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

Last updated - 26 March 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. This is likely to lead to signifcant losses for Mintos investors as a high proportion of Eurocent customers defaulted on their loans. Since then there have been defaults and issues with several other lenders, including Aforti and Rapido.

These events have inevitably led investors to pay more attention to the quality of the other lenders on the Mintos platform. That led us to create 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. 

Below we discuss some of the recent loan originators that have defaulted, or are likely to. 

Alex Credit defaults

Small Ukrainian lender Alex Credit has been suspended by Mintos for failing to make the payments due to investors. Alex Credit has €4.5m of loans outstanding on the Mintos platform. The company has committed to make the payments due, but there has to be some doubts about their ability to fully repay investors. The company last reported their results in March 2019, which showed that the business was profitable but very small.

Finko subsidiary Varks loses its lending licence

Mintos has announced that a major subsidiary of Finko, Varks, has lost its lending licence. It appears to be due to the company not holding sufficient capital to comply with the legislation in Armenia. A further statement was made today by the CEO of Finko group. He notes that Varks was very profitable in 2019, with profits of €18.5m, which were audited by a big 4 accounting firm. He also notes that the company held €18m of equity, significantly more than the minimum requirement of €0.3m. The basis for claiming that Varks is not complying with capital rules seems to be an assessment by the Armenian regulators that inter-company loans should be treated as having zero value. This does not make much sense to us, and we wonder if there are political or other factors at play. In the meantime a liquidator will be appointed to continue operations and manage the collection of outstanding loans. So where does this leave Finko? It seems difficult to understand how the company can survive after losing such a large component of its business. The equity and profit figures the CEO quoted for Varks for 2019 are pretty close to the same figures that they have announced for the overall Finko group. In other words, there seems to be little equity or profit in the other subsidiaries. In theory Finko will be able to recover the equity it holds in Varks, but that may take a long time, and will be dramatically impacted by the closure of the business and the costs associated with it. As a result we now think that the recently announced Finko group guarantee is probably no longer going to be effective, and investors will need to look at each subsidiary on its own merits. The events in Armenia makes all Finko loans on Mintos much higher risk than they were previously.

IFN Extra Finance loses its lending licence

IFN Extra Finance has had its lending licence removed by Romanian authorities. The decision is published here. It appears that regulators found several technical breaches relating to accounting records, compliance, capital levels, lending practices and several other deficiencies. As a result of this, new lending will cease. The CEO of IFN Extra Finance has committed to keeping the company operational to continue servicing existing loans. Extra Finance was a small lender, with less than €1m of loans outstanding on Mintos. As the loans were secured on properties, we don’t expect significant impacts to investors. However we think this shows that it can be challenging for smaller lenders to have sufficient scale to have enough people and processes in place to make sure that they are in full compliance with all the relevant rules and legislations. That’s why a size score forms part of our ratings system. 

Peachy files for insolvency

On 5th March the British company that operated Peachy went into administration (insolvency). Further details were provided by Mintos on 6th March. Peachy seems to have suffered from a growing trend in the UK where customers are increasing the number of complaints against borrowers. Many would argue that this has been driven by the Financial Ombudsman Service (‘FOS’, who arbitrates disputes) taking an increasingly pro-customer view. This has led to significant additional costs for lenders in providing compensation and also the charges levied by the FOS.  

We had rated Peachy only 22 out of 100, so the insolvency was not very surprising to us. The business scored poorly due to its negative equity and loss making history. Mintos had given it a B rating, which is now changed to C. So what next for Mintos investors? The amount of loans outstanding is quite small – around €1.5m. Mintos claim that the Mintos investors have a senior claim, and that their claims should be satisfied in full. We have some doubts about whether this outcome is realistic, but for the sake of investors we hope it is true.

Can Finitera afford to buyback €7 million of Monego's bad loans?

On 6 December 2019 Mintos announced that Iute Credit and Monego both lost their lending licences in Kosovo. The Governor of the Central Bank of Kosovo has cited high interest rates, and a deviation from business plans, as the reason for revoking the licences.  

Iute Credit is a large and successful loan originator, and it easily has the ability to repurchase any Kosovo defaulted loans. Less than €2 million of loans now remain outstanding. 

Mintos has recently made several announcements relating to a lending company called Finitera. Firstly, it was announced that Finitera was planning to acquire Monego, but had not done so prior to them losing their licence. Regardless, Finitera was planning to ‘cover scheduled borrower payments to investors having investments in Monego loans once these payments are delayed for 60 days‘. 

In March, Mintos also disclosed that Finitera was the owner of two other Mintos loan originators – Tigo, and Kredo. Both are very small and loss-making.

