Last updated - 10 April 2023
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. Since then there have been defaults and issues with several other lenders. Over the last 5 years we have been providing the scores and data on 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.
To begin with, below we discuss some recent events:
Withholding taxes reduced from 20% to 5% - check your account status
One of the impacts of Mintos moving to a regulated notes structure was that it had to levy withholding taxes at source. This was one of the biggest downsides that we noted when in our post about the changes.
In welcome news, Mintos has announced that it has been able to reduce the withholding tax rate from 20% to 5% for EU and EEA residents. If you qualify, it is important that you make sure that you have provided any information that Mintos require to set you up on the 5% rate, and check that it is activated.
Why is the reduction good for investors? Some investors may have an effective tax rate below the 20% level, and this withholding tax deduction may reduce the amount of tax they pay overall. Even if you pay high rates of tax – the move is beneficial. That’s because more of the interest earned can get reinvested throughout any tax year, leading to higher interest income being earned after tax.
Mintos updates its ratings
Mintos has tweaked its ratings. The changes are not particularly significant – the scores are now provided with a decimal place. We have updated our tables below with the new decimal ratings. We did not observe any material rating changes to what was previously published.
Mintos finally launches its Notes program. Forced to close secondary market
After several delays Mintos has announced that it has launched its notes program. The notes program is designed to replace the current arrangement where it sells participations in loans, and is linked to its move to become a licenced investment platform. Initially there will be 3 companies issuing notes – CashCredit, Eleving and Sun Finance Latvia. While Mintos is highlighting some benefits to investors from notes relating to protections and transparency, there seem to be several downsides. One topic that has understandably upset many investors is the imposition of withholding taxes on interest earnings for the first time. We plan to write a post that discusses this in more detail shortly. Another huge downside relates to the secondary market – Mintos is being forced to close the secondary market in claims by 30 June. While a secondary market in notes will be possible, cutting off the liquidity options for over €670 million of claims that are currently outstanding is a huge negative. We hope Mintos makes investors more aware of the situation as this detail appears to have been lost in their communications.
Check out our new post that discusses the implications for investors of the new Mintos notes scheme – the key benefits, and 4 important downsides to be aware of.
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):
Note: S = Suspended D= Defaulted W = Solvent windown
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 changed their ratings system, which is now a number from 0-10. A W/D indicates that Mintos has withdrawn their rating.
Consider country risk too
Mintos offers loans from many different countries around the world, and some countries are more risky than others. To help investors assess the risk level of each country, we have published a country risk ratings page. This takes into account factors such as currency risks, sovereign risk and the local business environment. We think it is worth considering these risks when building a portfolio allocation, in addition to the LO ratings above.
Key updates: March / April 2023
Key updates: January/ February 2023
Key updates: December 2022
Key updates: November 2022
Key updates: October 2022
Key updates: August & September 2022
Key updates: June & July 2022
Key updates: May 2022
Key updates: April 2022
because a guarantee from a company is not as strong as a direct claim. Originally we understood that ‘Financiera Contigo’ was a sister company or subsidiary, but the Mintos team kindly reached out to us to explain that it is just a brand used by CEGE itself. Based on our review of the latest audited financials for CEGE, and their track record, we have assigned a score of 63 to Financiera Contigo / CEGE.
Key updates: March 2022
Key updates: February 2022
Key updates: January 2022
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.
Robocash is an international lending group that offers loans via its own P2P site. We like Robocash because the lending group is extremely profitable, and the site offers high returns (9-14.5%)
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 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.
All information published on ExploreP2P is subject to important disclaimers contained on our legal page here. No liability is accepted for the accuracy or otherwise of any information, scores or views published, and any direct or indirect losses are expressly disclaimed.
1,084 thoughts on “Who are the most solid lenders on Mintos? Our Mintos lender ratings”
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Thanks for the scores update but it seems you haven’t changed the numbers in the table (e.g. Everest is still 60)
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Hello again. Thanks for all this info, super nice. I have a question though, I see that in the first table you have both “Watu Credit” and “Watu Credit Uganda”, but in the second table I see only “Watu Credit Uganda”. Why is that so?
Hello, fantastic job on all this info, thank you very much, but I don’t see Finitera Kredo in the second table. Was that a miss or intentional?
Thanks for good work,
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Thanks again for all this information. Can you please add Evergreen Finance as well?
You should see them on the table Rui? Score is 49
Okay, I see it now, thank you. I was searching for the full name “Evergreen Finance”, and I see it’s abbreviated to “Evergreen only”.
Great work here in this blog, really. Thanks again.
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Placet group has defaulted on some of their buyback guaranties (those based on Real Estate) on Moncera. While not directly related to Mintos, and not a bare default, this is surprising for such a strong Lender.
Creditstar won’t repay the 8.3M of pending payments scheduled for dec-2022 but five months later (may-2023).
I’m not surprised at all, and don’t expect the payment to happen may-23 neither. At least if they continue to pay 18% apy+1% sweetener every 6 months, the interests would cover the capital in five years.
Lender scores from Mintos are now decimals https://www.mintos.com/blog/introducing-a-more-detailed-mintos-risk-score/ Can you update the table please?
Hi David, now updated.
Q3-2022 report from Creditstar is available.
They answer about the repayment they owe Mintos:
”’Mintos platform volume has decreased considerably this year due to the current conditions in the equity
and crypto markets. Moreover, the war in Ukraine is affecting the overall P2P marketplaces, especially
the Mintos platform. This resulted in rapidly increased pending payments in June and July.
Our credit lines work differently from the simple instalment loans that are dominant on the Mintos
platform – from a technical standpoint, the pending payments are quicker to increase if the platform
funding is low.
