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

Last updated - 27 May 2021

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 gives new recovery estimates

Mintos has provided its latest update on how much it expects to recover from each lender in default. Total recoveries are forecast to be 55-60% across the defaulted loan portfolio (which is higher than the last Mintos estimate of 50%). The companies that had their recovery estimates cut were Cashwagon and Dziesiatka. Mintos also announced for the first time that investors will receive less than full recoveries on exposures to Monego and Aforti. We are not fans of how Mintos distributes cash received from defaulted lenders. Rather than distributing it pro-rata based on how much is owed to each investor, it distributes it according to the maturity dates of the loans owned by each investor. This means in effect that investors holding short term loans will receive full recoveries, and investors in longer term loans will often receive nothing. This does not make sense to us. 

E-Cash is closing down. Investors will make a significant loss

Small Ukrainian lender E-Cash has announced that it is closing down. It has around €0.8m of loans outstanding on Mintos, with a further €0.4m of pending payments. Mintos has suspended E-Cash from the marketplace. We had rated E-Cash only 20/100 due to its small size, low capitalisation, and heavy losses in 2019. Mintos has now announced that the recovery rate for Mintos investors will be less than 25%. 

Mintos lifts suspension of Sun Finance Denmark but the risks remain

In early 2020 we highlighted that Denmark was introducing an interest rate cap of 35%, and that this would impact many payday lenders in that country. We have since seen many lenders stop operating in the country as a result, or significantly cut back operations. Sun Finance has kept operating there. The consumer ombudsman has now highlighted several practices of Sun Finance that it says are illegal, unenforceable, and will be reported to the police. This includes charging a fee of 17% of balance for every month a customer does not provide certain financial information, as well as over-charging of default interest, and not including certain mandatory fees within the APR calculation. Several other unfair terms were noted, including the requirement to immediately repay a loan if a customer’s credit rating fell beneath a certain level. These allegations appear to be very serious breaches of the regulations and there appears to be a high risk that the loans will be found to be not enforceable. 

We note that the Sun Finance CEO has stated that he believes that the loan terms are compliant and has been reviewed by experts. Mintos initially suspended Sun Finance Denmark from the primary market but it has now reversed that decision because there is no active legal case against Sun Finance currently. We are very surprised by this decision as it will obviously take time for any actions to be taken by Danish authorities, and the lack of an any actions now does not mean that the Ombudsman’s complaints have no merit. There is absolutely no upside for Mintos investors to take on any regulatory risk and we continue to expect the smarter investors to sell and avoid Sun Finance Denmark until the matter is fully resolved.  

Mintos updated its ratings

Mintos has just released updates to its loan originator ratings. You can find the full details here. Most of the changes were  score upgrades. We didn’t see anything particularly noteworthy or alarming – in most cases the new scores are now more in line with what we would have expected.

Mintos improves diversification options for its 'custom auto strategies'

Mintos continues to try and fix its auto-investment algorithms b providing greater functionality and controls for investors. We have been critical in the past of the various auto-invest algorithms operated by Mintos, as we felt it did not offer enough control over the allocation of investments to different loan originators. That’s a big problem, as there is a wide range of credit quality within Mintos, and the Mintos ratings don’t always reflect reality. We continue to prefer setting custom auto-invest strategies for each loan originator group as this provides the highest level of control. However Mintos has announced that it will allow investors who use custom auto strategies to manually set % limits on  the amount of funds allocated to each loan originator. That’s definitely a big improvement for people who use only a small number of strategies and something that should have been introduced a long time ago.