As of 21 March, €900k of 60+ Monego loans had not yet been repurchased by Finitera, and a further €5.3 million of loans were reported as being 31-60 days overdue and will likely need repurchasing soon.  That represents a very large upcoming buyback commitment for Finitera. There are also €1.9m of pending payments outstanding (payments received and not forwarded to Mintos). In a recent interview, the CEO of Mintos said that “It is our expectation and understanding that this promise will be kept and investors will be paid back”. Let’s see.

Loss of licence

Mintos finally announces some progress with Aforti, following their default

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. Very little progress had been made since then on resolving the situation. It seemed to us that Mintos had to decide whether investors were going to be better off pushing the company into bankruptcy, or finding a negotiated, but not ideal solution. On 5th February 2020 Mintos announced that an agreement had been reached. Under the terms of the deal, Aforti will make payments each month until February 2021 that will cover all the amounts owed (€2.1m). The initial payments will go to Mintos itself, and the remaining ones will be paid to their investors from the end of March 2020. Aforti have also provided €1.9m of collateral if Aforti defaults on its obligations. We don’t understand why it took so long to negotiate this transaction. Lessons will have been learned. However overall we this as a fairly good outcome for the affected Mintos investors. 

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):

Mintos Lender Reporting period Loans Equity Profit - latest Profit - prior year Audited
Mogo Dec 2019 189.7 28.8 6.2 4.6 Yes
IDF Eurasia Dec 2018 86.3 9.5 7.9 3.7 Yes
Creditstar Dec 2019 113.2 25.3 5.8 2.9 Yes
Capital Service Sep 2019 29.2 3.4 0.2 -0.5 Yes
Kredit Pintar Dec 2018 4.8 8.6 5.9 Yes
Credissimo Dec 2018 17.2 16.3 3.2 5.0 Yes
Swiss Capital Dec 2019 7.0 0.5 0.1 -0.4 No
IuteCredit Dec 2019 79.0 18.5 8.4 7.3 Yes
ExpressCredit Mar 2019 12.7 -3.4 -2.6 -1.6 No
DelfinGroup Dec 2019 31.6 8.4 4.0 4.6 Yes
Sun Finance (Simbo, Denmark) Dec 2018 6.9 -0.1 0.8 -1.0 Yes
Sun Finance Vietnam Nov 2019 1.4 -2.2 -2.4 No
Finko (Lendo, Georgia) Dec 2018 9.8 -2.6 -2.0 -8.8 Yes
Finko (Sebo, Moldova) Dec 2018 9.5 -0.2 1.8 -0.6 Yes
Finko (Ukraine, Dinero) Dec 2018 4.1 2.0 -1.6 -0.2 Yes
SOS Credit Jul 2019 1.2 1.2 0.2 0.2 No
DanaRupiah Feb 2020 2.8 2.8 No
Monego Dec 2018 4.1 0.4 -0.6 0 Yes
Moneda Dec 2019 0.7 0.6 -0.8 No
Sun Finance (Tengo, Kaz.) Sep 2018 4.1 -0.4 No
Cashwagon Sep 2019 25.4 3.9 -4.2 -7.0 Yes
Placet Group Dec 2018 32 15.9 3.5 3 No
Akulaku Dec 2018 62.4 96.3 -36.2 -21.8 Yes
AgroCredit Dec 2018 5.2 1.8 0.2 0.1 Yes
Acema Mar 2018 46.1 17.5 2.8 2.0 Yes
Wowwo Sep 2019 46.5 19.1 5.0 1.6 No
BB Finance Group Dec 2018 14.2 4.9 -1.1 0.8 Yes
Evergreen Oct 2019 4.2 1 0.9 0.2 No
Creamfinance Dec 2018 51.2 12.4 1.6 -0.4 Yes
Extra Finance Dec 2018 4.6 2.0 0.1 2.0 No
Mozipo Group Dec 2018 3.3 -4.8 -2.5 -1.7 Yes
Aasa Dec 2018 73.2 -2000 -2000 -2000 No
Finitera (Kredo, Albania) Dec 2018 2.8 0.1 -0.8 -0.2 No
Aforti (In Default) 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 Sep 2019 25.3 5.4 1.2 -1.3 No
Dozarplati Dec 2018 6.2 2.7 1.0 0.1 No
Capitalia Dec 2018 1.5 0.5 0.1 -0.1 Yes
Credilikeme Dec 2018 0.4 1.1 0.1 -0.7 No
EcoFinance Sep 2019 8.4 2.0 -0.2 0.1 Yes
GFM Dec 2019 6.0 5.5 0.1 0.0 No
ITF Group Dec 2018 2.5 1.2 0.2 0.2 Yes
Dinerito Sep 2019 10.3 3.6 0.2 -0.2 Yes
Hipocredit Dec 2018 5.3 0.2 0.1 0.0 No
Debifo Dec 2018 7.8 0.1 -0.1 0.2 No
Kviku Dec 2018 8.8 1.8 0.7 0.1 Yes
Rapido Finance (In Default) Dec 2018 1.8 -1.7 -1.7 -1.9 Yes
Finitera (Tigo, Macedonia) Dec 2018 2.1 -0.7 -0.8 -0.3 Yes
Julo Nov 2019 14.3 10.8 -2.0 No
Peachy Dec 2018 5.7 -1.4 -0.4 -2 Yes
GetBucks Jun 2019 92.1 -41.8 -51.2 -9.5 Yes
LF TECH Dec 2018 15.6 18.1 7 6.8 Yes
Credius Dec 2018 9.7 7.8 0.4 1.8 Yes
Rapicredit Dec 2018 2.8 0.1 -0.7 -0.4 Yes
Kredit24 Dec 2018 2.4 -0.7 -0.7 0.7 Yes
Watu Credit Dec 2018 8.3 1.8 1.6 0.2 Yes
Sun Finance (Bino, Latvia) Dec 2018 7.5 1 -0.7 -1.5 No
Everest Finanse Sep 2019 93.6 63.9 6.7 7.2 Yes
Sun Finance (Kuki, Poland) Dec 2018 72.7 5.2 -6.9 No
Stikcredit Jun 2019 3 2.7 0.8 0.5 Yes
E-Cash Dec 2018 0.6 0.2 -0.6 0.0 No
Esto Dec 2019 12.3 3.6 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 Dec 2018 21.3 5.5 0.1 0 No
Fireof Dec 2018 3.8 0.9 0.0 No
ID Finance Spain Dec 2018 11.6 -0.9 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 Zaine Dec 2018 10.3 3.3 0.6 0.6 Yes
Dineo Credito Dec 2018 8.6 1.3 2.2 2.8 No
Dineria Mar 2019 1.6 -1.4 -1000 No
Dziesiątka Finanse Dec 2018 4.4 2.0 0.2 0.0 Yes
Novaloans Mar 2019 1.2 1.3 0.9 0.5 No
Alex Credit (suspended) Mar 2019 3.1 1.3 0.6 -0.3 No
CashCredit Dec 2018 8.5 2.2 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.

