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

Last updated - 17 September 2020

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

In 2017, Mintos lender Eurocent failed, and defaulted on its Mintos ‘buyback guarantee’ commitments. Since then there have been defaults and issues with several other lenders. Over the last 3 years we have been providing the scores and data on this page – our Mintos lender ratings. Our goal is to provide investors with key information on each lender, and a rating score to help highlight those that are lowest and highest risk. 

To begin with, below we discuss some recent events:

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

Finko group (which is owned by some Mintos shareholders) has been in serious trouble for some time now. Its most profitable subsidiary, Varks, lost its lending licence in strange circumstances. Its Metrokredit subsidiary in Russia also lost its licence. It sold another subsidiary (Sebo) to Mogo. That left it with some small, unviable operations in Russia and Ukraine. Both countries were hit hard by Covid-19. After announcing the windown of Russian (Kiva) operations in July, it was not that surprising to see the announcement in August that Ukrainian operations (Dinero and Ukrpozyka) were being wound down too. So, what are the implications for Mintos investors? Mintos says that the companies have committed to repaying the funds due by July 2021. However, it seems that a high proportion of loans remaining are now non-peforming. The Ukrainian entities only had €1.9m of equity as at December 2019 – compared to €20m of loans outstanding currently on the Mintos platform. We suspect that investors will only recover around 50-60% (at best) of their Finko Ukraine investments, and it will take longer than 12 months. What about the parent guarantees you may ask? Mintos has never provided any information about the EAG Finance who provides this guarantee. We strongly suspect that this entity does not have any financial capacity to honour this guarantee, and in any case Mintos seems unwilling to make any claims against guarantors.

Capital Service makes a ridiculous proposal to Mintos investors

Capital Service is a Polish lender that is facing problems. While it is blaming Covid, the truth is that the management team paid out large dividends over the last few years that left it without sufficient buffer for any downturn. It has now made a proposal to Mintos investors that we consider to be extremely unreasonable. The company is proposing that investors take a 40% loss on their loans, and receive the remaining 60% over the following 8 years. There would be no payments at all for two years. Effectively, they are asking investors to write off more than half their investment, on a present value basis.  The company says that this will help them ‘protect jobs and generate profits for shareholders and investors in the future’. We don’t understand why Mintos investors should accept a loss so that shareholders can make profits in the future.  In fact, this restructuring plan would generate an immediate huge profit for shareholders, rather than seeing their investment wiped out under an insolvency. We expect most Mintos lenders to reject this offer, and for Capital Service to either significantly improve their offer, or face an insolvency process (the most likely outcome). Mintos has stated that they were not supportive of the Capital Service proposal, and will announce the results of the investor service shortly.

Mogo releases their H1 2020 results

Mogo remains one of the most important loan originators on Mintos. It has provided an interesting business update, and its latest financial report (here). We were most interested in the amount of collections achieved in April, May and June. While (as expected) there was a decline of around 30% in April compared to normal levels, they have since been trending up strongly. New lending was cut dramatically in April, which we think is prudent, and has been trending up again too. Perhaps the most important part of the update was that Mogo had secured a temporary waiver on the breach of certain bond covenants (which presumably would otherwise have been breached). A meeting is planned shortly to agree on longer term changes to the bond terms and covenant levels. We expect these negotiations to be successful but the situation is worth monitoring. Mogo also announced that it had purchased Moldovan lender Sebo, from Finko group, for €2.9m. For the first half of 2020, Mogo announced a loss of €3.9m, which was driven by an FX loss of €4.1m, and significantly higher impairment expenses (52% of revenues, compared to 30% in 2019). Mogo said that it had cut operating expenses by 21% during the second quarter. Overall this level of loss was not a terrible result, but Mogo’s exposure to weak foreign currencies, and rising loan defaults needs to be monitored.

