Week 48 News Summary for P2P Investors

Week 48 News Summary for P2P Investors

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. 

CROWDESTOR appoints Anatolijs Putnja as new COO

December 1
CROWDESTOR is pleased to announce the appointment of the new Chief Operating Officer (COO) Anatolijs Putnja. 

Anatolijs joined CROWDESTOR in August 2020 as a Product Owner. During the past four months, Mr. Putnja has proven himself a reliable professional with actionable plans and a great sense of what clients really need. Since Mr. Putnja has come on board, CROWDESTOR delivered several improvements that many investors were longing for- an improved investor’s dashboard, the launch of the long-awaited Secondary Market, an enhanced website, and many more other seamless but vital changes. Anatolijs Putnja’s team management skills, facilitation of effective collaboration between IT and business sides of the company, and exceptional communication skills with investors have made Anatolijs an obvious candidate for promoting the COO position.

Janis Timma, the CEO and co-founder of CROWDESTOR, has commented on the internal changes: “I am happy with the company I have built together with Gunars Udris and of the achievements of the CROWDESTOR team. We are proud of businesses’ successful funding in various sectors and geographies, including projects in the movie sector with Hollywood stars, mobile gaming with a world-class MMA fighter, restaurants in Berlin, government procurements, and many more. However, we still have lots of things to improve.

Having worked with Anatolijs during the past four months, I can confidently say that I can rely on him to deliver the necessary changes, introduce missing procedures, improve the communications and be the trusted CROWDESTOR representative with our investors.

I am pleased with the professional attitude and the structural vision that Anatolijs has shown during the past months to solve several work-related issues. As a product owner, Anatolijs has managed numerous improvements. I am confident in promoting Anatolijs to the COO position and wishing him the very best luck in the new role.”  

ViVentor: We have been selected to participate in StartUpBootCamp, the world’s largest network of multi-corporate backed accelerators

November 30
We are happy to share that for the past month starting from November 3rd, Viventor has been participating in Startupbootcamp, a global network of 20+ industry focused programs that gives innovative IT companies access to an international community of leading mentors, partners and investors. The program has already helped 950 companies to scale and grow their businesses, delivering an average of EUR 944K investment to each. In total the accelerator has helped businesses to generate a massive EUR 727M in investment. The Accelerator works with leading brands such as Deutsche Bank, Allianz, Mastercard,Vodafone, Amazon Web Services, CISCO, Intel, and many more, giving its participants unrivalled access to some of the world’s biggest players.

How will this benefit Viventor investors?
First of all, it will give us access to a larger support community of mentors and partners, allowing us to gain greater exposure on the global stage. This will help us to establish the brand internationally and give us an extra push when it comes to attracting more investors to the platform. And, of course, more investors means increased liquidity on the platform.

This will then help us to attract new LO’s on our platform, and expand the investment opportunities for investors. Our long term goal is to be offering a mixture of both high interest and low interest loans on the platform so that investors can diversify their risk and build more comprehensive investment portfolios. We hope that by participating in StartUpBootCamp we will get the networking opportunities and additional PR/marketing impetus needed to help us start discussions with LO’s from across the spectrum.

So far, we’ve been remarkably impressed with the Accelerator, and it’s been full throttle since we joined. We have been participating in pitching sessions and there are a number of other events on the horizon in the coming weeks.

IUVO: CBC loans removed from the dashboard

November 30
As we protect the interest of our investors by fighting to have a positive outcome of the lawsuit against CBC, some of the loans are starting to have over 180 days delay.

All of these loans will change their status to “Default” and they will stop being in the visible part of the dashboard. In order to keep informing yourself about the loans of CBC, you can have a look at them in “My Investments” after you filter by originator.

We are ensuring you again that our colleagues from the Legal Department of Management Financial Group are constantly working on the case with CBC, together with our international consultants and partners. Our team will keep informing you about its development and all further actions on our behalf in a timely manner. Our daily efforts are directed towards iuvo to keep being the best place for your funds.

