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

Last updated - 19 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 2.4 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 Sep 2019 75.4 16.6 7.6 7.3 Yes
ExpressCredit Mar 2019 12.7 -3.4 -2.6 -1.6 No
Vizia / Banknote Sep 2019 29.4 7.8 4.5 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
Invescore Sep 2019 20.7 12.6 2.8 1.7 No
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
EBV Finance Dec 2018 18.3 3 0.3 0.1 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.

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

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

  1. Christian Reply

    Just realized that Sun Finance has no group guarantee (as opposed to Mogo or Banknote/VIZIA), so keeping them separate seems like a more reasonable way forward then, right?

    • Oscar Harrington Post authorReply

      Hi Christian. Given that there is no group guarantee our initial thinking was to keep separate. Just hope they dont try to just publish consolidated information in future if they dont want to give Mintos investors a group guarantee. It also seems there are a few new subsidiaries we may need to take a look at. Happy to hear from all our readers on this and we will listen…

    • Oscar Harrington Post authorReply

      Christian they actually confirmed today that they plan to offer a group guarantee next year, and will then just provide consolidated financials for Sun Finance. Not that combining 4 or 5 struggling loan originators together is going to make them the next JP Morgan, but will be interesting to keep an eye on.

  2. Christian Reply

    Hello there 🙂

    Mintos just announced this: https://blog.mintos.com/sun-finance-unifies-its-loan-originators-under-one-group/

    Any idea how to best incorporate that here? Keeping the different LOs from Sun Finance separate? Or do it like with Banknote / VIZIA (speaking of which: they seem to belong to a larger group of LO that also include Varks, ExpressCredit, Peachy, etc)? I guess this depends on whether or not they continue publishing individual financial statements, or just overall Sun Finance consolidated statements in the future.

    Similarly, now that Lendo has been bought by Varks, what is your strategy here?

    Tough questions, a happy weekend nevertheless and keep up the exceptional work! This community here is really developing nicely, and I am happy to be a part of it.

  3. IgorJ Reply

    Update on Aforti Finance: While an ‘IT glitch’ is preventing the company from servicing its listed loans, latest financial report reveils that Aforti Finance has no problem servicing its shareholders. “It is worth mentioning that in the fourth quarter the company paid a dividend on the profit for 2018 to its shareholders – including to the parent company: Aforti Holding S.A.” (source: Aforti Holding S.A., Report 3Q 2019, page 40). Link: https://aforti.pl/wp-content/uploads/2016/10/Aforti_Holding_SA_Report_3Q2018_ENG.pdf

    • Oscar Harrington Post authorReply

      Hi Igor. Thanks for providing everyone the link to that document (Q3 2019 Aforti results and balance sheet). What’s interesting is that up to one third of the assets declared by Aforti could potentially / likely have no value…. The sum of intangibles, goodwill, investments in ‘affiliated undertakings’, deferred tax assets, receivables from ‘affiliated undertakings’ and investments in stocks and shares of ‘related parties’ is PLN 64 million. Which is 33% of total assets. Some people might suggest that Aforti is being used as an entity to extract large amounts of cash from by related parties and affiliates.

  4. Jbl Reply

    So my account is now 5000+ with idle euros, and more to come when mogo buys back a fair share. I lowered my standards to include also B+ with a a rating over 50, as well as lower my interest to 9%. Lower than that I will not accept.

    Do you guys think the pool will improve soon?

    Also, where is my free cash? In the event of Mintos default, is it protected? I don’t find this info anywhere. I did ask Mintos and the answer was short (it’s separate from Mintos) and not convincing.

    • Ido Reply

      What answer were you expecting? Your uninvested cash is kept separately from Mintos’s assets, so it should not be affected in case Mintos collapses.

      • Jbl Reply

        I don’t know what answer I’m expecting. But if you for example are using a roboinvestor on the fund markets, it is always clearly stated with respect to regulations etc that the funds are in an account separated from bla bla.

