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

Last updated - 21 November 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 recent events:

Mintos provides default recovery estimates to investors for the first time

Mintos recently hosted an interesting videoconference where they discussed the situation with each of the lenders in default, and provided recovery rate forecasts too. Check out our new post where we discuss the outlook for recoveries, what went wrong with each loan originator, how much investors can expect to get back, and when. 

Cashwagon will liquidate - Mintos expects significant losses for investors

Earlier this year Cashwagon in Vietnam was closed down by local authorities. As part of this process its bank accounts were frozen. The company tried to find new sources of equity and financing, but (unsurprisingly) those efforts have not been successful. The Cashwagon group now plans to go into liquidation. Mintos has announced that it expects to achieve a recovery of less than 50% on Cashwagon balances in Vietnam and Indonesia, and less than 25% on balances in the Philippines. 

Finitera plans to sell Kredo and Tigo to Mogo, unlikely to honour Monego commitments

Mintos has announced that the Finitera subsidiaries Kredo (23/100) and Tigo (32/100) will be sold to Mogo by the end of the year. As Kristaps Mors notes in this recent post, there are common shareholders between Mogo and Finitera (and Mintos itself). Once this transaction happens, the only Finitera subsidiary remaining on Mintos is Monego (Kosovo), which has lost its licence, has defaulted on its buyback commitments to Mintos investors, and is in liquidation. Finitera never provided a formal group guarantee over Monego’s responsibilities to Mintos investors, although in December 2019 Mintos announced that Finitera had committed to ‘cover scheduled borrower payments to investors……once these payments have been delayed for longer than 60 days.’ 

We have previously expressed skepticism over whether Finitera has the financial resources, or the actual intention, to honour this commitment. The Mogo recoveries team have now provided two reasons for why the commitment has not been fulfilled. Firstly, they say that the administrator of Monego has not provided sufficient data to Finitera and Mintos on the loan performance. While this may be true, we don’t see how this would prevent Finitera from buying back loans from investors through the Mintos platform. The second reason provided is more likely to be the real practical reason – the impact of Covid. It appears that this has had reduced the ability of Finitera to honour its commitments in two ways – by increasing the number of loans going 60+ in arrears, and by reducing the financial strength of its wider operations. 

The sale of Kredo and Tigo could be a step towards the liquidation of the entire Finitera group. It will be interesting to see what happens to the sales proceeds of Kredo and Tigo. Will it go to shareholders of Finitera, or to cover the promises made to Mintos investors? It seems highly unlikely to us that it will be the latter. As for Kredo and Tigo – these operations will be moving to a larger, more successful operating group. In future they will receive group guarantees from Mogo, at which point we will stop providing standalone ratings scores for each lender.

Finko closes Ukraine subsidiaries and will no longer issue loans on Mintos

Finko group (which is owned by some Mintos shareholders) has been in serious trouble for some time now. Its most profitable subsidiary, Varks, lost its lending licence in strange circumstances. Its Metrokredit subsidiary in Russia also lost its licence. It sold another subsidiary (Sebo) to Mogo. That left it with some small, unviable operations in Russia and Ukraine. Both countries were hit hard by Covid-19. After announcing the windown of Russian (Kiva) operations in July, it was not that surprising to see the announcement in August that Ukrainian operations (Dinero and Ukrpozyka) were being wound down too. So, what are the implications for Mintos investors? Mintos says that the companies have committed to repaying the funds due by July 2021. However, it seems that a high proportion of loans remaining are now non-peforming. The Ukrainian entities only had €1.9m of equity as at December 2019 – compared to €20m of loans outstanding currently on the Mintos platform. We suspect that investors will only recover around 50-60% (at best) of their Finko Ukraine investments, and it will take longer than 12 months. 

What about the parent guarantees you may ask? In their recent video, the Mintos recoveries team have stated that the only assets of the parent are shareholdings in other loan originators, all of which are suffering badly from Covid impacts. In their view, triggering the parent guarantee would not generate additional cashflow, and may disrupt the ability of Mintos investors to recover funds from those subsidiaries. 

Investors reject Capital Service proposals - Mintos is negotiating better terms

Capital Service is a Polish lender that is facing problems. While it is blaming Covid, the truth is that the management team paid out large dividends over the last few years that left it without sufficient buffer for any downturn. It made an extremely unreasonable restructuring proposal to Mintos investors where it asked them to take a 40% loss on their loans, a 2 year payment holiday, and 8 years to repay all the funds owed. Thankfully, those proposals were rejected.