Mintos finally gets tough on Aforti, at last

On 7th August 2019 Mintos announced that it was suspending primary and secondary market loan purchases relating to Aforti Holdings of Poland due to non-payment of collections to Mintos. For some reason it decided against starting litigation and instead spent the next 6 months negotiating an agreement with Aforti to recover the funds. Frankly, this felt a little weak at the time, and Aforti took full advantage of this approach. We were delighted to see that Mintos has now issued a notice of default to Aforti, which is the first step any creditor takes in a litigation proceeding. However it’s the additional steps that Mintos took that we are particularly pleased with. It began by notifying the Polish stock exchange (where Aforti has a listing) that they had defaulted on their debts. It also approached other lenders to Aforti, who had not been informed by Aforti of the situation. Why is this significant? It could lead to Aforti losing its stock listing, and (more importantly) could trigger a ‘cross-default’ on their other loans, which means that all of Aforti’s debts could become payable immediately.  Essentially this means that Mintos is now going to war, and we fully approve. 

Akulaku tells everyone things are doing just great. Meanwhile they are in default....

We have to confess that we don’t really understand what the issues are at Akulaku, a large Indonesian digital lender. Akulaku raised a huge amount of equity from several funds, including (arguably) the most prestigious VC firm in the world, Sequoia. In this recent article, the Akulaku CEO, William Li describes how well the company has performed through the crisis, with only minimal increases in defaults. They are actually growing market share! Meanwhile, in  a statement to Mintos, they say that there are major liquidity problems, which are blamed on COVID-19, currency depreciation, and the falling oil price. So what happened to the $US 68 million of cash they said that they held as at December 2019? We hope it was not held in the same bank as Wirecard… We presume not, but can only point out the information inconsistencies… 

Kredit24 and Kiva wind down

In early July, Kredit24 (Kazakhstan) and Kiva (Russia) both announced that they were winding down. We are not really surprised at all, both were very small, and had no real track record or history of success. Mintos sounds optimistic that investors will get all their money back. We hope they are right. Meanwhile, both are suspended.

