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

Last updated - 30 May 2020

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 3 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 of the recent loan originators that have defaulted, or are likely to:

African lenders GetBucks and ExpressCredit are suspended

We have been anticipating a default by GetBucks (15/100 score) and ExpressCredit (22/100 score) for some time. Mintos have now announced suspension of both lenders due to failure to remit collections. GetBucks has been going through considerable turmoil for some time. It has been taken over by its creditors (following a debt for equity swap). Its founder and more than 100 of its head office staff were terminated. The business appears to have been run very poorly, with excessive spending and weak reporting and controls. Mintos has now agreed a payment plan with the parent company of GetBucks under which it will pay €4m during 2020 to cover outstanding payments. We will ‘believe it when we see it…’ Meanwhile it was announced that the better performing South African and Kenyan operations of GetBucks had been carved out into a new entity called Finclusion, and would receive parent guarantees from this group. 

ExpressCredit offers loans to employees of governments and other institutions. This is meant to be lower risk as the repayments are deducted from future salary problems. However there is clearly a fatal flaw – governments in places like Zambia cannot be relied on to pass these payments on. The delay has now reached 4-5 months and ExpressCredit does not have sufficient cash to cover this. ExpressCredit loans in Zambia have been suspended. We expect any future news to get worse rather than better about the ExpressCredit group.

The mystery grows around Akulaku's problems

Akulaku is a fairly large Indonesian lender. It has received funding from several funds, including (arguably) the most prestigious VC firm in the world, Sequoia. Akulaku had been losing money, but the equity injected into the business seemed sufficient to cover those losses and support growth. Mintos published a statement from the company that confirms that Akulaku has major liquidity problems, which are blamed on COVID-19, currency depreciation, and the falling oil price. However since then we have seen the 2019 financial statements of Akulaku which showed that the business had significant cash reserves ($US 68 million) and significant shareholders equity ($US 72 million). It is unclear to us why and how Akulaku is in a position to have such significant liquidity issues based on the last financial information provided by the company, and the number and calibre of its shareholders. We continue to suspect that many Mintos lenders are not hedging their currency risk at all, or are significantly under-hedged. That creates big problems when their home currencies fall against the euro during a crisis, and it is why we have been monitoring currency movements in our country risk ratings

Finitera has a €7 million obligation (that it probably can't pay )

On 6 December 2019 Mintos announced that Monego lost its lending licence in Kosovo. The Governor of the Central Bank of Kosovo has cited high interest rates, and a deviation from business plans, as the reason for revoking the licences.  

Mintos then made several announcements relating to a lending company called Finitera. Firstly, it was announced that Finitera was planning to acquire Monego, but had not done so prior to them losing their licence. Regardless, Finitera was planning to ‘cover scheduled borrower payments to investors having investments in Monego loans once these payments are delayed for 60 days‘. 

All of the Monego loans remaining are now sitting in ‘pending payment’ status. This means that there is €7 million of loans that Finitera should pay back to investors according to Mintos. In a recent interview, the CEO of Mintos said that “It is our expectation and understanding that this promise will be kept and investors will be paid back”. However we think the likelihood of this actually happening is now very low.

Mintos starts litigation against Aforti (at last)

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. For some reason it decided against starting litigation and instead spent the next 6 months negotiating an agreement with Aforti to recover the funds. It was not made clear why this was considered an optimal strategy for Mintos investors, but presumably Mintos thought that recoveries could be higher and faster if Aforti remained in business. Mintos had agreed a timetable with Aforti to make the delayed payments but failed to fulfil their commitment.  Mintos have finally commenced the litigation process, terminated their agreement, and have notified Aforti of the claim amount. We expect this to take more than 12 months to resolve, and it is not clear at this stage how much investors will get back.

Alex Credit has paid very little since it defaulted

Small Ukrainian lender Alex Credit has been suspended by Mintos for failing to make the payments due to investors. Alex Credit has €4.5m of loans outstanding on the Mintos platform. The company has committed to make the payments due, but has only paid 2% of the amounts due since March. The company last reported their results in March 2019, which showed that the business was profitable but very small.

Collections have been weak since Varks lost its licence

In March, Mintos announced that a major subsidiary of Finko, Varks, had lost its lending licence. It is still unclear what the reasons were behind this as the company had reported healthy financial results. In fact the CEO of its parent group, Finko, said that Varks was very profitable in 2019, with profits of €18.5m, and  held €18m of equity, significantly more than the minimum requirement of €0.3m. Nothing about the situation makes much sense to us and we wonder if there are political or other factors at play. In the meantime a liquidator will has been  appointed to continue operations and manage the collection of outstanding loans. So far only 12% of the claims outstanding have been paid to Mintos investors, which is disappointingly low. Mintos note that debt collection efforts have been impacted by local COVID-19 restrictions. We don’t doubt that this has been a factor. However we suspect that many borrowers will try to take advantage of the situation by refusing to repay their loans.

Emerging risks due to COVID-19 disruptions

Our rating scores below are derived from the historic financial performance and track record of each loan originator. We do not plan to change the scores of each loan originator due to COVID-19 as we don’t have the information available to properly assess this. However we also don’t plan to ignore it either. LO’s in some countries face unique issues due to government legislation changes, currency movements, and currency restrictions. In the table below we have published recent events that we think Mintos investors should consider when allocating their portfolios.

In addition, Mintos has recently published detailed information about the pending (overdue) payments due from each loan originator, and the reasons why. We think this is a really good move from Mintos, even if it highlights some extra risks with some of the LO’s. While in some cases the pending payments are caused by technical integration issues, in other cases it shows in our view that the LO has a higher risk of default. We have listed below the cases where those higher risks appear to exist. 

