Post by jmot on Oct 19, 2019 21:53:26 GMT
As I promised in other threads about other originators I keep perfoming some basic due diligence on originators I am interested in. I have a small investment (2k) in Robocash. My review below is about what I like and I do not like about Robocash.
What I like:
- they are more "honest" than Mintos originators on the interest rate they pay. It is sort of "fixed" for long periods and not adjusted daily depending on "market" like in Mintos, after all their APR to borrowers does not change over the year. I do understand that loan demand and offer varies over the year and if the two are elastic enough, the cost of the loans (the interest rate paid) should vary as well. But the few Mintos loan originators that I know really well do not adjust their APR seasonally!
- very fast SEPA withdrawals reaching my account the same day
- very easy autoinvest setup (even though I do not like autoinvest at all)
What I do not like (in order of priority):
- the company structure: for example for Prestamer SL (their Spanish loan originator setup in mid 2016) the CEO owns directly as sole shareholder the company, so there is no holding structure
- the black box nature of most of the Robocash originators (for Spain it is simply too easy for me to perform some due diligence and I did not like what I saw): who are the shareholders, the annual reports, ... For example do most of the investors know that Prestamer SL had a negative result for 2017? That its registered capital was increased from 3100 to 60000€? That it is registered in a beautiful seaside "urbanización" instead of an office building? I also checked the Philippines loan originator and they do have a license to operate and several branches (looks much better than Spain), but I could not find out anything else about financials. The remaining originators it is even more difficult to find independent third party information.
- very little diversification in loans by the autoinvest, I excluded Prestamer and most of the money ends up in the "Z finance" originator and a bit in the Filipino originator (I would say 80-20), nothing else in the other originators in the past couple of months.
- serious cash drag if "Z finance" is excluded, on a single day even though the autoinvest was saying that there were hundreds of Filipino loans available, it only bought 3. Again their autoinvest engine is a black box.
Again I hope this review is useful to other investors, I found most blogs reviews about Robocash very superficial (maybe affiliations incentives do not help )
My suggestion to the Robocash representative that occasionally posts on this forum is to incentivate management to present some annual reports about the originators, the amount of investment could increase substantially. Maybe they have enough investors already and they are not interested in increasing investment.