        With Mintos nowhere mention at all where and how free cash is handled. No even on Investor protection or If Mintos folds page.

        • Ido Reply

          It’s stated at least 3 times in the user agreement:

          Page 1
          Mintos Account/-s
          Mintos bank account/-s, account/-s opened with payment institutions or electronic money institutions
          indicated on the Platform, to which, pursuant to the present Terms and Conditions, the User transfers
          funds to add them to the User’s Virtual Account and which is held separate from other property of Mintos.

          Page 3
          4.4. Funds transferred by the User for adding funds to the Virtual Account pursuant to the present Terms and Conditions
          shall be kept on any Mintos Account and Mintos shall ensure that they are segregated from Mintos own funds

          Page 4
          4.6. The funds transferred by the User to Mintos in compliance with the present Terms and Conditions shall be regarded
          as funds necessary for conducting of transactions in the meaning of Section 2307 of the Civil Law of the Republic of
          Latvia. The relevant amount of money in bank, in essence, is a claim (towards the bank) that Mintos has acquired on
          behalf of and for the User only to perform the task assigned to the authorized person. Accordingly, the respective funds
          are segregated from the Mintos own funds and shall not appear on the financial statements of Mintos as its own funds
          or as creditors claims.

          https://assets.mintos.com/DC83292C-BF80-630E-2128-C3E4D1571124.pdf

      • Daniel Reply

        Hey, thank you so much for your work and the information you are providing on this site.
        I do however have 3 questions, which I hope you will have the time to answer. Thanks a lot in advance!

        1. Until which rating should I actually invest? At the moment I am invested in all LOs with rating >25 with equal sizes of max. 5% of my portfolio. I know, it depends on my personal risk acceptance and you can’t give consultation, but until which rating would you personally be comfortable investing and until which rating would you classify the LO as risky or highly risky?
        2. Have you considered possible connections between (probably defaulting) Metrokredit and Dinero&Sebo (two LOs you rated quite good, 39 and 53 respectively). How does the default of Metrokredit affect the two others? Would you still invest in them or would you consider them too risky now?
        3. What are your thoughts about the SunFinance-Connection? How should I set my AI regarding these, as some are quite good, some others quite badly rated?

        • Thomas Reply

          Which LO you include into your portfolio and with what diversification is in my opinion really personal and has to be done yourself.
          I can tell you how I did it.
          I made a Risk Score from 1-15 where all LO got classified in (based on own assessment and ratings here). 15 was low risk, 1 was high risk

          I finally came down to 24 LO where I want to invest. Each had it’s own Risk Rating. How much I invested was to use the Risk Rating divided by the total Risk Rating.
          My total Risk Rating was 196. The Rating for iute for example is 15. Thereof 15/196 = 7.65%. I invested 7.65% of my funds into Iute Credit

          To implement that, I only had one AI running in which I set up a manual diversification based on above calculation. It looses the possibility to just the interest rate for each LO, but it made the diversification much easier/quicker. (Some are recommending an AI for each LO. But for me it was not so important to get the last interest % out of it. It was more important to have a continuous running AI with a solid Risk diversification behind it which I do not have to take care very other day)

          Hope it helps a bit to build up a system that works for yourself.

          • Daniel

            I do like this idea. At the moment i still have one AI per LO, but i might consider your suggestion in the future. The problem is, that you dont always get all the LOs you would want filled, unless you accept for example interest rates of <10%

        • Oscar Harrington Post authorReply

          Hi Daniel. On 1) – that’s really a personal decision about how much risk you want to take. There is an argument for having a higher average rating with less lenders/diversification but there’s no right answer. On 2) – which disclosures have you seen about this link? 3) Mintos confirmed today that there is a plan to offer a group guarantee next year. For now we think it makes sense to look at each lender on their own merits.

          • Daniel

            Hey, thanks for your quick reply!
            On 1) so you think there is no absolute point limit, below which you would consider it too risky to invest? For example: your statement “Peachy has received a small upgrade from 17 to 22 however we still consider this a high risk lender on the Mintos platform. ” indicates to me, that 22 is still a highly risky investment in your opinion. Just some idea, how good each range of points is would be great. And yes, i know, that P2P per se is a quite risky asset class by itself already.

