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

Last updated - 30 May 2022

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

In 2017, Mintos lender Eurocent failed, and defaulted on its Mintos ‘buyback guarantee’ commitments. Since then there have been defaults and issues with several other lenders. Over the last 5 years we have been providing the scores and data on this page – our Mintos lender ratings. Our goal is to provide investors with key information on each lender, and a rating score to help highlight those that are lowest and highest risk. 

To begin with, below we discuss some recent events:

Mintos finally launches its Notes program. Forced to close secondary market

After several delays Mintos has announced that it has launched its notes program. The notes program is designed to replace the current arrangement where it sells participations in loans, and is linked to its move to become a licenced investment platform. Initially there will be 3 companies issuing notes – CashCredit, Eleving and Sun Finance Latvia. While Mintos is highlighting some benefits to investors from notes relating to protections and transparency, there seem to be several downsides. One topic that has understandably upset many investors is the imposition of withholding taxes on interest earnings for the first time. We plan to write a post that discusses this in more detail shortly. Another huge downside relates to the secondary market – Mintos is being forced to close the secondary market in claims by 30 June. While a secondary market in notes will be possible, cutting off the liquidity options for over €670 million of claims that are currently outstanding is a huge negative. We hope Mintos makes investors more aware of the situation as this detail appears to have been lost in their communications. 

Check out our new post that discusses the implications for investors of the new Mintos notes scheme – the key benefits, and 4 important downsides to be aware of.

No major recent updates from Mintos relating to the Ukraine / Russia war impacts

Check out our post that discusses the Russia/Ukraine situation in more detail, and the likely impact on investors across various P2P sites including Mintos. Click the button to view the post.

In March Mintos suspended all Russia and Ukraine originated loans from its primary market. The affected lending companies are Creditter, Dozarplati, EcoFinance, Kviku, Lime, Mikro Kapital, Mokka and SOS Credit. The loans remain active and available to buy or sell on the secondary market. Discounts of up to 42% are currently being offered on Russian originated loans on the secondary market.

On 7th March the Mintos CFO hosted a call to discuss the situation. Key information provided included:

  • It is now virtually impossible for Russian lending companies to make payments in Euros to Mintos. As a result the amount of ‘pending payments’ will grow significantly
  • Around 15% of outstanding loans are to Russian lenders (although some investors reported being allocated over 50% to Russian loans by the automated investment tool). 0.4% of loans are to Ukraine lenders
  • 60-70% of the currency risk was hedged by lenders, but it’s difficult to know how effective the hedges will be due to the sanctions
  • Collection rates so far in Russia are good, although this may change because new payment holiday rules have been introduced

There have been no material changes to the situation since the above update was given – it appears unlikely that there will be any ability for Russian lenders to send payments internationally for the foreseeable future due to sanctions. Of course the situation with Ukrainian lenders is even more problematic. Any future recoveries at all should be considered an unexpected bonus as things currently stand. 

Mintos in negotiations with Wowwo over a debt restructuring

Mintos has announced that it is in negotiations over the recovery of Mintos investor funds from Wowwo. Wowwo is a Turkish motor finance company. It appears to have been caught out by the recent 35% fall in the value of the Turkish Lira versus the Euro. The company seems not to have hedged this FX risk at all. There was always likely to be some volatility in this exchange rate and it seems surprising that Mintos allowed the company to run this risk, and indirectly give their investors this exposure. The company has offered to pass on the repayments of its borrowers in Lira. Effectively this means that they wanted to keep all the upside of running this unhedged FX risk, and pass on all the subsequent losses to Mintos investors. We can understand why Mintos declined this proposal.

So what happens next? Mintos is following fairly standard practice. They have declared an ‘event of default’ which is the first step in undertaking litigation against a borrower. At the same time it seems to be working on negotiating a solution outside of a court process. That makes sense, particularly as Wowwo seems to be a fairly good business that has been profitable in the past. Mintos has proposed a solution involving no ‘haircuts’ for investors – this would however likely result in payments being made over several years, and with no interest. Whatever solution is arrived at, the FX risk will also need to be addressed. If there is a further currency depreciation, the company will not be able to make the future payments it promises to make. A restructuring should also consider the possibility of a rebound in the currency, which could allow Wowwo to repay investors faster.