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 updated 13 May 2021:

Loan originator Reporting period Loans Equity Profit - latest Profit - prior year Profit - 2 years prior Audited?
Mogo Mar 2021 212 25.9 7.1 6.2 8.5
IDF Eurasia Kazakhstan Dec 2020 71.8 24 6 2.9 -0.3
Creditstar Mar 2021 149.7 33.5 6.2 5.8 2.9
Capital Service (D) Mar 2020 28.3 3.4 0.2 -0.5
Kredit Pintar Dec 2019 48.3 17.6 0.5 2.8
Credissimo Dec 2019 21.5 16.1 2.5 3.2 5.0
IuteCredit Mar 2021 81 22 4.9 8.1 3.0
ExpressCredit (D) Dec 2020 20.9 4.5 0.1 1.4 -1.6
DelfinGroup Mar 2021 35.5 8.7 3.7 3.9 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 Sep 2020 1.0 1.1 0.0 0.2 0.2 X
DanaRupiah Dec 2020 3.7 1.9 1.9 X
Monego (D) Dec 2018 4.1 0.4 -0.6 0
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 Dec 2020 44.5 22.3 3.3 3.1 3.5
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
Wowwo Sep 2020 43.2 16.7 5.5 2.3 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 2019 14 4.9 0.0 0.3 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 Dec 2019 4.4 0.8 0.8 X
Pinjam Yuk Sep 2020 4.5 2.7 -3.8 1.2 X
Revo Technology Sep 2020 23 6.6 1.2 0.8 -1.2
Dozarplati Sep 2020 22.5 6.9 5.8 2.0 0.8 X
Capitalia Mar 2020 1.7 0.6 0.1 0.1 0.0
EcoFinance Dec 2020 6.1 2.4 -1.8 -0.3 0.1
GFM Sep 2020 6.2 5.3 0.4 0.0 X
Dinerito Dec 2020 10.4 3.2 -0.1 0.2 -0.2
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 Dec 2020 14.6 3.1 1.1 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 Mar 2021 12.3 8.6 -0.3 3.0 X
Credius Sep 2020 10.2 9.4 0.9 1.1 0.4
Rapicredit Sep 2020 6.9 0.7 -0.9 0.5 -0.6
Watu Credit Dec 2019 27.9 4.8 4.5 1.5 0.2
Podemos Progresar Oct 2020 8.6 6.3 1.9 X
Sun Finance Latvia Sep 2020 14.4 8.8 6.3 3.1 -0.7 X
Everest Finanse Sep 2020 95.7 64.1 0.8 9.1 7.2
Sun Finance Poland Mar 2020 19.5 2.5 4 2.4 -6.9 X
E-Cash Dec 2019 2.3 0.6 -1.3 -0.6 X
Esto Dec 2020 19.7 4.8 1.5 0.4 -0.1
Zenka Aug 2019 1 1.3 -1.7 X
AlfaKredyt Dec 2018 4.9 1.3 0.3 0.2 X
Mikro Kapital Russia Sep 2020 17.9 7.6 0.1 -0.3
Mikro Kapital Romania Sep 2020 24.5 3.6 0.3 0.5
Mikro Kapital Belarus Sep 2020 31.1 4.9 1.8 0.8
Mikro Kapital Moldova Dec 2020 16.3 4.0 0.4 0.2
Fireof Dec 2018 3.8 0.9 0.0 X
ID Finance Spain Sep 2020 40 8.8 4.5 3.3 0.1
TASCredit Sep 2020 25 5.5 2.9 2.0 0.9 X
Lime Zaim Dec 2020 9.3 4.1 0 1.4 0.4
Dineo Credito Dec 2019 8.1 1.1 3.4 2.2 2.8 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
Swell Dec 2020 10.9 4.2 -0.7 0.0 X
Alex Credit (D) Mar 2019 3.1 1.3 0.6 -0.3 X
CashCredit Sep 2020 5.7 3.2 0.3 0.8 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. 

Key updates: May 2021

Mogo

Mogo really struggled during 2020 but it seems to have turned the corner. It made a profit of €3.5m during Q1 21 compared to a €2.5m loss in Q1 20. Mogo also announced a €5.3m capital raise. This was done via a subordinated debt issue. It's not clear to us why shareholders are not willing to inject funds via a share issue.