China's P2P platform number falls to zero!

November 29
The number of Chinese peer-to-peer (P2P) lenders had fallen to zero by mid-November from a peak of about 5,000, due to the country’s ongoing efforts to crack down on risky forms of financing, according to an official with the country’s top banking regulator.

The risks of shadow banking have continued to fall in recent years, with the scale of shadow banking shrinking by 20 trillion yuan (about 3.04 trillion U.S. dollars) from its historical peak, said Liu Fushou, a lawyer with the China Banking and Insurance Regulatory Commission.

Liu called for efforts to resolutely prevent and fend off systemic financial risks, and make the financial sector better serve the real economy.

Shadow banking refers to activities performed by financial firms outside the formal banking sector, and therefore subject to lower levels of regulatory oversight and higher risks.

According to mainland media, the number of P2P lenders in China had increased to 3,844 in 2015 from about 800 in 2013. Between 2006 and 2015, the Chinese banking regulator had remained supportive of the development of the P2P lending industry.

Mintos and Capital Service agree on repayment plan for funds outstanding to investors

November 27
Mintos and Capital Service have agreed on a repayment plan for Capital Service to cover the accumulated pending payments to investors that arose from failing to transfer borrowers repayments and buyback price in full on time.

The agreement was concluded outside of the legal proceedings and is not part of the simplified restructuring procedure known as Covid Shield programme in Poland.

The Capital Service repayment plan consists of regular monthly payments which will increase over time. Initial payment amounts are EUR 64 200 and PLN 160 700. The repayment plan includes a repayment of 100% of the outstanding funds without any reduction. In addition to the repayment plan, Mintos and Capital Service have agreed to a mandatory use of lending company’s excess cash flows, or so called “cash sweep”. This means that if the financial standing of Capital Service improves, the size of repayment will additionally increase to what is set in the repayment plan. The amount of repayment increase is a function of Capital Service financial performance. This mechanism is defined in the agreement signed.

The first payment according to the repayment plan will be made at the end of February 2021.

The repayment plan stipulates regular payments over three years, followed by a so-called bullet payment to cover the remaining amount. According to the agreed repayment plan, the remaining balance in three years will be EUR 14.8 million and PLN 161 thousand. Mintos does not exclude a possibility of an additional restructuring at the end of the three year plan period, or sooner, if the situation requires so.

The agreed repayment plan accounts for a pragmatic view on the Capital Service’s ability to make repayments to investors on Mintos. The company’s loan portfolio consists of EUR 16.7 million in current loans (less than 90 days past due), which is 68.3% of total portfolio, and EUR 7.8 million in late loans (31.7% of total portfolio).The lending company’s revenue for the last six months period ending 30 October 2020 was EUR 6.4 million, down 50.7% year-over-year (YOY). Net loss stood at EUR 3.5 million for the last six months, and the net portfolio was EUR 19.7 million (down 25.7%) as of 30 October 2020.

The agreement between Mintos and Capital Service contains a covenant package, which will allow Mintos to closely monitor the lending company and control its costs. Mintos expects Capital Service to remain committed to the agreed repayment schedule.

The repayment plan to cover the outstanding funds to investors on Mintos

The agreed repayment plan comes after initial proposal from Capital Service which included a 40% reduction of the existing amount of funds due to investors and a repayment over 8 years, with the first 2 years being a grace period.

Mintos: Varks continues to fulfil commitments towards investors

November 27
Varks continues to fulfil commitments towards investors on Mintos. Since the last update on 29 October, Varks has transferred to investors on Mintos € 120 000, including principal and interest.

The agreed repayment plan for Varks issued loans shared earlier heavily relies on the borrowers’ repayments. Collections efforts significantly decreased in October due to the ongoing Covid-19 impact and the effects of the state of the war in the country (which recently ended with a cease-fire agreement on 10 November). According to the information provided by Varks, gross portfolio decreased by 25% or € 10.5 million from 01.04.2020 to 31.10.2020. This amount was used to cover € 2.4 million in operational expenses for the period, and € 9.3 million were transferred to Mintos investors.