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 - 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...

Latest rating changes - February 2020

New: Pinjam Yuk

Pinjam Yuk is an Indonesian payday lender. Frankly, we are not particularly convinced by the information provided. Their presentation says that they received investment from leading VC firm Sequoia Capital in 2015, yet they are still tiny, and the charts suggest that they only started operations in 2018. Secondly, the data provided shows that the business has suffered from a government interest rate cap, and it's doubtful that they are currently profitable. Lastly, their P&L does not make sense to us - particularly the zero cost for loan impairments. Our score is 41, and we think that's being very generous.

Rating confirmed: Mogo

Mogo released their results for the full year of 2019. There were no surprises. We were pleased to see that they had raised €3m of new equity in Q4 19, with another €3m planned for Q1 20. NPL ratios were stable, and Mogo increased their profits in 2019 by growing revenues and keep bad debt provisions stable. Our rating score remains at 79.

LF Tech

LF Tech are the final LO to publish their 2018 financials. We've been asking Mintos for them for several months. There's good news and bad news. The good - LF Tech continues to be very profitable, have a conservative balance sheet, and the financial statements are now audited. The bad - the audit opinion is qualified (although we don't think the matters raised are very material). The 2017 profits are also lower than Mintos had led people to believe. Our overall score has increased by 7 to 66, mainly because they no longer receive a 0 score for disclosure quality.

New: GFM

GFM is a small lender from Kazakhstan. There isn't much to differentiate them from many other lenders on Mintos. They are small, operate in a fairly high risk country, and seem to be moderately successful. The one thing we like is that they they have a balance sheet that has very little leverage. On the other hand their reporting quality is poor, and profits are modest. Our initial score is 41.

New: TASCredit

TASCredit is an auto lender from Kazakhstan. The borrower is called TAS Finance Group which appears to be a subsidiary of a larger group. TAS lends to customers at very high interest rates - around 5% PER MONTH. This seems to generate one of the highest returns on assets of any Mintos lender. While the balance sheet structure looks fine, TAS has lost marks for poor quality disclosures, fairly small size and limited published track record. Our initial score is 52.

New: Julo

Julo is a new Indonesian lender that has been backed by several VC funds. It seems to be well funded with over €10m of equity and more than a third of its balance sheet held in cash. There is one slight problem though. Their loans don't seem to be very profitable once bad debt costs are taken into account. Hopefully they can improve this as the business scales up and they get better at underwriting loans. Our initial score is 47.

Farewell to...

