Latest update: 9 August 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 €70 million of loans and the platform now offers loans from 15 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 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.”
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. Aforti’s leverage was however higher than average and for now we see this as potentially the most likely the reason that they may be experiencing funding difficulties.
For now Mintos and Viventor investors with Aforti loans in their portfolio have to wait to get more information to understand the situation better. There is still a possibility that Aforti can source further capital and/or liquidity and this may be a temporary issue. We understand meetings are being held this week with Aforti management to discuss the situation. Unfortunately our current assessment is that the firm is most likely to be put into runoff. Why? Once a small firm like this loses the confidence of funding partners like Mintos and Viventor, and liquidity issues are made public, without shareholder support it is very difficult to find alternative funding and avoid an insolvency procedure. This will in our view most likely lead to losses for investors and a delay in recovering their investments.
Viventor lenders - key financial information
|Viventor Lender||Reporting period||Loans||Equity||P&L - latest||P&L - prior year||Audited|
|Aforti Finance / Aforti Factor||Dec 2018||27.1||1.7||0.1||0.3||No|
|Sofia Pawn / SofCom||Dec 2018||4.3||5.2||0.5||0.5||No|
|Stik Credit||Dec 2017||1.1||1.2||0.5||0.2||No|
|Kreditu Centras||Dec 2017||1.3||0.1||0.2||-0.1||No|
|Moment Credit||Dec 2017||11||4.4||0.2||0.5||No|
|Twinero / Presto||Dec 2017||2.9||-1.6||0.3||-1.8||No|
|KFP 24||Dec 2017||2.8||1.2||0.0||0.0||No|
|SMS Credit||Dec 2016||3.7||-2.2||-2.1||-0.1||No|
|Atlantis Financiers||Dec 2017||1.1||0.7||0.2||0.1||No|
Viventor lenders - our rating scores
Two lenders are related to Viventor
Forza.mk and MyCredit are 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 no information at all about what company it is based in, what it’s financial position is, and who (if anyone) regulates it. However, further research has confirmed it is based in Moscow, Russia. Strangely, neither MyCredit or Forza.mk provide any financial information on the Viventor website, even though they are related companies. This lack of disclosure is concerning and we would not recommend holding loans from these companies until more information is provided.
Our thoughts on the lenders
The quality of lenders on Viventor varies significantly. Many are relatively small and newly established. We expect that once they publish their December 2018 financials we will see that their loan portfolios will be much larger and profits will have improved.
The primary market has many loans available from Atlantis, Seymore & 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.
In March 2019 Viventor introduced a new lender – KFP24 from Poland. Unfortunately KFP24 did not provide any financial information, although 2018 results are promised to be released in April 2019. We have purchased the 2017 annual report data and provide it above in the mean time. The management presentation provided by KFP24 is probably one of the worst we have ever seen. It provides 17 pages of irrelevant information and has a production quality that many 12 year olds would improve on. Hopefully they are better at lending than they are at powerpoint – we’ll find out in April.
Our least favoured lenders are Get Bucks / MyBucks, SMS Credit, and Twinero / Presto, Forza.mk and MyCredit.
We have recently received and reviewed the 2018 results of Lenno and SofCom, two Bulgarian lenders. Lenno had a sensational 2018, with strong growth, and profits increasing from €0.2m to €1m. Our score has increased from 56 to 65 following this. SofCom had a very stable year, remains extremely well capitalised, and received a slight score upgrade to 63.