Mintos has now disclosed that it is negotiating substantially better terms, where investors will not suffer any ‘haircut’ (loss) and with no payment holiday. Mintos admit that if negotiations are not successful, litigation will take several years. Hopefully this will not be necessary and investors can start to receive repayments soon. 

Mintos finally gets tough on 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. Frankly, this felt a little weak at the time, and Aforti took full advantage of this approach. We were delighted to see that Mintos has now issued a notice of default to Aforti, which is the first step any creditor takes in a litigation proceeding. However it’s the additional steps that Mintos took that we are particularly pleased with. It began by notifying the Polish stock exchange (where Aforti has a listing) that they had defaulted on their debts. It also approached other lenders to Aforti, who had not been informed by Aforti of the situation. Why is this significant? It could lead to Aforti losing its stock listing, and (more importantly) could trigger a ‘cross-default’ on their other loans, which means that all of Aforti’s debts could become payable immediately.  Essentially this means that Mintos is now going to war, and we fully approve. 

Mintos expect to obtain a full recovery on Akulaku loans

We have to confess that we don’t really understand what the issues are at Akulaku, a large Indonesian digital lender. Akulaku raised a huge amount of equity from several funds, including (arguably) the most prestigious VC firm in the world, Sequoia. They also declared that they had $US68 million of cash as of December 2019. Mintos have now announced that they are in negotiations on a repayment plan with Akulaku management, and expect investors to obtain a full recovery during 2021. 

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). Last update 21 November 2020:

