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

Last updated - 23 July 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 4 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:

Aforti litigation is successful - investors achieve a full recovery

Polish lender Aforti defaulted on its obligations to Mintos investors in 2019. The situation has always been a little mysterious as the company has continued to trade, and also remain listed on the Warsaw stock exchange. Mintos launched litigation against the company in 2020 and it has been successful. A bailiff was appointed by the Polish courts earlier this year, who was successful in seizing and selling assets owned by Aforti. Mintos has now announced that it has recovered sufficient funds to full repay all principal amounts outstanding, and some interest accrued since 2019. This is an excellent result, particularly as the Mintos recovery team had said that they were uncertain how much they would be able to recover for investors.

Mintos updates its ratings

Mintos recently published some updates to its ratings. There were no big surprises. Companies receiving upgrades were Eleving (Mogo), Iute Credit, Finclusion, Sun Finance and Credissimo. The only downgrade was Lime Zaim of Russia..

Creamfinance exits Denmark

In 2020 Denmark introduced an interest rate cap on personal loans. That completely killed the business models of many lenders offering short-term loans in the country. We have been cautious about the potential regulatory risks from investing in loans in Denmark for some time. As we note below, Sun Finance has attempted some rule ‘workarounds’, the legality of which has been called into question. Another Mintos lender, Creamfinance has instead decided to just quit and leave Denmark instead. That’s probably a more prudent corporate decision. All Mintos investors have had their Creamfinance Denmark investments repaid.

Akulaku investors achieve a full recovery

Akulaku is an Indonesian fintech lender. It has received investments from some very notable firms such as Sequoia and Ant Financial. It also held $76m of cash in the latest financial statements it uploaded to Mintos. That is why many, including us, were surprised that it was one of the first firms to be suspended in 2020 following the outbreak of Covid. Where had all the cash gone? Why had they been able to raise more equity from their numerous backers? That has never been explained adequately. However, the good news is that investors have now received a full recovery on their investments in Akulaku loans, six months faster than had been expected. That is an  important result because at the time of suspension Mintos investors were owed almost €21 million.

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.  

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 originator Reporting period Loans Equity Profit - latest Profit - prior year Profit - 2 years prior Audited?
Eleving (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 Jun 2021 88 23 6 5.2 8.1
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 0.7 0.8 0.0 2.2
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 22.7 3.7 3.1 3.5
Akulaku (S) Dec 2019 118.3 65.5 -33.9 -37.9 -22.1
Fenchurch Legal May 2021 10.4 0.5 0.5 X
AgroCredit Dec 2019 6.9 1.9 0.2 0.2 0.1
Wowwo Dec 2020 31.1 10.2 1.7 2.8 1.6
Evergreen Dec 2019 8.5 1.3 1.2 0.2 X
Creamfinance Dec 2020 38.7 11.0 -0.8 0.9 1.2
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
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 Dec 2020 13.5 10.3 1.1 1.7 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 Dec 2020 9.0 6.5 1.6 1.1
Sun Finance Latvia Sep 2020 14.4 8.8 6.3 3.1 -0.7 X
Everest Finanse Dec 2020 90.1 65 2.2 9.0 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 Dec 2020 17.7 7.7 0.3 0.4 -0.3
Mikro Kapital Romania Dec 2020 25.6 5.7 0.3 -0.4
Mikro Kapital Uzbekistan Dec 2020 8.5 0.9 0.8 -0.3
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 0.4
Fireof Dec 2018 3.8 0.9 0.0 X
ID Finance Spain Sep 2020 40 8.8 4.5 3.3 0.1
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
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: July 2021

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

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

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.

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

  1. Pingback: Portfolio-Update April 2020 | Invest Diversified DE

  2. Pingback: Portfolio-Update Mai 2020 | Invest Diversified DE

  3. Pingback: Portfolio-Update Mai 2020 | Invest Diversified DE

  4. Pingback: Portfolio Update Juni 2020 | Invest Diversified DE

  5. Pingback: Portfolio Update Juli 2020 | Invest Diversified DE

  6. Pingback: Portfolio Update Juli 2020 | Invest Diversified DE

  7. Pingback: Portfolio Update August 2020 | Invest Diversified DE

  8. Pingback: Portfolio Update September 2020 | Invest Diversified DE

  9. Pingback: Portfolio Update Oktober 2020 | Invest Diversified DE

  10. Pingback: P2P Portfolioupdate November 2020 | Invest Diversified DE

  11. Pingback: Analisi bilanci #5 - Moncera (Placet Group) - P2P Italia

  12. Pablo Reply

    Hi! At first, I would like to thank you for this information!

    I only have a question in my mind, which is the methodology to calculate this scores? Are them more complete or reliable than Mintos scores? For example, I see that Capitalia has a score of 36 while Mintos score is 8 and I would like to understand the difference.

