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

Last updated - 25 February 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. Check out our new post where we discuss this trend, and the 5 things Mintos investors should know.

Can Finitera afford to buyback €8 million of Monego's bad loans next month?

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.  In total there are currently €16 million of Kosovo loans outstanding from these two lenders. Mintos suspended trading in both the primary and secondary markets for these loans.  

Iute Credit have been honouring the buyback guarantees for all loans falling 60 days in arrears (which it was required to do under the group guarantee provided). We had expected Iute to be able to fulfil its obligations (as Kosovo is a small part of Iute Credit’s operations, and is a profitable company) but we are still glad to see that this has been happening. 

Mintos made another announcement relating to Monego that seemed great for Mintos investors, but raised a lot of questions about what is actually going on in the background. A mysterious company called Finitera, was planning to acquire Monego, but did not do 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‘. As of 4 February, €300k of 60+ Monego loans had not yet been repurchased by Finitera, and a further huge €8 million of loans were reported as being 30-60 days overdue and will likely need repurchasing in February or March. That represents a very large upcoming buyback commitment for Finitera in the coming month and will be monitoring developments closely.

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. 

Metrokredit situation seems to have been resolved. Rapido files for bankruptcy

On 8th November Mintos reported some concerning news about Russian lender Metrokredit. It seems that the business had lost its licence to lend to new customers, and the existing portfolio will be put into run-off. Mintos stated that they had downgraded Metrokredit from B- to C because of their new ‘limited competitive position. We had given Metrokredit a score of 11/100, one of the lowest on our tables. Since then, Mintos disclosed that Metrokredit is part of the Finko lending group, which owns several other lenders appearing on Mintos and that ‘some of the Finko and Mintos equity investors overlap’. Finko would honour Metrokredit’s buyback obligations. We noticed recently that loans issued by Finko in Russia were now available again on Mintos. We have been informed by Mintos that Finko has its own lending licence in Russia and is using this to issue these new loans. It seems a very strange situation, with only partial information being provided to Mintos investors, but overall it appears that Mintos investors are being left in a much better situation than it appeared a couple of months ago, and losses will be avoided.

The most recent lender to default on Mintos was Rapido. Mintos has issued a notice of default (see their announcement here).  On 22 October Mintos announced that it was downgrading Rapido from B- to C because of a business strategy change that had affected profits. Strangely, on the very next day it announced a suspension of Rapido loans because the lender had stopped sending repayments to Mintos (i.e it had defaulted on its obligations). Our rating of Rapido was 16/100, one of our lowest scores. Why? The business had been consistently loss making over three years, had negative equity, and a very small loan portfolio. Thankfully, the amount of loans outstanding on Mintos is reported to be relatively small, so this should not affect most investors too heavily – around €0.5 million of loans appear to be affected by this default. Inf February 2020 Rapido filed for bankruptcy in Spain. We expect very little of the outstanding funds to be returned to Mintos investors, if any.

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
ID Finance Holding (Kazakhstan) Dec 2018 86.3 9.5 7.9 3.7 Yes
Creditstar Jun 2019 95.3 21.3 4.2 2.8 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
IuteCredit Dec 2019 79.0 18.5 8.4 7.3 Yes
ExpressCredit Mar 2019 12.7 -3.4 -2.6 -1.6 No
Vizia / Banknote 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
SOS Credit Jul 2019 1.2 1.2 0.2 0.2 No
Monego Dec 2018 4.1 0.4 -0.6 0 Yes
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
Kredo.al 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
Finko (Dinero, Ukraine) Dec 2018 4.1 2.0 -1.6 -0.2 Yes
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
Finko (Lendo, Georgia) Dec 2018 9.8 -2.6 -2.0 -8.8 Yes
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
Tigo 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
Finko (Varks, Armenia) Sep 2019 31.3 6.3 3.9 6.8 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
Finko (Sebo, Moldova) Dec 2018 9.5 -0.2 1.8 -0.6 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
1pm Nov 2018 141.6 57.3 7.1 7.2 Yes
Esto Oct 2019 7.4 3.1 0.0 No
Finko (Metrokredit, Russia) May 2018 5.5 -4.9 -11.8 No
Finko (UkrPozyka, Ukraine) Nov 2019 3.0 No
Zenka Aug 2019 1 1.3 -1.7 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 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.