Loan originator Reporting period Loans Equity Profit - latest Profit - prior year Profit - 2 years prior Audited?
Mogo Jun 2020 176.0 30.0 -7.8 4.6 8.5
IDF Eurasia Dec 2019 120.5 21.2 11.4 9.1 3.7
Creditstar Sep 2020 136.6 30.5 5.7 5.8 2.9
Capital Service (D) Mar 2020 28.3 3.4 0.2 -0.5
Kredit Pintar Dec 2018 4.8 8.6 5.9
Credissimo Dec 2019 21.5 16.1 2.5 3.2 5.0
Swiss Capital Dec 2019 7.0 0.5 0.1 -0.4 X
IuteCredit Sep 2020 75.1 20.9 5.1 7.3 3.0
ExpressCredit (D) Dec 2019 16.5 3.6 1.8 -1.6
DelfinGroup Sep 2020 34 9.5 4.3 4.6 2.9
Sun Finance Denmark Sep 2020 11.6 3.8 4.4 2.1 0.0
Sun Finance Vietnam Nov 2019 1.4 -2.2 -2.4 X
Finko Dinero (D) Dec 2019 11.3 1.0 1.2 -1.5
Finko UkrPozyka (D) Dec 2019 5.0 1.0 -1.7
SOS Credit Feb 2020 2.1 1.2 0.0 0.2 0.2 X
DanaRupiah Feb 2020 2.8 2.8 X
Monego (D) Dec 2018 4.1 0.4 -0.6 0
Moneda Dec 2019 0.7 0.6 -0.8 X
Sun Finance (Tengo, Kaz.) Dec 2018 4.1 -0.4 X
Cashwagon (D) Feb 2020 27.9 1.0 -5.9 -7.0
Placet Group Sep 2020 30 20.9 4.0 3.5 3.0
Akulaku (S) Dec 2019 118.3 65.5 -33.9 -37.9 -22.1
AgroCredit Dec 2019 6.9 1.9 0.2 0.2 0.1
Acema Mar 2018 46.1 17.5 2.8 2.0 2.4
Wowwo Jun 2020 28.2 15.7 4.9 2.5 1.6
Evergreen Dec 2019 8.5 1.3 1.2 0.2 X
Creamfinance Dec 2019 58.4 13.3 0.9 1.2 -0.4
Extra Finance Dec 2018 4.6 2.0 0.1 2.0 2.0 X
Mozipo Group Dec 2018 3.3 -4.8 -2.5 -1.7 0.5
Aasa Dec 2019 25.3 17.7 0.4 -9.3 X
Finitera Kredo Dec 2019 10.6 0.2 -1.2 -0.8 -0.2
Aforti (D) Dec 2018 27.1 1.7 0.1 0.3
Creditter Sep 2019 6.7 0.7 -1000 X
Pinjam Yuk Dec 2019 7.2 5.7 1.4 X
Revo Technology Dec 2019 31.5 5.7 0.9 -1.4
Dozarplati Dec 2019 12.2 2.8 2.2 0.9 0.1 X
Capitalia Mar 2020 1.7 0.6 0.1 0.1 0.0
EcoFinance Jun 2020 7.5 1.6 0.5 -0.3 0.1
GFM Mar 2020 6.2 5.3 0.4 0.0 X
Dinerito Dec 2019 11.3 3.8 0.3 -0.2 -0.4
Hipocredit Dec 2019 6.6 0.5 0.3 0.1 0.0
Finko Kiva (W) Dec 2019 3.5 0.6 -1.1 0.0
Debifo Dec 2018 7.8 0.1 -0.1 0.2 0.0 X
Kviku Jun 2020 14.0 2.4 0.4 0.8 0.6
Rapido (D) Dec 2018 1.8 -1.7 -1.7 -1.9 -0.8
Finitera Tigo Dec 2019 4.7 0.7 0.7 -0.8 -0.3
Julo Nov 2019 14.3 10.8 -2.0 X
Peachy (D) Dec 2018 5.7 -1.4 -0.4 -2
GetBucks (D) Jun 2019 92.1 -41.8 -51.2 -9.5 -12
Finclusion Jun 2020 12.3 9.0 -2.5 -13 X
Credius Dec 2019 13.9 8.9 1.1 0.4 1.8
Rapicredit Dec 2019 5.2 1.3 0.6 -0.5 0.0
Kredit24 (S) Dec 2019 3.0 0.6 1.2 -0.6 0.7
Watu Credit Dec 2019 27.9 4.8 4.5 1.5 0.2
Podemos Progresar Aug 2020 6.7 6.2 1.7 X
Sun Finance Latvia Dec 2019 14.4 8.8 6.3 3.1 -0.7 X
Everest Finanse Dec 2019 96.8 67.4 9.4 7.2 -6.6
Sun Finance Poland Mar 2020 19.5 2.5 4 2.4 -6.9 X
Stikcredit Dec 2019 4.3 3.7 1.6 0.9
E-Cash Dec 2019 2.3 0.6 -1.3 -0.6 X
Esto Aug 2020 14.9 4.3 0.9 0.4
Zenka Aug 2019 1 1.3 -1.7 X
AlfaKredyt Dec 2018 4.9 1.3 0.3 0.2 X
Mikro Kapital Russia Dec 2019 22.2 9.7 1.2 -0.3
Mikro Kapital Romania Nov 2019 18.2 3.4 0.5
Mikro Kapital Belarus Dec 2019 27.4 3.7 1.0 1.0
Mikro Kapital Moldova Dec 2019 13.9 3.0 0.3 0.4
Fireof Dec 2018 3.8 0.9 0.0 X
ID Finance Spain Sep 2020 40 8.8 4.5 3.3 0.1
ID Finance Mexico Mar 2020 N/A N/A 0.2 -2.7 -0.6 X
TASCredit Dec 2019 8.4 4.9 2.5 1.1 X
Lime Zaim Dec 2019 13.4 5.4 2.0 0.5 0.5
Dineo Credito Dec 2018 8.6 1.3 2.2 2.8 2.5 X
Sun Finance Mexico Mar 2020 2.2 -0.4 -1.9 X
Dziesiątka Finanse (S) Dec 2019 9.5 3.4 0.5 0.2 0.0
Novaloans May 2019 5.3 1.1 0.7 0.6 X
Alex Credit (D) Mar 2019 3.1 1.3 0.6 -0.3 X
CashCredit Dec 2019 9.8 3.0 0.8 0.7 0.1

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. 

Latest rating changes - November 2020

Sun Finance

Sun Finance has provided updated financials for its subsidiaries in Denmark, Poland and Latvia. Each reported strong profits in the year to September. The results for Poland and Denmark were surprising, as other lenders in these countries have suffered from new regulations that have affected collection rates and profitability.

We have upgraded the ratings of these subsidiaries, but hope to learn more about how the Denmark and Poland subsidiaries have been able to perform so well. The weaker subsidiaries in Vietnam, Mexico and Kazakhstan did not provide any financial updates. These subsidiaries receive a group guarantee. However, as Mintos has a poor track record when it comes to enforcing group guarantees, we plan to continue rating these subsidiaries on

the basis of their own financials and track record. The Sun Finance group reported a profit of €12.1m in the 9 months to September, which was a strong result.

