Who are vivacredit and easycredit (and any other originators)?
Can you post a link to your and their audited accounts please? Also some default rate info
It seems to me that all the loans on the PM and SM today are personal loans to people in Bulgaria, possibly without security. Is that right? Can you give us an idea of how recovery is done, and recovery rates please?
You can find the audited accounts of the two originators visit this page:
You will find them at the bottom of the page as PDF files along side the presentations of the two companies. We are expecting a couple of new originators from different countries to join the platform by the end of the year.
Yes, the loans are from Bulgaria, without security, but all of the come the 100% buy-back guarantee.
Thanks for this.
Both only have accounts to end 2015, can you find the latest please? Vivacredit is in Bulgarian and I am struggling to translate it and make it readable, can you help?
In brief, on average for these two years Easycredit earned 35M€ interest etc, less 13M€ impairment less 17M€ running costs. The loan book is around 30M€ (so go figure the APR), of which half are consumer and half are "business?". income and net profits grew 15% from 2014 to 2015. They were founded in 2005. Apart from being rather old figures this all looks fine to me, although I would say that a large part of the business is outside Bulgaria, and I can't see how trading is going in Bulgaria which is where the loans offered to us are based.
Vivacredit in its current form has only existed since 1 Jan 2016. Vivacredit accounts are Bulgarian and I am struggling to translate it and make it readable, can you help?
About the 100% guarantee. As long as the company is doing OK that's great, but we need to be able to trust that they can afford to repay
Interests declared: I have shares in Assetz, Syndicate Room, The Housecrowd. They are as nothing compared to my investments on and reliance on the good health of many other platforms here.
Well, being an addict I have gone ahead and opened another account . Can't resist really.
What is your first impression after opening an account?
Pros: lot of loans available good autoinvestor like the fact that you get the full interest owed if you take over a loan a bit different from other platforms
Cons: average interest rates relatively low don't like the RECAPCHA at login oh wait it seems to have gone no ordering by columns in available loans (e.g. rate/term/status) have to keep reapplying EUR filter - would rather not see BGN loans at all if I have no BGNs in the account
The Bulgarian currency (lev) is fixed to the Euro since the Euro was created. Exchange margins are thin, so you may invest/convert to BG LV (Bulgarian Leva) without losing much (0.05%, I think). Easy Credit is a major payday loan company (but offers loans running for months). It is established very well, for quite a few years with offices in all big cities and towns, with an army of self-made brokers and phone intimidators for those who miss a payment. Some loans must be paid weekly while salaries are paid monthly hence a lot of ''lates". I-Credit is similar but probably is smaller and newer co. It is not very likely that they will go out of business or go bankrupt unless they decide to call it a day. I noticed the platform works with a Romanian loan originator. There are many similarities b/n BG and RO, one significant difference - RO has a higher proportion of gypsies. Iuvo must have started as a BG co. I imagine they have decided to move registration and get licensed in a Baltic country because the BG legislation does not allow their people to make personal loans and collect interest. In reality, there's no modern legislation to address personal alternative investments outside the banking sector (understand major banks).
After downloading the SM loans, I've played with some formulas and made the following conclusion:
If I choose loans, let's say at 12-13% interest, I will end up at 9.5-10.5%. My return will be lower as inevitably some loans won't be serviced for more 60 days and though I'll be paid back, I won't get any interest for these 60 days hence the lower return.
The nagging thought on the back of my mind is what if one of the originators decided to skip town... Not that they would do it just like this, no, but a sudden change in the local political climate may leave them no choice.