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
Mogo Jun 2020 176.0 30.0 -7.8 4.6 8.5 Yes
IDF Eurasia Dec 2019 120.5 21.2 11.4 9.1 3.7 Yes
Creditstar Jun 2020 124.9 29.7 5.4 5.8 2.9 Yes
Capital Service (suspended) Mar 2020 28.3 3.4 0.2 -0.5 Yes
Kredit Pintar Dec 2018 4.8 8.6 5.9 Yes
Credissimo Dec 2019 21.5 16.1 2.5 3.2 5.0 Yes
Swiss Capital Dec 2019 7.0 0.5 0.1 -0.4 No
IuteCredit Jun 2020 67.8 19.0 2.6 7.3 3.0 Yes
ExpressCredit (suspended) Dec 2019 16.5 3.6 1.8 -1.6 Yes
DelfinGroup Jun 2020 32.3 10.4 4.0 4.6 2.9 Yes
Sun Finance Denmark Mar 2020 7.5 1.6 1.9 0.8 -1.0 Yes
Sun Finance Vietnam Nov 2019 1.4 -2.2 -2.4 No
Finko (Dinero) (liquidation) Dec 2019 11.3 1.0 1.2 -1.5 Yes
Finko (UkrPozyka) (liquidation) Dec 2019 5.0 1.0 -1.7 Yes
SOS Credit Feb 2020 2.1 1.2 0.0 0.2 0.2 No
DanaRupiah Feb 2020 2.8 2.8 No
Monego (liquidation) Dec 2018 4.1 0.4 -0.6 0 Yes
Moneda Dec 2019 0.7 0.6 -0.8 No
Sun Finance (Tengo, Kaz.) Dec 2018 4.1 -0.4 No
Cashwagon (suspended) Feb 2020 27.9 1.0 -5.9 -7.0 Yes
Placet Group Jun 2020 42.6 20.9 3.8 3.5 3.0 No
Akulaku (suspended) Dec 2019 118.3 65.5 -33.9 -37.9 -22.1 Yes
AgroCredit Dec 2019 6.9 1.9 0.2 0.2 0.1 Yes
Acema Mar 2018 46.1 17.5 2.8 2.0 2.4 Yes
Wowwo Jun 2020 28.2 15.7 4.9 2.5 1.6 No
BB Finance Group Mar 2020 14 5.4 1.6 -1.1 Yes
Evergreen Dec 2019 8.5 1.3 1.2 0.2 No
Creamfinance Dec 2019 58.4 13.3 0.9 1.2 -0.4 Yes
Extra Finance Dec 2018 4.6 2.0 0.1 2.0 2.0 No
Mozipo Group Dec 2018 3.3 -4.8 -2.5 -1.7 0.5 Yes
Aasa Dec 2019 25.3 17.7 0.4 -9.3 No
Finitera (Kredo, Albania) Dec 2019 10.6 0.2 -1.2 -0.8 -0.2 Yes
Aforti (defaulted) Dec 2018 27.1 1.7 0.1 0.3 Yes
Creditter Sep 2019 6.7 0.7 -1000 No
Pinjam Yuk Dec 2019 7.2 5.7 1.4 No
Revo Technology Dec 2019 31.5 5.7 0.9 -1.4 Yes
Dozarplati Dec 2019 12.2 2.8 2.2 0.9 0.1 No
Capitalia Mar 2020 1.7 0.6 0.1 0.1 0.0 Yes
EcoFinance Jun 2020 7.5 1.6 0.5 -0.3 0.1 Yes
GFM Mar 2020 6.2 5.3 0.4 0.0 No
ITF Group Dec 2019 3.7 1.3 0.2 0.2 0.2 Yes
Dinerito Dec 2019 11.3 3.8 0.3 -0.2 -0.4 Yes
Hipocredit Dec 2019 6.6 0.5 0.3 0.1 0.0 No
Finko (Kiva) (liquidation) Dec 2019 3.5 0.6 -1.1 0.0 Yes
Debifo Dec 2018 7.8 0.1 -0.1 0.2 0.0 No
Kviku Dec 2019 16.6 2.5 0.9 0.6 0.1 Yes
Rapido Finance (In Default) Dec 2018 1.8 -1.7 -1.7 -1.9 -0.8 Yes
Finitera (Tigo, Macedonia) Dec 2019 4.7 0.7 0.7 -0.8 -0.3 Yes
Julo Nov 2019 14.3 10.8 -2.0 No
Peachy (In Default) Dec 2018 5.7 -1.4 -0.4 -2 Yes
Finclusion / GetBucks (suspended) Jun 2019 92.1 -41.8 -51.2 -9.5 -12 Yes
Credius Dec 2019 13.9 8.9 1.1 0.4 1.8 Yes
Rapicredit Dec 2019 5.2 1.3 0.6 -0.5 0.0 Yes
Kredit24 Dec 2019 3.0 0.6 1.2 -0.6 0.7 Yes
Watu Credit Dec 2019 27.9 4.8 4.5 1.5 0.2 Yes
Sun Finance Latvia Dec 2019 12.9 8.1 4.3 -0.7 -1.5 No
Everest Finanse Dec 2019 96.8 67.4 9.4 7.2 -6.6 Yes
Sun Finance Poland Mar 2020 18.8 3.2 1.4 -6.9 No
Stikcredit Jun 2019 3 2.7 0.8 0.5 Yes
E-Cash Dec 2019 2.3 0.6 -1.3 -0.6 No
Esto Aug 2020 14.9 4.3 0.9 0.4 No
Zenka Aug 2019 1 1.3 -1.7 No
Mwananchi Dec 2019 9.3 8.7 1.6 2.6 No
AlfaKredyt Dec 2018 4.9 1.3 0.3 0.2 No
Mikro Kapital Russia Dec 2019 22.2 9.7 1.2 -0.3 Yes
Mikro Kapital Romania Nov 2019 18.2 3.4 0.5 Yes
Mikro Kapital Belarus Dec 2019 27.4 3.7 1.0 1.0 Yes
Mikro Kapital Moldova Dec 2019 13.9 3.0 0.3 0.4 Yes
Fireof Dec 2018 3.8 0.9 0.0 No
ID Finance Spain Dec 2019 23.3 5.4 3.3 0.1 -0.4 Yes
ID Finance Mexico Dec 2018 1.7 -1.0 -0.6 -0.4 No
TASCredit Dec 2019 8.4 4.9 2.5 1.1 No
Lime Zaim Dec 2018 10.3 3.3 0.6 0.6 Yes
Dineo Credito Dec 2018 8.6 1.3 2.2 2.8 2.5 No
Sun Finance Mexico Mar 2020 2.2 -0.4 -1.9 No
Dziesiątka Finanse (suspended) Dec 2019 9.5 3.4 0.5 0.2 0.0 Yes
Novaloans May 2019 5.3 1.1 0.7 0.6 No
Alex Credit (suspended) Mar 2019 3.1 1.3 0.6 -0.3 No
CashCredit Dec 2019 9.8 3.0 0.8 0.7 0.1 Yes

