Latest update: 23 December 2019
Viventor is a multi-lender P2P investment site. Like Mintos, but much smaller
Viventor is a European P2P investment site that has been quietly growing and adding lenders to its platform over the last 12 months. So far investors have purchased €115 million of loans and the platform now offers loans from 16 different lenders. The rates offered by Viventor tend to be high – the average investor returns have been over 13% to date.
Viventor has an interesting selection of lenders, most of which do not appear on any other P2P sites. Several lenders offer secured loans that are backed by invoices, real estate and cars. There are also several short term unsecured lenders who provide buyback guarantees. Viventor is owned by Finstar Financial Group, which is a $2bn private equity fund that is focused on Fintech investments.
The quality of information provided about lenders varies a lot
We think it’s important to assess the quality of each lender before purchasing any loans on Viventor. That’s because most lenders provide buyback guarantees, so the investor will be relying on the lender to fulfil this guarantee when loans default. It is also important to get an understanding of how big each lender is, how well capitalised it is, and what’s it track record.
Some lenders have provided useful corporate presentations and recent financial information while others have not provided anything particularly useful. In those cases we have purchased financial reports from the local government commercial register office to help us assess each company and provide this information to investors here.
Potential default of Viventor lender - Aforti
On 7th August 2019 Viventor & Mintos announced that they were experiencing issues receiving funds from Aforti. You can read the original Mintos statement here. It appears that the lender has failed to pass on some borrower repayments to both sites, most likely due to liquidity issues. Viventor stated that “Please be aware, that due to delay in payments by the loan originator Aforti Finance to Viventor’s bank account, all repayments for the loans including the buyback guarantees are currently put on hold until the late payments have been received. We have started an in-depth investigation into the situation at the loan originator and will keep you updated about the progress.” In November Aforti provided a brief update on the situation, where it confirmed that Aforti was still in default on its contractual obligations.
We had scored Aforti 50/100, not a high score, but there are more obviously risky lenders out there. Their most recent report showed a profit in Q1 2019, following an underlying pre-tax profit (before goodwill write-off) of almost €1m in 2018. Reporting quality was much better than average, with up to date presentations and audited financial statements. Their stock price remains high and apparently unaffected by the Mintos and Viventor announcements, although this could be because the ‘free float’ of the stock is small. Aforti’s leverage was higher than average and for now we see this as potentially the most likely the reason that they may be experiencing funding difficulties.
Viventor lenders - key financial information
Viventor lenders - our rating scores
Three lenders are related to Viventor
Forza, Kreddy and MyCredit are all owned by a mysterious company called ‘Digital Finance International’. According to media reports it is owned by Finstar Financial Group (owner of Viventor). However although it operates a slick looking website it provides very little information other than it operates in 14 countries in European and Asia and has assets over €70 million. However, further research has confirmed it is based in Moscow, Russia. Viventor have recently uploaded financial statements for Kreddy and Forza but has still not provided anything for MyCredit. As a result we would avoid MyCredit until further information becomes available.
Our thoughts on the loan originators
The quality of lenders on Viventor varies significantly. Many are relatively small and newly established. However our ratings for the loan originators have been increasing over the last 12 months as the lenders improve their results and build longer track records.
The primary market has many loans available from Atlantis, Seymoure & Hines, and Lenno, which are mainly secured loans. Many loans available on Viventor currently have low LTVs (often 35% or so) yet they also come with buyback guarantees from the lenders. This is not common but makes them attractive to investors as it reduces risk of a loss following a default.
Our highest rated lender, Credissimo, also appears on Mintos, but unfortunately there is no availability on either platform currently. Sofia Pawn offers loans secured on assets with buyback guarantees. These types of loans have had a good track record so far for P2P investors although we have some doubts about the asset valuations provided (the LTVs are likely much higher than the stated 30%). Lenno offers Bulgarian mortgages with low LTVs (20-45%) at 10% interest rates.
The latest lender to join is called Prasiskolinau. It is an extremely small Lithuanian lender. Positives are that it has been operating for many years and that it makes consistent but small profits. The main negative is the very small size of the operation. Many P2P investors will have larger P2P portfolios than the entire loan portfolio of Prasiskolinau.
Our least favoured loan originators are Twinero / Presto, Forza and Kreddy.
Latest rating changes
We have just upgraded the scores for many of the lenders on Viventor after reviewing their latest financial reports. Many of the firms achieved upgrades based on growth in their businesses, improving profitability and longer track records. Loan originators that have received upgrade for these reasons include Atlantis Financiers (up 13 to 48), Ibancar (up 14 to 52), Kreditu Centras (up 11 to 44), and Kviku (up 8 to 53).