Wowwo

Wowwo published its audited financial statements for 2019. We are normally happy to receive audited figures, but unfortunately the audit opinion was qualified in several different areas. We have cut the disclosure quality score by 3 to reflect this. Our revised score for Wowwo is now 70.

Mogo

Mogo has been really struggling during 2020 and that negative trend accelerated during Q3 2020 when it announced a loss of €3.5m for the quarter, and €7.4m year to date. Mogo's major problem is the growth in loan provisions as a result of growing levels of non-performing loans. However it is also now feeling the impact of running significant FX risks from borrowing in Euros and lending in local currencies in

emerging markets. It also appears to have paid €4.7m of goodwill during Q3 on its acquisition of Kredo and Tigo. This acquisition, and the price paid looks very questionable given the current circumstances of Mogo. Another factor to highlight is that a large proportion of the reported equity consists of subordinated loans. This is lower quality capital than subscribed equity and there has been insufficient disclosures surrounding the terms of the instruments. Tangible shareholders equity (after deducting goodwill and 

intangible assets) had fallen to only €0.1m as of Sep 30, which is concerning. Ratings firm Fitch has issued a negative outlook. One positive of their analysis is that Fitch are treating the subordinated debt as equity after presumably having reviewed the terms and structure of the instruments. Mogo announced that it had stopped lending in several countries, and was focusing on debt collection. These are probably sensible actions but they are not decisions that are made when things are going to plan. The continued losses, 

uncertain outlook, non-core acquisitions, FX risks and deterioration in the size and quality of Mogo’s capital base means that we have significantly cut Mogo’s score from 72 to 53. 

Creditstar

Creditstar announced a headline profit of just over €2m for Q3. However when digging into the numbers we noticed that this includes a gain of €1.6m booked on revaluing a portfolio that was purchased (which is a surprising accounting treatment), and it also excludes an FX loss of €0.4m. That means that the underlying result was only breakeven. Our score has been cut from 76 to 72.

Rating confirmed: Placet

Placet continue to perform well, and it has announced a profit of €3m in the 9 months to September. We don't expect Placet Group loans to be listed much longer on Mintos. They have recently repurchased €1m of loans, and are focusing on offering their loans via Moncera, and exploring other funding options. Our score remains at 79.

ID Finance Spain

ID Finance Spain recently provided a financial update that lacked much detail. Positives are that they reported a profit of €3.4m in the 9 months to September, and growth in shareholders equity. Negatives are the very poor quality of financial reporting and what seems to be increased leverage of the business. Our score has slightly fallen from 54 to 52.

New: Podemos Progesar

Podemos is a strange Mexican lender. It seems to be run for profit but has social objectives. Loans are all guaranteed by several people. The quality of information provided by the company is very poor. The business is currently mainly equity funded and it says it made a profit in the year to August. That's pretty much it. Other Mexican lenders on Mintos have been performing poorly this year. Investors should be cautious. Our initial score is 44.

IDF Eurasia

We have decided to continue cutting the score of IDF Eurasia. They make us nervous because they continue to publish quarterly updates that seem intentionally designed to avoid providing any hard numbers (like whether they made a profit or loss...) The Kazakhstan subsidiary that issues loans on Mintos appears to be performing adequately based on a recent bond prospectus we have obtained. But for now, we are losing confidence in the group and will wait for solid information before we change our mind. Our new score is down 13 to 46.

Rating confirmed: Delfin

Delfin have announced profits of €3.2m in the 9 months to September. Notable events during Q3 were the issuance of €3.5m of unsecured 2 year bonds, and the payment of a €2m dividend. Operating performance was stable, and we have retained our score of 77.

Stikcredit

We have identified an error with the P&L translation uploaded by Stikcredit to Mintos. We had reduced their profitability score because it seemed that most of the 2019 profit related to a tax credit. We have seen from other sources that was not the case and the presentation of figures is incorrect. We have increased their profitability score and reduced their disclosure quality score. The net result is a net score increase of 3, to 51.

Changes in September & October 2020

Farewell to...

ITF Group, BB Finance / EGE and Mwananchi. None of these loan originators were major participants in the Mintos marketplace. Its unclear why they have left - Mintos has made no announcements.

