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15/04/2021
Sneakypeer Newsletter Week 15
Welcome back to the Sneakypeer newsletter! Below you will find industry news from last week.
Mintos acquires new loan originators
Two loan originators, Mikro Kapital and Swell, have joined the Baltic-based peer-to-peer lending platform Mintos in the past week. The loan originator Mikro Kapital is a part of a larger structure- the holding company Mikro Kapital Group, specializing in offering financial flows for micro-entrepreneurs and SMEs, mainly in countries located in Europe and Central Asia. By joining Mintos, Mikro Kapital will now provide investors with the chance of investing in car loans issued in Uzbekistan. Since beginning its operational activities in Uzbekistan, the lending company has attained a portfolio value of over €9.8 million. According to Ravshan Soliyev, Director of Mikro Kapital Uzbekistan, the lending company heavily focuses on maintaining a low percentage of delays and a thorough customer selection, which resulted in a mere 0.7% of investors being over 30 days late with their payments in 2020.
Swell, the other loan originator, specializing in car and secured business loan lending, is based in Guadalajara, Mexico. The overall focus of the loan lender is to encourage the availability of new job positions in Mexico and provide financing to SMEs. With a net loan portfolio of € 9,8 million, Swell now offers Mintos users to invest in car loans issued in Mexico, most of which exceed the market average. The lending company has also received an honorable reputation because of its cooperation with other vehicle manufacturers such as Daimler and Volkswagen.
Buy2LetCars starts administration
Buy2LetCars, a car leasing firm, has recently begun an administration process after its parent company, Raedex Consortium Ltd., received restrictions from the Financial Conduct Authority (FCA).
Buy2LetCars initially offered investors annual returns between 7% and 11% to users that lent a minimum of £7,000 over the span of three years. The firm’s business model consisted of using investments to buy new cars and leasing them to users with an insufficient credit history through Wheels4Sure, another subordinate company. In February, the FCA prohibited Raedex from arranging any new leases with investor funds. The company has previously received multiple warnings directed towards its questionable business scheme and financial viability; therefore, on March 15, several administrators and insolvency practitioners were appointed to oversee Raedex, Buy2LetCars Ltd., and Rent2OwnCars Ltd. All investors have since become creditors and, with aid from the advisors, will hopefully reclaim their investments shortly.