Invescore & EBV Finance. Invescore falls into our new 'Keyser Soze' category of Loan Originators. An LO that told us all a good story, and just like that, after 2 days, they had disappeared, seemingly forever in mysterious circumstances. Our guess is that we will never hear from them again. No loans were ever listed by Invescore. Another LO to leave is EBV Finance. They were a Lithuanian lender that focused on VAT refunds. All loans have been repaid to investors.

Ratings confirmed:

IuteCredit and Vizia/Banknote both released their unaudited results for 2019. Both lenders report quarterly and there were no surprises from either LO. IuteCredit had to write down the value of its Kosovo operations (closed due to loss of licence) but it was still able to still generate good overall results for the year, which is impressive. Scores for both remain at 77.

Latest rating changes - January 2020

Capital Service

We think the risk of Capital Service is continuing to increase, and is higher than previously. It broke even in the 9 months to Sep 2019, but has continued to increase the leverage in its balance sheet. We think it should increase its capital if it wants to continue to grow its balance sheet any further, and focus on increasing profit levels. Our score is now 53, down 4.

GetBucks

We still think that GetBucks is one of the highest risk lenders. The directors of parent company MyBucks admit that there is a 'material risk' that the business will fail. So why are we upgrading them? They have just completed a restructuring which has turned a huge negative equity position into a €17m positive amount. Even so, given their loss history this is one to steer clear of. Our score is now 23, up 4.

Sun Finance - Simbo

The Denmark government have recently announced measures to cap interest rates at 35%, and to also ban marketing of any loans with interest rates greater than 25%. The average rate of Simbo loans appearing on Mintos is over 200%. We therefore think that there is a high risk that Simbo may have to close down operations. In the meantime, we would exclude any Denmark loans from a Mintos portfolio. We have cut the profitability score of Simbo to zero in the meantime, as we don't see any ability for the company to operate profitably in the future within a 35% rate cap.

Creamfinance - Danish loans

In addition to Sun Finance, we note also that Creamfinance, which is a multi-country lender, has also listed some Danish loans on Mintos (although none are currently listed on the primary market). We recommend caution relating to these loans too.

New: Ukrpozyka

Ukrpozyka is a startup Ukrainian lender, that is part of the Finko group. It's not clear why they set up this lender as they already own Dinero, which operates in this country. Frankly almost no financial information has been provided. Importantly, both Dinero and Ukrpozyka now have received parent guarantees from a company called EAG Finance. Mintos have not provided any information about this company so we currently assign zero value to this guarantee, and are not able to provide a rating for Ukrpozyka. Unfortunately, Mintos does not let investors select Dinero only loans in their auto-invest settings, and there is a risk that some investors will pick up loans from Ukrpozyka unexpectedly.

Rating confirmed:

We reviewed the results for Q3 2019 of Vizia/Banknote, EcoFinance and IuteCredit. All results were in line with expectations and did not justify changing their overall scores.

Farewell to...

Nexus. The lender who operated on Mintos for only 3 days. It seems like we will never learn what actually happened, but all loans have now been repurchased or repaid, and Nexus no longer exists as a Mintos LO.

New: Invescore

We are the first to admit that we don't have a strong knowledge of the Mongolian financial services industry. Mongolia ranks 81/190 in the World Bank report on ease of doing business. There's actually a lot about Invescore that we like. It's stock is listed, with a $50m market cap. The business has strong capital levels following its IPO in 2019, and the share price has been rising. Invescore appears to have a strong and deep management team and board. The business is profitable and is growing strongly, but not too quickly. One of the better recent additions to Mintos. Our initial score is 68. Update: Mintos said that Invescore will very launch soon - seems that they uploaded information a little too early, and have temporarily taken them off the site. 2 weeks have now passed and still no sign...?!

Finko Armenia (Varks)

Varks has provided results for Q3 2019. Profit looks like it will fall in 2019 but still be strong. The portfolio has grown strongly, but leverage still looks under control. We have given it a slight upgrade of 2, to 63 due to a higher track record score.

Latest rating changes - December 2019

New: Evergreen

Evergreen is a fairly small British 'payday' lender. It has been operating for 4 years and has been making small profits since then. It has a reasonable level of capital given its small size. Our initial score is 51.

New: Wowwo

Wowwo is a rapidly growing Turkish business that sells second hand cars, and provides loan finance to its customers. It has a similar business model to another large Mintos lender, Mogo. The business is well capitalised, with €19m of equity. Business at Wowwo seems to be going well, with strong profits since 2017. We think that the combination of strong financial position, plus the security of loan collateral makes Wowwo one of the better new loan originators to join Mintos this year. Our initial score is 70.

New: Creditter

We hope that Creditter is better at lending than producing management presentations and financial statements. The information available from Mintos is very thin. What do we know? They are a small payday lender from Russia, with a loan book of €6.7 million and equity of less than €1 million. OK, but is it profitable? How good is the lending performance? Unfortunately neither Mintos or Creditter have decided that information is not important for any investor to know. Our initial score is 25.