Rating confirmed: Iute

Iute released their Q3 2020 report and the results continue to be strong. The company was able to generate a profit of €2.5m during the third quarter, and is now looking to growing its loan portfolio again. Our score remains at 77, one of the highest currently.

Placet Group

Placet Group has long been one of the strongest loan originators on Mintos. Its results for 1H 2020 were very good (given the Covid situation), with a profit of €1.9m. Placet has benefited from being mainly based in Lithuania and Estonia, which have had only small numbers of Covid cases so far. Placet had only modest growth during 1H 2020, and continues to have a conservative balance sheet structure. Our score is up 5 to 79.

Wowwo

Wowwo (sensibly) reduced the size of its loan book during 1H 2020 while still managing to grow its profit levels strongly compared to 2019. It made a profit of €2.4m in 1H 2020. Wowwo is based in Turkey, which is another country that has not been as impacted by Covid-19 as others, and it has a mostly young population. The good performance in 1H 2020, and strengthened balance sheet has led to a score increase by 3 to 73.

Kviku

We cut Kviku's score ahead of the release of their 1H 2020 results. We were worried about potential FX risks caused by Russian rouble devaluation, and the impact of COVID-19. Their published results were better than expected. The company confirmed that its FX risk is fully hedged. It was able to remain profitable, while slightly cutting lending and growing its capital base. As a result their score increased from 44 to 53.

Ratings confirmed

We have reviewed the latest financials for Esto and ITF Group. Both companies have had stable performance and as a result there has been no change to their ratings.

Stale data

Several loan originators have not provided any financial information since 2018. Given it is now September, we see no reasons why, at a minimum, 2019 results have not been disclosed. We have now given each LO that has not provided 2019 results a zero score for disclosure quality, leading to downgrades for Alfakredyt, Kredit Pintar, Debifo, Mozipo, Extra Finance, Acema, Dineo, Fireof and ID Finance Mexico.

Changes in August 2020

Creditstar

Creditstar published its results for 1H 2020 and we liked what we saw. The company booked a profit of €2.7m, raised €2m of equity, and issued €18m of bonds in June. This is good news for both Creditstar and also Mintos investors who own their loans. We have increased their score slightly from 74 to 76, and continue to think that they are one of the better loan originators on Mintos.

Rating confirmed: Delfin

Delfin is another loan originator that seems to be performing very well through the COVID crisis. Its non-performing loan ratios have been stable, and they were able to achieve a profit in 1H 2020 that was in line with their profit from the same period in 2019. They remain one of the highest rated loan originators, with a score of 77.

New: Finclusion

Finclusion has acquired the GetBucks lending operations in South Africa and Kenya from MyBucks. MyBucks has sold the GetBucks operations in Zambia and Botswana to other parties. The Zambia and Botswana loans have been suspended by Mintos due to pending payment problems. We have never been fans of any GetBucks loans. Our initial score for Finclusion is 30.

Evergreen

Evergreen is a small British payday lender. They were profitable during 2019. However they significantly increased their leverage during Q4, which is why we cut their score from 51 to 46.

Changes in July 2020

Mogo

Mogo has released their 1H 2020 results, showing a loss of €3.9m. They point to an FX loss of €4.1m as being the main reason, although this can't be totally ignored, as it shows the relatively high level of unhedged FX exposure they have to currencies in places such as Georgia and Kazakhstan. Non-performing loans ratio increased from 6% to 11%. Our score has been cut from 76 to 72.

Rating confirmed: Iute

Iute also released their H1 2020 report and we were impressed with the results. The company was able to generate a profit of €1.3m, build large loan provisions, reduce leverage of its balance sheet, and cut its operating expenses by 25% since the COVID outbreak. We continue to view Iute as one of the best loan originators available on Mintos, and our score remains at 77.

Farewell to...

Lendo, and Credilikeme. In the early days of Mintos Lendo was one of the larger loan originators on the platform, but it decided to close down following regulatory changes in Georgia. Investors have been paid in full. Credilikeme was a Mexican lender that never made much sense to us at all. It seems to us that Mintos decided to kick them off the platform, which we think is probably a good thing.

