2019, and generated remarkably small losses during its start-up phase. Lending performance so far has been very good, and the company appears to have a loan product with impressive technology behind it. The quality of Esto's reporting and presentation is amongst the best we have seen from the new start-up lenders to have come onto Mintos. Our initial score is 60.

New: Everest Finanse

In some ways Everest Finanse is exactly the type of new lender on the Mintos platform investors have been waiting for. It operates in Poland, which is a strong economy with a reliable jurisidiction. Everest has a very large loan book, and strong capital ratios. If only it wasn't deeply loss making. This is not made clear at all in the glossy management presentation uploaded by Mintos, but peer into the (Polish language) financial statements and you will see they have lost around €15m over the last 2 years. It's hard to understand why the financial results are poor now that they have reached scale. That's why, despite everything else, their initial score is only 51.

Mozipo

Mozipo has finally published their overdue results for 2018 and they not good, with a loss of €2.5m. Mozipo Group now has a significant negative equity position. The only positive to come from the results is the €0.4m profit made by their Lithuanian subsidiary Moment Credit, which provides guarantees to some loans listed on Mintos. Our score is now 36, down from 39.

Ratings re-affirmed:

The following companies had no changes to their scores following their latest financial disclosures: Hipocredit, Vizia/Banknote

Metrokredit

Metrokredit had an initial rating score of only 13. This was because of small size, lack of track record and very poor disclosures. Following their results for 1H 2019 their score has fallen even lower to 11. Why? The lending group made a huge loss of €6m. For every €100 it owes to creditors (including Mintos investors) there is only around €57 of assets. It is not clear why or how the business generated such a large loss but for now investors can presume the situation has very high risk.

Failures to report

We have assigned disclosures scores of 0 to the following companies, who have not reported any results since December 2017 - LF Tech, Bino. In our view Mintos lenders should be providing financial updates every 6 months at a minimum. It is not acceptable for lenders to operate for over 20 months without providing a financial update. This should be considered a 'red flag'. We will revise these scores if and when new financial information is provided.

Latest rating changes - July/August 2019

Mogo

Mogo released its 1H 2019 results (click the arrow above for link). We had been cutting the Mogo rating due to its growing leverage and default rates. However leverage is now stable, and Mogo recorded a strong profit in 1H19 on the back of lower bad debt costs. Score increased from 71 to 76.

New: SOS Credit

SOS Credit is a very small lender from Ukraine, with a €1.2m loan portfolio. However it has been profitable in the last 2 years and is currently mainly funded with shareholder equity. However these positive factors are offset by low scores for small size and poor disclosure quality, leading to a score of 46.

Aforti

Rating has been suspended pending further information from Mintos and/or Aforti (see comments above)

ITF Group

ITF Group received a slight increase in rating from 45 to 50. It is a tiny Bulgarian lender but is stable, has good leverage ratios and it makes a small profit each year. If it was 20 times larger we would like it a lot more.

Ratings re-affirmed:

The following companies had no changes to their scores following their latest financial disclosures: Iute Credit, Dineo, Rapido

Kredit24

Kazakhstan lender Kredit24 has had its score fall from 50 to 32 following release of 2018 results. It fell to a loss in 2018 and now has a negative equity position.

Cash Credit

Cash Credit has received an upgrade from 35 to 53 following a big increase in profit in 2018 and improved disclosures.

Alfakredyt

Polish lender Alfakredyt was upgraded from 33 to 45 based on its higher profit in 2018 and increased capital levels.

BB Finance

BB Finance now operates in just Finland and Estonia. It has had to close down its Georgia and Czech Republic operations in 2019 as they were loss making. Losses in these countries were the main reason why the business fell to a loss of €1.1m in 2018. Their score fell from 62 to 55, but it will likely recover in future if it can recover in its core markets.

Capital Service

Polish lender Capital Service has had its score fall from 65 to 57 following release of 2018 results. In the last two years it has generated pre-tax profits but it has incurred huge (unexplained) corporation tax bills that has pushed it into a loss. This, as well as an increase in leverage has led to a fall in score.