Crowdestor: A new model of fee calculation on Secondary Market

November 27
The Secondary Market commission is vital for the CROWDESTOR business model. We charge borrowers for raising funds on the Primary Market. The Secondary Market is attractive for investors since there is a possibility to invest in a loan with a discount. Therefore, transaction volume reduces in the Primary Market. We have introduced a new fee calculation model on the secondary market to balance the activity on both markets and earnings from both markets. 

As of today, the commission will be split between sellers and buyers. The sellers’ commission will be lowered from 2.5% to 2% (calculated and deducted from the loan deal price). The buyers’ commission will depend on the discount of the loan deal. The discount is the ratio of the outstanding principal to the asking price. If the price is lower than the outstanding principal, the following commission structure will apply: 
If the discount is less or equal to 10%, the fee will not apply to the buyer. 
If the discount is more than 10% (for example, X), then the fee will be 10% of the difference between X and 10%, but not higher than 5%.  

  • Example 1: The discount is 15%. The buyer’s fee= 10% from (15%-10%) =0.5%  
  • Example 2: The discount is 30%. The buyer’s fee= 10% from (30%-10%) = 2% 
  • Example 3: The discount is 70%. The buyer’s fee= 5% as it is the maximum that we charge. 

Please note, all fees are automatically calculated and deducted. The buyers on the Secondary Market will see the purchase price already considering all fees.  

Robo.cash: European P2P market to reach €6.2 bn in volume in 2021

November 24
Analysts of the European P2P lending platform Robo.cash predict that the market will fully recover in 2021 hitting the total volume of €6.2 billion. The second wave of the pandemic does not seem to be affecting the market: in September, its volumes reduced by just 4%, but started growing again in October. 

Viventor: Extensions from Atlantis Financiers and new financial instrument for invoice financing as revolving credit line

November 24
We’d like to provide you some background as to why Atlantis has found itself in its current situation. Owing to today’s uncertain financial climate, and how hard their native market of the Netherlands has been impacted by the pandemic, Atlantis have been forced to restructure their invoice financing business. Atlantis’s clients are SME’s who borrow against incoming invoices. These borrowers have revolving invoice financing limits for a period of one to several years. Most clients use that invoice financing limit repeatedly by issuing 30 or 60 days invoices until their agreed limit has been reached. Unfortunately, in the existing pandemic situation clients of Atlantis have encountered financial problems and Atlantis have decided to help them extend their contracts and loans until the end of full agreement.  

Atlantis and Viventor are searching for new solutions like additional funding and other options. And in case of success Atlantis would pay out the extensions earlier that those agreements will finish.  

A problem occurred as Atlantis clients got new financing on recurring invoices. Due to the Covid-19 pandemic and the slow growth in investing, Atlantis is unable to gather enough funds via their existing investment on Viventor to fulfill their obligation to borrowers for the financing of new invoices. This is why we see that there is a definite need for a different kind of investment product on our platform that would allow Atlantis investors on the Viventor platform to generate passive income over a longer period.  

Atlantis Financiers are actively involved in the restructuring of their business. As part of this process we are creating a new investment product, wherein investors will receive a longer term security for their investment. This security will then pay out regular interest payments, but the principal itself will mature after a longer period of time – we envisage around a year. This will ensure that investors who have invested in Atlantis loans do not lose any money, but instead gain a longer term investment.

Viventor team

Funding Circle ups forecasts after strong growth in Britain

November 24
British loans platform Funding Circle FCH.L said on Tuesday total income rose 38% on the year in the four months to end-October and it expected second-half earnings to be materially ahead of forecasts.

The company, which matches borrowers with retail and institutional investors, said the strong performance had been driven by demand in Britain, where total income rose 67%. Loan repayments by consumers had also not been materially impacted by a second national COVID-19 lockdown, it said, although it continued to expect “a period of significant stress going forward”. 

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).

1. Estateguru


3. Peerberry

4. Bondora (Go & Grow)

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