Business loans on Mintos marketplace

Thank you for your questions and we are happy to see that SME loans are something you are looking for.

To answer your questions:

1. Each business loan is scored according to 20 criteria. Principal criteria is cash flow of the business with emphasis on diversity and reliability of the incoming monies. Capitalia performs the following checks on each of the issued loan:
- annual financials and operating financials not older than 3 months;
- bank account statement for 6-12 months;
- credit history of the company and the owner/guarantor;
- tax debt;
- social media profiling, other public databases and information.

2. There is no provision fund in place for Capitalia loans. Historic default rates for Capitalia are around 4% from the issued loans.

3. Negative equity is mostly result of poor accounting rather than poor operating financials. Often there are loans from owners that are not capitalised in equity and Capitalia requires that such loans are subordinated to Capitalia's claims. Such adjusted equity level is taken into account when calculating "Maximum unsecured credit" limit.

4. The loans are picked by Capitalia in consultation with us. We have picked initial 4 loans to test investors' interest and our processes. These are mostly repeat clients that are well into repayment schedule with a good payment discipline to-date. We expect to put many more loans on the platform in the coming weeks.

mintos, thank you for the answers. I will get my hands on few loans to see how it goes.



arbster, you are welcome to be cynical There was only one inactive p2p platform & originator offering SME loans in the Baltics, but they are rather sluggish (only few loans in one year time) and I am hesitant to get my money stuck without secondary market and uncertainty about platform's future.



I am always suspicious when originator and platform is not the same legal person, as history has shown that there might be some cheery picking / unaligned interest.

Why are Capitalia loans being put on Mintos primary market as if they are new loans, but are actually months old e.g., 20760-01? The loan is for 12 months but there are only four months left to run. The Loan Amount and Remaining Principal are both €8220 as if the loan has had no payments made yet, but actually 8 payments have already been made. The loan has only been listed on Mintos in the last few days.

Rob, thank you for your question.

All loans on the Mintos platform are prefunded by the loan originators. That means that borrowers have already received the money from the respective loan originator. The loans put on the primary market are new to investors, but the loan originator might have issued a loan to the borrower already months before and received the due payments to date. In fact, from investors perspective that is an extremely valuable information. Take loan 20760-01, for instance. The fact that the borrower has made 8 successful payments so far indicates that there is substantially less risk of not making the remaining 4 payments. The payment history is one of the best indicators when assessing the default risk.