Dozarplati

Small lender Dozarplati had been break-even in 2016 and 2017 but it achieved a €1m profit in 2018. It has also grown its capital base and these factors led to a score increase from 56 to 61.

Watu Credit

Big score lift from 39 to 61, driven by a very strong result for 2018. Profit increased from €0.2m to €1.6m. The business also grew its equity and loan portfolio considerably, and has reasonable capital ratios.

Kviku

Russian lender Kviku had a successful 2018, increasing profits considerably, from €0.1m to €0.7m. Balance sheet ratios also improved, leading to a score increase from 45 to 57.

Rapicredit

Columbian lender Rapicredit's losses continue to grow, with a €0.7m loss in 2018. Quite frankly we think their balance sheet looks very strange to us too. Our score has fallen from 40 to 28.

Debifo

Slight downgrade from 34 to 32 due to the company moving from a profit in 2017 to a small loss in 2018.

ID Finance

ID Finance finally released their audited 2018 financial statements. Our overall score fell slightly from 81 to 78. Their score fell slightly due to higher leverage and slightly lower profits than their previous presentations had disclosed. Overall though ID Finance is still performing well.

Express Credit

Express Credit has operations in 2 countries. We have combined the results of both for our tables above. Both countries made substantial losses in 2018 and now have negative equity positions. We have cut rating from 53 down to 22.

Extra Finance

Extra Finance experienced a sharp fall in profits in 2018 - from €9.1m to €0.3m. This has been the main reason for the fall in score from 60 to 52.

Credit Star

Slight upgrade from 77 to 79 on the basis of record profits for Q1 2019 and stable balance sheet structure.

Simbo

The last time Danish lender Simbo reported results it disclosed a loss of €1m. In 2018 it managed to achieve a profit of €0.8m. It continues to have a weak balance sheet, but the improved profit situation has led to a score increase from 24 to 43.

Credius

Minor downgrade of score from 70 to 68 due to a fall in profits in the most recent report. However the business continues to be strongly capitalised.

Ratings re-affirmed:

The following companies had no changes to their scores following their latest financial disclosures: Agrocredit, Credissimo, Credilikeme, Placet Group, Kredo, Efaktor, Cashwagon

Fireof

Slight upgrade from 39 to 43 following publication of first year results.

Aasa

Most loans on Mintos are from the Polish subsidiary of the 'Supernova JV'. However no results have been provided for this business since 2016. The latest group presentation for Supernova suggests the group is performing very poorly due to problems with their Finland subsidiary and is experiencing funding issues. There is insufficient information to support remaining invested in Aasa Poland and have withdrawn any rating due to lack of information.

Our views on the new lenders

In June 2018 Mintos introduced a British lender – Novaloans. The business is extremely small, but has a good profit history over the last 2 years. If it was much larger we would be very positive about the business but its initial rating is only 51. Mintos also introduced Ukrainian lender Alex Credit. The business is extremely small, with a loan portfolio of only €3 million, however it is profitable. Its initial rating is 41. Another new lender is a Polish lender called Dziesiatka Finanse.  Unlike many lenders on Mintos it has been operating for 8 years. The main downside again is that it is very small. It is however part of a larger group (although it does not receive a guarantee from the group). Our initial score is 62. In June Spanish auto lender called Lendrock also joined. The business model seems promising however it is currently extremely small with a limited track record. Our initial score is 41. In May a tiny lender from Mexico called Dineria joined Mintos. We are really not sure how they qualified to join Mintos given that they have less than €2m of loans, and have negative equity. We awarded them a score of only 12/100, and Mintos has awarded a rating of only B-.