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 Profit - 2 years prior Audited
Mogo Mar 2020 196.5 31.6 2.4 4.6 8.5 Yes
IDF Eurasia Dec 2018 86.3 9.5 7.9 3.7 Yes
Creditstar Dec 2019 113.2 25.3 5.8 2.9 2.2 Yes
Capital Service (suspended) Sep 2019 29.2 3.4 0.2 -0.5 Yes
Kredit Pintar Dec 2018 4.8 8.6 5.9 Yes
Credissimo Dec 2019 21.5 16.1 2.5 3.2 5.0 Yes
Swiss Capital Dec 2019 7.0 0.5 0.1 -0.4 No
IuteCredit Mar 2020 80.1 19.0 8.1 7.3 3.0 Yes
ExpressCredit (suspended) Mar 2019 12.7 -3.4 -2.6 -1.6 No
DelfinGroup Mar 2020 32.5 9.4 4.0 4.6 2.9 Yes
Sun Finance Denmark Mar 2020 7.5 1.6 1.9 0.8 -1.0 Yes
Sun Finance Vietnam Nov 2019 1.4 -2.2 -2.4 No
Finko (Lendo, Georgia) Dec 2018 9.8 -2.6 -2.0 -8.8 Yes
Finko (Sebo, Moldova) Dec 2018 9.5 -0.2 1.8 -0.6 Yes
Finko (Ukraine, Dinero) Dec 2018 4.1 2.0 -1.6 -0.2 Yes
SOS Credit Feb 2020 2.1 1.2 0.0 0.2 0.2 No
DanaRupiah Feb 2020 2.8 2.8 No
Monego Dec 2018 4.1 0.4 -0.6 0 Yes
Moneda Dec 2019 0.7 0.6 -0.8 No
Sun Finance (Tengo, Kaz.) Sep 2018 4.1 -0.4 No
Cashwagon Feb 2020 27.9 1.0 -5.9 -7.0 Yes
Placet Group Dec 2019 38 19 3.0 3.5 3.0 No
Akulaku (suspended) Dec 2019 118.3 65.5 -33.9 -37.9 -22.1 Yes
AgroCredit Dec 2018 5.2 1.8 0.2 0.1 0.0 Yes
Acema Mar 2018 46.1 17.5 2.8 2.0 2.4 Yes
Wowwo Dec 2019 37.9 17.7 2.9 1.6 No
BB Finance Group Mar 2020 14 5.4 1.6 -1.1 Yes
Evergreen Oct 2019 4.2 1 0.9 0.2 No
Creamfinance Dec 2019 58.4 13.3 0.9 1.2 -0.4 Yes
Extra Finance Dec 2018 4.6 2.0 0.1 2.0 2.0 No
Mozipo Group Dec 2018 3.3 -4.8 -2.5 -1.7 0.5 Yes
Aasa Dec 2019 25.3 17.7 0.4 -9.3 No
Finitera (Kredo, Albania) 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
Creditter Sep 2019 6.7 0.7 -1000 No
Pinjam Yuk Dec 2019 7.2 5.7 1.4 No
Revo Technology Dec 2019 31.5 5.7 0.9 -1.4 Yes
Dozarplati Dec 2019 12.2 2.8 2.2 0.9 0.1 No
Capitalia Mar 2020 1.7 0.6 0.1 0.1 0.0 Yes
Credilikeme Dec 2018 0.4 1.1 0.1 -0.7 No
EcoFinance Dec 2019 8.0 1.5 -0.3 0.1 0.2 Yes
GFM Mar 2020 6.2 5.3 0.4 0.0 No
ITF Group Dec 2018 2.5 1.2 0.2 0.2 0.2 Yes
Dinerito Dec 2019 11.3 3.8 0.3 -0.2 -0.4 Yes
Hipocredit Dec 2019 6.6 0.5 0.3 0.1 0.0 No
Debifo Dec 2018 7.8 0.1 -0.1 0.2 0.0 No
Kviku Dec 2019 16.6 2.5 0.9 0.6 0.1 Yes
Rapido Finance (In Default) Dec 2018 1.8 -1.7 -1.7 -1.9 -0.8 Yes
Finitera (Tigo, Macedonia) Dec 2018 2.1 -0.7 -0.8 -0.3 Yes
Julo Nov 2019 14.3 10.8 -2.0 No
Peachy Dec 2018 5.7 -1.4 -0.4 -2 Yes
GetBucks (suspended) Jun 2019 92.1 -41.8 -51.2 -9.5 -12 Yes
LF TECH Dec 2018 15.6 18.1 7 6.8 5.1 Yes
Credius Dec 2019 13.9 8.9 1.1 0.4 1.8 Yes
Rapicredit Dec 2019 5.2 1.3 0.6 -0.5 0.0 Yes
Kredit24 Dec 2019 3.0 0.6 1.2 -0.6 0.7 Yes
Watu Credit Dec 2019 27.9 4.8 4.5 1.5 0.2 Yes
Sun Finance Latvia Dec 2019 12.9 8.1 4.3 -0.7 -1.5 No
Everest Finanse Dec 2019 96.8 67.4 9.4 7.2 -6.6 Yes
Sun Finance Poland Mar 2020 18.8 3.2 1.4 -6.9 No
Stikcredit Jun 2019 3 2.7 0.8 0.5 Yes
E-Cash Dec 2019 2.3 0.6 -1.3 -0.6 No
Esto Mar 2020 13.4 3.7 0.5 No
Zenka Aug 2019 1 1.3 -1.7 No
Mwananchi Dec 2019 9.3 8.7 1.6 2.6 No
AlfaKredyt Dec 2018 4.9 1.3 0.3 0.2 No
Mikro Kapital Russia Dec 2019 22.2 9.7 1.2 -0.3 Yes
Mikro Kapital Romania Nov 2019 18.2 3.4 0.5 Yes
Mikro Kapital Belarus Dec 2019 27.4 3.7 1.0 1.0 Yes
Mikro Kapital Moldova Dec 2019 13.9 3.0 0.3 0.4 Yes
Fireof Dec 2018 3.8 0.9 0.0 No
ID Finance Spain Dec 2019 23.3 5.4 3.3 0.1 -0.4 Yes
ID Finance Mexico Dec 2018 1.7 -1.0 -0.6 -0.4 No
TASCredit Dec 2019 8.4 4.9 2.5 1.1 No
Lime Zaim Dec 2018 10.3 3.3 0.6 0.6 Yes
Dineo Credito Dec 2018 8.6 1.3 2.2 2.8 2.5 No
Sun Finance Mexico Mar 2020 2.2 -0.4 -1.9 No
Dziesiątka Finanse Dec 2019 9.5 3.4 0.5 0.2 0.0 Yes
Novaloans May 2019 5.3 1.1 0.7 0.6 No
Alex Credit (suspended) Mar 2019 3.1 1.3 0.6 -0.3 No
CashCredit Dec 2019 9.8 3.0 0.8 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.