We have been proactively handling the situation by raising additional capital to cover the reduced
funding from the Mintos platform, limiting credit origination where needed and by providing our valued
Mintos investors with a higher yield of investments to compensate for any inconvenience.
We could repay all pending payments on the Mintos platform, but this would sacrifice growth and the
targets that were set for this year. Instead, we have agreed with the platform that pending payments
will be paid at year end when they will either be refinanced or the platform has restarted functioning
properly. This way, we can keep growing the business instead of decreasing our business.
All other sources of financing are performing well. We successfully issued 24 million Euros in Bond at the
beginning of June, where more than 75% of our bond investors opted for the longer period of the 36-
month bond tranche”’
Seems a very strange thing to say publicly – that you are going to prioritise growth and annual targets over paying your creditors on time….
There is an error: You say that Watu Credit score was raised to 45 but on the table it sits at 65
Thanks very much Trigueiro – very strange as our score has never been that high for them – now fixed.
Your write “Sun Finance Latvia does not receive this guarantee and receives a score of 64” but in the table it is listed with 55.
Also Mintos score for Eleving ranges in 7-9 not 7-8. Mogo IFN SA (Romania) has score 9.
Updated, thanks JMN
Thanks Osmium – the table did not get updated for that entity, now fixed.
Guys, thanks for the excellent work and keeping the scores updated!
As other people below, I would like to draw your attention to Creditstar and ID FInance, who partially stopped paying investors since July and have therefore accumulated significant amounts of pending payments. This clearly shows some liquidity issues and should be closely monitored and considered by investors. Personally, my pending payments from these lenders are constantly growing with the maturing of the underlying transactions and I have not seen any decrease in the total amount in the Mintos reports. Even though they have time until yearend to cover these payments, they do not seem to transfer any significant amounts to Mintos and is quite unclear how they will find EUR 8+ million (Creditstar) and EUR 18+ million (ID Finance) to repay.
Personally I would not invest in both until this situation is resolved. Looking forward to your opinion!
Creditstar resumed payments for new cashflows, actually locking PP to 8.3M. Still this is a lot of money to pay in two months. Maybe they plan to lower loans issuance (overall, not on Mintos) to increase their treasury?
Evergreen has published new reports
Thanks JMN – we have updated our comments today, and cut scores for Creditstar and also the ID Finance companies. Presumably all companies will be cutting the size of their loan books if they are having difficulty with raising new bonds.
Hi MV – completely agree with your comments – we have updated our commentary today and have significantly cut their scores as there are clear signs of difficulties with funding their balance sheets.
Financial results of Capital Service as at 31.12.2021
Net profit PLN 16 906 000 (EUR 3 677 000)
Assets PLN 113 000 000 (EUR 24 581 000)
Equity PLN 7 900 000 (EUR 1 718 000)
I recommend that you read the article about AlexCredit not paying investors a single euro since April 2020. Mintos occasionally send worthless statements about the negotiations and the complexity of the situation.
For example, this article says:
The credit institution’s income for 2020 amounted to 418 million 364 thousand hryvnia , of which net profit was 18 million 940 thousand hryvnia. For the year 2021, revenues amounted to 456 million 518 thousand hryvnias and net profit – 14 million 496 thousand hryvnias. (The hryvnia-euro exchange rate before the war was in the range of 30-33 hryvnia to 1 euro.)
We can see how Mintos defends the rights of investors.
Hello, how is it possible to obtain the audited financial statements of Wowwo for the year 2021 please? Is the accounting data given to auditors really more reliable than the original presented to investors? Isn’t it now an attempt to pretend a worse situation than the real one, in order to legitimize the damage to the creditors?
Are you planning on continuing the lender rating blog? I found it to be quite useful for a second opinion and would gladly buy you a coffee!
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ID Finance seems to do OK, but they have just stopped paying to investors.
Over the last months, ID Finance has accumulated pending payments to investors on Mintos. To remedy this situation, ID Finance and Mintos have agreed to restructure the outstanding pending payments, as this offers the best chance of a full recovery.
We want to share the key points of the agreement between ID Finance and Mintos for the company’s pending payments:
Pending payments of ID Finance Spain and Mexico in the amount of €18 million have been restructured. ID Finance has to cover the outstanding amounts by 31 December 2022 at the latest.
To make sure you are receiving adequate interest for the period, interest for the restructured pending payments has been increased from 1.2x to 1.4x the base interest rate of the investment starting from 22 July 2022. On average, investors will receive 17.6% interest on the restructured pending payments, which is significantly above the current average market rate of 14.5%.
ID Finance has committed to not increase pending payments further. If the company fails to honor this agreement, we would look into initiating a hard default.
If you have any questions, please contact us, and we will be happy to help.
Your Mintos team”
Oscar, you’re doing a tremendous job! I sincerely hope, that you’ll continue the help to us small time investors in P2P lending.
July 22th Mintos notified me and other relevant investors that they restructured EUR 8.3 million pending payments from Creditstar Estonia and Finland into loans with an interest rate of 18 percent. They stated falling issuance levels and ensuing liquidity issues as the reason.
Any thoughts on that? Is it something to worry about and act on? I guess it relates to both Mintos and Lendermarket loans?
Hi! Seems that the Mintos lender ratings table is not yet updated according to the June & July 2022 updates.
1) For “ID Finance Spain” in the update it is written: Our score is up 8 to 67. But, in the table the “ID Finance Spain” score is still 59.
2) For “Rapicredit” in the update it is written: our score increased by 10, to 45. But, in the table the “Rapicredit” score is 38 (even not 35).
Could you please update the table or clarify the differences? Thanks!
Have you given up? Almost two month since your last evaluation. And things are becomming really bad at Mintos. Your service is urgently needed!!
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