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Post by martins on Dec 21, 2015 7:55:33 GMT
patrightCreamfinance loans are indeed popular with investors which we see from the use of Auto Invest: many loans don't even make it to the Primary Market for manual investing. We are working on legal setup with Creamfinance for other countries and should add one or two in near future. The decision to start with Georgia was 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). There is a separate business entity for each country including Georgia. The Buyback Guarantee is guaranteed on the group level though.
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Post by martins on Dec 21, 2015 16:00:40 GMT
Here you can find Creamfinance financials for Georgian operations. screencast.com/t/82pCYl2qMeanwhile, we are developing a separate section on our website where we will share more information about each loan originator on the Mintos platform.
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Post by daniel on Mar 3, 2016 14:02:01 GMT
Pls be very cautious about Creamfinance. When i asked them about security of my investment and can i withdraw funds if default rate starts increasing - they just send me mail in which they wrote they will not cooperate with me. I tried to call and send them e-mail asking what are reasons for canceling agreement that was alredy signed but they didn't reply at all !
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Mar 3, 2016 14:42:54 GMT
Daniel, the first post owner, could you be more specific about your case. Have you contacted mintos or creamfinance? Defaults of creamfinance loans are usual payday loan business and are accounted in the interest rates offered.
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Post by daniel on Mar 3, 2016 15:08:11 GMT
Of course. This was direct contact with Creamfinance.The agreement was signed and money was prepared to be transfered today. After I asked what if default rate increases to 9% (now is 6% and critical is 12%), will it be possible to withdraw money because default rate is increasing to critical point where company could go to bankruptcy - they just send me e-mail they are not intersted for cooperation. This is business of unsecured loans where low default rate is only insurance for lenders, if it start to increase then lenders money is in big risk because there is no any collateral. They didn't give me any reason why they cancelled agreement although I wrote them and call. Just said to me there is nothing to talk about further. So RUDE !
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yacop
Posts: 68
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Post by yacop on Mar 3, 2016 16:06:07 GMT
Of course. This was direct contact with Creamfinance.The agreement was signed and money was prepared to be transfered today. After I asked what if default rate increases to 9% (now is 6% and critical is 12%), will it be possible to withdraw money because default rate is increasing to critical point where company could go to bankruptcy - they just send me e-mail they are not intersted for cooperation. This is business of unsecured loans where low default rate is only insurance for lenders, if it start to increase then lenders money is in big risk because there is no any collateral. They didn't give me any reason why they cancelled agreement although I wrote them and call. Just said to me there is nothing to talk about further. So RUDE ! You invest via Mintos in unsecured loans issued by Creamfinance. Maybe you should ask yourself what unsecured loans are.
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Post by daniel on Mar 3, 2016 16:35:47 GMT
No via Mintos. This was direct contact with Creamfinance. Agreement is on 1 year period. I asked them what if after let we say 2 months default rate increase to 9%, is it possible to withdraw money prematurely, they just cancelled agreement without any reason ! I know what are usecured loans, but lenders should have right to withdraw money prematurely if default rate increase close to critical point which is 12%.
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Mar 3, 2016 16:42:57 GMT
Of course. This was direct contact with Creamfinance.The agreement was signed and money was prepared to be transfered today. After I asked what if default rate increases to 9% (now is 6% and critical is 12%), will it be possible to withdraw money because default rate is increasing to critical point where company could go to bankruptcy - they just send me e-mail they are not intersted for cooperation. This is business of unsecured loans where low default rate is only insurance for lenders, if it start to increase then lenders money is in big risk because there is no any collateral. They didn't give me any reason why they cancelled agreement although I wrote them and call. Just said to me there is nothing to talk about further. So RUDE ! Have you invested via Mintos or you have tried to make a direct deal with Creamfinance to overpass Mintos? The only collateral is shareholders' funds as it serves as a buffer. Also, where do you get the number 12% to be critical? Their interest rates are over 200%, so mathematically, even larger default rate would make it a profitable business. Anyway, as an investor, I would advise to diversify as much as possible (platforms, loan originators, loan products, countries).
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Post by zeverare on Mar 3, 2016 16:47:03 GMT
If it would be possible to have your money back prematurely then everybody would try to do so at the same moment and Creamfinance would be bankrupt immediately because the money is lent out and they cannot ask it back.
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Post by daniel on Mar 3, 2016 17:03:48 GMT
12% are critical default rate, I asked them. They have big expenses for marketing,loans approval,stuff... For you is normal that you lend let we say 100k for 1 year with no collateral, and default rate increase to 12% after let we say 2 months and you can't withdraw it for 10 months ? For 10 months company can bankrupt 10 times. That is not normal for me because lenders are at high risk. It is much better and safer than to invest in loans with collateral and about same interest rates.
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yacop
Posts: 68
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Post by yacop on Mar 3, 2016 20:52:09 GMT
My Advice to you: if you cannot accept the risk of total loss DO NOT invest here.
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Post by kissmyjazz on Mar 4, 2016 1:07:32 GMT
Did you buy a bond from Creamfinance? Then you have to wait until it matures, I doubt there is any liquid aftermarket for those type of junk bonds. 12% default rate is nothing out of the ordinary. Bondora loans have higher default rates and it is still somewhat profitable investment platform.
Mintos has liquid secondary market, invest through Mintos. Usually there is no problem to unload your loans quickly.
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Post by daniel on Mar 4, 2016 8:01:39 GMT
No, this is direct loan to Creamfinance. What is unbelievably is their attitude, if someone wants to invest let we say 100k in unsecured loans you will do anything to make investor feel safe with investment, but they cancelled agreement becuase of question - what if default rate increase to 9%, will it be possible to withdraw money ? So they attitude is - give us money and don't ask anything, if you lose 100k - so what !
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