Our Mintos lender ratings

Our Mintos lender ratings are based on 5 characteristics – profitability, capitalisation, size, track record and the quality of their reporting. We have allocated marks out of 20 for each metric, giving a total score out of 100. Mintos have recently introduced their own ratings – from A (best) to D (default), which we have included as a comparison.

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

Consider country risk too

Mintos offers loans from many different countries around the world, and some countries are more risky than others.  To help investors assess the risk level of each country, we have published a country risk ratings page. This takes into account factors such as currency risks, sovereign risk and the local business environment. We think it is worth considering these risks when building a portfolio allocation, in addition to the LO ratings above. 

Latest rating changes - September 2020

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.

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, Dineo, Fireof and ID Finance Mexico.

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.

Ratings confirmed

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

Latest rating changes - August 2020

Creditstar

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

Rating confirmed: Delfin

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

New: Finclusion

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

Evergreen

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

Latest rating changes - July 2020

Mogo

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

Rating confirmed: Iute

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

Farewell to...

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

New: Finko (UkrPozyka)

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

Sebo - acquired by Mogo

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

Rating confirmed: Agrocredit

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

Rating confirmed: Placet Group

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

Latest rating changes - June 2020

IDF Eurasia

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

Finitera (Tigo)

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

New: Finko (Kiva)

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

Latest rating changes - May 2020

Sun Finance

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

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

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

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

Cashwagon

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

Watu Credit

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

Rating confirmed: Cash Credit

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

Credissimo

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

Cream

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

DZIESIĄTKA

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

GFM

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

Zenka

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

Stikcredit

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

Rating confirmed: Dinerito

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

Latest rating changes - April 2020

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

New score: Aasa

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

Rating confirmed: Capitalia

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

E-Cash

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

Hipocredit

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

Mikro Kapital Russia

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

New: 3 Mikro Kapital Co's

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

Rating confirmed: Kviku

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

Rapicredit

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

IDF Eurasia

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

ID Finance Spain

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

Mogo

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

Alfakredyt & Dziesiatka

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

Everest Finance

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

Latest rating changes - March 2020

How to deal with the messy situation at Finko?

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

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

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

New: Revo Technology

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

New: Mwananchi

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

New: DanaRupiah

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

New: Moneda

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

New: Swiss Capital

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

Rating confirmed: Creditstar

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

Farewell to...

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

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.

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

  1. Petr Reply

    Hi,

    thanks for Sebo update. I have one question. Why did you decide to allocate 20 % weight to each rating? Thank you

    For me the profitability is more important than reporting quality, however I understand that with mistakes or fraudulent report, the profitability can be different.

    P.

    • Oscar Harrington Post authorReply

      Thanks Hugo we have updated for them today. Very small company!

  2. Tomas Reply

    I see the equity of Sebo is -3 303 541MDL -> -162 355.383 euro. Why at the table is 2,3M euro?