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):

Loan originatorReporting periodLoansEquityProfit - latestProfit - prior yearProfit - 2 years priorAudited?
Eleving (Mogo)Dec 202124531.47.11.66.5
IDF Eurasia KazakhstanDec 202076.621.95.02.4-0.3
CreditstarDec 202118133.67.13.03.4
Capital Service (D)Dec 202024.1-1.5-3.90.0-0.5
CredissimoDec 202016.915.21.92.43.2
CredifielDec 202115.124.42.31.42.5
IuteCreditDec 202110525.66.15.28.1
ExpressCredit (D)Dec 202020.94.50.11.4-1.6
DelfinGroupDec 20214317.34.24.13.9
GoCreditDec 202110.38.81.51.20.32
LF TechJun 202122.38.38.5X
Jet FinanceJun 20212.11.51.1-1.9-1.2
Financiera Contigo / CEGEDec 202174.319.55.01.4-3.6
Conmigo Vales / CEGEDec 202174.319.55.01.4-3.6
ID Finance MexicoJun 202112.73.52.11.4-2.2
Watu Credit UgandaJun 202113.71.30.9-0.4
CapemJun 202128.212.31.40.60.4
AlivioJun 20218.71.20.10.10.1
Sun Finance VietnamNov 20191.4-2.2-2.4X
Finko Dinero (D)Dec 201911.31.01.2-1.5
Finko UkrPozyka (D)Dec 20195.01.0-1.7
SOS Credit (S)Sep 20201.01.10.00.20.2X
Planet42Nov 202128.61.70.2-0.30.0X
DanaRupiahDec 20200.70.80.02.2
Monego (D)Dec 20184.10.4-0.60
Sun Finance KazakhstanDec 20184.1-0.4X
Cashwagon (D)Feb 202027.91.0-5.9-7.0
Placet GroupJun 202147.924.53.83.73.1
Fenchurch LegalMay 202110.40.50.5X
Wowwo (S)Dec 202031.110.21.72.81.6
EvergreenDec 202010.32.30.90.90.2X
CreamfinanceDec 202135.014.73.4-0.80.9
Extra FinanceDec 20184.62.00.12.02.0X
Mozipo GroupDec 20201350.00.00.3
AasaDec 201925.317.70.4-9.3X
Finitera KredoDec 201910.60.2-1.2-0.8-0.2
Creditter (S)Dec 20202.91.40.50.9
Revo Technology (S)Sep 2020236.61.20.8-1.2
Dozarplati (S)Sep 202022.56.95.82.00.8X
EcoFinance (S)Dec 20206.12.4-1.8-0.30.1
GFM (S)Sep 20206.25.30.40.0X
DineritoDec 202010.43.2-0.10.2-0.2
HipocreditDec 20207.90.80.40.30.1
Finko Kiva (W)Dec 20193.50.6-1.10.0
DebifoDec 20187.80.1-0.10.20.0X
KvikuDec 202183.313.910.11.70.8X
Rapido (D)Dec 20181.8-1.7-1.7-1.9-0.8
Peachy (D)Dec 20185.7-1.4-0.4-2
GetBucks (D)Jun 201992.1-41.8-51.2-9.5-12
FinclusionMar 202112.38.6-0.33.0X
CrediusDec 202010.010.31.71.10.4
RapicreditJun 20216.91.40.1-0.3-0.5
Watu CreditDec 201927.94.84.51.50.2
Podemos ProgresarDec 20209.06.51.61.1
Sun Finance LatviaDec 202114.4137.76.93.1X
Everest FinanseSep 2021101685.12.29.0
Sun Finance PolandMar 202019.52.542.4-6.9X
E-CashDec 20192.30.6-1.3-0.6X
EstoJun 2021253.53.41.50.4
ZenkaDec 20202.9-3.9-2.9-0.9
Mikro Kapital Russia (S)Dec 202017.77.70.30.4-0.3
Mikro Kapital RomaniaDec 202025.65.70.3-0.4
Mikro Kapital UzbekistanDec 20208.50.90.8-0.3
Mikro Kapital BelarusSep 202031.14.91.80.8
Mikro Kapital MoldovaDec 202016.34.00.40.20.4
FireofDec 20183.80.90.0X
ID Finance SpainJun 202147.51210.53.30.1
Lime Zaim (S)Jun 202113.95.11.20.01.5
Dineo CreditoDec 20198.11.13.42.22.8
Sun Finance MexicoMar 20202.2-0.4-1.9X
Dziesiątka Finanse (S)Dec 20199.53.40.50.20.0
NovaloansMay 20195.31.10.70.6X
SwellMay 20217.04.00.1-0.8X
Alex Credit (D)Mar 20193.11.30.6-0.3X
CashCreditSep 20205.73.20.30.80.1