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

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

    • Oscar Harrington Post authorReply

      Thanks Hugo & Christian, we’ve added Everest now. Unfortunately it seems to be another case where the management presentation glosses over some of the more difficult realities…. The financial statements (in Polish) don’t provide a very good explanation of why the business is losing so much money. One reason is the high tax expense (likely because the tax deduction for bad debts takes longer to claim than the accounting expense), but otherwise we would expect a company with a €100m loan portfolio in Poland with those interest rates should be profitable.

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    • Oscar Harrington Post authorReply

      Yes! Didn’t seem to be there before. Thanks again Christian we have updated for those results.

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    • Oscar Harrington Post authorReply

      Thanks as always Christian. Unfortunately they seem to have forgotten to upload the report to their website – the link they provide does not work! We’ve contacted them asking for a copy of the full results.

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  6. Thomas Reply

    HI there

    It’s nothing directly linked to this site, however I am wondering what you think about this. I received an E-Mail from Mintos regarding that Iutecredit will buy back most of it’s loan portfolio and within the same E-Mail Mintos suggested other Loan Originators in which I could invest. A warning message regarding that the capital is at risk was missing.

    So I have answered in a short E-Mail, that they should always place a warning message regarding that the capital is at risk when investing.

    The answer was:
    Morning Thomas,

    Thank you for your thoughts, however, I do not really get why we should add that the capital is at risk?

    Kind regards
    ——
    I am starting to think, I am working with amateurs and have a bad feeling about it.

    What do you think?

    • Gian Piero Reply

      Hi Thomas, you are obviously right. What is even worse however is that IuteCredit has a half decent balance sheet, a good track record and is audited, while some of the alternative originators that Mintos suggests are of lesser quality. I think we should not expect Mintos to do our risk assessment.

    • RODDY Reply

      I think they did understood and I noticed today a change on the bottom of the site – they added the capital at risk line:

      2019 All rights reserved
      By using our website you agree to the use of cookies in accordance with our cookies policy.
      Investing puts your capital at risk, and past performance does not guarantee future returns. When you invest on Mintos, you acquire loan and other debt receivables. Mintos does not provide investment or asset management services, or any services that are subject to any financial services licence.↵

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  8. ThePoorInvestor Reply

    Hi Oscar,
    I think this is really good work. I will use your rating to evaluate my own risk strategy. You certainly have a different approach than Mintos has, and i kinda like that even though i think Mintos has done a good job.

    I do not know if i have overlooked this, but do you give a lesser grade if the loan originator is not audited?

    Cheers,
    ThePoorInvestor

    • Oscar Harrington Post authorReply

      Thank you. Providing audited numbers can help increase the score we give for disclosure/reporting quality.

  9. Conor Reply

    I have today 08/14/2019 at least 60% (117 of 216) of ID Finance loans in late a couple of days. Is this normal for rating B+ or score 78 points? Late in various term (1 to 60 days)

    • Oscar Harrington Post authorReply

      Thanks for the link Loord. Worth a read for all investors in Mogo loans. We agree with the key points – performance is still OK but the balance sheet has been getting more stretched as it grows its lending faster than its equity. This increased leverage has led us to progressively cut their score over the last 12 months, but they still remain one of the better options available on Mintos right now.

  10. Christian Reply

    Thanks for the updates Oscar! Did you actually see the quite detailed explanation for the open question regarding the “PLN 3.9m tax bill on pre-tax profits of only PLN 2m” issue for Capital Service? Looks helpful but I am not good enough to understand this :).

