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Post by martins on Jul 23, 2015 8:24:38 GMT
We are thrilled to announce that Capitalia (www.capitalia.lv/en), the leading small business lender in the Baltic States, has joined Mintos marketplace as a loan originator. It is our honour to welcome Capitalia on our platform. Capitalia is a go-to lender for SMEs that are seeking fast, simple, and transparent financing to grow their business. To date Capitalia has lent more than EUR 10m to over 500 companies. As part of Altum programme Capitalia is also providing government supported loans. In 2014, Capitalia issued bonds of 1 million EUR that are trading on the NASDAQ OMX Baltic market. Check out available loans and help small businesses thrive and grow. www.mintos.com/en
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p2pmaster
investment is life.
Posts: 128
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Post by p2pmaster on Jul 23, 2015 11:53:33 GMT
You guys keep on rocking! I was looking for opportunities to invest in SME loans in the Baltics for quite some time.
As we are all aware, SME loans are riskier and harder to underwrite, so I guess that P2P IF participants would love to know more information about credit checks performed by the originator.
Do I understand correctly that Capitala loans does not have any provision fund in place? How large are default/recovery rates for Capitala, and what is the procedure to recover investors' money?
The few loans listed looks risky (half with negative equity (?)) given 15% interest rates. If Capitala is the leading player in the Baltics, why only few loans and with such a high risk profile (are you guys selecting the loans or Capitala sends their picks?).
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Post by martins on Jul 23, 2015 13:51:20 GMT
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. You guys keep on rocking! I was looking for opportunities to invest in SME loans in the Baltics for quite some time. As we are all aware, SME loans are riskier and harder to underwrite, so I guess that P2P IF participants would love to know more information about credit checks performed by the originator. Do I understand correctly that Capitala loans does not have any provision fund in place? How large are default/recovery rates for Capitala, and what is the procedure to recover investors' money? The few loans listed looks risky (half with negative equity (?)) given 15% interest rates. If Capitala is the leading player in the Baltics, why only few loans and with such a high risk profile (are you guys selecting the loans or Capitala sends their picks?).
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arbster
Member of DD Central
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Post by arbster on Jul 23, 2015 13:55:24 GMT
[cynicism] A brand new member makes an account just to ask some apparently difficult questions about your new loan originator - what are the chances?! [/cynicism]
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p2pmaster
investment is life.
Posts: 128
Likes: 54
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Post by p2pmaster on Jul 23, 2015 14:43:04 GMT
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.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Aug 14, 2015 13:50:31 GMT
There are a lot more of these business loans available now. I think I will set up an auto invest to put something in a lot of them to spread the risk. Capitalia have several years of lending already and I am sure they can assess the risk far better than I would. www.capitalia.lv/en/about-company/companyI do like the model where the loans have already been made by the company and are much more likely to have been valued correctly, compared to those of another platform, some of which have been a disastrous experiment with investor's money which they couldn't even apologise for.
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Rob
Posts: 138
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Post by Rob on Sept 4, 2015 7:09:10 GMT
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.
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Post by Butch Cassidy on Sept 4, 2015 8:11:27 GMT
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. I see this as a strength as seasoned loans with proven payment history, albeit to a previous holder Capitalia, are a much safer bet than a brand new proposition IMHO. I also like the short term nature of these loans as they allow funds to be recycled on a shorter/different term to the standard 60 month typical mortgage product thus giving both time & product diversity. Whilst no explicit buy back exists over these loans I am confident that 1. Capitalia have proven experience & low default rates in this area & 2. Mintos would have not wanted to "blot their copybook" with a string of poor initial offerings but as Jamesfrance advises a large basket of these loans should help spread the risk
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Post by martins on Sept 4, 2015 8:28:11 GMT
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.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Sept 11, 2015 16:00:04 GMT
I just noticed that some business loans now come with a buy back guarantee. Good to see that this is extending into other types of loan on Mintos.
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Post by gmaxkenny on Sept 11, 2015 16:37:18 GMT
I just noticed that some business loans now come with a buy back guarantee. Good to see that this is extending into other types of loan on Mintos . Just 2 so far. Maybe they are testing the market to see how fast they fill in comparison to unsecured loans. Even with a lower rate I would prefer a loan with buyback,hope they list more.
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