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 2022

New: Credifiel

New lender Credifiel specialises in payroll lending. It is based in Mexico and has been operating since 2005. Payroll lending has a lower risk than unsecured lending as the repayments are deducted from an employee's salary packet. This can be seen in the company's P&L, where they generate $3.50 in interest for every $1 of provision cost. Credefiel made a profit of €2.3m in 2021, and has had a consistent profit record since 2017. Overall though the business seems to be performing well and is solidly capitalised. Our initial score is 67

Creamfinance

Creamfinance has published its audited results for 2021 and unaudited results for Q1 22. The business is doing well, making a €3.4m profit in 2021 and doing even better in Q1 22. Prior to 2021 the business had had a fairly weak profit profile, which was the main reason its score was not as high as similar companies. Our score has increased 6 to 68, mainly due to the strengthening earnings of the company

Score retained: Delfin

Delfin has released its Q1 2022 results and they continue to be excellent, with a profit of €1.4m. The company ticks a lot of boxes - steady but growing profits, a sensible balance sheet structure, excellent investor reporting and a long track record. Our score remains 80

Sun Finance Latvia

Sun Finance Latvia has provided new financial information after a wait of almost 2 years. The results are very strong, with a profit of €7.7m for 2021, following a profit of €6.9m in 2020. The balance sheet shows that the loans are almost entirely funded with shareholders equity, and only a small balance from Mintos. Everything looks great - the only (and fairly large) concern is that the numbers are not audited and minimal other information has been provided. Our new score is up 9 to 65. It would be much higher if reporting improved

Note: Kviku

Kviku is a Russian lending group that was quickly suspended from the primary market by Mintos after the outbreak of the Ukraine war and related sanctions against Russia. Interestingly the results they have published for 2021 are extremely strong, with a profit of €10.8m and very strong asset growth. Kviku has been pretty quiet recently, with limited updates on the situation. Over 90% of listed loans now have a 'pending payment' status. This is caused by multiple restrictions preventing the wire of funds out of Russia. We have decided to remove our scores for Kviku until the situation changes

Eleving (Mogo)

Eleving is one of the largest and most important lenders on Mintos. It provides loans secured on second hand cars, mainly in Eastern Europe. It has now released its audited results for 2021. Profits were lower than shown in the previously provided management accounts - €7.1m vs €8.8m. Of this only €2.1m was attributable to the parent company, the rest was attributable to minority shareholders. Both of these factors have led us to reduce our profit score, as the underlying earnings of the parent company were lower than expected.The other continuing area of concern is the high level of leverage being run by Mintos. While the 'headline' shareholders equity figure of €31.3m may look OK, after deducting minority interests and intangible assets, the adjusted figure is only €10.2m. That is a low amount for a company with €322m of assets. Our adjusted score is down 6 to 62, to reflect the audited profit figure and the high balance sheet leverage.

Key updates: April 2022

New: Financiera Contigo

Mintos has announced that Mexican lender 'Financiera Contigo' has joined the platform. It's a brand name of a Mexican lending group called CEGE. CEGE has guaranteed the debts of another (small) lender that joined Mintos last year called Conmigo Vales. Conmigo Vales is not a subsidiary of CEGE but it has overlapping shareholders (known as a 'sister' company). Last year we gave Conmigo Vales a score of 50, noting that we had based our score on CEGE and discounted it because Conmigo Vales itself was very small and also

because a guarantee from a company is not as strong as a direct claim. Originally we understood that ‘Financiera Contigo’ was a sister company or subsidiary, but the Mintos team kindly reached out to us to explain that it is just a brand used by CEGE itself. Based on our review of the latest audited financials for CEGE, and their track record, we have assigned a score of 63 to Financiera Contigo / CEGE.

Score retained: GoCredit

GoCredit published its unaudited 2021 financials. They were in line with expectations, with a profit of €1.5m for the year, slightly up on 2020. The main strength of GoCredit is its strong balance sheet, with very low levels of leverage. It said that it had reduced its cost of funds during 2021 which will further make the business stronger. Our score remains 66

Key updates: March 2022

ID Finance Spain

ID Finance provided a webcast during March outlining its results for 2021. Things are going well, with a €10.5m made by its Spanish business during 2021. It recently raised equity on Crowdcube at a €220m valuation. They have not yet published full financials, but in the interim we have increased the score by 5 to 59, with potential for a further increase once we review the financial statements

Score retained: Iute Credit

Iute Credit announced a 2021 profit of €6.1m, in line with expectations. The company's loan portfolio is performing well, with lower provisioning cost %'s than in 2020. Our score remains 75

Farewell to...