We think the subordinated debt is a weaker form of equity injection and we have given less credit to it in our capital scoring than if ‘real’ equity was injected. High leverage remains Mogo’s biggest weakness. Mogo’s loan portfolio seems to be performing fine, with stable NPL ratios. Our new score is 65, up 4

Score retained: Delfin

Delfin announced a Q1 profit of €0.8m for Q1 21. That's slightly down on previous quarters but still a good result. Credit quality in its loan portfolio remains very stable. We saw no reason to change our previous score of 77

Score retained: Iute

It's a very similar story for Iute, another high rated lender. It announced Q1 21 profits of €1.1m. Its balance sheet was very stable and loan quality improved, with the net NPL ratio falling from 16.6% to 13.1%. Our score remains at 77

Lime Zaim

Lime Zaim was badly hit by Covid in the first half of 2020, which resulted in losses caused by increasing bad debt provisions. However, it seems to have had a very strong recovery during Q4 20, which led to the company breaking even for the year. This improved performance led to our score increasing by 5 to 52

Farewell to...

Kredit24, Acema and Swiss Credit have left Mintos. In the case of Kredit24, the company ceased operations but investors have now been paid back in full. Mintos announced that Acema and Swiss Credit are leaving because the companies did not provide enough loans to Mintos investors (which makes sense to us). All investors have been repaid.

Score retained: Creditstar

Creditstar has announced a (unaudited) profit of €1.7m for Q1 2020. That's a 25% increase on the previous quarter due to growing revenues and lower impairment charges. Creditstar has announced that KPMG are currently auditing their 2020 results, which will be released "during the summer". If there are no issues, our current score of 72 is likely to increase

EcoFinance

EcoFinance is a small Russian lender. It's not doing very well, and made a loss of €1.8m in 2020. So why are we upgrading the score? It received an equity injection of €2.4m during Q4 2020, sufficient to cover the loss made. Our score increased by 8 to 40

Mikro Kapital Moldova

Mikro Kapital Moldova performed fairly well in 2020, making a profit of €0.4m. However we noticed that it made a loss during Q4 20, and also increased its balance sheet leverage. This led to its score falling by 3 to 51

Kviku

Kviku offers loans on Mintos as well as its own P2P site where rates are currently up to 12%. It is a fairly 'average' mid-sized lender operating across 6 countries. It increased it's profitability quite significantly during Q4 20, leading to a profit of €1.1m for the year. Our score increased by 2 to 57

Updates: April 2021

New: Swell

Swell is a fairly small lending business based in Mexico. It focused on lending to small businesses in the country. We were not that impressed by the company's presentation - it doesn't seem to have any technology or strategy to differentiate itself. The balance sheet structure is fine, but it doesn't seem to have a profitable business model, and is loss making. Our initial score is 36

Esto

Esto is a lender based in Estonia. It has been growing steadily since it joined Mintos a couple of years ago. It performed well during 2020, announcing a profit of €1.5m. We just hope it doesn't increase leverage too much further from current levels. Our score increased by 3 to 65

Kviku

Kviku is a mid-sized Russian lender that is active on Mintos while also having its own P2P platform. Its results to September 2020 indicate that its profit for the year should be stable relative to 2019&18. The area of focus remains leverage - it has a relatively small amount of equity for the size of its lending operations. Our score increased by 2 to 55

Note: Mozipo

Mintos recently uploaded an excerpt of Mozipo's 2019 audited financial statements. Frankly, it is not clear what the situation is at the company. In 2018 the company disclosed a large negative equity position.The new figures show 'restated' figures for 2018 that look much better, and €4.9m of equity as of Dec 2019. Our view remains however that this company is best avoided, with a score of 35

Updates: March 2021

Score retained: Placet Group

Placet group announced an (unaudited) profit of €3.3m for 2020. That's a strong result given the challenges faced by lenders during the year, and slightly higher than 2019. While monthly profits fell a little during Q4, they seem to have rebounded in January and February. Their balance sheet structure remains conservative. Our score remains at 79

Note: IDF Eurasia

We have decided to alter our scoring approach to IDF Eurasia. We had previously provided data and scores for the holding company. However following discussions with Mintos it has become clear that the holding company was unlikely to provide sufficient financial information in the future for us to make an assessment. As the only subsidiary

active on Mintos is the Kazakhstan subsidiary, we are now presenting financial information and scores just for this entity. The quality of information available about this entity is better than average, particularly because it recently published a prospectus as part of a bond issue. Our initial score is 63.