A recent lender to join that has scored well is Indonesian Fintech lender Kredit Pintar. Kredit Pintar reports that it had a very profitable first year of operations (which is a little surprising for a new business) and a strong capitalisation (equity is much higher than its loan book). We note that it is backed by some well known investors and its app is highly rated by customers on the Google Play store. It has achieved an initial score of 66, which should increase in the future as it builds a longer track record and provides more financial information about its business. Mintos gave it a B+ rating.

In February 2019 a profitable lender from Spain joined Mintos – Dineo. Dineo achieved an initial score of 60. Once it publishes its 2018 financials, and improves its financial disclosures, we think this score will improve. The most recent lender to join was Mikro Capital from Russia. Mikro has good capital ratios and a reasonable size, however its earnings have been weak in the last two years, barely breaking even. Its initial score is 47.

In January 2019 Mintos introduced a company from Kosovo, called Monego. It was similar to many other lenders who have joined the platform recently, being a new lending business with next to no track record, operating in a small country. It achieved a score of 39, which is slightly higher than may be expected, but it currently has strong capital ratios. We also like that it has been described as a ‘related party’ of Mintos as we think Mintos is less likely to allow its investors to suffer a loss in this situation if the company is not successful.

Now you’ve reviewed our latest Mintos lender ratings – what’s the fastest way to choose the best loans on the  Mintos Primary Market? Check out our new Mintos Loan Scanner page, which allows you to compare very quickly the current interest rates, loan availability, and ratings for each lender on the platform. We will keep it updated, so check it next time you are thinking of buying more loans, or adjusting your auto-invest settings.

Next step: consider adding these sites to your portfolio

EstateGuru logo

EstateGuru is an excellent site that offers loans secured on real estate. Rates are high - around 11%. Currently mainly focused on the Baltic region of Europe but with plans to expand into other countries.

Viventor logo

Viventor is a similar site to Mintos, just smaller. Some secured loans are available. We also provide Viventor lender ratings.

Bulkestate logo

Bulkestate is a small but growing site focused on loans secured on real estate. It offers loans secured by real estate. Their rates are the highest in Europe for secured loans currently (11-14%)

October P2P logo

October is focused on lending to small businesses in France, Spain and Italy. Rates are often a little lower than the other sites we list here, but some investors will like October due to the countries it operates in.

PeerBerry logo

Peerberry offers loans from multiple lenders. Rates are usually around 12%, and most loans have buyback guarantees. The site is easy to use and has a great design.

Lenndy is another multi-lender P2P investment site. It is much smaller than Mintos, but it has an interesting range of loans. Many have high rates, with buyback guarantees

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

  1. IgorJ Reply

    Update on Aforti Finance: While an ‘IT glitch’ is preventing the company from servicing its listed loans, latest financial report reveils that Aforti Finance has no problem servicing its shareholders. “It is worth mentioning that in the fourth quarter the company paid a dividend on the profit for 2018 to its shareholders – including to the parent company: Aforti Holding S.A.” (source: Aforti Holding S.A., Report 3Q 2019, page 40). Link: https://aforti.pl/wp-content/uploads/2016/10/Aforti_Holding_SA_Report_3Q2018_ENG.pdf

  2. Jbl Reply

    So my account is now 5000+ with idle euros, and more to come when mogo buys back a fair share. I lowered my standards to include also B+ with a a rating over 50, as well as lower my interest to 9%. Lower than that I will not accept.

    Do you guys think the pool will improve soon?

    Also, where is my free cash? In the event of Mintos default, is it protected? I don’t find this info anywhere. I did ask Mintos and the answer was short (it’s separate from Mintos) and not convincing.

    • Ido Reply

      What answer were you expecting? Your uninvested cash is kept separately from Mintos’s assets, so it should not be affected in case Mintos collapses.

      • Jbl Reply

        I don’t know what answer I’m expecting. But if you for example are using a roboinvestor on the fund markets, it is always clearly stated with respect to regulations etc that the funds are in an account separated from bla bla.

        With Mintos nowhere mention at all where and how free cash is handled. No even on Investor protection or If Mintos folds page.