    Sorry but I couldn’t find if you have written any article about that but I think that it would be so interesting for me and for other investors.

    Thank you again!

    • Oscar Harrington Post authorReply

      Hi Pablo. We use different assessment methodologies and that is why the scores are not always consistent although they definitely seem to be correlated. We base ours on 5 different criteria with marks out of 20. Mintos publishes their criteria on their website. Our scores are more focused on quantitative assessments and Mintos are generally more subjective including their interactions with the management teams.

  13. Alexander Braun Reply

    Hi guys, what do you think about the new companies: Mikro Kapital UZ and Swell MX?

  14. Pingback: Investimenti Aprile 2021 in P2P Lending, ETF, azioni - P2PInvesting

  15. Una Vida Ideal Reply

    Great analysis!
    There is plenty of room for improvement in how Mintos is providing more clear and useful information to decide whether one loan originator is good or not for us, but they are going towards a good direction and of course, sites like this gives us key information, thank you!

  16. Pingback: Steuern sparen mit einer GmbH für Investments? - P2P Cafe

  17. Pingback: Portfolio-Update Dezember 2019 | Invest diversified blog DE

  18. Rob Diesel Reply

    DanaRupiah back to Mintos with a lot of loans and new rating upgrades from 5 to 6

  19. Peter Reply

    Thanks for this update Oscar. Very useful.
    I notice that you calculate separate ratings per country for Sun Finance, while only one for Mogo as a whole. Both offer a group buy-back obligation. Can you please explain why the distinction?

    • Jmn Reply

      Sun does *not* offer a global Group Guarantee. Sun Latvia and Sun Denmark for example are independent. Mogo does.

        • Oscar Harrington Post authorReply

          Hi Peter, this is a good question and something Sun Finance have raised with us behind the scenes too. The Mexican, Kazakhstan and Vietnam entities have a group guarantee. The limited information provided about these entities in the past is that they were very small and loss making. No recent information has been provided at all. So investors are relying entirely on the group guarantee being effective. Unfortunately up to now Mintos does not have a good record enforcing group guarantees, and investors have been burned. So although the Sun Finance group figures look good, we prefer to ignore the guarantee for the purposes of our risk scores. If investors have faith in the group guarantee, we can imagine that they would take a positive view on loans from those subsidiaries. It’s a judgement call.

    • Oscar Harrington Post authorReply

      Thanks again Hugo – we’ve updated the tables

  20. Christian Reply

    Stik Credit seems to have left Mintos. They paid all outstanding payments and disappeared from the Stats page.

    • Oscar Harrington Post authorReply

      Thanks Christian – we noted today that they have left and joined the growing list of lenders to have set up their own P2P site instead

  21. Pingback: P2P Cafe [#24] – Wie du Scams einfach vermeidest und weitere Antworten (Q&A) |

  22. Kristaps Reply

    On Sun Finance, I had another look at their group financials (FY19 and 3Q20). The format of the quarterly report is very misleading because it shows subordinated debt as part of the equity. It’s 20m (they only have <1m share capital). This makes their LTV super high. The profit numbers look good for YTD 3Q20, but the capital structure is extremely fragile. That sub debt is NOT a related party, and matures in Jul-22, which is not very far away.
    Also, across Other loans and receivables & Other receivables, in FY19, that's over 22m of assets that are quite hard to understand. Given that their net loan book is 56m in Dec19, a huge chunk of their balance sheet basically looks unusual / weird.
    They are also very dependent on Mintos, with 45m at Dec19.
    I listened to their pitch when they were raising bonds late last year, and I didn't like what I heard.
    Bottom line: my 5 cents: a risky LO with strange / misleading financial info, and the usual Aigars kesenfelds conflict of interest w Mintos. Mintos is basically the private bank of that guy.

    • Jmn Reply

      Wise statement…
      Sun Finance Denmark just got suspended overnight on Primary Market. But not on Second, which gave me time to trash out my loans almost at par. Thanks buyers!
      For now we have a Metrokredit scenario, but i’m afraid it turns into a Cashwagon one.

  23. Jmn Reply

    I closely observed their Pending Payments and it really reached zero, except for dust, at some point, I got impressed. Still I’m waiting for the long promised KPMG audit.

    Mintos-specific, it looks like Mintos had problems with the french AMF (local SEC), with new subscriptions blocked and tax report for France removed (try it, all countries available in the UI but France). Maybe related to the recent PACTE law. I got my Wirex account wiped out for the same reason.
    They justified it from “too many new french customers” which is a blatant and ridiculous lie. One more.

  24. Pingback: Lendermarket: recenze P2P platformy skupiny Creditstar s výnosy až 16,6% p.a. • P2Ptrh.cz

  25. Pingback: Mintos → Nuestra experiencia + Opiniones + Guia paso a paso

Leave a Reply

Your email address will not be published. Required fields are marked *