            On 2) In this post (and the one it links to): https://www.p2p-kredite.com/diskussion/viewtopic,p,128883.html#128883 you can read about the possible connection. Its in german though. If you cant read it, just tell me. I´d be glad to translate it for you.

            On 3) Well, group guarantee or not. Doesnt this connection automatically lead to some problems for the other LOs of this group, if one of them makes losses? (As f.e. they try compensate losses of one of those LOs by profits of another one, leading to a bad financial situation even for the profitable LO).

    • Oscar Harrington Post authorReply

      Hi Christian! Thanks as always for your close eye on all the updates – we’ve just updated today for Mogo, Peachy, Dinerito & Bino. LF Tech is now the last lender with no updates since 2017.

    • Gian Piero Reply

      No interest on late payments? Mogo can get away with that! No Dinerito for me.

  5. Svetlin Sabev Reply

    Hi Oscar,

    Svetlin from Stikcredit here.

    We are happy to be part of the list and I Just wanted to make a few clarifications, which I hope will have a positive effect on Stikcredit’s rating. Stikcredit’s financial statements are in fact audited as this is a statutory requirement in Bulgaria, we are also currently at 4.0m EUR loan portfolio and we’ve worked on improving transparency and disclosure to investors.

    For this purpose we’ve created a corporate website with up to date information and presentation that can be accesses at https://stikcredit.com and a twitter account at twitter.com/stikcredit.

    I’d be happy to address any of your requests in the event you have any.

    Best,
    Svetlin

    • Oscar Harrington Post authorReply

      Hi Svetlin – thanks for contributing! Would be good to see more LO representatives here. The corporate website is very helpful and look good. 2 requests – can you provide your audited financials (even if in Bulgarian). It would also be great to see cumulative default curves by cohort so investors can track lending performance.

    • Oscar Harrington Post authorReply

      Hi Matteo. Thanks we’ve now updated. Although we had read that new report recently we hadn’t updated results from Q1 to Q2 in the table yet.

  6. Harri Reply

    Why does Zenka count subordinated debt as equity on their financials?
    Isn’t their actual equity negative.

    • The South Sea Company Reply

      There’s no public detailed info about Zenka’s debt instruments AFAIK, so we can’t check, but that accounting treatment may be correct. Subordinated debt that is puttable at a price that depends on the company’s assets is classified as equity under IAS 32 (under certain conditions).

      In terms of assessing safety of P2P lending we should definitely consider it equity, since it is part of the buffer that will be consumed before P2P investors take losses.

  7. Błażej Reply

    Hello! Great for sharing all info and news – thanks to it I’ve sold all my Metrokredit loans a couple of days ago but still I have about 10% of Peachy in my portfolio and their score is quite low. Are there any other information about their activities? Thanks in advance

  8. ThePoorInvestor Reply

    Hi Explorerp2p,
    How have you gained access to all those financial statements?
    When i try to google my view to financial statements i am left with empty search results

    Best regards,
    ThePoorInvestor

  9. Richard Reply

    I had some loans in Metrokredit
    And due to the very low rating I sold all those loans. A few days later Mintos came with the post
    “Metrokredit no longer issues new loans”

    I guess we all know such messages are the beginning of the end of an LO

    Thank you ExploreP2P for the research.

    • Oscar Harrington Post authorReply

      Thats great Richard – thats exactly the goal of this analysis. Glad it worked out for you and all the others who we have heard from in the last few days.

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  11. Jbl Reply

    Just curios. I received the email from Mintos about Metro credit at 20:48 CET, and you already had the article updated. When did you, and others receive it? Not that fair :/

    BTW. I had a few loans in Metro from Invest&Access trial that had been on unsold for a while, kicked them out with a discount now. God, that’s a bad product!

