Mintos releases Notice for the event of default to Rapido Finance

Mintos releases Notice for the event of default to Rapido Finance 1

Following the recent suspension of Rapido Finance on the Mintos Primary and Secondary Markets due to the loan originator’s failure to make timely payments to investors, there has been no new progress in payment transfers from Rapido Finance to Mintos investors. In the meantime, the management of Rapido Finance didn’t show any considerable effort to solve the matter. Such circumstances enable Mintos to take further steps in securing our investors’ interests. 

As a result, Mintos has issued the loan originator a notice for the event of default. The notice states the default of Rapido Finance’s obligations that are described in the Agreement of Cooperation between Rapido Finance and the Mintos Marketplace. 

The payment transfer dynamics to Mintos investors with active investments in loans offered by Rapido Finance will remain interrupted until the most suitable solution is put in place for the investors’ payment recovery. Investors with Rapido Finance loan investments will be regularly informed about the developments, as we aim to solve this issue as soon as possible. 

We are thankful to our investors for their patience and understanding while we work on this matter.

With this notice, Rapido Finance Mintos Rating is downgraded to D. The rating change will be updated on the Mintos marketplace during this week.  

Overview

Rapido Finance S.L.U., which from the end of 2017 until the beginning of 2019 operated under the name EuroOne, is a specialist consumer finance provider, offering flexible loans to qualified customers in Spain. In order to launch the company’s operations in Spain, the current shareholders of Rapido Finance S.L.U. purchased the company, which previously operated under the NetCredit brand, in August 2017, and joined the Mintos marketplace in November 2017. On the Mintos marketplace, Rapido Finance offers borrowers’ loans from the LunaCredit product.

Rapido Finance’s total loan investment amount makes 0.09% of total loan investment portfolio of the Mintos marketplace. The current outstanding payments of Rapido Finance on Mintos is around EUR 430 000. For 91% of Mintos investors with active investments in Rapido Finance, the investment is up to 100 EUR, with an average investment of EUR 25.

So far, Mintos investors have made an income of approximately EUR 313 000 from investments in Rapido Finance loans.

If you have any questions regarding this case, please reach out to our Investor Service team. 

First seen onMintos Blog

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