Capitalia and Sun Finance Denmark . Capitalia had been active on Mintos for many years but like many other loan originators, it has now setup its own P2P site. We are not surprised to see Sun Finance Denmark leave, as new regulations have made it difficult to operate profitably in the country.

Farewell to...

Agrocredit and Pay PS . Both lenders seem to have left Mintos without any announcement. In the case of Pay PS that is a lucky thing, as it is a small Russian lender. Estonian lender Agrocredit had been on Mintos for many years but was also small.

Key updates: February 2022

New: Planet42

Planet42 calls itself a 'socially inclusive' car finance company. In practice that seems to mean lending to people in South Africa with thin or poor credit profiles at interest rates above 50%. Still, we think a business model like this could be successful. It has now reached break-even and is growing quickly. In December 2021, it raised $30m in funding. The figures provided do not include this funding, but we have considered it in our initial score, which is 52.

Delfin Group

Delfin Group successfully IPO'd on Nasdaq Riga during Q4 2021 which is a very positive achievement for the company. It raised over €8m and sensibly used the funds to buy back bonds with high coupons. The reporting quality of Delfin continues to be very good, and we expect this to continue now that it is a listed company. Delfin has announced (unaudited) profits of €4.2m for 2021. Our score is up 3 to 80.

Score retained: Eleving

Eleving (formerly Mogo) is one of the most important lending companies on Mintos. It has released its unaudited Q4 21 results. Eleving appears to have made a small loss in Q4 but the overall result for the year was still satisfactory - a profit of €8.8m. Our main concern continues to be that it is operating with high levels of leverage - it really needs more equity if it wants to continue to grow. Our score remains 68.

Creditstar

Creditstar has announced (unaudited) profits of €7.1m for 2021. In December it raised €3.9m of equity, and also issued €10.5m of bonds. These are all clearly positive milestones, and our score is up 3 to 64. Following our review of the 2020 annual report we remain concerned about some of Creditstar's accounting practices and our score reflects some adjustments we have made to reported equity values and profits.

Farewell to...

Alfakredyt is a small Polish lending company that has now left Mintos after 'moving to a different funding model'. It had not provided any financial information since 2018 so we had been expecting it to depart for some time. All investors have been fully repaid.

Key updates: January 2022

Zenka

Zenka is a small lender based in Kenya. Its audited accounts for 2020 show a significant loss, and a negative equity position. Its latest management presentation says that the business has become profitable in 2021, and that it received an equity injection from shareholders so that it could repay Mintos lenders. Our score is down 20 to 26

Creditter

Creditter is another small lender. It is based in Russia. It has now been profitable in the both years that we have financial information available. It has quite a conservative balance sheet structure. Our score is up 14 to 47

Score retained: Esto

Esto is a mid-sized lender based in Estonia. It has developed a good track record now, with consistently growing profits. While at first look it seems a little under-capitalised, there is also €3m of subordinated debt that provides additional protection to Mintos lenders. Our score remains 65

Evergreen

Evergreen is a payday lending company based in the UK. It has a fairly good track record, generating profits of €0.9m in 2020 and 2019. We expect profits to have increased in 2021. Our score is up 3 to 49

Farewell to...

Pinjam Yuk and TasCredit Both of these companies appear to have been quietly removed from the platform without any announcement from Mintos. Pinjam Yuk ran into problems at the beginning of the Covid crisis. TasCredit is based in Kazakhstan which is currently experiencing significant internal political issues. Mintos investors have been fully repaid by both companies

Key updates: December 2021

Wowwo

Mintos has suspended Turkish lending company Wowwo. The reason provided is that the Turkish Lira has recently depreciated significantly against the Euro (approximately 45% since October). The company plans to raise funds (if it can) in local currency outside of Mintos instead.

So what is the outlook for Wowwo and its lenders? Wowwo provided an FX exposure analysis in its 2020 annual report. It showed that a 50% currency depreciation against the Euro would generate losses of TKL 43m – or about 40% of its capital. A bad situation but likely survivable. The bigger question is what the new economic situation means for the company and its borrowers. Can people repay their loans?

That’s still a bit too early to say. Real GDP is forecast to still be positive in 2022 – around 3.5-4%. High inflation and currency deflation will however cause problems for some borrowers. The good news is that Wowwo’s loans are secured on hard assets (cars) which should reduce the risk of the company suffering high losses. The main risks are further depreciation of the Lira, and the inability of Wowwo to find alternative local sources of funding. 