        • Ido Reply

          It’s stated at least 3 times in the user agreement:

          Page 1
          Mintos Account/-s
          Mintos bank account/-s, account/-s opened with payment institutions or electronic money institutions
          indicated on the Platform, to which, pursuant to the present Terms and Conditions, the User transfers
          funds to add them to the User’s Virtual Account and which is held separate from other property of Mintos.

          Page 3
          4.4. Funds transferred by the User for adding funds to the Virtual Account pursuant to the present Terms and Conditions
          shall be kept on any Mintos Account and Mintos shall ensure that they are segregated from Mintos own funds

          Page 4
          4.6. The funds transferred by the User to Mintos in compliance with the present Terms and Conditions shall be regarded
          as funds necessary for conducting of transactions in the meaning of Section 2307 of the Civil Law of the Republic of
          Latvia. The relevant amount of money in bank, in essence, is a claim (towards the bank) that Mintos has acquired on
          behalf of and for the User only to perform the task assigned to the authorized person. Accordingly, the respective funds
          are segregated from the Mintos own funds and shall not appear on the financial statements of Mintos as its own funds
          or as creditors claims.

          https://assets.mintos.com/DC83292C-BF80-630E-2128-C3E4D1571124.pdf

    • Gian Piero Reply

      No interest on late payments? Mogo can get away with that! No Dinerito for me.

  3. Svetlin Sabev Reply

    Hi Oscar,

    Svetlin from Stikcredit here.

    We are happy to be part of the list and I Just wanted to make a few clarifications, which I hope will have a positive effect on Stikcredit’s rating. Stikcredit’s financial statements are in fact audited as this is a statutory requirement in Bulgaria, we are also currently at 4.0m EUR loan portfolio and we’ve worked on improving transparency and disclosure to investors.

    For this purpose we’ve created a corporate website with up to date information and presentation that can be accesses at https://stikcredit.com and a twitter account at twitter.com/stikcredit.

    I’d be happy to address any of your requests in the event you have any.

    Best,
    Svetlin

    • Oscar Harrington Post authorReply

      Hi Matteo. Thanks we’ve now updated. Although we had read that new report recently we hadn’t updated results from Q1 to Q2 in the table yet.

  4. Harri Reply

    Why does Zenka count subordinated debt as equity on their financials?
    Isn’t their actual equity negative.

    • The South Sea Company Reply

      There’s no public detailed info about Zenka’s debt instruments AFAIK, so we can’t check, but that accounting treatment may be correct. Subordinated debt that is puttable at a price that depends on the company’s assets is classified as equity under IAS 32 (under certain conditions).

      In terms of assessing safety of P2P lending we should definitely consider it equity, since it is part of the buffer that will be consumed before P2P investors take losses.

  5. Błażej Reply

    Hello! Great for sharing all info and news – thanks to it I’ve sold all my Metrokredit loans a couple of days ago but still I have about 10% of Peachy in my portfolio and their score is quite low. Are there any other information about their activities? Thanks in advance

  6. ThePoorInvestor Reply

    Hi Explorerp2p,
    How have you gained access to all those financial statements?
    When i try to google my view to financial statements i am left with empty search results

    Best regards,
    ThePoorInvestor

  7. Richard Reply

    I had some loans in Metrokredit
    And due to the very low rating I sold all those loans. A few days later Mintos came with the post
    “Metrokredit no longer issues new loans”

    I guess we all know such messages are the beginning of the end of an LO

    Thank you ExploreP2P for the research.

    • Oscar Harrington Post authorReply

      Thats great Richard – thats exactly the goal of this analysis. Glad it worked out for you and all the others who we have heard from in the last few days.

  8. Pingback: Mintos lenders are defaulting - here's 5 things you should know

  9. Jbl Reply

    Just curios. I received the email from Mintos about Metro credit at 20:48 CET, and you already had the article updated. When did you, and others receive it? Not that fair :/

    BTW. I had a few loans in Metro from Invest&Access trial that had been on unsold for a while, kicked them out with a discount now. God, that’s a bad product!