    • Oscar Harrington Post authorReply

      Hi Jbl. We were doing research for a post we are about to publish and it was up on their blog already. Our new post will also discuss invest&access!

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  13. Thomas Reply

    Call me paranoid but:
    Since the Aforti case I am reducing my portfolio by not reinvesting the received principle since already couple of weeks. However for me the outstanding amount on Creditstar did not get substantially less.

    So I had a look at the statistic page and I saw within short-term loan (not personal loan):
    10 Mio loan outstanding whereof
    2 Mio Current/Grace
    0.3m 1-15
    2.4m 16-30
    5.3m! 31-60

    Could this mean?
    1. The loan performance is really that bad (worrying?)
    2: Creditstar tries to keep the lowest interest rate as long as possible and thereof not repays based on the actual lender (not fair, shady)
    3. Liquidity problem to repay bonds due 10mio EUR 17Nov19, 15mio EUR 01Dec2019? (no sure, but found it on cbonds.com, –> keep the cash ment for mintos to repay the coming bonds?)
    4. ????

    I don’t know but it seems abnormal to me. What do you think?
    I not want to take any risk and I have sold all my loans of creditstar already on the secondary market.

    • Oscar Harrington Post authorReply

      It is a strange one Thomas. Of all the Mintos lenders Creditstar do produce some of the best quality, frequently updated audited financials which shows that the overall business is doing well. Their impairment charges for Q1 and Q2 2019 were stable, and their personal loans on Mintos have a low overdue percentage. A lot of payday/short-term loans get ‘rolled over’ and the statistics must have either something to do with this, or it is possible they have repurchased some of their performing loans recently due to cheaper funding costs etc. In any case worth asking Mintos for a comment if you have a big investment in these ones.

    • Gian Piero Reply

      Hi Thomas, you are not paranoid at all. My Creditstar loans also show an impossibly bad performance. Current loans only 16%, Grace 2%, 1.15 days late 7%, 16.30 days late 42% and 31.60 days late 33% !!! Clearly they are withholding reimbursements and getting a 60 day extension on as many loans as possible. There is no other explanation, such a sudden bad performance would mean that their scoring systems stopped working. It is beyond belief that they used to have about 25% late loans and now suddenly they have about 75% late loans. I also find very curious the timing of Mintos’ introduction of the 60 day extension idea. This is very dangerous because it will hide this kind of manipulation.

      • Petr Reply

        Maybe, only maybe, they are ending to place short term loans on marketplace. Personal current loans value of 76% seems normal. What do you mean by extension ides? Do you mean prolongation of the loan? It should be only use when client will ask LO for longer term.

      • Gian Piero Reply

        Hi Petr, my current Creditstar loans are 16% not 76%. All the rest, 84% are late. That is not normal.

      • Ido Reply

        I’m sorry to say that there is nothing sudden about it. I have noticed Creditstar’s horrible short-term loan performance a few months ago.

      • Oscar Harrington Post authorReply

        Gian Piero one thing that has recently happened is that Creditstar have just launched their own P2P site (Lendermarket). It’s possible that the statistics shown on Mintos might relate to them moving their loans away from Mintos, and the impact of putting much fewer new loans onto the platform. Not confirmed but given their very good audited results there is a strong chance it could relate to that. Their Q2 2019 figures didn’t show any big increase in bad debts or provisions.

    • Jose Reply

      Hi Thomas.
      Might this be Cream Finance trying to make as much money as possible out of the customers and offering them loan extensions.

  14. Petr Reply

    Hello P2P investors,

    I have question related to your point of view at the fact, that Mintos related loan originators represents 25% of total outstanding loans value on Mintos and that TOP 10 loan originators by outstanding loan value represents 55% of total outstanding loans value.

    No such a big diversification at the end.

    Best Petr

    • Gian Piero Reply

      You are absolutely right! The problem is that whether or not you are invested in Mintos and its related originators you are not remotely paid for the risk. Mogo at 8% with 4 days grace and NO interest on late payments is really less than 7,5%! If you invest outside companies that control Mintos, Mogo, Banknote etc etc you will be running big currency risks (Russia, Indonesia, Africa…) for a very low interest. I had more than 60000 € in Mintos, I am under 30000€ and still reducing. I plan to be at zero in 6 months time.