Note- the scores are based on historic results and track record and do not capture the recent impact of COVID-19 on each loan originator

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. 

Latest rating changes - May 2020

Sun Finance

At the end of 2019 Mintos announced that several loan originators were owned by the Sun Finance group. Investors were told that these loan originators would receive group guarantees starting in 2020. When we double checked recently with Mintos that this had happened we were told "As we have promised, all subsidiaries should have the group guarantee but currently, they have not. Once it changes, the information on our website will be updated."

We think that failing to execute the guarantee raises questions about all the Sun Finance subsidiaries and the management of the company. Sun Finance has now (finally) provided fresh financial information on its operations in Poland, Denmark, Latvia and Mexico. In some cases these country groups include subsidiaries that Mintos has never provided any information previously. The Polish operations (previously known as Kuki.pl) have shrunk 

significantly. However they are no longer heavily loss making, and our score increased 11 to 33. Latvia is clearly the crown jewel within Sun Finance, with a profit of €4.3m in the last 12 months. This profit performance, and stronger balance sheet led to a score increase from 28 to 43. If Latvia is the crown jewel, the Mexico operations are the ugly step-sister. It is tiny but heavily loss making, and our score is only 9/100. 

Denmark reported satisfactory results. However our score is only 33/100 as we believe that new regulations will significantly limit the ability of lenders like Sun Finance to operate in the country. Sun Finance has not published any recent financial information from its Vietnam and Kazakhstan subsidiaries. It no longer offers any loans from Russia on Mintos. 

Cashwagon

Cashwagon's latest results are a little worrying. They have burned through most of their equity, and lost money throughout 2019. January and February saw a move into profitability, but then COVID hit in March.... Hopefully they can battle through. Meanwhile our score is cut from 42 to 36.

Watu Credit

Kenyan lender Watu Credit is on fire right now. It grew its loan book, profits, and equity by approximately 200% during 2019. Watu focuses on loans secured on assets like motorbikes which we think have a good risk profile. That is why its loan losses are small and stable relative to its revenues. The main downside to Watu is that it operates in Kenya, a higher risk country. Even still, we think Watu are becoming one of the better loan originators on Mintos. Score up from 61 to 65.

Rating confirmed: Cash Credit

The 2019 results of Bulgarian lender Cash Credit were boring. Boring is good. Stable profits and capital levels are just fine with us. Our score remains at 53.

Credissimo

Earlier this month we downgraded Credissimo for not publishing any final information since 2018. Well the good news is that 2019 results are now available. They were slightly disappointing. Profit has dropped in half since 2017, and leverage is up, due to growth in the loan portfolio and the company paying out shareholders all its 2018 profits. Our new score is 68, down from 80 at the start of the month.

Cream

Cream is one of the larger and most established Mintos loan originators. Its 2019 results were fairly stable. They still seem one of the better options available to us, particularly due to their Latvian location. Our score fell slightly due to lower profits in 2019, and slightly higher leverage. Score down 4 to 63,

DZIESIĄTKA

We've been wary of Polish lenders lke Dziesiatka recently due to the very harsh line that the Polish government took with their lenders in response to the COVID-19 crisis. However we also need to recognise that this company had a pretty good 2019. They raised some extra capital and also delivered higher profits. Our new score is 48. We have adjusted down their profit score to reflect the current circumstances in Poland.

GFM

Kazakhstan is another country that is having a rough time right now. It is an economy that relies on oil. Low oil prices + Covid = challenging lending environment. So why are we increasing the score of GFM? We had dramatically marked it down already to reflect these issues, plus the lack of recent financial information. Our score increase of 10 to 43 reflect's GFM's strong capital levels at the end of 2019, and improved profitability.

Zenka

Kenyan lender Zenka released results up to March 2020 and they seem to be performing well, growing their loan book and capital, and heading into profitability. Downsides are that the reporting quality is fairly low, and it is not clear yet whether Kenya is going to avoid a large-scale COVID outbreak, or if it is just in the early stages. Score up from 41 to 46.