Creamfinance

Cream were one of the earliest lending companies to list on Mintos so we have been following their journey for many years. They recently launched their own P2P site Esketit , which has attracted a lot of investor funds. Cream are on track to have record results this year, with a profit of €2.2m in the 9 months to September. Other metrics look OK, and our score is up 7 to 62.

Creditstar

Creditstar has finally published its audited financials for 2020. They were audited by KPMG. Previous audits had been performed by a very small firm. Investors have been rightly keen to receive numbers that had been reviewed by a Big 4 firm. Initially, the audited 2020 results looked very promising, as they were fairly consistent with the management accounting figures

provided to investors, with a profit of €6.6m prior to FX movements. However we then saw that KPMG had issued a qualified audit opinion. The reason for this is that the company had revalued upwards the value of intangible assets in both 2019 and 2020. KPMG notes that this is not permitted under the accounting standards. It seems very strange to us that the company preferred to issue numbers that KPMG would not sign off on, rather than publishing conforming results. 

The impact of these intangible asset revaluations is quite material. The revaluations resulted in Creditstar’s reported profits being 120% higher in 2020 and 71% in 2019. As these revaluations do not comply with accounting standards we have made some adjustments to the figures provided in the tables above. We have adjusted the profits shown for 2020 and 2019, and have also adjusted the reported shareholders equity balance. We have reassesed all the scores for Creditstar based on the new 

information available. In particular, we reduced the scores for profitability, capitalisation and track record. Our new score is down 4 to 61. The company seems to be performing well during 2021. The  strong profits seem to have been generated from business operations rather than ‘revaluations’. If it wants to further recover investor confidence, it should also think about upgrading its finance team too.

Key updates: November 2021

Iute Credit

Iute Credit has released its results for Q3 21.The business remains on track to generate €6m of profits this year. We did notice however that it increased leverage during the quarter, growing its loan portfolio by over €10m. We have slightly cut its capitalisation score as a result, and the overall Iute score is now down 2 to 75.

Score retained: Delfin

Delfin has also released its Q3 results. It had a good quarter, making €1m, and it remains on track to make a profit of between €3- 4m, as it seems to do every year. We really like this kind of consistency, and our score remains at 77.

Note: Creditstar

Creditstar recently published Q3 results that were in line with expectations. However we highlight that it has still not published 2020 audited financials, despite promising to do so 'in the summer'. On a recent call the CEO said that he expects new auditors KPMG to complete their work by the end of November. The continual delays are damaging confidence in Creditstar's management.

Score retained: Eleving

Eleving (formerly Mogo) continue their recovery after a difficult 2020. The company has earned €9.2m in the year to September. Non-performing loan levels have returned to normal levels. The main risk for P2P investors continues to be the high leverage of Eleving - it is more than double the average level of other companies listed on Mintos. Our score remains 68.

Key updates: September/October 2021

Lime Zaim

Lime is a lender based in Russia. We cut the scores of many Russian lenders last year as the country was badly hit by Covid, and the knock on impacts such as currency devaluations and oil price declines. Lime seems to have navigated this period fairly well. It broke even in 2020 and has returned to profitability in the half year to June. While still fairly small it's balance sheet structure looks fine. Our score is up 8 to 60.

Creditstar

We have cut the disclosure quality score of Creditstar from 17 to 10. Why? The company had promised to release 2020 financials audited by KPMG during August. Unfortunately the company has still not released these documents. We are not entirely convinced by the explanations provided for this delay so far, and hope they can be released very soon. Our score is down 7 to 65

Score retained: Delfin

Delfin is one of the most consistent lending companies offering loans on Mintos. It has made profits of between €3 - 4 million in the last 3 years and looks on track to do it again in 2021 too. It provides good quality financial disclosures, and has a sensible balance sheet structure. Our score remains at 77

Credissimo

Credissimo is based in Bulgaria but operates now across 5 countries. It has a good track record, being consistently profitable since 2017, including an audited profit of €1.9m in 2020. Credissimo has a very conservative balance sheet - a very high proportion of its assets are funded with shareholders equity. It has also been improving the quality of its financial reporting, leading us to upgrade its score by 3 to 71

Farewell to...