New: Finko (UkrPozyka)

We don't like anything at all about this loan originator. We could tell you why, but we would be wasting your time. 15/100

Sebo - acquired by Mogo

Sebo is a Moldovan lender that had been owned by Finko. It has now been purchased by another Mintos loan originator - Mogo - for €2.9m. This is positive for Mintos investors, as Mogo is a stronger loan originator than Finko. We are removing our standalone score for Sebo now that it is part of the Mogo group.

Rating confirmed: Agrocredit

Agrocredit is one of the oldest loan originators on Mintos. It lends to agricultural businesses and farms. It's never really made much profit, but it's never lost money either. After reviewing the 2019 results, which were very similar to 2018, our rating remains 47.

Rating confirmed: Placet Group

Placet Group has published their Q1 2020 results, where they made almost €1m profit. Their balance sheet remains conservative, and they seem to have been performing well through the Covid crisis, from what their CEO tells us. Our score remains 74.

Changes in June 2020

IDF Eurasia

We have obtained the audited 2019 results for IDF Eurasia, which showed a 20% growth in profits, and higher equity levels. However we still have a few concerns. The main operations are in Russia and Kazakhstan, countries which are experiencing difficult times. The company also has currency exposure. The RUB and KZT have both depreciated during 2020 which is likely to have led to losses. The company is slow to provide financial information, and lacks detail. Our score is down 4 to 59.

Finitera (Tigo)

Tigo is a small subsidiary of the Finitera group in North Macedonia. Their 2019 results were much better than the previous year - moving into profit and positive equity. However they are still overall a very weak company. Almost all of their funding comes from Mintos, and there is no currency hedging at all. If there was a depreciation against the euro this could easily bankrupt the company. Our score is 31.

New: Finko (Kiva)

Finko Group has somehow managed to suffer the loss of licences by two subsidiaries in the last 6 months - Metrokredit in Russia, and Varks in Armenia. Things are not going well. They are now lending funds in Russia through a company called Kiva. It is like many other Finko subsidiaries, small and loss making. There is a lot of uncertainty over the future of the Finko group, which makes it impossible for any reasonable investor to purchase their loans. Our initial score for Kiva is 16.

Changes in 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.

Changes in 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.

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.

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.

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

  1. naigoreip Reply

    Thank you Oscar for your great work. I think downgrading Mogo is both courageous and very fair. The consequence is that If one wants to stick to selecting only the 60+ ratings there is not much left to do in Mintos. If like me one has Lendermarket and Moncera accounts, and one does not want Turkish, African or Bielorussian risk there are perhaps 3 or 4 acceptable LOs left in Mintos. Where is Mintos going to find quality growth?

    • Oscar Harrington Post authorReply

      Thank you. Yes it is surprising that Mintos has not been able to bring in some higher quality LO’s in the last 12-18 months. There’s definitely appetite out there for high quality LO’s, even if the returns are sub-10%. 6-8% yield on high quality loans is much better than 12% where there’s a high risk of default…

  2. Mike Reply

    The Dineo Credito financials (2019) are now available via https://www.mintos.com/en/loan-originators/dineo_credito/#general.

    In general looking like the amount LOs with 60+ score is getting a bit low. If you were to invest in only better countries and LOs but wanting of course to have also enough diversity, would e.g. country risk score 50+ and LO score 55+ work?
    Yes – depends on the appetite for risk and all that and there’s no single answer fitting to all. Still? 😉

    • Oscar Harrington Post authorReply

      Hi Mike. We can’t really say what the right cutoff should be for anyone. But now is as good a time as ever to allocate funds across different sites, particularly ones that have real estate collateral like Estateguru, Bulkestate, Crowdestate. The risk/reward is much better than buying loans of risky Mintos LO’s.

  3. Sergey Reply

    On Stik, “The profit after tax looks good, but more than 90% of it comes from tax credits.” Where do you see that / for what period / what numbers exactly? If i look at 1H20 #s, there’s an income tax of 128k eur, which reduces profit down to 1.157m eur. Likewise in FY19, income tax was PAID out, and in FY18 too. Tax items on balance sheet are insignificant. Even looking at their audited accounts in Bulgarian, I see no funny business from taxes?

    • Oscar Harrington Post authorReply

      Sergey we were referring to the 2019 results they published on Mintos where they declared a PBT of 184k and a PAT of 1652k.

    • Oscar Harrington Post authorReply

      Sergey upon further investigation we can see that they have made an error in the presentation of their P&L in the document they uploaded to Mintos, based on other filings we have reviewed. We have amended the score and noted the error in the comments. Thanks for flagging this.

