P2P investing News summary - News about platforms and interesting articles
Here is some of the news I have received from the 19 platforms I am currently invested with. I also gather a number of interesting articles written about P2P, platforms, regulations, tools and how-to guides. I get a not of news about P2P, so in this summary I try to filter away all the spam, promotions and everything that does not really deliver much nes or value to the reader. We are all busy, so I try to deliver a compact and filtered list of the most valuable, entertaining and educational P2P news I receive. Please let me know if you find these news summaries helpful, by commenting below. Any ideas for improvement is the comments are very welcome as well.
For those of you who wants to keep updated, you can get the latest news from the previous week in this summary. If I missed something important, please comment and I will add it to the list.
Viventor presents Credit Risk Ratings for Loan Originators
How the ViVentor Credit Rating Works
There are 3 criteria that ViVentor takes into consideration when assigning a credit rating to each Loan Originator. Each is weighted a corresponding percentage in terms of its importance.
1. Company profile (30%)
> A review of loan origination standards, risk exposure and corresponding risk management practices.
> The evaluation of the company’s management strategy, management experience, credibility and track record
> Underwriting standards, risk controls, growth, market risk, etc.
2. Financial performance (40%)
> A review of the loan portfolio quality, the Loan Originator’s financial standing and performance.
> Earning and profitability, capitalization and leverage, funding, liquidity and coverage, etc.
3. Portfolio quality review (30%)
> The most common indicator used to describe portfolio quality is the ratio of non-performing loans (NPL) to total outstanding loans.
> Asset quality, roll rates, default probability (PD), loss given default (LGD), a loan loss provision (LLR), surplus, vintages, etc.
In addition to the above, ViVentor pays close attention to who the ultimate beneficial owners of a business are, and what their capacity for support is. In assessing the businesses potential to provide support, ViVentor considers both the ability and propensity for the ultimate owners of the business to provide assistance on a timely basis. In other words, risk transfer involves the party assuming the liabilities of a third party.
Furthermore, ViVentor also takes into account personal or corporate guarantees, sureties and additional collaterals. Guarantees and suretyships reduce the risk of default and are essential arrangements in many commercial transactions. This also means that the lending company which has these guarantees will be assigned a better credit rating even if their financial condition has been weakened in any way.
Credit ratings are never static, and they change regularly based on the newest available data. ViVentor will be monitoring the performance of each Loan Originator daily. In addition, information will be updated based on direct meetings with Loan Originators, industry news, insights and expert commentaries. Starting from November 2020, ViVentor credit ratings will be reviewed and updated quarterly.
Podemos Progresar, a new lending company on Mintos, offers investment opportunities in Mexico
Mintos resumes the onboarding of new partners and welcomes Podemos Progresar, a lending company from Mexico. The company specializes in microfinance and offers group microcredits (personal loans to more than one person).
All of Podemos Progresar’s clients are women who use loans to support the growth of their self-employment or small businesses, that way fostering the development of the communities around them. The unique feature of these loans is that a group of 10-20 people cross-guarantee each other’s repayments, helping Podemos Progresar maintain a historical low risk portfolio (less than 6% of all issued loans are past due, as of September 2020).
Crowdestor Secondary Market Introduces Commission of 2.5%
Starting with the 9th of November 2020 anyone who wants to sell a deal on the secondary market on the CROWDESTOR platform will have to pay a commission calculated as 2.5% from the selling price.
A secondary market is an extra option for our investors to retrieve their funds before the maturity date. The commission is very small, so the investors who really want to sell their deal will still be able to do so. The commission is aimed to remove speculative deals.
Grupeer Status Update
We would like to inform you about the actions that Grupeer is taking to fulfil the obligations towards investors:
Recollecta continues to manage debt collection and the repayment process.
SIA “Grupeer” has partly repaid the labor force related taxes and shortly will resume operations as a legal entity.
- Grupeer started legal actions against several loan originators.
Mintos - affiliated loan originators, complicated recovery process, Sebo deal
PeerBerry enters its fourth year of operation with record results
In early November, PeerBerry celebrates a three-year birthday. PeerBerry enters its fourth year of operation confidently and demonstrating record results. The platform fully returns to pre-crisis levels.
The loans funded on PeerBerry in October exceeded 20.26 million Eur, which is a higher amount compared to loans funded in February this year. New deposits in October exceeded 3 million Eur, and it is the highest amount of new deposits attracted in one month in the entire history of PeerBerry.
Own part of Mintos - Mintos is crowdfunding
Earlier this week, Mintos CEO and Co-Founder Martins Sulte hosted a call where he answered questions about our crowdfunding campaign and revealed we are aiming to raise € 1 million.
Watch Martins answer other questions from investors in the full.
Still any good P2P platforms out there in the horrible year of 2020?
One of the questions I asked every single P2P platform I have visited was “How will you handle a crises or economic downturn?” This year we have seen what can happen first hand. Many P2P platforms have not been paying investors as promised. Some have even closed down. Some were exposed as scams.
The four P2P platforms below have continued to deliver on their promises to me, and other investors, during 2020. Their terms have also not been changed too much and they have been paying good profits consistently during the whole corona crises. (More platforms have of course delivered what they have promised, but this is my top 4 list).