    Also, could you somehow keep the “old” Aforti rating on the website so we know how it was before the current situation? This will help in the future for comparison, so would be good to keep all the original numbers in there somehow (also the financial report numbers etc).

    Lastly, I think some score changes are missing in the new column, such as for Varks. I think if you go through the text describing the recent rating changes, all of those should be added, not just the newest ones – in essence, this column should be populated if there was at least one rating change ever, and then the last difference should be put into it. For the monthly updates you provide now, would be nice to have the same format in the first line (like 45 -> 40) so that it is easy and quick to see the change also in the future when there are multiple updates per originator and one wants to see previous rating changes. Great, I just love this site, it also gains so much attention due to your hard work maintaining it!

    Cheers!

  11. former_investor Reply

    Fortunately I did not have any Aforti loans, but this is the last straw for me. My confidence in Mintos was diminishing with each month, now I am certain that when the financial crisis will hit the whole platform will collapse like a house of cards. It is clear that they are just like any other financial institution, meaning, they will not protect the investors. Quite the contrary, we are at the end of the food chain.

    Better leave now with interest earned to date than later with less or nothing.

    • RODDY Reply

      In my view, this type of investing is like investing in bonds. You have to your own DD when buying corporate bonds, and when doing well, you make good money and it is relatively safe, but you need to spread your risk. Mintos is nothing more than a kind of bonds market, and it is the job of the investor to check in what they are investing it, although they present themself to make it easy for investors, I’m afraid it always comes down to also perform your own research. There is no such thing as receiving 10 procent free or risk in this world.

      • former_investor Reply

        Hi Roddy,

        I completely agree with your view. Mintos is (now was) my first stab at investing, a successful one. But now I realize that it is not less risky than “traditional” ways, it actually may be more risky. Hence the opinion.

    • Gian Piero Reply

      I do not have Aforti, simply by sticking to Oscar’s good work. Oscar clearly wrote that he would not touch originators with a rating under 60. Simple and easy to follow. No Aforti. Doing some work one can refine Oscar’s gift to us. Perhaps excluding everybody that is not audited, or perhaps excluding (if you are EUR based) all investments that carry high currency risk. You might accept say an Albanian currency risk with a good originator (estimating it a medium risk), but not invest in an African one whoever the originators is, estimating this as high currency risks. It is also not all about excluding, for example Oscar has EBV under 60, yet I invest because it is invoice financing, the track record is of zero late payments, they are audited, there is no currency risk and the counterparty risk is EU treasuries. True, I invest exclusively in the best 15 originators, but further diversification by only adding risks makes no sense. Clearly making these kind of choices my average return is below 10,00%. Not bad in zero interest world.

  12. Victor Reply

    Mintos and Viventor confirm issues with Aforti loans. Mintos suspends investing and trading of Aforti loans.
    There’s something fishy going on here.
    Is Aforti next Eurocent?
    In Poland again….

    • Oscar Harrington Post authorReply

      Unfortunately it looks like it Victor. We have updated the page for this new event.

  13. Gian Piero Reply

    Hi Oscar, thanks again for your precious and hard work. I see that you show EBV as not audited. On Mintos you can find 2018 financials audited by Grant Thornton.

  14. Błażej Reply

    Hello, Oscar! First of all, I’d like to thank you for your great effort maintaining this list. I’ve just seen some loans from new company to me – SOS Credit. Do you have any opinion about them? And one more question – the post mentions updates on 5 August but it still looks same to me as it was in July. Maybe I’m missing something?

    Thanks in advance,
    Błażej

    • Oscar Harrington Post authorReply

      Thanks Blazej – we’ve now added SOS Credit, and also details of all the August score changes. Thanks for highlighting the new lender.

  15. Lasse Reply

    How come EBV Finance has been downgraded when revenue for 2018 was more tran tripled and net profit was more than doubled?