Everest Finanse

We are still trying to fully understand the accounting disclosures that Mintos have been providing for Everest Finanse. For 2018, they provided statutory figures (that showed losses), and 'pro-forma' figures, that showed profits. Mintos have now provided updated results to June 2019 on a pro-forma basis. They have been reviewed by auditors Grant Thornton. We are going to trust Mintos that these are the most relevant and appropriate figures (for now). Our rating score has now increased to 69, primarily due to the annualised profit reported for 1H 19 of €6.6m.

Akulaku

Akulaku is an Indonesian digital lender that has been backed with huge amounts of VC funding (mainly from China). On paper the P&L doesn't look good, but they are clearly investing in growing the business dramatically. As of the end of 2018 it held almost €100m of equity, following another big capital raise. Our score has increased by 3 to 57.

Cashwagon

We are big fans of the reporting provided by Cashwagon. They provide monthly financial information, as well as audited financials and management updates. In the last few months we can see that the business is heading towards break-even, and lending performance is stable. Their score is up 5 to 42, and we expect it to go up further.

Nexus

Mintos quietly removed Nexus from the platform only 3 days after launching the new loan originator. We were told there would be an announcement about why, but this never happened. When we followed up we were told that it was removed because 'After publishing the announcement about Nexus joining the marketplace additional aspects were identified....that needed to be addressed'. This is extremely vague but clearly something has gone very wrong here. Mintos have almost completely removed Nexus from their site (including the announcement of them joining). The only record of them ever existing is the statistics page which shows that €563k of loans were purchased before Nexus was suspended.

GetBucks

The parent company of GetBucks, MyBucks SA, is a publicly listed company. The company has been a financial disaster, with their shares falling 95% from the peak. MyBucks has recently announced 'preliminary, unaudited' results for the year to 30 June 2019. In short, they expect a gigantic loss of €55 million, leaving a negative equity position of €46 million. The debtholders in the business are being forced to convert their debt into equity, to avoid a bankruptcy to MyBucks. This is good news for other creditors, as it will repair the balance sheet of MyBucks. However, until there is a sign that MyBucks can stop generating huge losses, this remains a high risk situation.

Latest rating changes - November 2019

New: Dinerito

Overall we think Dinerito is an interesting addition to Mintos. They provide a product that many investors will not be familiar with - payroll credit. The reason we like this is that the repayments are deducted from salary payments by their clients, which are mainly government institutions, making defaults very low. Our overall score is 53, the main negatives being lack of profitability. However the business is growing and we would expect the score of Dinerito to improve in the next review.

New: Nexus

[Note: Nexus is no longer active on Mintos, see comments above].
The business model of Nexus makes sense on paper. It lends to smaller and mid sized Russian companies to allow them to fund the working capital involved in fulfilling projects and tenders. The risk is therefore mainly down to the creditworthiness of Russian government entities and large corporations. However we note that Nexus is still very small and not all investors will be keen to take this type of bet on Russia. Our initial score is 45.

Mogo

Mogo released its 3Q 2019 results (click the arrow above for link). Mogo is a very important lender on the Mintos platform. We are pleased to see that 2019 results continue to improve, and we have further increased its score to 79 (after reaching as low as 71). Mogo appears to have stopped stretching its balance sheet, and has made improvements to profitability, while keep loan defaults stable. A good turnaround performance.

Sun Finance - Bino

In September we significantly downgraded Bino because it still had not released its 2018 results. Their score has now increased from 9 to 28 following the audited results they have just published. On the plus side, Bino received a €2.8m capital injection during 2018. Negatives continue to be their very small size and history of losses.

Rating confirmed:

Creditstar published their 1H 2019 results. Overall no big surprises, with profits stable. We do note however that leverage is creeping up. No change to our overall score of 79. Creditstar have also launched their own P2P site now called LenderMarket. Check out our special offers page for details of their bonuses for new investors.

Peachy

Peachy has received a small upgrade from 17 to 22 however we still consider this a high risk lender on the Mintos platform. Both management and their auditors note that there is a 'material uncertainty' about whether the business can continue as a going concern. The business also holds negative equity. Is this a sensible company for P2P investors to lend money to? Probably not. So why the upgrade? The company provided audited financials, and the level of losses had reduced.

Farewell to...

Efaktor, and Lendrock appear to have left Mintos, without any announcements being made.