Stikcredit

Bulgarian lender Stikcredit has a really strange looking P&L. The profit after tax looks good, but more than 90% of it comes from tax credits. The underlying profitability of the business seems pretty weak, and we suspect that the capital position is weaker than shown in their headline figures. We have cut the score from 53 to 48.

Rating confirmed: Dinerito

Mexican lender Dinerito is fairly 'average'. It's mid-sized, it makes some profit (€0.3m in 2019), and it has an OK balance sheet structure. It currently has no pending payments outstanding, which gives us more confidence in it than some other LOs. Our score remains at 53.

Latest rating changes - April 2020

In early April we have made too many rating changes to list them all individually, but we will highlight any key ones below. The key themes that led to changes were – macro shocks, regulatory changes, and disclosure quality downgrades for lenders who had not published financials since 2018. Our ‘watchlist countries’ currently are Kazakhstan and Russia (currency depreciation & macro issues due to oil price falls), and Poland (regulatory impact of capping loan rates/charges for the next 12 months).

New score: Aasa

Aasa has finally published results for both 2018 and 19. We had suspended our scores for a long time due to a lack of disclosure. Aasa made a huge loss in 2018 (which is perhaps why they decided to stop providing any information). Since then it has dramatically shrunk its balance sheet and broke even in 2019. We are wary of Polish lenders right now, although Aasa does have a high level of equity, giving it a stronger balance sheet than most LO's. Our new score is 41.

Rating confirmed: Capitalia

It is hard to see what the point of Capitalia is. It's a tiny business that seems to break even every year. It's one of the few LO's who don't provide buyback guarantees. We would be wary of Capitalia loans right now due to the impact of COVID-19 on the small businesses that Capitalia lends to. Our score remains at 36.

E-Cash

The business model of E-Cash doesn't seem to work. Its bad debt costs eat up half of the company's interest income. Once the company pays for all its operating and funding costs it makes a loss. In 2019 it made a loss of €1.3m, and it only had €0.6m of equity left. Score reduced from 23 to 20. High risk.

Hipocredit

Hipocredit is a small mortgage lender based in the Baltic region. We've gone hot and cold on the company in the past. We like the low LTV loans they originate. However in the past they have been guilty of selectively buying back their best performing loans and leaving investors with the non-performing. After paying out a big dividend 2 years ago they are still a bit under-capitalised. However, profits are improving. Score up from 32 to 41.

Mikro Kapital Russia

Mikro Kapital is another lender that we downgraded significantly earlier this month. They have now released their audited results for 2019 (in Russian..). Overall results for 2019 were fairly strong, with a healthy level of equity. We are still cautious about their outlook for 2020. We had been penalising their score due to the 2019 results not being available. We have increased the score from 42 to 45.

New: 3 Mikro Kapital Co's

Mikro Kapital has added 3 new subsidiaries in Belarus, Romania and Moldova. There is no group guarantee in place so we have provided individual scores. However we would note that the overall Mikro Kapital group is very large (over €600m of assets) and we would expect the group to support a subsidiary if needed. Our scores for the new subsidiaries range from 53 to 63.

Rating confirmed: Kviku

We downgraded the scores of all Russian lenders earlier this month following the introduction of new rules that capped interest rates at 4% and deferred payments for up to 6 months for many borrowers. Kviku has disclosed that 1,500 of their customers have so far taken advantage of these rules. Despite the solid profit Kviku made in 2019, we think the new lower score of 44 remains appropriate for now.

Rapicredit

Rapicredit is a small Columbian lender. In 2019 it switched from losing money to making money, and improved its balance sheet position too. This led to a score increase from 28 to 45. However keep in mind that since then the Columbian Peso has been very volatile against the Euro (up to 20% depreciation), which makes us nervous, as we don't know whether Rapicredit carries any FX risks.

IDF Eurasia

IDF Eurasia (formerly ID Finance) has long been one of our highest rated LO's. And there has been no new information or reports released by them or Mintos. However we have downgraded their score due to the likely macro impact in Kazakhstan of dramatically lower oil prices, as well as reported currency controls, and currency depreciation. This makes us very cautious about all LO's from Kazakhstan currently. Score down from 81 to 63.

ID Finance Spain

A big score upgrade for ID Finance Spain for 2 reasons. Firstly, the company was able to raise over €5m of equity in a crowdfunding campaign at the end of 2019, which significantly improved its balance sheet. Secondly, the business transitioned from breakeven in 2018 to a solid profit of €3.3m in 2019. Score up from 39 to 59.

Mogo

Mogo announced a loss of €2.5m for Q1 2020. This was driven by currency exchange losses versus the Euro. This is why we monitor currency movements in our country risk ratings, as most Mintos lenders seem to under-hedge their FX risks. It was not all bad news though, as Mogo shareholders invested an additional €5m of equity, which covered the loss and slightly reduced the leverage. Overall not a terrible result given the circumstances. Score down from 79 to 76.

Alfakredyt & Dziesiatka

Both of these LO's are very small, focused on Poland, and have never really made any meaningful profits. Both look to be at high risk following the changes to the legislation in Poland. Dziesiatka is part of a larger lending group, but it does not have any group guarantees and we would not rely on them stepping in.

Everest Finance

We cut the scores of all Polish lenders following the introduction of new laws in Poland that limits how much lenders can charge. We think Everest is going to be hit harder than most because its model is based on visiting their borrowers in their homes. Even though the business has very strong capital levels and has been very profitable in the past, the next 12 months looks very challenging. Score down from 69 to 53.

Latest rating changes - March 2020

How to deal with the messy situation at Finko?