Julo and Kredit Pintar are no longer listed by Mintos. Both are Indonesian lenders. Neither were particularly large originators on the Mintos platform, and Mintos has not provided any meaningful commentary on why they are no longer active

Score retained: IuteCredit

IuteCredit is one of the largest loan originators operating on Mintos and has been active on the platform for many years. It is a very successful company operating in 5 eastern Europe countries. It remained profitable in 2020 and has announced a €3m profit for 1H2021. It remains one of our highest rated loan originators, with an unchanged score of 77

Score retained: IDF Eurasia

The IDF Eurasia subsidiary active on Mintos is based in Kazakhstan. It's a big operation with a net loan portfolio of €77 million. It has performed well over the last two years - achieving a strong profit of €5 million in 2020. While we are glad to see an audit report from a big 4 firm (EY) the quality of the company's presentations and disclosures is lower than we would expect of a company of this size. Our score remains 63

Rapicredit

Rapicredit is a fairly typical lower quality lender that you can find on Mintos. It is very small, is not profitable, and is located in a higher risk country (Colombia). We doubt that many sophisticated investors will be buying their loans. Following our review of their latest results we have cut their score from 38 to 35

Score retained: Hipocredit

Hipocredit is a small mortgage lending business based in the Baltic region. They have a track record of questionable behaviour as far as Mintos investors are concerned. They have exercised their rights to repurchase loans with good repayment records (at no premium) while leaving investors to hold loans that are in arrears. Investors have long memories and we do too. Our score remains 41.

Key updates: August 2021

New: Capem

Capem is one of a huge number of new Mexican companies to join Mintos this month. It's not clear why there are so many all of a sudden but we think some, such as Capem, are good additions to the platform. Capem provides loans to small and mid-sized businesses. Their lending performance since the Covid outbreak has been very good, with low levels of non-performing loans. The company says that it is due to their very detailed underwriting of loans and ongoing advice provided to clients. It seems to be working. Our initial score is 65

Returning: ID Finance Mexico

ID Finance Mexico has returned to Mintos under a new company structure. Which is good, because the old company it operated under had a big negative equity position after significant losses in 2018 and 2019. It was forced to leave Mintos during 2020. The new company operating the business now says it was profitable in 2020 and profits are on track to be higher this year. The balance sheet leverage is still higher than we would like to see. The high leverage, and chequered track record led to our new score of the relaunched ID Finance being 48

New: Pay PS

Pay PS is a very typical Mintos lender. It operates in Russia, specialises in high cost unsecured personal loans, and it is quite small, with a loan portfolio of €11 million. The company does seem to have fairly good technology in place, and they have been profitable over the last 18 months in a difficult operating environment. Their main weaknesses are their small size, high leverage and limited track record. Our initial score is 49

New: Watu Uganda

Watu Uganda is a sister company to Watu Kenya. Watu Kenya seems to have quietly left Mintos after experiencing some Covid related issues, but all Mintos investors seem to have been repaid. Watu has a good business model that benefits society. Loans are secured on motorbikes. The motorbikes provide borrowers with income acting as local taxi riders. The company reports an unaudited profit of €0.9m in the most recent year. Watu's small size, limited track record and location impacts its initial score which is 41

New: GoCredit

Many new Mexican lenders have joined Mintos this month and we think GoCredit is the best of them. GoCredit makes most of its revenues lending to borrowers who then receive repayments directly from employers as a deduction from salary payments. This is quite a low risk type of lending as shown in the GoCredit P&L where the ratio of interest earned to bad debts expense is very good - around 8 to 1. Mintos have also put into place some structural features that reduces the impact if GoCredit becomes insolvent. GoCredit also has a strong balance sheet structure, with a lot of equity funding its assets. Our initial score is 66

New: Conmigo Vales

Another Mexican lender to join is Conmigo Vales. It has a very old fashioned business model involving lots of human interaction. Loans are made via vouchers to be used at certain stores. It is hard to see that a company like Conmigo Vales will ever be particularly profitable or have a bright future. For the purposes of our score we have relied heavily on the guarantee provided by its much larger parent CEGE. CEGE would likely receive a score in the high 60's if it listed loans directly on Mintos. However our score for Conmigo Vales is 50, which reflects the ultra small size of Conmigo Vales, its poor business model, and the risk that the guarantee may not be effective

New: Alivio

Alivio is a small Mexican lender that focuses on providing finance to cover health care costs. There is little public provision of health care in Mexico and we could imagine that there could be a profitable opportunity in this space. Unfortunately Alivio has not really generated much profit so far, only breaking even since 2018. The other main negative is the balance sheet structure of Alivio - it is more leveraged than most Mintos loan originators, which makes it more risky for buyers of its loans. Our initial score is 48