Score retained: Wowwo

Wowwo is a car finance and retailing business based in Turkey. Wowwo released very strong results for Q3 2020. The strong results were during a period of depreciation of the Turkish Lira. Since then Lira has been volatile but it is currently trading at similar levels to last September. Our score remains at 72, supported by strong profitability and over €16m of shareholders equity.

Score retained: IuteCredit

IuteCredit published audited financials showing a profit of €5.2m for 2020. This is lower than 2019, mainly due to higher bad debt costs and some FX losses. The company was successful in cutting costs to offset some of the challenges that Covid-19 caused. Overall, the company has been performing well. It has strong growth plans - we will be monitoring to make sure this does not create too much leverage of their balance sheet. Our score remains 77.

Score retained: Delfin

Delfin group announced an (unaudited) profit of €3.6m for 2020. While this was slightly down on 2019, that is a very credible result given the impacts from Covid-19. One of the things we like about Delfin is that they have to comply with leverage covenants under the terms of their bond program. Delfin's leverage is well inside the covenant level. Our score remains at 77, one of the highest on Mintos.

Farewell to...

Stikcredit. Bulgarian lender Stikcredit has decided to quit Mintos to focus on starting up its own brand new P2P site, Afranga. The company has released new results for 2020 and they were very good given the circumstances. Stikcredit is offering very high interest rates at Afranga - 18% (maybe too high)? You can find the latest financials and our updated rating score for Stikcredit here.

Farewell to...

Aasa. We are pleased to see European lending group Aasa leave Mintos because they were a company that we were never able to get comfortable with. The information they published was inadequate, confusing and hinted at big problems.

Updates: February 2021

Mogo

In November we cut the score of Mogo following a Q3 loss of €3.5m and a decline in its capital base. Mogo has announced a significant Q4 profit of €9.1m. However, €6m of this comes from revaluing portfolios that the company acquired only a few months prior. This seems like a strange accounting approach. Putting that aside, the underlying results were however still a significant improvement on Q3.

We were also pleased to see that the company is (finally) taking steps to reduce its FX risk. Mogo has also announced that they are hoping to obtain an equity injection from new investors. That’s a good idea, because the company currently feels a little over-leveraged right now.

To reflect the turnaround in performance, our score is up 8 to 61.

Score retained: Iute Credit

Iute Credit's Q4 results were in line with expectations, resulting in a €5.2m profit for 2020. Iute seems to have done a good job of managing the challenges of 2020. While impairment costs rose significantly, the company was able to charge higher fees and heavily cut operating costs. Iute remains one of our highest rated loan originators, with a score of 77.

Score retained: Creditstar

Creditstar has been one of the most discussed LO's in the last 12 months. There has been 3 main criticisms from some investors - high levels of pending payments on Mintos, the lack of a big 4 / credible auditor, and the need to refinance several bond issues. These were all valid concerns. However, they are areas that the company seems to have made good progress recently.

The company had promised to clear the pending payments in the new year, and they have achieved that, with only a minor amount remaining at the end of January. The company successfully issued €20m of bonds in December (although admittedly at quite a high yield of 13.5%). The next issuance is planned in May 2021. On the audit side, the company has committed to using ‘an internationally recognised accounting firm’ (thought to be KPMG) to audit the 2020 results.

The audit of the 2020 results by a major audit firm will generate a lot of confidence among investors. That’s because based on the results provided to us, the company performed well during 2020. It has announced preliminary results for the year that show a profit of €5.7m. The underlying earnings during Q4 improved significantly compared to Q3, due to strong growth in net interest income and falling loan impairment charges. We would like to see Creditstar raise some equity during the first half of 2021 – it 

has always operated with a fairly stretched balance sheet. It seems to have strong growth plans, and it is going to require an equity injection if it wants to do this while retaining the confidence of its creditors. Our score remains 72.

Updates: December 2020

Lime Zaim

Lime Zaim is an online lender based in Russia. We cut the scores of all the Russian lenders earlier this year because of the negative outlook caused by both Covid-19 and the drop in oil prices. Lime has disclosed that it lost €0.9m in the first 9 months of 2020. That leaves the company with only
€3m of equity, which we would like to see them increase in the coming months. The loss was slightly higher than we had expected, and the Lime score has fallen 9 to 47.