    • Oscar Harrington Post authorReply

      Increased leverage. Profit was effectively break even (0.3m for 2018) but the company is now levered ~9 to 1 rather compared to ~6 to 1 previously.

    • Oscar Harrington Post authorReply

      Thanks a lot Rui. Have updated tables. That document actually has an auditor stamp on it (if you look closely…)

    • Oscar Harrington Post authorReply

      Rui isn’t that what the table is showing? EUR 0.4m profit for the latest year (which is in this case 2018), and 1.8m for prior year.

      • Rui Reply

        Indeed, I was the one with my excel columns switched, too many hours string at this stuff! XD

    • Oscar Harrington Post authorReply

      Thanks again Christian. We updated the Lime figures a while ago but your comment made us realise we had not updated the latest reporting period figure. Presentations like Peachy drive us crazy – EBITDA is an irrelevant metric for financial companies (as interest costs are one of the most important costs) and it is just used to present a better picture than is really the case..

  16. Christian Reply

    Hi,

    thanks for keeping this up to date and improving it, I have some additional suggestions:

    1) The new format with the rating update overview is very nice, I like it! Maybe please also add the specific date to make it even more clear when this was updated, while keeping the structuring by month.

    2) For ID Finance, the table says just rating “B”, but this is not completely true: It differs among the different countries, might be better to also as B+ / B / B-.

    3) Linking the URL of the latest financial report that the table is based on directly in the first table in an additional column might also be a good idea, so people can check by themselves, this would enhance reproducibility and clarity where they are taken from. Also, if there was a way in WordPress so that people could add new reports in there (as opposed to adding a comment), that might also be the way to go forward.

    4) Lastly, maybe you could also add a column to the table that indicates the direction of change from the last update, and a “-” if there was none.

  17. Nuno Reply

    I agree with most recent posts here
    Oscar has done this community a great service by maintaining and updating all this information about the companies operating on Mintos. I am very thankful that this blog exists.
    Nevertheless we small retail investors are still in the infancy of this sort of financial report analysis; auditors, ratings etc and I agree that there is much room for improvement
    It is very important to be well informed and have a clear picture of what is going on to invest accordingly and lower the risk as much as possible.
    Thank you Oscar, and thank you everyone !

  18. GG Reply

    BTW the author of this post has done a great job and with the help of other posters I believe the list can be kept up-to-date.

    I have some issues with the scoring methodology, especially the equal weighting of the points systems and the fact that the most important measure of risk when you lend money to a company is: impairment allowances (NPL->non performing loans) vs equity (which already includes non distributed profits). Notice that it is useless to consider profit as a good indicator on its own since it includes dividends which are terrrible for lenders to the company since they reduce equity. For example Dineo has great profits, but its risk is high because this past year they decided to distribute almost 95% of their profits and then further finance the company through loans instead of equity (the parent company is really solid, but since there is no guaranteee from the holding company, taken in isolation it does not look great).

    Also it is very important to read the notes of the audited accounts on how the impairment allowances have been calculated: I prefer to look at the amount of late loans so that no subjective management assumptions are included. A few companies like BB Finance for example have made some really wild assumptions in 2018 which are not consistent with 2017 assumptions. It is hard work to read and analyze a full balance sheet.

    Finally the quality of the auditor is really important, some companies are audited by local unknown auditors. They may be good or bad, but a big international auditor company is to be preferred because it will represent less audit risk: https://www.investopedia.com/terms/a/audit-risk.asp

    Non audited companies are the worst because the risk that the numbers presented are just wishful thinking becomes very high, especially in jurisdictions outside the EU or USA (or other solid jurisdictions) where fiscal audit is weak. Fiscal audit is really the minimum set of controls for a non audited company.

      • Oscar Harrington Post authorReply

        Thanks Igor & Tomas – we’ve updated the table. And if anyone can work out why Capital Service had a PLN 3.9m tax bill on pre-tax profits of only PLN 2m please let us know!!