Finko is one of the largest lending groups on Mintos. Its businesses include Varks, Lendo, Sebo and Dinero. The owners of Finko are also one of the 4 key external shareholders of Mintos.

When these loan originators joined Mintos, the relationship between the various Finko companies was not disclosed. There was also no group guarantee in place. Finko then recently announced that it was going to provide a group guarantee, and released its results for 2019. Those resulted were extremely strong, with a profit of €17.6m. The business also received an equity injection of over €8m. The group guarantee led to us rating Finko as a group, rather than each subsidiary. Based on the financial disclosures for 2019, the group score was 72.

As noted above, the most important subsidiary, Varks, has lost its lending licence, and is now in liquidation. This news means that in our view, the group guarantee now has very little value, due to the loss of profits generated by Varks, and the impact of this event on the whole group. Consequently we have decided to revert back to our previous practice of providing financial information and scores for each remaining subsidiary where we have reliable information available. We note that UkrPozyka and Kiva currently have no financial information available. We also note that the figures provided for the 2019 Varks profit and equity by the Finko CEO are much higher than those we had seen published on the Varks website. We currently have no explanation for this and will not include any 2019 Varks figures in the tables until this is cleared up.

New: Revo Technology

Klarna operates a service that is very hot right now, being similar to highly valued companies such as Klarna and Afterpay. The business provides point-of-sale finance, funding smaller purchases made by millennial customers. The company has a strong founding team, a good business model and has been profitable since Q4 2018. The one thing we would like to see is a bit more capital, as the balance sheet is quite highly leveraged. As for likely impact of COVID-19 on the business it is difficult to assess currently. On the plus side the loans are small, and Russia is less impacted (currently). However it could become a challenging environment for Revo Technology later this year. Our initial score is 65.

New: Mwananchi

The quality of the management presentation from Kenyan lender Mwananchi is very, very poor. But we forced ourselves to look beyond that, and there are some things about this lender that look OK. Firstly the balance sheet, which is mainly funded with equity. Secondly the products offered, which are based on secured loans such as auto loans, which we think is more attractive than payday loans. Mwananchi is also profitable, although we noticed that their bad debt costs went up a lot in 2019. Our initial score is 54. Keep in mind however that Kenya is a higher risk country (see our country risk ratings page).

New: DanaRupiah

DanaRupiah is yet another new and very small Indonesian payday lender to join Mintos. The management presentation provided is fairly typical of those we see from these type of Fintech businesses - nicely designed but containing no information that is really useful. We also don't understand the company structure. The borrower is a company called 'Teching Pte Ltd' which is based in Singapore. This company seems to be just an SPV as it doesn't have any operating costs in its P&L. So what is the link to DanaRupiah in Indonesia? Nothing is as clear as it should be. Our initial score is only 24.

New: Moneda

Moneda is based in Bosnia and Herzegovina, the first Mintos LO from this country. It's a startup business, with a loan portfolio of only €700k. The size of the portfolio is smaller than the loss the company made in 2019. Frankly, we feel that this business is far too small and too new to be invited onto the Mintos platform. The risk is very high, which is probably why Moneda are offering investors an interest rate of 15.5%. Our initial score is 20.

New: Swiss Capital

We are more positive about Swiss Capital, which is an auto lender based in Kazakhstan. Firstly we like auto loans because defaults tend to be much lower than unsecured loans, and it is possible to recover the vehicles which reduces losses when people do default. The business has already reached break even and we expect it to be profitable in 2020. The main downside is the balance sheet - the business looks a little under-capitalised, with only €0.5m of equity against a loan book of €7m. Our initial score is 40.

Rating confirmed: Creditstar

We have obtained the interim results of Creditstar for 2019. It was a good year for the business, making a profit of €5.8m. The business grew strongly, with stable levels of bad debts. Creditstar also successfully issued two bonds in Dec 2019, locking in €20m of funding until 2021 and 2022. There is no change to our last rating, which stays at 79.

Farewell to...

1pm plc. It isn't really surprising that 1pm have left Mintos. 1pm was a highly rated loan originator that was listed on the London Stock Exchange. Mintos is just not a cheap enough source of funding for companies like this right now. However in the future we would still like Mintos to offer more lower risk, lower yield opportunities. There's a limit to how much investors can allocate to tiny startup lenders in Bosnia and Indonesia...

Latest rating changes - February 2020

New: Pinjam Yuk

Pinjam Yuk is an Indonesian payday lender. Frankly, we are not particularly convinced by the information provided. Their presentation says that they received investment from leading VC firm Sequoia Capital in 2015, yet they are still tiny, and the charts suggest that they only started operations in 2018. Secondly, the data provided shows that the business has suffered from a government interest rate cap, and it's doubtful that they are currently profitable. Lastly, their P&L does not make sense to us - particularly the zero cost for loan impairments. Our score is 41, and we think that's being very generous.

Rating confirmed: Mogo

Mogo released their results for the full year of 2019. There were no surprises. We were pleased to see that they had raised €3m of new equity in Q4 19, with another €3m planned for Q1 20. NPL ratios were stable, and Mogo increased their profits in 2019 by growing revenues and keep bad debt provisions stable. Our rating score remains at 79.

LF Tech

LF Tech are the final LO to publish their 2018 financials. We've been asking Mintos for them for several months. There's good news and bad news. The good - LF Tech continues to be very profitable, have a conservative balance sheet, and the financial statements are now audited. The bad - the audit opinion is qualified (although we don't think the matters raised are very material). The 2017 profits are also lower than Mintos had led people to believe. Our overall score has increased by 7 to 66, mainly because they no longer receive a 0 score for disclosure quality.