Latest rating changes - October 2019

Lendo

Lendo has finally published its audited 2018 figures. There are 3 things we thought important to highlight:
1. The figures previously provided by Lendo had indicated that it was profitable, with positive equity. We don't understand the basis for this because the audited results show heavy losses in both 2017 and 2018, and negative equity.
2. The auditors have qualified their opinion, as they were unable to verify assumptions used to calculate the loss provisions - the real picture could be even worse . Unsurprisingly they also noted that there were risks the company may not continue as a going concern
3. During 2019 Lendo was sold to another (better rated) lender, Varks.

Rapido

Rating has been changed from 16/100 to 'Default' (see comments above)

New: E-Cash

E-Cash is yet another new and extremely small lender with no real track record. It is based in Ukraine. The entire company is worth less than what many Mintos investors would expect to make as their annual bonus this year. We really don't understand how or why a company with only €200k of equity is able to access the Mintos platform. However that's not really your problem, unless you accidentally purchase their loans. Initial score of 26.

New: Stikcredit

Stikcredit is a much better addition to the Mintos platform than E-Cash. It is larger, has a longer and better track record, and is profitable. It also currently has strong capital ratios. The main downside is that it is still quite small, with a loan book of only €3m. Our initial score is 53.

Now you’ve reviewed our latest Mintos lender ratings – what’s the fastest way to choose the best loans on the  Mintos Primary Market? Check out our new Mintos Loan Scanner page, which allows you to compare very quickly the current interest rates, loan availability, and ratings for each lender on the platform. We will keep it updated, so check it next time you are thinking of buying more loans, or adjusting your auto-invest settings.

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.

PeerBerry logo

Peerberry offers loans from multiple lenders. Rates are usually around 12%, and most loans have buyback guarantees. The site is easy to use and has a great design.

Lenndy is another multi-lender P2P investment site. It is much smaller than Mintos, but it has an interesting range of loans. Many have high rates, with buyback guarantees

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

  1. Christian Reply

    Regarding ID Finance in Spain, news from Mintos today: https://blog.mintos.com/id-finance-spain-reports-solid-financial-results-in-may/

    I however also agree that the ratings for ID Finance, or generally all companies operating in different countries without group guarantees, should be rated independently, because they are somewhat independent entities. On the other hand, it would be very bad for the reputation if one country fails and investors lose money, I guess investors would then withdraw money for all other countries also because of this, so even without a group guarantee there might be a motivation to prevent a crash as much as possible.. Thoughts?

    • Oscar Harrington Post authorReply

      All good points raised by everyone here surrounding ID Finance. We’ve only had a couple of days since the disclosure of the split of the company into different regions. We’ve been hesitant to provide intra-group ratings up to now but it appears that the 3 different ID Finance geographies have differing risk profiles as the implicit group guarantee does not seem to exist any longer. We will consider how best to reflect this. The Spanish results seem to have improved very significantly in Q1 2019 according to their latest report, so the situation seems stronger than reported as of 31 Dec.

    • Oscar Harrington Post authorReply

      We have now split ID Finance into 3 separate units (Holding/Kazak, Spain, Mexico) to reflect the different risk profiles following the demergers of the different companies recently announced. Thanks for suggestion.

  2. The South Sea Company Reply

    That’s correct, and this is a big oversight on the part of Oscar and his team. The Spanish and Mexican operations never had a group guarantee, so it was never fair to give them the same rating, and indeed Mintos itself gives them different ratings. Worse, if you read the financial statements carefully, you’ll find they are no longer even in the same group! The shares of the EU/LatAm business have been distributed to ID Finance’s shareholders; in other words, the two ID Finance groups are now unrelated. (You can also see that the original parent retained most of the cash, making it clear which side is the risky one.)

    To be fair, Mintos provides financials for all of the separate companies: all links are on the loan originator page. Both the Spanish and the Mexican company have negative equity. The latter one is particularly precarious due to its large losses and huge negative equity. Financially, these two companies are maybe on par with Metrokredit or Tengo, yet a cursory look at ratings on this page would make you think they are among the safest on Mintos. Ouch!

    The loans issued in Kazakhstan do have a group guarantee by the “real” ID Finance, which has very solid financials. Note however that it is now a smaller company, having shed its “Western half” in the split.

    I think the rating for ID Finance Spain and Mexico should be withdrawn or very dramatically reduced.

    • The South Sea Company Reply

      Note, my comment above was in response to Thomas about ID Finance. For some reason it is not shown indented properly.

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  4. Thomas Reply

    Do I understand this right
    On Mintos ID Finance has loans in Spain – IDFinance Spain, S.L., Kazakhstan – MFO OnlineKazFinance LLP (Kazakhstan) and Mexico -IDF CAPITAL, S.A.P.I DE C.V., SOFOM E.N.R.

    In the audit report I find that ID Finance Spain S.L. is mentioned as “Discontinued operations”. In Note 4 there is Discontinued operations – EULATAM with the financial statement.
    The operating loss is pretty huge. Only due to “Gain on revaluation of non-cash assets distributed to shareholders ” there is finally in income instead of a loss.

