Latest update: 26 June 2020
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.
Viventor lenders - key financial information
Viventor lenders - our rating scores
Several 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 until June 2020). 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.
In June 2020 Viventor was sold to the owners of one of its loan originators. Viventor was purchased by Lotus 597 BV, which is the holding company that owns the Viventor loan originator Atlantis Financiers of the Netherlands. The new owners have plans to grow Viventor which we view as positive, as it feels like a site that needs extra resources and more volume.
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.
Several loan originators have not provided any financial information since December 2018, which we think is unacceptable. Investors are being asked to trust that the loan originators have the financial strength to honour buyback guarantees, but are not receiving the necessary information to be able to honour these pledges. The Viventor loan originators have also provided much less information about the impact of COVID-19 than the loan originators on other platforms.
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 and situation updates
Kviku has been downgraded based on its latest financial report, and the deteriorating outlook in Russia. Stik Kredit has been downgraded from 53 to 48, because almost all of its profit after tax is coming from tax credits. We think this also inflates the amount of capital it is currently showing in its balance sheet.
The CEO of Viventor has provided investors an update recently to discuss the impact of COVID on Viventor and its loan originators. The presentation can be found here. A key thing we have been monitoring on all platforms is the level of ‘pending payments’, which is the amount of funds that the platforms are waiting to receive from loan originators. A high pending payment level can indicate financial distress. Viventor refers to these as ‘funds in transit’.
Twinero & Presto, two of our least favoured loan orginators, have now been suspended due to their inability to make the payments they are required to. Other loan originators that have high levels of funds in transit as of June 2020 include Monify, and Forza and Kreddy MK. Both of these loan originators appear to be high risk, and could be suspended in July. We have cut Monify’s rating from 47 to 31 to reflect the current difficult operating environment in Poland, and lack of recent financial disclosures.