New: GFM

GFM is a small lender from Kazakhstan. There isn't much to differentiate them from many other lenders on Mintos. They are small, operate in a fairly high risk country, and seem to be moderately successful. The one thing we like is that they they have a balance sheet that has very little leverage. On the other hand their reporting quality is poor, and profits are modest. Our initial score is 41.

New: TASCredit

TASCredit is an auto lender from Kazakhstan. The borrower is called TAS Finance Group which appears to be a subsidiary of a larger group. TAS lends to customers at very high interest rates - around 5% PER MONTH. This seems to generate one of the highest returns on assets of any Mintos lender. While the balance sheet structure looks fine, TAS has lost marks for poor quality disclosures, fairly small size and limited published track record. Our initial score is 52.

New: Julo

Julo is a new Indonesian lender that has been backed by several VC funds. It seems to be well funded with over €10m of equity and more than a third of its balance sheet held in cash. There is one slight problem though. Their loans don't seem to be very profitable once bad debt costs are taken into account. Hopefully they can improve this as the business scales up and they get better at underwriting loans. Our initial score is 47.

Farewell to...

Invescore & EBV Finance. Invescore falls into our new 'Keyser Soze' category of Loan Originators. An LO that told us all a good story, and just like that, after 2 days, they had disappeared, seemingly forever in mysterious circumstances. Our guess is that we will never hear from them again. No loans were ever listed by Invescore. Another LO to leave is EBV Finance. They were a Lithuanian lender that focused on VAT refunds. All loans have been repaid to investors.

Ratings confirmed:

IuteCredit and Vizia/Banknote both released their unaudited results for 2019. Both lenders report quarterly and there were no surprises from either LO. IuteCredit had to write down the value of its Kosovo operations (closed due to loss of licence) but it was still able to still generate good overall results for the year, which is impressive. Scores for both remain at 77.

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.

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

  1. Pingback: We've picked the best and worst P2P loans for June 2020

  2. Christian Reply

    Hi guys,

    thanks for the update today! A couple of more updates you missed, however :-). Would be great if you could take a look also!
    1. I don’t find any mentioning of the suspension of Capital Service, any reason?
    2. Cashwagon numbers are available until Febr. 2020: https://assets.mintos.com/D7F4FD15-AF1F-FE5D-6150-1A4C98F47D52.pdf
    3. Lime Zaim update: https://assets.mintos.com/FC4AB25B-9096-8B0C-EB38-F7D4A50DCA70.pdf
    4. For SOS Credit, I only see the end of 2019 report on Mintos, yet you mention a newer one in your table? Mistake or genuine?

    • Oscar Harrington Post authorReply

      Hi Christian. Thanks as always. Capital Service – good spot, we’ve added that label. Cashwagon – updated. Lime – we think that report actually relates to Dec 2019 and had updated it. SOS – they provided an updated Feb 2020 balance sheet in their management presentation, that’s where we got those figures from. The profits are from the 2019 report you have seen.

  3. José Henrique Reply

    More IDF Eurasia emails.

    And indeed, I have notices in my account statements some principal credited – *not* interest – (and those loans appear on the “finished” list on Portfolio, and if you click on them, they are sill active). This might help people to have an idea of the values involved in their accounts (those are my estimates, not minto’s, and could be some other thing, I’m just sharing my rationale)

    Strangely, it also occurred on a Watu loan today, so it is probably a mistake on Mintos side…
    —————————————–
    An update on a recent fix of IDF Eurasia pending payments

    Hello (Investor),

    You are receiving this email as one of the investors who might see some alterations in your Mintos account as we fix the error. We thank you for your understanding and patience while we evaluated all aspects of the situation.

    The update

    In mid-April this year, we shared an update regarding an error identified within the systems – integration between ID Finance system and Mintos (or API exchange) was not built to account for the government imposed measures we are currently seeing. As a consequence, loans extended due to these measures were being shown as “pending”.

    ID Finance and Mintos have taken steps to fix it and currently are in the last stage before finalizing the process to eliminate any further possible system issues and avoid future confusion in investors’ portfolios. The last stage includes possible alterations in your account regarding the investments made into the loans issued by IDF Kazakhstan.

    While identifying the full scope of the consequences the error caused, we found out some investors have received funds that were mistakenly transferred to their accounts for investments in loans that were not yet repaid. As a result, Mintos will need to deduct these funds from the affected investors’ Mintos accounts. We will do this operation soon after sending out this email.

    Comments from IDF Eurasia’s Co-founder, Boris Batine

    “As it was communicated earlier on 14 April, there was a problem with pending payments calculations due to the states of emergency in the countries (resulted in the so-called “credit holidays”, “moratoriums”, “loan extensions”) and the downsides of IT systems integration that did not account for such unprecedented situations. Please kindly see the full explanation on Mintos blog.

    In this communication, I am happy to inform you that together with the Mintos team (many thanks to them!) we managed to resolve the issue in principle as was promised before.

    The majority of pending payments are currently being fixed by investing the principal from the loans that were mistakenly repurchased into the loans that were placed on Mintos after the repurchase. These are in fact the same loans, but with an extended schedule. IDF Eurasia (Kazakhstan) continues to promptly settle accrued interest on pending payments. IDF Eurasia (Kazakhstan) and Mintos team continue joint efforts to resolve the issue completely and we expect further adjustment of pending payments in the upcoming weeks.