Ecofinance

Ecofinance is another lender based in Russia. Like Lime Zaim, it's also not doing very well right now. As of September 30 it essentially had no equity left, after big losses this year. The company is small, and lost money last year too. That puts it pretty high on our list of lenders that could potentially vanish pretty quickly. We were expecting issues at Ecofinance, but they have burned through their equity faster than expected. As a result we have cut their score by 11 to 34.

Pinjam Yuk

Pinjam Yuk is a small lender based in Indonesia. It has just published results for the first 9 months of 2020 and things are not looking good for them. The company lost $3.5m in that period, which is more than the amount of equity that the company has remaining. The next 6 months will be very important for the company. Our new score is down 9 to 32.

Everest Finanse

In April we cut the score of Everest strongly. Although the company was very profitable, we had concerns about how well the business would do during Covid as it relied on face to face operations. It was also based in Poland, whose government brought in many regulations that impacted lenders. To some extent we have been proved right, with a 90% fall in profits during 2020. However it could have been worse. Our new score is up 5 to 58.

Kredit Pintar

Kredit Pintar is an Asian lending group. In October we cut their score because they still had not published any financial information for 2019. They have now released their audited results. Profits were down on 2018, but otherwise there were no big surprises. Our new score is up 4 to 57.

Dozarplati

Dozarplati is a Russian lender that is doing much better than many of its competitors in the country. It has been growing very quickly. This has translated into growing profits too - it is on track to make almost €6m this year. The main thing to keep an eye on is the company's leverage - it seems to have been paying out a lot of the profits generated as dividends. Our score is up 11 to 56.

Mikro Kapital Belarus

We have cut the score of Mikro Kapital Belarus for 2 reasons. Firstly, the company disclosed a significant increase in leverage during 2020. Secondly, there are significant political events taking place in the country, and it is unclear what impact this will have on the economy and lenders. Our score is down 9 to 54.

Mikro Kapital Russia

Mikro Kapital is yet another Russian lender who has released new results this month. We had cut their score earlier this year due to the troubled conditions in the country. The business managed to break even in the year to September, which was a better than expected result. The balance sheet structure also looks reasonable for a business of its size. Our score increased 8 to 53.

Score retained: Esto

Esto is a mid-sized Estonian lender. Since listing on Mintos, all of its metrics have tended to be in the middle of the range we see for lenders at Mintos. Everything seems to be going to plan for Esto this year, with profits slightly ahead of the prior year. Leverage is slightly higher than we would like to see. We have retained a score of 63 for Esto.

Wowwo

Wowwo is a company that has split opinion amongst Mintos investors. Some worry about the depreciation seen in the Turkish Lira in particular. Others see a business that is well run and has made profits in the past even with big currency devaluations. Results for 2020 have been strong so far, with profit up more than 100% year on year. We have increased the score by 2 to 72.

Updates: 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.

Score retained: 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.

Score retained: 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.

Score retained: Iute

IuteCredit 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.

Scores retained

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.

Updates: 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.

Score retained: 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.

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.

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

  1. Pingback: Actualización de mi Cartera – Julio 2020

  2. George Reply

    Hi. I love your web side. Very good work. My question is on the new user agreement of Mintos. What is opinion?I hate the fact that Mintos will charge me for legal costs involved with defaulted LO. Will Mintos take any responsibility for their wrong doings like allowing Finko providing loans through Mintos while having pending payments(Varks), Cashwagon etc? Also who is going to control them on the legal costs?

    If I leave Mintos before 12 of August will I pay for the legal costs on my pending payments outstanding?

    thanks

    • Oscar Harrington Post authorReply

      Thank you Asier! We have updated the page to include the new results

  3. Folkert Reply

    Any comments on IDF Eurasia? The exchange rate is deteriorating, I can’t find anywhere if they have hedged their euro debt.