    As there is no Group Guarantee for Spain/Mexico shouldn’t there be a different Rating for ID them?

    • Oscar Harrington Post authorReply

      Thanks Roddy we’ve been waiting a long time for those ones now… We’ve updated the page.

  5. Janis Reply

    Great article! Could you please give a brief explanation why Peachy is rated so low in your ranking?

      • Janis - investingsmall.eu Reply

        Thanks, Hugo, I got a reply from Mintos when asking for a comment on this:

        “In the framework of cooperation with Cash On Go Ltd, company’s other funding source’s security was ranked as second tier (or “claim rights over the security of the company’s other funding source were ranked as second tier”), prioritizing claim rights of Mintos investors. This way “subordinated” debt could be treated as quasi capital which in turn positions company in line with B Mintos rating.”

        Do you have any comments on this? Sounds like they have more info on securities than there is on the balance sheet.

  6. Gian Piero Reply

    Hi Oscar,
    Thank you for your quick answer. You say that you have audited financial statements instead of a company presentation.
    Yes, the numbers are not as great, but they are audited.
    The great news is that EBV is now audited, I would have thought that this should improve their rating, not reduce it.

    • Oscar Harrington Post authorReply

      Hi Pietro & Gian. Rating change followed receipt of EBV’s 2018 figures. The company is slightly more levered, and is less profitable than the previous figures we had available which came from a company presentation rather than audited financial statements.

  7. Gian Piero Reply

    Hi Oscar, thank you for this great work you do. It helps me a lot. Could you perhaps make some comment on EBV that appears to have been slightly downgraded?

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  9. The South Sea Company Reply

    What’s your source for, or what method did you use to calculate, the equity value for Monego? Your table shows 4.8 while my numbers are at 0.4, a very significant difference. Thanks.

    • Oscar Harrington Post authorReply

      Thanks for pointing this out – it looks like Mintos have just uploaded the audited 2018 financials. We had previously relied on figures contained in a presentation provided, it is not clear why there is a discrepancy in the equity figure. Regardless we have updated the tables with the audited figures.

    • Oscar Harrington Post authorReply

      Thanks for the question – agree with the 0.4 figure, and we have updated table. It may have simply linked to the wrong data source, apologies.

  10. Rimvydas Reply

    There is new load originator – Alexcredit, please update your table. It seems that financials of this loan originator are also not bad. Please, update your table.

    • Oscar Harrington Post authorReply

      Thanks for finding this Michael – we’ve updated the tables. Seems to be performing much better, one to keep an eye on…

  11. Julio Reply

    I would like to be notified by email every time there would be an update of this article. I find it very useful. Is there a way to suscribe or something to be notified when updated?

    • Oscar Harrington Post authorReply

      Great idea. We will look into this, it should be possible.

  12. Pedro Reply

    Hi Oscar.

    Kredo has published its financial statements. bad news

    Kind regards,

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  14. Petr Reply

    Hi, as Christian wrote, your time and effort is greatly appreciated.

    ExpressCredit also published financials for Botswanian entity https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/8F87750E-F73C-580F-FC3B-BECF750B655A.pdf

    Also two presentation published:
    Botswanian: https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/F5A6222B-F21C-C5E8-C460-9CB41E1BC0B8.pdf
    Zambian: https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/0B456298-1D1A-B96C-8231-CC2D79DAF123.pdf

    Its weird, that Zambian entity is profitable durign 2018 in presentation, however it’s loss making in financials.

    Also little side note, this thread is too long. Isn’t there any more practical solution?

    • Oscar Harrington Post authorReply

      Thanks Petr. We always try and use the financial statement numbers if they are available. Often the numbers in the presentations are better than the financials, or don’t tie out at all…. Both ExpressCredit companies had poor numbers for 2018 as you saw, and negative equity. We’ve updated the tables and ratings today to take this into account. Regarding the size of comment thread we will try and address it.

      • Petr Reply

        Yes, agreed, that is alwat better to use numbers from FS. Just wanted to point that out.

  15. Christian Arnold Reply

    Could you please take a look for the December 2018 audited Credius report, which can be found here: https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/26A87D3F-2B09-E216-52B0-088B90B0A47B.pdf.
    Temporary troubles or alarm signs, what do you guys think?

    Also, AASA seems to be in trouble, see https://s3.eu-central-1.amazonaws.com/mintos-prod-public-files/1D5CE6F5-BBDC-8D2B-FC89-EE6A0A161216.pdf for a presentation for the Q4 reports in 2018. Why they are still rated as A is beyond my understanding in light of this, particularly after the Mintos Rating update from today (please also update this, see https://blog.mintos.com/upcoming-mintos-rating-update-on-4-july-2019/). Thanks!