    Another very good news is that after the state of emergency in Kazakhstan was lifted on 11 May, the economy had started reopening from the rather strict lockdown (probably one of the most severe in the world as due to COVID-19). Our offline branches are back “on” and we see material catch-up in demand for credit together with normalization of the cashflow as the newly issued loans are not subject to potential credit holidays.

    Thank you for your understanding, support, and patience.”

    Boris Batine, Co-founder of IDF Eurasia

    For more information, you can always send your questions to [email protected].

    • Oscar Harrington Post authorReply

      Thanks Jose. We were promised IDFEurasia results ‘end of May’. Hope to see these soon so we can see how they looked going into the COVID period.

    • Centrino Reply

      Thank you Jan.
      I was not sure about investing in Cashcredit…

    • Oscar Harrington Post authorReply

      Thanks Jan – we did a big update today and included these. Thanks for pointing them out.

  4. Daniel Reply

    Hey there,

    I want to thank you so much for doing all this work…it helps me so much to make more informed investment decisions.

    Why is banknote not in the list anymore? I can see that you write about a rating change but Vizia/Banknote is in neither table. Am I missing something?

  5. John Reply

    To anybody who was surprised to see new loans issued by IDF EURASIA in your account,
    It’s probably because a moratorium on loans was introduced by Kazakhstan government.
    https://blog.mintos.com/letter-from-id-finance-and-idf-eurasias-co-founder-boris-batine/

    Example of today in my account,
    5 loans issued by IDF EURASIA were bought back due to buyback guarantee, 60d+ delay.  (149.63 EUR in total)
    Then I found 5 newly invested loans in my account which were issued by IDF EURASIA. (152.976 EUR in total. each loan were quite similar amount but all slightly higher)

    I was surprised to see new investments in my account because I haven’t invested manually for a month, I disabled auto invest last month. (I never used Invest and access)
    They could have done it different way or at least Mintos could have notified investors how it would be done so people wouldn’t have to worry or spend time to figure out what was happening.

    • Leo Reply

      They sent an e-mail detaling this process roughly 2 weeks ago to everyone investend in IDF Eurasia loans. You can even find this e-mail right here if you scroll down a little through the comments. It was also mentioned in several blog posts that this was being prepared to accurately reflect the status of loans extended due to the moratorium.

  6. José Henrique Reply

    As usual, information that should be made public privately sent via email…

    IDF Spain

    Mintos email quoted below:
    (by the way I did not understand the two marked parts – “Schrödinger pending payments” that accumulate and do not accumulate)

    ———————————————————————————-

    Subject: Why pending payments for ID Finance Spain have recently increased

    Dear (Investor),

    With Spain being one of the European countries most affected by the COVID-19 pandemic, the current state of emergency and corresponding restrictions have affected tens of millions of people through the month of April, recently extended into May. Along with the restrictions, the government of Spain has also implemented a moratorium to borrowers, introducing credit holidays until the situation in the country comes back to normal, read more on our blog.

    **** **For the duration of the state of emergency**, ID Finance is providing borrowers credit holidays in line with the issued Royal-Decree Law 11/2020. Given that Mintos cannot technically reflect such extensions within the platform, **these loans are in or will go into buyback and accumulate pending payments**.

    For investors on Mintos, this means the payments of the triggered buybacks appear as pending in their portfolio. The majority of these pending payments are there since the moratorium was put into action.

    The pending status will be resolved as soon as the state of emergency in the country is lifted. Correspondingly, ID Finance Spain will update loan statuses on their end and payments that are due to investors will be made. In the meantime, as communicated before, ID Finance Spain continues to pay interest on pending payments.

    ID Finance Spain and Mintos are closely monitoring developments in Spain and the decisions regarding the moratorium. Until then, ID Finance Spain continues to transfer the received borrower repayments.

    During the changed market dynamics many lending companies on Mintos continue to issue loans under a more stringent review of borrowers to whom the loans are being issued. ID Finance Spain is one of them, having applied a revised credit policy for all newly issued loans.

    **** For all ID Finance Spain loans currently available for investment, **buyback will be ensured without delays irrespective of moratorium status**.

    See the latest comment on ID Finance Spain operation here. (link to announcements page, no “bad” information whatsoever)

  7. José Henrique Reply

    As usual, information that should be made public privately sent via email…

    IDF Eurasia

    Mintos email quoted below:

    —————————————————–
    Subject: About your investments in IDF Eurasia Kazakhstan loans
    Message:
    Loan extension issue identified, pending payments should decrease

    Dear (Investor Name),

    You are receiving this email because you have invested in loans issued by IDF Eurasia in Kazakhstan.

    Recently IDF Eurasia experienced a technical issue with loans the company intended to extend. Due to a wrong API command being sent to the Mintos system, these loans were repurchased instead of extended. This unintentionally led to a situation where IDF Eurasia accumulated additional pending payments for its investors.

    The issue is currently being fixed by investing the principal from the loans that were mistakenly repurchased in the loans that were placed on Mintos after the repurchase. These are in fact the same loans, only with an extended schedule. This process will happen automatically in the next 24 hours. As a result, you should see IDF Eurasia’s pending payments decrease.

    You will receive remaining interest on pending payments within a week after loans are extended.

    Thank you for your patience as we investigated the unexpected increase of pending payments from IDF Eurasia.

    Kind regards,
    Your Mintos team

  8. Andrzej Reply

    Does someone know why lime zaim has negative equity? It looks like a mistake in statements.

    • IgorJ Reply

      You are right, Andrzej. Everything on the liabilities side is shown as a negative value, even total borrowings. Maybe because the assets and the liabilities are both shown in the same column. Lime Zaim does actually have 5,4 million euros of positive equity.