Returning: LF Tech

LF Tech has returned to Mintos. It is a Kazakhstan lender that provides payday loans and also loans secured on cars. The quality of financial information provided by LF Tech has always been very poor. The presentation uploaded by management has a lot of content, almost all of which is not very useful. The unaudited results published for 1H 2021 are very good, with a profit of €4.2m. That's very high given that their loan porfolio is only €22m in size. Our new score is 48. We will reassess this once new audited numbers become available

New: Jet Finance

Jet Finance is actually the former Mogo Kazakhstan business that has been taken over by the local management team. The fact that Mogo decided to abandon Kazakhstan doesn't fill us with much confidence in the prospects of Jet Finance. Still, they managed to make a profit of €0.5m in 1H 2021 after heavy losses in 2019 and 2020. The quality of the management presentation is very good for such a small company. Our initial score is 42. This will go up when there is more evidence that the turnaround is successful and the company gets bigger

Eleving (Mogo)

Eleving had a very difficult 2020. It made a big loss in the first half of the year and started to run very tight on capital. It's loan book also started to deteriorate quickly due to Covid impacts. However it now seems to have turned the corner. It has announced a profit of €7.8m for 1H 2021, and falling levels of non-performing loans. It still remains over-leveraged in our view, but this is less of a concern if it can continue to make strong profits. Our score is up by 3 to 68

Kviku

Kviku is based in Russia but now has lending operations in six countries in Europe and Asia. It appears on many P2P sites and recently started its own P2P site. It has started to show really promising signs in the last 12 months, with strong growth and increasing profits. It announced a profit of €3m for 1H 2020, and is generating some of the highest returns on assets we have seen recently. The main negative for Kviku is that it is still fairly small, but this is offset by a good track record and sensible balance sheet structure. Our score is up 5 to 62

Score retained: Creditstar

Creditstar has announced an (unaudited) profit of €2m for Q2 2021, up from €1.7m profit in Q1. Everything published looks good - steady growth, strong profits, and the issuance of new bonds to investors. The key thing many investors are focused on is the publication of audited results. Creditstar have promised the release of 2020 figures audited by KPMG later this month. We are looking forward to seeing these, and will reassess our score when they arrive. For now, our score remains unchanged at 72

Note: Capital Service

The Capital Service sitaution has been frustrating for Mintos investors. It blamed Covid and new laws in Poland for defaulting in 2020. It tried to use this as an opportunity to force Mintos investors to accept a big 'haircut' to their claims. This was rightly rejected however there is still a lot of uncertainty about when and how the company will be able to repay most of the amounts due. The company disclosed a loss of €3.9m for 2020, leaving it with negative equity of €1.5m. That's not as bad as expected, and shows that the terms of their initial proposal to investors was not justifiable in any way

Key updates: July 2021

Everest

Everest is a Polish lending company. We downgraded the score of Everest last year because of the introduction of new laws that hurt its business model, and also because it has an old fashioned approach that relies on 'face to face' meetings with borrowers that would be impacted by Covid. Everest announced a 75% fall in profits for 2020. However we noticed that their Q4 results seemed to be very strong and that it feels confident that its business model is now sustainable. Their balance sheet remains strong. We have increased our score from 58 to 64

Swell

Swell is another lending company that we have been fairly bearish about, as it is based in Mexico and lends to small businesses (high impact from Covid). It made a large loss in 2020 (relative to its capital base) but it seems to have turned the corner. Cost cutting has helped it to make a small (unaudited) profit in the first 5 months of this year. Swell will never be one of the best lending companies on Mintos, but even so, we have increased our score from 36 to 43

Credius

Credius is a fairly small Romanian lending company that appears to be very well managed. It announced an increase in (audited) profits in 2020 from €1.1m to €1.7m. It did this while cutting lending in response to Covid, and also significantly cutting its operating costs too. That seems like a very impressive outcome and the sort of management response to Covid we would hope to see. The Credius balance sheet remains one of the most conservative of all the Mintos lenders. Our score is up from 68 to 71

Score retained: Placet Group

We have long been fans of Placet Group because it is so consistent. It announced first half profits for 2021 of €1.9m. It has generated audited profits of between €3-4m for the last 3 years and it looks like 2021 will be the same outcome. Its balance sheet remains conservative, with around half of loans funded with shareholders equity. We recommend that investors check out Placet Group's own P2P site Moncera, where rates and loan availability are usually better than on Mintos. Our score remains 79