    • Oscar Harrington Post authorReply

      Hi Jbl. We were doing research for a post we are about to publish and it was up on their blog already. Our new post will also discuss invest&access!

  10. Pingback: Rapido Finance on laiminlyönyt maksunsa sijoittajille Mintoksessa - Matkalla vaurauteen

  11. Thomas Reply

    Call me paranoid but:
    Since the Aforti case I am reducing my portfolio by not reinvesting the received principle since already couple of weeks. However for me the outstanding amount on Creditstar did not get substantially less.

    So I had a look at the statistic page and I saw within short-term loan (not personal loan):
    10 Mio loan outstanding whereof
    2 Mio Current/Grace
    0.3m 1-15
    2.4m 16-30
    5.3m! 31-60

    Could this mean?
    1. The loan performance is really that bad (worrying?)
    2: Creditstar tries to keep the lowest interest rate as long as possible and thereof not repays based on the actual lender (not fair, shady)
    3. Liquidity problem to repay bonds due 10mio EUR 17Nov19, 15mio EUR 01Dec2019? (no sure, but found it on cbonds.com, –> keep the cash ment for mintos to repay the coming bonds?)
    4. ????

    I don’t know but it seems abnormal to me. What do you think?
    I not want to take any risk and I have sold all my loans of creditstar already on the secondary market.

    • Oscar Harrington Post authorReply

      It is a strange one Thomas. Of all the Mintos lenders Creditstar do produce some of the best quality, frequently updated audited financials which shows that the overall business is doing well. Their impairment charges for Q1 and Q2 2019 were stable, and their personal loans on Mintos have a low overdue percentage. A lot of payday/short-term loans get ‘rolled over’ and the statistics must have either something to do with this, or it is possible they have repurchased some of their performing loans recently due to cheaper funding costs etc. In any case worth asking Mintos for a comment if you have a big investment in these ones.

    • Gian Piero Reply

      Hi Thomas, you are not paranoid at all. My Creditstar loans also show an impossibly bad performance. Current loans only 16%, Grace 2%, 1.15 days late 7%, 16.30 days late 42% and 31.60 days late 33% !!! Clearly they are withholding reimbursements and getting a 60 day extension on as many loans as possible. There is no other explanation, such a sudden bad performance would mean that their scoring systems stopped working. It is beyond belief that they used to have about 25% late loans and now suddenly they have about 75% late loans. I also find very curious the timing of Mintos’ introduction of the 60 day extension idea. This is very dangerous because it will hide this kind of manipulation.

      • Petr Reply

        Maybe, only maybe, they are ending to place short term loans on marketplace. Personal current loans value of 76% seems normal. What do you mean by extension ides? Do you mean prolongation of the loan? It should be only use when client will ask LO for longer term.

      • Ido Reply

        I’m sorry to say that there is nothing sudden about it. I have noticed Creditstar’s horrible short-term loan performance a few months ago.

      • Oscar Harrington Post authorReply

        Gian Piero one thing that has recently happened is that Creditstar have just launched their own P2P site (Lendermarket). It’s possible that the statistics shown on Mintos might relate to them moving their loans away from Mintos, and the impact of putting much fewer new loans onto the platform. Not confirmed but given their very good audited results there is a strong chance it could relate to that. Their Q2 2019 figures didn’t show any big increase in bad debts or provisions.

    • Jose Reply

      Hi Thomas.
      Might this be Cream Finance trying to make as much money as possible out of the customers and offering them loan extensions.

  12. Petr Reply

    Hello P2P investors,

    I have question related to your point of view at the fact, that Mintos related loan originators represents 25% of total outstanding loans value on Mintos and that TOP 10 loan originators by outstanding loan value represents 55% of total outstanding loans value.

    No such a big diversification at the end.