    • Oscar Harrington Post authorReply

      Tomas you are completely correct, thanks for pointing that out. We’ve updated the table.

  3. Petr Reply

    Hello,

    Sebo disclosed solid earnings for 2018 and also solid report.

    Kind regards

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  5. Hugo Reply

    Found Metrokredit’s 2017 results, 2018 should be coming up soon. It’s in Russian, but you can translate it. They had (as expected) a negative 19kk rub result. Their capital is non existing, only 10k rub, they’re all financed by loans, doesn’t indicate who gave them. They’re already nearly on the last spoit, I assume this only solidifies that. https://www.list-org.com/company/9677963

  6. Hugo Reply

    New company is going to enter the market, Dineria, their latest financials are already up, another payday loan company, this one is from Mexico.

    • Oscar Harrington Post authorReply

      Thanks Hugo – we’ve now updated the tables. Just look at the very bottom of the score table….!

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  9. Hans Reply

    Hi Oscar.

    In my opinion, this information is way more useful than what is to be found at Mintos own website!!

    So thank you a lot for offering some very great insights here on Explore P2P 🙂

    All the best,

    Hans

    • Oscar Harrington Post authorReply

      Hi Christian. Thanks – we are looking to get the parent entity accounts for ExpressCredit and Lime before we update the figures as we think it tells a more accurate picture. But please keep pointing out any new filings we may have missed.

  10. Nuno Reply

    Hello Oscar
    How credible is the “Loan Performance Details ” table in Mintos “Statistics” page ?
    Doesn’t it scare you that some high scoring originators like Credit Star have very high rates of late loans ?
    (60% for short term loans) and Credius (54%)

    • Oscar Harrington Post authorReply

      It’s a good point but you also need to consider the business model. For example CreditStar is lending at 360% interest rates on its short term loans, so high levels of defaults are expected and built into their pricing. We also can’t see what the recoveries are once loans go 60+. The thing that would help us take a view is seeing the % of loans that are bought back each month due to late payments. We could then take a view on the expected loss on these loans and compare the loss rate to the average interest rate. Unfortunately that’s something we haven’t been able to get hold of yet. Mintos does provide a data tape for all the loans on its site but we don’t think the data around reason for buybacks is reliable enough to do further analysis like this…. That’s why we have been focused on the financial information reported by each lender.

  11. Pedro Pardilla Reply

    Hello Oscar.

    What do you think about Kredit PIntar??

    Excellent work, Thank you

    • Oscar Harrington Post authorReply

      Hi Pedro – we’ve updated the page today to include Kredit Pintar where you can see our comments. It seems to be doing very well and is well capitalised. It is surprising that it was able to be so profitable so early in its operations.

    • Oscar Harrington Post authorReply

      Thanks John – now been resolved and updated.

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    • Oscar Harrington Post authorReply

      Thanks Christian & Tomas – next updates coming very soon!

  13. Mark Reply

    On the Mintos website it says Kuki.pl: ” Financial statements publication date April 30″, anyone found it?

  14. Oscar Magôlo Reply

    Hello,

    What you have to say about Capitalia News?

    Regards,

    Great work, Thank you.

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  16. Ömer Reply

    Hello Oscar,

    I just bumped into your website and found your great work. Would it be possible to get earlier ratings ? It would be interesting to know how individual lenders develop.

    Best Regards
    Ömer

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  19. Gerben Reply

    “Mogo […] downgraded our rating further from 73 to 71”
    I think you forgot to update the list.

    • Oscar Harrington Post authorReply

      You are right – we’ve now updated it, thanks.

  20. The Working At Home Man Reply

    Hi Oscar,
    I find these rating much more helpful and informative than those shown on Mintos. I, like most others here, have used this tool to help me create a reinvestment plan. I look forward to future updates. Keep up the good work!
    Matt

    • Oscar Harrington Post authorReply

      Thanks Matt. We plan to keep them updated, as long as people find it useful.

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