Wowwo

Wowwo is a Turkish company with a similar business model to Mogo/Eleving. It recently published its audited accounts for 2020 and a Q1 2021 update. A few things definitely jumped out at us when we reviewed the figures. First, the audited profits were only half as big as had been published in their uploaded management accounts. We would normally expect to see some variation of audited results but not a difference that large. We have asked Mintos to obtain an explanation from the company for the big

difference. Second, the auditor had given a qualified opinion. Although it only related to one specific topic it is not something we would expect to see and raises questions about the quality of the finance team at Wowwo. Finally, the company reduced the size of its loan portfolio materially during Q4 2020 and made a small loss (according to its management accounts). Wowwo says it has made an (unaudited) profit of €2m in Q1 2021 but for now we are a little skeptical about any of its management accounting numbers, and await an explanation about what happened in 2020. Our new score is down 13 to 59

New: Fenchurch Legal

Fenchurch Legal is a subsidiary of a new specialty finance company in the UK. It provides loans to law firms that are used to fund various small size lawsuits in the UK. The loans are secured against the litigation proceeds and also the value of any insurance payouts in the event that a claim is not successful. In theory it sounds like a pretty interesting niche with only limited risks. One thing that has not been disclosed is how many clients Fenchurch Legal has, and how diversified their lending portfolio is. Law firms can and do close down and

the lack of disclosure around this is disappointing. Fenchurch says that it made a profit of €0.5m in the year to May 2021. Its parent, SHP Capital provides a group guarantee. The company started in 2019 and only provides very limited, unaudited financial information. We think litigation finance is an interesting space. However our preferred exposure (for those who like to take risks) would be via AxiaFunder. They have already settled 5 out of 12 funded cases so far and investor returns / IRRs have been on average 55% which is phenomenal. As for Fenchurch Legal – our initial score is 42

Score retained: Iute

Iute has achieved some of our highest scores because of their high quality financial reporting, a long and profitable track record, and a sensible balance sheet structure. Their Q2 21 profits grew strongly to €1.9m, up from €1.1m in Q1. The proportion of non-performing loans continued to fall. Our score remains at 77

Podemos Progresar

Podemos Progresar is an unusual Mexican lending business. It focuses on lending to women only, and it obtains guarantees from people linked to the borrower to reduce the cost of bad debts. When it launched on Mintos in 2020 it did not provide full financial information or historical results and our scores reflected this. It has now published audited results showing a strong result for 2020 - a profit of €1.6m, up 40% on 2019. The main negative is its small size, with assets of less than €10m. We have increased our score from 47 to 57

Key updates: June 2021

Cream

Cream announced a loss of €0.8m for 2020. That's not terrible given the circumstances and the size of their business. We have been told that they have returned to profitability in 2021 although this is not verified. Cream have €9m of intangible assets in their balance sheet, which is a lot given that they have only €11m of capital. Our score is down 8, to 55

New: Mikro Capital Uzbekistan

Mikro Capital has several subsidiaries that list loans on Mintos, some with group guarantees and some without. It's Uzbekistan subsidiary is now active and has a group guarantee. It is a small but profitable business. Our initial score is 43. Our score does not attribute any value to the group guarantee but we acknowledge that in some situations it may have value for Mintos investors

Dana Rupiah

Indonesian lender Dana Rupiah has provided proper financial disclosures for the first time. It shows a business that was profitable during 2019 and then broke even in 2020. In response to Covid-19 it dramatically shrunk the size of its business last year. It is now extremely small - less than €1m of loans and equity. Following our review of the financial statements their score increased slightly, but remains low at 28

Score retained: Placet Group

Placet Group has been at the top of our ratings for a while, and its results in Q1 2021 gave us no reason to change our views. It made a profit of €1.1m for the quarter (up 12% on Q1 20). It continues to have a very conservative balance sheet structure, with a 50/50 funding split between debt and equity. It has been growing its loan book, but not too quickly. Our score remains at 79

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

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.

Note: Creditstar

Creditstar recently published Q3 results that were in line with expectations. However we highlight that it has still not published 2020 audited financials, despite promising to do so 'in the summer'. On a recent call the CEO said that he expects new auditors KPMG to complete their work by the end of November. The continual delays are damaging confidence in Creditstar's management.

1,043 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…

  8. Pingback: Moncera is a hip new P2P site that's getting attention

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

  10. Pingback: Best European Peer-to-Peer Lending Platforms in 2020 – Learn to manage your $, and your future is full of possibilities

    • 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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