shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Oct 11, 2015 18:46:29 GMT
I Just got following answers from Mintos CEO Martin Sultes. My Questions are in Red, Martin's Answer are in Blue. 2. Why should investors continue to invest in your Personal loans at 12% when one of your rivals Twino offers them at 14.9% (with buy back guarantee) ...Creamfinance has a strong management team, they have built a streamlined underwriting process that translates to lower than industry average loss rate, they have a very strong IT team sitting in Austria, they provide some of the best user experience for borrowers, the company is operating in 6 markets, on the group level the lending run rate is EUR 60 million and revenue run rate is EUR 21 million.
Their website shows a loan book of 4.5M at end 2014 (9 months ago) www.creamfinance.com/investor-relations - do they really now have a run rate of 60M - ie 5M€ per month? They can't spell in English - principle should be principal. This obv doesn't really matter but I thought they might like to know. Why are the only loans they offer to us from Georgia when they operate in 5 countries?
|
|
|
Post by martins on Oct 11, 2015 20:19:00 GMT
Yes, Creamfinance is currently originating about EUR 5 million per month across all the countries they operate in. We are working with Creamfinance on offering to investors loans originated in other countries too.
|
|
shimself
Member of DD Central
Posts: 2,561
Likes: 1,170
|
Post by shimself on Oct 12, 2015 8:24:01 GMT
Yes, Creamfinance is currently originating about EUR 5 million per month across all the countries they operate in. We are working with Creamfinance on offering to investors loans originated in other countries too. The image below shows the creamfinance loan book - at 4.5M in end 2014. It comes from their (very brief) investor relations page. It does not say loans per month. This is extraordinarily incompetent or alternatively it is the truth. What evidence have you see to justify this, and are they profitable? What makes you confident that they would be able to repay bad loans in Georgia. Again, why just Georgia? Attachments:
|
|
|
Post by martins on Oct 12, 2015 15:16:31 GMT
The graph depicts monthly loan origination.
We perform extensive due diligence of every loan originator we connect to our platform. That of course includes also financials. For 2015 Creamfinance expects operating profit on the group level.
Some of the reasons to start with Georgia were related to operational matters such as already existing loan funding structures in other countries and having sufficient and growing loan origination volume (e.g. Slovakia is a smaller market for Creamfinance). Also, from Mintos perspective we were looking to add another country on our platform so that investors could further diversify their investment portfolio. The other countries will be added in due course.
Re buyback guarantee. Similar to any other p2p model borrowers are paying more than what investors receive. The buyback guarantee is maintained from this spread. Based on the experience Creamfinance have a good grasp of expected default rates and thus can manage the necessary cash cushion for the buybacks rather precisely.
|
|
|
Post by angrysibert on Oct 13, 2015 7:05:43 GMT
Not that it changes much but just to keep you guys in the loop: As far as I know, Slovakia is currently no market for Creamfinance at all. There have been some regulatory changes in Slovakia during summer which forbade operations of several lending companies - including Creditone.sk (Creamfinance's branch). Even Creditone's website states that they do not offer any loans to new clients. For reference please see the Excel of eligible lending companies by the Slovak National Bank: www.nbs.sk/sk/dohlad-nad-financnym-trhom/dohlad-nad-veritelmi/zoznam-veritelov
|
|
|
Post by martins on Oct 13, 2015 12:10:48 GMT
Slovakia is introducing the licensing regime. Since last month Creamfinance indeed is not offering loans to new customers in Slovakia, but is servicing the current open portfolio. Creamfinance expects to receive the license by the end of 2015.
|
|
|
Post by martins on Oct 22, 2015 13:49:22 GMT
We are happy to inform that we have finished the overhaul of the Auto Invest. As a result, now also personal loans are available for investing with the Auto Invest.
In addition, we have introduced a much asked feature allowing to choose to include or not loans that have been already invested in. Thus investors can build various Auto Invest portfolios that are not overlapping.
As an Auto Invest user, investors may still browse loans and invest manually at any time. However, doing so may result in a portfolio of investments that diverges from Auto Invest criteria.
|
|
p2pmaster
investment is life.
Posts: 128
Likes: 54
|
Post by p2pmaster on Dec 9, 2015 16:16:33 GMT
Do investors receive late interest/penalty fee for 15+ days overdue personal loans?
|
|
|
Post by martins on Dec 9, 2015 17:22:50 GMT
Yes, if the loan originator has received late payment penalty fee that is distributed among investors.
|
|
|
Post by webbski9 on Dec 10, 2015 8:13:55 GMT
Thats a maybe then ?
|
|
|
Post by martins on Dec 10, 2015 10:24:14 GMT
As long as the loan originator has received late payment fee from the borrower it is always distributed among investors.
|
|
JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
|
Post by JamesFrance on Dec 12, 2015 10:11:54 GMT
I am pleased to see that the interest rate for these personal loans has been changed to 13% on 11th December. That makes them much more attractive as there were similar loans at a better rate available elsewhere before.
Looking at the statistics the average rate for other types of loans seems to be increasing also, so good news for investors.
|
|
|
Post by gmaxkenny on Dec 12, 2015 12:37:22 GMT
Yes it look like a bit of competition has raised rates. It would be interesting to find out whether the platform or loan originator is covering the increase,either way good for investors.
|
|
Rob
Posts: 138
Likes: 36
|
Post by Rob on Dec 12, 2015 14:14:48 GMT
Yes it look like a bit of competition has raised rates. It would be interesting to find out whether the platform or loan originator is covering the increase,either way good for investors. The loan originator sets and pays the interest rates. Mintos only advises on rates.
|
|
|
Post by patright on Dec 18, 2015 5:13:21 GMT
the main problem is availability, there is not much / enough of them. What really surprises me is creamfinance operates in many countries and they only offer Georgian loans, how is that? is it a separate business entity in Georgia and if that goes bust then we won't be paid back? There must be a logical explanation for having only Georgian loans available
|
|