    • Oscar Harrington Post authorReply

      Andrezj thanks for linking all the LO updates – we’ve updated all the info. Regarding Lime – it’s a strange presentation but sometimes credits are just shown as negative figures so that’s what they must have had in mind. But it’s a bit unusual/confusing for sure!

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  10. Centrino Reply

    Thank you for your update!
    Could you briefly explain for what reason Everest decreased -16?
    As I sometimes confuse them with Evergreen, and seen that they now have a similar rating, if you had to choose one of them for investing securely, which one would you pick, and why?

    Thank you again for your fantastic work ! 🙂
    Regards

    • Oscar Harrington Post authorReply

      Hi, we provided some commentary on the page – but essentially it’s because their business model is heavily impacted by COVID-19. They rely on in-person collection of loans, and they are also subject to various new laws in Poland that will affect their business model. So even though they are well capitalised, their outlook for profitability is much worse than previously.

  11. Pingback: P2P-Anlage.de » Meine P2P-Renditen im ersten Quartal 2020 (Mintos über 100%)

  12. Pingback: Mintos Review 2020 • P2P Guarantee

  13. Gherardo Reply

    Come back to my old comment and i recomended Dozarplati ( i have around 2k on mintos on this originator) and i can confirme that i receive every day money from principal and interest. For me Dozarplati still the best choice for russian lending ! Stats update on mintos -outstanding loan Dozarplati 12,292,803 and pending payment 183,658 ( around 1.5% ) . My advice in the interest of all investors and this p2p industry is to continue supporting the good loan originators who are respecting their contracts! We have to invest in the primary market and support these companies. Other originators that I recommend a lot based on my mintos experience are : Everest Finace, Mogo, Esto , Sun Finance and Caswagon

  14. Marco Reply

    Varks lost its lending licence and all transactions are blocked on Mintos platform. So how is it possible that current loans increased by 2 millions Euro since last week (from 8691163 to 10481600)? Can anyone help me to understand this phenomena?

    • Dennis Reply

      Varks extended the loans. As a result of this extension, the loan apparently becomes ‘current’ again. If I’m correct lenders are allowed to extend the loan max. 6 times, not sure what the max. extension period is. It should be on Mintos’ website.

  15. Jack Reply

    https://dozarplati.com/components/Landing/Documentation/Documentation/docs/buh_otchetnost_3kv_2019.pdf

    Hello guys I am sorry for being uneducated till the point where I can make assumption on my own knowledge. On the dozarplati site there is visible document about their financial situation in 3 quatre. I tryed my best to understand those numbers and translate, but so far I am only recognising that their profit after taxation is decreasing slowly over time. Based on those numbers (23 columne , page 3) I am having hard times to predict if it is bad sign or good sign if they were not able to increase their profit during good times. I admit that I am aware of other indicators that I should focus on but without further doing I cant find them in those pages due to my lack of russian language and company knowledge. If there would be someone who could tell me if this report is positivie and in what way I would gladly appreciate it. Even telling me to focus on specific columnes in this document would help. All the best in upcoming weeks.

    • Oscar Harrington Post authorReply

      Hi Jack, thanks to our reader Igor J, who sent us a translation, we’ve updated the tables with the latest results. You are right – their profit is going down versus 2018, but their return on assets is running at pretty similar levels to most other Mintos lenders, so it could be worse.

  16. erik rasmussen Reply

    Please a date to all your news and updates. It is very confusing to read the page since it is impossible to evalute the news for relevance.

  17. Pingback: Come verificare il rischio del prestatore su Mintos - SMIPweb

  18. Gherardo Reply

    Hello , i’d like to know why you lowered the score of Dozarplati , Kviku , Ecofinance and Everest Finance in your last update . In the last month I can say that they are among the few loan originators who are paying with a few delays and ensuring a continuous flow. Can i know your feedback ? thanks

    • Davy De Groote Reply

      Russian federation and Poland.
      Look at the first figure on this page.

    • Mike Reply

      The Lime Zaim, I feel, should be lowered as well (LO with Russian presence), also their financials are not really that great and it’s too small for my liking, but currently at score 65 (with name “Lime Zaine” though).
      Your work is highly valuated Oscar, big thanks!

  19. Gregor Reply

    Christian: All of Wowwo’s statements / presentations I have downloaded are in Euro (EUR). However, if you have other documents, then TRY probably stands for the currency of Turkey. The country’s currency is the Turkish Lira and the currency code / abreviation for the Turkish Lira is TRY.

  20. Christian Reply

    Oscar:I think the Wowwo PDF is just a bit misleading, it does say “INCOME STATEMENT YEAR END 2019 (TRY)”, the 2019-4 may just be the 4th version or iteration or something of financial reports? What the “TRY” stands for, who knows? Hopefully not the literal meaning 🙂

    • Oscar Harrington Post authorReply

      That’s really strange. They uploaded Sep 2019 figures before and these now seem to be April 2019 ones…?

      • Thomas Reply

        I asked Mintos and they confirmed that its the 2019 Year End accounts. The 04 stands for 4th Quarter as they submit their accounts on a quarterly basis. The currency is Turkish Lira.

  21. Pingback: How to Set Up Auto-Invest on Mintos | Jean Galea

  22. R. Dekker Reply

    sorry for using the wrong topic, but I think it’s important to mention that probably new P2P scam is developing.
    It seems Grupeer list loans from projects what didn’t received any money.
    Multiple blogs report this like https://colminey.com/grupeer-critical/

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