    • Roddy Reply

      The AASA report indeed does not look well, but the report focus is on AASA business in Finland and Estonia, whilst the loans issues on Mintos are from Poland and Sweden. Would need to get figures from that though to make an assessment.

      • Oscar Harrington Post authorReply

        Roddy & Christian – we decided today to remove rating for Aasa. The disclosures about the Poland subsidiary are just not good enough. Combined with the big problems you are referencing with other entities in the group and we just don’t feel it’s possible to understand what’s really going on.

  16. Marc Reply

    Hi Oscar. Would it be possible to add a column to your table stating the date of the last change of scores for every loan originator? For my investments I’m maintaining an Excel sheet that uses your data as well so I would be happy if i could see at first glance which loan originator was last updated so i can update my list too.

    • Osmium Reply

      Yes! A proper changelog at the bottom of the post like “20.06.19 Varks 58 -> 62” would be nice to notice changes at first glance. Keep up the excellent work.

    • Peter Reply

      Hi Oscar, Marc and Osmium,

      I agree. It would be really helpfull not to have to go through the whole list to see, if something has changed.

      Keep up the good work.

      • Oscar Harrington Post authorReply

        Hi Peter – we’ve just added a new section below the tables highlighting latest rating changes following several rating updates today. Hope this helps!

    • Oscar Harrington Post authorReply

      Thanks Hugo we have updated. Car crash results. Loan losses were somehow 10 times the interest income. Really find it difficult to understand on what basis companies like Tigo qualify to receive public funding on Mintos. It is more suitable for Angel / startup / VC style funding given the risks.

  17. Steven Reply

    Hi Oscar,

    I noticed that the scores are wrong for CashCredit and for PimPay. For CashCredit it should be 37 instead of 35 and for PimPay it should be 15 instead of 18 according to the individual points given by you.

    I also spotted that the declared Mintos ratings are wrong for Mogo, Aasa and Placet Group. For Mogo it should be A instead of A/B, for Aasa it should be A/B instead of B and for Placet Group it should be A/B instead of A-.

    Another minor difference is that Varks.am is only called Varks and Cream is called Creamfinance on Mintos.

    Would cherish it if you could update the table.
    Anyway, I appreciate the effort you’ve put into this site!

    • Oscar Harrington Post authorReply

      Hi Steven. We’ve actually just removed Pimpay because they have no loans on Mintos any longer. The Cashcredit score of 35 is correct as we reduced the profit score from 6 to 4. We have updated that field now. Will update the ratings – those were not announced but we’ve now implemented some monitoring of key Mintos pages to try and pick up these changes quicker.

  18. Ian Reply

    Thanks for that that Oscar,
    Another question, if I may, I don’t fully understand the risk difference, if any, between the ‘Direct and Indirect’ investment structure. If there is a BuyBack guarantee on the loan will it make any difference?

    • Oscar Harrington Post authorReply

      Ian that is quite a complex topic to discuss. Best you chat with Mintos support. Direct is considered more secure. There will be no difference to you under either structure unless a lender defaults. Recoveries are likely to be more complex and uncertain under the indirect structure.

  19. Ian Reply

    Hi Oscar, do you have any info on Dziesiatka?, it’s not on your list.

    • Oscar Harrington Post authorReply

      Hi Ian – we’ve now added it, thanks for picking it up. Main downside is that it is very small, but similar to many other lenders on Mintos

    • Hugo Reply

      I’ll leave the translations here. Starting from page 6, you have numbers associated to each account. 15 – total assets 23 – total liabilities 30 – total capital (all of which grew). On page 8 you have the P&L, 1 is turnover and 61 is net results which was 40kk rubles ~ 500k€, little less than the last year. Sales doubled but profit stayed the same, which might be considered a “not that good” sign.

      • Oscar Harrington Post authorReply

        Thanks Hugo and Pedro – we’ve updated the Lime Zaine figures.

    • Oscar Harrington Post authorReply

      Agree Pedro. We’ve updated table now, Gracias.

  20. Vitek Reply

    Hi
    I would like to thank you for amazing job.
    I would have a proposal, would you consider changing names in Lender column to match names on Mintos page (https://www.mintos.com/en/loan-originators/#overview) in loan originator combobox?
    You can remove “Leaselink (Pragma)” no longer available among mintos loan originators.
    You can add data for “CashCredit”, “Dziesiatka Finanse”, “Eurocent”, “VIZIA”

    This would simplify comparison Mintos and your statistics.
    Vitek

    • Oscar Harrington Post authorReply

      Hi Vitek. Check out the updated table – hopefully you will be happy. Note – we exclude Eurocent because it is insolvent. We combine Vizia and Banknote as they are part of the same group.

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