        • Jc Reply

          Thank you so much for your work.

          Creditstar is such s strange beast – Lendermarket had almost everything on time. I managed to exit a month and a half.
          On Mintos it is now more than 6 months since I disabled all strategies with next to no profit and everything with delays and postpones. P2p is a No for me in the current climate.

  4. Marek Reply

    In August rating changes you reported that Creditstar has published its results for 1H 2020. Where these can be found?

  5. Joliehuis Reply

    You have Creditstar at a relatively high rating. Do you take into account that the short-term loans in Spain and Poland behave very differently than the personal loans elsewhere? Spain and Poland rank 5 in the new Mintos Risk Score, and all of their loans are late. Moreover, no new loans are available on the primary market on Mintos.

    • Oscar Harrington Post authorReply

      Creditstar are clearly shifting their funding towards Lendermarket, so it’s not surprising that there are not too many loans available on Mintos any more. Yes Spain and Poland are higher risk countries at the moment, but overall results so far have been fairly good so far this year. Looking forward to seeing the Q3 update.

    • Oscar Harrington Post authorReply

      Hi Adam. I think we have already uploaded that data. Perhaps try clearing your cache and see if the latest numbers appear? Let us know.

      • Adam Kadmon Reply

        Thanks for the reply Oscar;
        I’ve tried clearing cache and cookies but I still see a X in the Audited? section, but maybe it’s just my pc.

        • Oscar Harrington Post authorReply

          Hi Adam – understood, we thought you were referring to the figures not the audit flag. Thanks, we have updated it.

  6. Thomas Reply

    With the currency the way it is at the moment, what are your thoughts on Wowwo at the moment?

    I have noticed that they have a new presentation on their LO page but no Q3 financials as yet. They dont seem to have a large proportion of late payments or any pending payments, which indicates that they are making their repayments on a timely basis. Does this mean that the FX is not a huge problem for them at the moment?

    • Oscar Harrington Post authorReply

      Good question Thomas. We’d like to see better disclosure on how much of their funding is in euros and whether they hedge this in any way. But we should also note that depreciation of the lira is not a new thing, and they have been reporting good results in prior years during early depreciation periods too…They also own a lot of cars, which they say have appreciated in Lira terms by 50% so far this year. The ownership of hard assets like vehicles is probably a very good hedge of their euro funding exposure.

      • Thomas Reply

        It seems that Mintos finally uploaded the Wowwo 2019 audited accounts (not sure why they werent available previously!?)

        Just waiting for the Q3 financials now to see what effect the exchange rate has had on them.

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  8. Gudrune Reply

    Hi, I went through Iute’s results for 3Q20, they’re very good given the circumstances, and the quality of their reporting might be the best of the competitors, or thereabouts. Their bonds are also “real” ones, in that they’re listed on Frankfurt Stock Exchange as eurobond (better than local market bonds like Delfingroup, for eg).

    Does anyone have contact information at Dozarplati? I have Qs on their financials but Mintos is of course useless and I can’t find an email address?

    • Oscar Harrington Post authorReply

      Agree, they are doing great, and seem well managed. The main risk is that they are operating in places like Moldova and Albania which are emerging markets.

  9. Centrino Reply

    Hello,
    On 25/10, I’ve seen a link on a Telegram group about a possible new regulation in Latvia, unfortunately not in english :
    https://www.vz.lt/finansai-apskaita/2020/10/25/latvijoje-sprendziama-del-ne-didesniu-nei-5000-eur-skolu-gyventojams-nurasymo?fbclid=IwAR24YugNoXm3el3wjUDtLYVeDJwCDPh1_T_Ysinx9-UeZO3SdZQa_31qGZQ

    The persons in the group were wondering if this could affect Delfin Group, and if they should remove them from their anti-invest.

    Are you aware of this ?

    Thank you and regards

    • Oscar Harrington Post authorReply

      Hi Centrino, we will try and get a response from Delfin Group on this question

        • Oscar Harrington Post authorReply

          We have received back a comment from the Delfin CFO. Apparently the law being discussed would require borrowers to prove to officials that they have no income and no assets. Does not sound that different to the insolvency procedures in many European countries. Worth monitoring but it seems that most borrowers in this position would have defaulted on their loans anyway, perhaps the recoveries on defaulted loans may fall slightly in some cases….

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