    Best Petr

    • Gian Piero Reply

      You are absolutely right! The problem is that whether or not you are invested in Mintos and its related originators you are not remotely paid for the risk. Mogo at 8% with 4 days grace and NO interest on late payments is really less than 7,5%! If you invest outside companies that control Mintos, Mogo, Banknote etc etc you will be running big currency risks (Russia, Indonesia, Africa…) for a very low interest. I had more than 60000 € in Mintos, I am under 30000€ and still reducing. I plan to be at zero in 6 months time.

      • Petr Reply

        On the other side it was most of the time like that, Mintos was build around Mogo.

        • Gian Piero Reply

          Yes, but you have the same risk for less interest than 2 years ago. For car loans the risk is greater today than 2 years ago.

          • Petr

            Yes, that is for sure. Me personally also reducing. I am little bit disapointed by all the bloggers, which are praising Mintos, mostly without any sceptical view at it.

      • Jbl Reply

        Interesting. That is a significant investment. How come you have decided to pull out now and where are you moving it? Since how long have you been with Mintos?

        • Gian Piero Reply

          Hi JBL, I am risk averse and therefore my case is probably rather rare in crowdlending. I have been with Mintos for a couple of years investing only in Oscar’s over 60 scores, trying to avoid long grace period, no interest on late payments and many non €uro risks. With these criteria in the past I could diversify and still earn about 10%. I was very happy with that. Nowadays with these tough criteria I cannot be diversified anymore (defined as spreading risk over at least 15 originators) and earn more than 8%. Some of the top originators are at less than a real 8% (Credissimo this morning is at 5,5% with 10 days grace!) Yes, Kredit Pintar or Varks are at 11% again, but both run a serious foreign exchange risk, I have small positions in them to try to bring my average interest up. I feel Mintos is not serving anymore those like me that want a reasonable risk. I can get 7,5% with Crowdproperty in fully secured UK real estate or 7% with Crealsa in Spain in insured (by a real insurance company, not some buyback…) invoice financing. Investments in Crowdproperty and Crealsa can be properly diversified (for example I am financing about 600 different borrowers in Crealsa), therefore have virtually no volatility and are managed by serious professionals. I was also unhappy of Mintos’ very poor communication in both the Aforti and the Rapido cases. I feel that running so much more risk for 1 or 2% more interest is not worth my while. I will still keep a very small investment in Mintos, because they are the market leaders.

    • Oscar Harrington Post authorReply

      Thanks Christian. Agree both don’t look good. We had updated Metrokredit a little while back. We have now updated Lendo, and added comments. We were expecting them to be bad and they delivered……

  13. Christian Reply

    Oscar, could you maybe add a column for “Related party to Mintos according to IAS 24” so we have an overview of those LO that are more directly connected to Mintos? We can help filling the list if too much work for you, but I think it might be a good idea.

  14. JBL Reply

    Did anyone else realize that Aasa has no current loans on the primary market? I have some from my terminated Invest and Access trial and those are all late too.

    • Gian Piero Reply

      Yes and according to Mintos they are still rated B+. I started selling my Aasa as soon as Oscar downgraded them a few months, I have nearly finished. Thank you Oscar!

      • JBL Reply

        I tried to sell my loans (all late now) at par for a while, also up to 5% discount. Nobody bite. So I decided to just eat it and put it at 10% discount. Somebody’s Autoinvest took it right away.

        I have no confidence in Mintos anymore. They downgrade from A- without mentioning all loans are late. Did they suspend Aasa too without breaking the news? I doubt every single borrower are late at the same time.

  15. Jbl Reply

    I must say, very good site and important up to date overview. I however don’t understand why you remove the rating on Aforti and now Rapido. Leave the numbers but put a red highlight on the row. I think it is very important post mortem information.

  16. Matteo Reply

    Thank you very much for saving use from rapido finance, your ratings are my primary and only criteria which I use to select lenders on Mintos. Keep it up! I may even decide to do a small donation for your great efforts put into this. More profits for me, more donations for u! 🙂

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