    • Oscar Harrington Post authorReply

      Hi Folkert. They say that they use a combination of borrowing in local currencies, and perform spot transactions to ‘ensure net exposure is kept to an acceptable level’. Seems that they don’t perform any normal currency hedges. We don’t have any new information on IDF Eurasia, but have been cutting their score throughout the year to reflect the risks you raise.

    • Oscar Harrington Post authorReply

      Thanks as always Christian! We’ve updated Finitera and removed Credilikeme. Regarding Lime – we believe those numbers are actually for the 2019 year, so we’ve already got those in the table.

  4. Jmn Reply

    The new section about Mogo says:
    “”the recent loan originators that have defaulted, or are likely to: Mogo[…]””
    Mogo warning about a temporary covenant break doesn’t mean they’re on the way to default, aren’t they?
    Their 2021 bond trades almost at par.

    • Oscar Harrington Post authorReply

      Hi JMN – thanks – have updated the wording. We used to only talk about distressed lenders at the beginning, which is why we had that wording there. Clearly Mogo is not one of them….

      • Jmn Reply

        Thanks. I still can read: Finko (Sebo, Moldova)
        Probably to be updated too.

  5. José Henrique Reply

    I am not sure if there are (very) recent updates to Aforti case, but Aforti loans have been moved from “60+ days late” to “pending payments”. I tend to differentiate very much a “default”/”bad debt” (which seems to be Aforti case) from a “pending payment” from, say, Capital Service, which may be near bankrupt, but not exactly in default at the moment…

    I wonder whether Aforti actually settled to pay (and it is an actual pp) or Mintos simply regarded the payment deadline they set on the notification to Aforti as exceeded and labeled any loan as “pending payment” because of this (and it is in fact a bad debt/default)…

    Does anyone know if there are any updates not fully disclosed by Mintos yet?

    • Oscar Harrington Post authorReply

      Thanks Jerome, some interesting stuff in there, seems like performance is in line with expectations, they have cut costs quite significantly, and it’s positive for all that they received a covenants waiver.

    • Oscar Harrington Post authorReply

      Thanks – nothing much ever seems to happen at Agrocredit. I guess that’s a good thing for Mintos investors, would not want to be a shareholder though…It was very interesting to see the fee arrangements with Mintos – this is not normally disclosed by the loan originators.

  6. Jmn Reply

    Sebo is moving from Finko to Mogo, as its Group Guarantee, probably noteworthy.

  7. Petr Reply

    Hi all,
    what do you think about the Mintos stability as a company based on its annual report for 2019? It made a loss of nearly 1M EUR. What I read from the report, most of its income comes from LO provisions, which will be definitely lower in 2020, whereas most of the expenses are for people salaries and administrative, which is more or less stable I guess. I know they fired some people earlier this year, but that was some freshly hired development team as far as I remember. I am definitely not a pro in company finances, so I’ll be glad for any comments. Will the shareholders add some more equity? Or will Mintos borrow money somewhere? Or is it likely it will just not survive this?

    Best
    Petr

    • Oscar Harrington Post authorReply

      Hi Petr. This should not be too much of an issue for Mintos. The business is still growing and losses are to be expected. The business has a high value and it would not be difficult to find investors if more cash is needed. It is a significantly bigger business than Estateguru – who had a valuation of around €35million in its recent capital raising…

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  9. Pingback: P2P Cafe [#16] Juni 2020 – Mit Tim dem Fremdkapital Jongleur | P2P Game - ein Investment Tagebuch

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    • Freeze_XJ Reply

      Nice find!
      Provides a lot of insight in what is happening over there, and it’s not good at all.
      First off, it seems that they decided in sept 2019 to wind down, and I’ve missed any announcement of that on Mintos.
      Secondly, about Mintos they state the following (translation by Google):
      “Currently, this platform is the primary source
      Company financing. To ensure mutual safety and driving comfort
      activities, the parties started talks in September 2019 aimed at reducing financial
      MINTOS involvement in CAPITAL SERVICE activities. As at the date of this report, they are pending
      talks and arrangements to work out the final solution. A company to maintain planned growth
      loan portfolio and diversify sources of financing in January 2020 concluded an agreement with
      entity operating a competitive peer to peer platform – FAST INVEST. ”
      So they’ve ran to another platform, and suddenly stopped paying somewhere in March.

