To improve communication about pending payments, we will share with you a weekly update with the most important statistics for each lending company.
Pending payments represent money that is in the process of being credited to the investor’s account. If you want to know more about how that works and why it’s not instant, you can read a detailed explanation on our blog.
Please note that the transfer time from the lending companies to Mintos depends on the currency and location of their banks.
• SEPA (Single Euro Payments Area) transfers usually reach Mintos on the payment day or the next day.
• SWIFT transfers take a bit longer and usually reach Mintos in 2-4 banking days. SWIFT is used by lending companies that have banking partners outside SEPA.
Pending payment proportion of outstanding investments shows how large a share of a lending company’s portfolio on Mintos is currently pending payment.
Weighted average pending payment days is the weighted average length of the pending payments in days. Our aim is currently to keep the pending days below 8, which is linked to our weekly settlement with the lending companies. If the average for a lending company is more than 7 days, we’ll provide additional details about the reasons.
Finko GE and Finko UA
Pending payments in Georgia and Ukraine are due to loan extensions agreed between the borrower and lending company. This resulted in a timing difference between the repurchase on Mintos and the collection of the full loan from the borrower. Finko only received a small part of the loan from the borrower but had to repurchase the full outstanding amount on Mintos. Due to lower investments on Mintos, this gap has increased in the last week. Finko expects this gap to decrease naturally as new loan issuance volumes have also decreased.
Sun Finance DK
Sun Finance expects to receive confirmation from its bank during Week 14 to receive outstanding payments from its partners and will immediately cover pending payments to Mintos investors once these funds have been received.
Sun Finance KZ
Due to the state of emergency announced by the government of Kazakhstan on 16 March, the financial market in Kazakhstan is facing delays when it comes to currency conversions. Sun Finance expects to settle all due payments from Kazakhstan within the next two weeks.
ID Finance MX
ID Finance Mexico has been making regular settlement payments to Mintos. However, due to a processing error, Mintos was not able to process several payments sent by ID Finance Mexico to the Mintos bank account. During the investigation of this issue, the pending amount accumulated even though the payment was made by ID Finance Mexico.
In addition, due to more loan extensions recently ID Finance Mexico had to repurchase a bigger amount of outstanding investments on Mintos, but did not receive cash flows from the end borrower. Due to lower investments on Mintos, this caused an overall delay in settlements with investors.
Once the processing error was identified and funds recovered, ID Finance Mexico and Mintos resumed settlement of pending payments. The payments are being made in tranches, with the most recent tranche made on 1 April. ID Finance Mexico now expects to settle future payments without delays.
GetBucks BW has liquidity challenges, partially resulting from assistance granted to its Zambia sister company over the past twelve months. Action plan to address this is being prepared. Stay tuned for further details.
GetBucks ZM has liquidity challenges, partially resulting from delayed receivables from the government and significant deterioration of foreign exchange rates. The repayment schedule is being prepared.
Capital Service PL
Capital Service is experiencing a change in market dynamics caused by investment behavioural shifts and unexpected actions taken by the government to counter the Covid-19 crisis. The company is currently undertaking the necessary adjustments to the business model to ensure that it meets its payment obligations. We are in discussions with Capital Service regarding them being late with their pending payments settlement and when it will be paid. We will share more updates as soon as we can.
Delays in settlements were caused by bank errors for loans in MXN. These errors have been resolved, and Credilikeme expects to settle overdue payment during week 14. On 1 April Credilikeme provided proof of payment, hence the pending payments should be released to Mintos investors in the coming days.
After the Estonian government declared an emergency on 13 March, Creditstar saw a surge from repeat customers applying for additional credit on their Monefit credit lines. At the time, the company’s IT exchange with Mintos worked in a way that every time a borrower took additional credit, Creditstar would re-purchase the full outstanding loan amount from investors and reloaded the updated amount as a new loan. In reality, these loans were not fully repaid by the borrowers, they were just issued more credit within their pre-approved credit limit. Creditstar’s team is working on fixing the information exchange so that outstanding are not repurchased when they get extended, which will reduce the amount of pending payments. Creditstar expects the issue to be resolved in the upcoming weeks, and is making daily payments until the pending payments are fully released.
We are in discussions with Alexcredit regarding them being late with their pending payments settlement and when it will be paid. We will share more updates as soon as we can.