        • IgorJ Reply

          Hi Oscar, the answer to your question can be found in the document that was linked by Tomas. If you go to page 82, there is a ‘Note 14’ to the financials. It seems that the company had PLN 39.8m of costs that were not tax deductible. Their income tax basis was actually PLN 7.8m. Would it be possible that they were taxed at 50% tax rate?

          • Vin McQueen

            Hi guys, please find my explanation and breaking down below. Bottom line is – company has shown tax paid and deferred tax in one line that’s why it is so high.

            1. In Poland (probably not only there, but this I know for sure since I live here :)), tax law doesn’t allow you to deduct write-offs on bad loans from the tax base. IGORJ made a good point, in note 14 there is a breaking down, how from PLN 2.1m gross profit, they made it to PLN 7.8m tax basis – those 39.8 he mentioned is mostly write-offs on bad loans. It was mostly netted by interests they should get by they didn’t and others, so they finally landed at PLN 7.8m tax basis. CIT rate in Poland is 19%, so we have PLN 1.49m tax but we still missing PLN 2.44m tax. Consider above as step 1.

            2. Step 2 – provisions (reserves) for deferred tax – when you go to Note 10, you’ll find there a line “Rezerwa z tytułu odroczonego podatku dochodowego” which means provisions for deferred tax. In 2018 they made PLN 909k but they released PLN 133k, which gives PLN 776k additional tax shown in income statement. Still missing PLN 1.66m.

            3. Step 3 – Deferred tax assets – when you go to balance sheet, to assets, you’ll find there a line “Aktywa z tytułu odroczonego podatku dochodowego” which means deffered tax assets. Difference between balance at the end of 2017 (PLN 2,275k) and at the end of 2018 (PLN 613k) gives us missing PLN 1.66m.

            This is pretty difficult to understand without knowledge of accounting and tax rules, so it doesn’t surprise me, this needed explanation – I myself was wondering what is going on in this financial statement and needed refresh knowledge from my accounting classes 🙂

            Hope it helps!

  19. GG Reply

    BB Finance Group has recently (12.07.2019) published the consolidated 2018 accounts here: https://ariregister.rik.ee
    They are audited by KPMG (so a very solid auditor) and the results are not good at all. I purchased it for 2 euros, the report is in Estonian language but can easily be translated by google translate and the main problem is the following:
    Net loss of 1.1 million euros. Equity capital reduced by approx 1.5M euros

    “There was another change in regulations in Georgia significantly limiting the issue of consumer credit, which led to the decision to suspend operations in Georgia. The loss for the reporting period was largely due to the developments in the Georgian market in 2018
    In the second half of the year, large-scale investments in marketing were made.
    It was also decided to close the Czech market in 2019, based on a small share of the Group portfolio, but the time cost was equal to or even higher than the home market.”

    In addition their late loans doubled from 2017 to 2018 to more than 10M EUR, but their impairment allowances increased ONLY by 13%! (estimates made by management which auditors warn are a risk)

    Another bad event was the sale of bad loans that accrued a 2.9M loss (double of 2017). In addition they took a loan of almost 5M expiring in 2021 (which if things do not improve represents a serious liability in just 2 years time).

    it definitely should not have a Mintos A- rating and its rating here should be much lower in my opinion.

    • RODDY Reply

      Thanks for the info. I guess Oscar did not have the time yet, but definitely a drop in rating.

  20. Gian Piero Reply

    Hi Christian, you make a very valid point regarding reputation. One company of a group can have a bad year and the others help even if there is no group guarantee. This is a reasonable expectation. I have no inside information but it appears to me that in this case ID Finance made the deliberated choice to extract Spain from the group. Sending a very clear message that Spain is on its own. Before it was 100% part of the group, now it is zero percent part of the group. Invest accordingly.

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