      • Jan Reply

        Just a bit more information 18.6.
        We would like to inform you that on 31 May 2020 Mr. Ovais Siddiqui – Vice-President of the Management Board of Capital Service S.A. ended his cooperation with the company.

    • Oscar Harrington Post authorReply

      Thanks Jan. Interesting to see what happens with the company…

  11. Pingback: Portfolio Updadte: May 2020

    • Oscar Harrington Post authorReply

      Hi Jack – we believe that those numbers are actually for 2019 (despite the ‘as of April 2020 description at the top’), which are included in the table already.

  12. Centrino Reply

    Hi,
    In an email of 19 june, Mintos downgraded Cream Finance from rating B to B- ( but without any explanation).
    As I am investing in originators of 60+ scores, my question to you is : do you maintain your score of 63 ? Or will you recalculate / lower it ?
    Thank you!

  13. Jmn Reply

    >>Mintos has not suspended Cashwagon loans outside of Vietnam.
    It eventually did.

    • Oscar Harrington Post authorReply

      Thanks – text has been updated. They should have done that immediately really…

      • Jmn Reply

        Agree. And discount were very low, like -3%, during the short lapse between VN and other suspensions.
        I received some money from Cashwagon VN right now, looks like the recovery started.

  14. The South Sea Company Reply

    Most articles in the press about the Cashwagon Vietnam debacle have been written by financially illiterate people. The situation is a bit more nuanced than simple usury. CW has two entities in Vietnam: Lendtech (which has a lending license) gives out loans with a relatively low interest rate (12% p.a. or thereabouts). Cashwagon Vietnam operates the lending platform and takes fees for its services. The fees are significantly larger than the actual interest. We can expect CW to argue in court that “interest” is simply what the borrower has agreed to pay as cost of capital, while the prosecutor will argue that any charges that depend on the amount borrowed constitute part of total interest. With a quick Google search, one can find circulars from Vietnam’s central bank and legal reviews discussing loan fees (e.g. there are requirements about advertising them clearly), so CW’s lawyers can argue that the law clearly agrees in principle that the lender can impose fees on the borrower, and that these are distinct from interest.

    While I think the risk is high that CW will lose, it is not a foregone conclusion, and it would be dumb of them to not fight the charges to the end. If CW loses, unsecured lending will become economically inviable in the Vietnamese market, meaning that the Vietnamese ventures of Sun Finance, Aventus, Twino, etc. can all be expected to close in short order.

    • Christian Reply

      Thank you for this comment, I could not agree more that most of the reports out there are just, as unfortunately very often, oversimplifying the situation to a degree that any conclusion or opinion about it is fundamentally flawed. There was at least one News article who did mention the two entities. From what I heard, the main accusation is not even the fees or interest rate, but rather the illegal data collection that allowed them to call relatives and friends in case of overdue rates etc by collecting numbers from the address book, to keep the overall default rate as low as possible. In general, payday lenders are high-risk due to the ever-present risk of losing their license or getting wiped out indirectly through competitors etc by legal (competition) or illegal (we have a friend from the government) measures…

      I wonder how long investigation will last, and whether CW will survive this…

  15. Jmn Reply

    >> and the laws breach local regulations
    the “loans”?

    I lost big on this, but i was aware they were shark lenders, and their use of extra fees and procedure costs (~40% of nominal!) were barely legal. So that’s the game.
    I sold all my other Cashwagon, and my Kredit Pintar too, since they are the exact same type of online SE asian shark lenders.

    • Jan Reply

      I think the KP is OK, but I stopped invest there as well, but for example, Watu has around 180% APR which seems to be crazy high.

  16. Pingback: Portfolio Update: April 2020

  17. Nuno Reply

    Cashwagon Vietnam has just been suspended

    Its the total meltdown at Mintos

    • Oscar Harrington Post authorReply

      This is a bad one Nuno. It has been no secret that Cashwagon were charging high rates, Mintos should have identified the potential non-compliance with local usury laws…They can’t expect their investors to be doing these types of checks.

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