      • Petr Reply

        On the other side it was most of the time like that, Mintos was build around Mogo.

        • Gian Piero Reply

          Yes, but you have the same risk for less interest than 2 years ago. For car loans the risk is greater today than 2 years ago.

          • Petr

            Yes, that is for sure. Me personally also reducing. I am little bit disapointed by all the bloggers, which are praising Mintos, mostly without any sceptical view at it.

      • Jbl Reply

        Interesting. That is a significant investment. How come you have decided to pull out now and where are you moving it? Since how long have you been with Mintos?

        • Gian Piero Reply

          Hi JBL, I am risk averse and therefore my case is probably rather rare in crowdlending. I have been with Mintos for a couple of years investing only in Oscar’s over 60 scores, trying to avoid long grace period, no interest on late payments and many non €uro risks. With these criteria in the past I could diversify and still earn about 10%. I was very happy with that. Nowadays with these tough criteria I cannot be diversified anymore (defined as spreading risk over at least 15 originators) and earn more than 8%. Some of the top originators are at less than a real 8% (Credissimo this morning is at 5,5% with 10 days grace!) Yes, Kredit Pintar or Varks are at 11% again, but both run a serious foreign exchange risk, I have small positions in them to try to bring my average interest up. I feel Mintos is not serving anymore those like me that want a reasonable risk. I can get 7,5% with Crowdproperty in fully secured UK real estate or 7% with Crealsa in Spain in insured (by a real insurance company, not some buyback…) invoice financing. Investments in Crowdproperty and Crealsa can be properly diversified (for example I am financing about 600 different borrowers in Crealsa), therefore have virtually no volatility and are managed by serious professionals. I was also unhappy of Mintos’ very poor communication in both the Aforti and the Rapido cases. I feel that running so much more risk for 1 or 2% more interest is not worth my while. I will still keep a very small investment in Mintos, because they are the market leaders.

          • Alex

            Hi Gian,

            I share your point of view, even now Varks reduced their interest zu 8.8%. I checked Crealsa Spain and they told me, that they do not want international/EU investors. Are you from Spain or how did you manage to make business with them?

    • Oscar Harrington Post authorReply

      Thanks Christian. Agree both don’t look good. We had updated Metrokredit a little while back. We have now updated Lendo, and added comments. We were expecting them to be bad and they delivered……

  15. Christian Reply

    Oscar, could you maybe add a column for “Related party to Mintos according to IAS 24” so we have an overview of those LO that are more directly connected to Mintos? We can help filling the list if too much work for you, but I think it might be a good idea.

  16. JBL Reply

    Did anyone else realize that Aasa has no current loans on the primary market? I have some from my terminated Invest and Access trial and those are all late too.

    • Gian Piero Reply

      Yes and according to Mintos they are still rated B+. I started selling my Aasa as soon as Oscar downgraded them a few months, I have nearly finished. Thank you Oscar!

      • JBL Reply

        I tried to sell my loans (all late now) at par for a while, also up to 5% discount. Nobody bite. So I decided to just eat it and put it at 10% discount. Somebody’s Autoinvest took it right away.

        I have no confidence in Mintos anymore. They downgrade from A- without mentioning all loans are late. Did they suspend Aasa too without breaking the news? I doubt every single borrower are late at the same time.

  17. Jbl Reply

    I must say, very good site and important up to date overview. I however don’t understand why you remove the rating on Aforti and now Rapido. Leave the numbers but put a red highlight on the row. I think it is very important post mortem information.

  18. Matteo Reply

    Thank you very much for saving use from rapido finance, your ratings are my primary and only criteria which I use to select lenders on Mintos. Keep it up! I may even decide to do a small donation for your great efforts put into this. More profits for me, more donations for u! 🙂

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