Passive income

The Ultimate Guide to Buying a Car

By MPI6th February 2018Smart moneybuy, car, cash, compound interest, finance, guide, insurance, lease

Nowadays, having a car is a necessity in everyday life. Whether it’s for commuting to work, going to your local food store or visiting your family in another town, there’s no denying that having a car makes your life easier. Other than the expense of buying a home, owning a car is typically the second largest expense you will have in your lifetime and since it is a depreciating asset, you want to make sure you get it right.

What car?

There are literally millions of cars out there and hundreds of different manufacturers, this makes it even more difficult to decide which car is the best for you. The good news is, most online car sales sites like auto24.ee, autotrader.co.uk and mobile.de allow you to enter your filters and search for vehicles across the marketplace. Even an extremely good car salesman might be able to help you in a similar way. A few things you should take in to consideration:

Type – SUV, Sports car, Van, Estate, Saloon? This depends on where you live and the terrain you will be driving on, your family size and the main purpose you will use your car for. For example, if you live in northern Europe then a sports car may not be the most practical option for the icy winter conditions, in comparison it might be perfect for those living somewhere like sunny Spain.
Mileage– Generally, this has a huge impact on price as it’s commonly said the moment you drive your brand new car out of the dealership it decreases in value.
Fuel– Petrol, diesel, hybrid or electric. If you’re environmentally conscious then the electric option may be your first choice, for others using a van for trade purposes you might find a diesel engine more suited with your daily routine.
Age – While older cars are likely to be cheaper, you should check a few things like the chassis, any evidence of rust and the engine to see if it has been taken care of by the previous owner.
And of course, price…

Price

Before anything, you should first work out exactly how much you can afford whether it’s on a monthly basis or a full cash payment (We’ll get to this). After you’ve come to a figure, remember that when purchasing a car your emotions and impulses will often try to take over, especially if you are in the presence of a car salesman.

Yes, you may be able to buy a new Mercedes for an extra €10,000 but think about how much you actually need it and what restrictions it might impose on your financial standing (and ultimately your personal/social life) if you were to buy it.

If you’re still not sure, a good place to start is by either looking at the total amount of your savings balance or the net free income you have each month after your investments, bills and social life. Decide on a percentage of this to put towards a car and stick to it.

Cash, lease or finance?

This is an interesting one. A small percentage of people will have the spare cash lying around to purchase a brand new car that’s priced at over 5 figures, and with this option you will certainly pay less money overall for the car. When leasing a car, your repayments will usually be much lower than financing because you are essentially paying for the value of the depreciation in the car. At the end of an agreed term, you then have the option to make a lump sum payment and buy the car outright or hand it back to the dealer and take out a new similar deal. If you choose to take out finance for the car, your payments will be higher than the leasing option but you will own the car in full once the loan term has ended.

But, even if you have the cash available this does not necessarily mean it is the most cost effective option. Why? Well, if you have a good credit score and can obtain a low rate of finance on the car (e.g. 3%) and you know that you can make 10% per annum when you invest that large lump sum, this option works in your favour and pays for the interest due on the loan with some left over for you to compound.

Insurance and tax

It’s surprising how much the price of insurance varies significantly between providers. Based on their internal models and data, one insurer may quote you a price 3 times higher than another and offer pretty much the same package. Similar to taking out a mortgage, we suggest you use a comparison website to get an idea of which providers can give you the best price and overall cover. Usually, you can find some providers that will give you free extras like breakdown cover, legal cover and even unique quirky offers like theatre tickets. It’s important to point out here that when it comes to renewing your policy, it’s likely that your existing provider will not give you the best price out there since you are already a customer so make sure to shop around.

n most countries, the tax payment due for your car is heavily influenced by the age, type of fuel and the level of emissions it produces. If you have an old diesel SUV that pumps out Co2 emissions like there’s no tomorrow, prepare for a hefty tax bill. On the other hand, if you have an electric car then some governments have imposed a rule of no tax due on these cars. You should get an idea of the insurance and tax payments you will be responsible for before finalizing the purchase of a car and review this against your overall budget.

Beware of the extras!

So you have decided on the car you love, you’ve found a dealership and you’ve agreed on a (hopefully discounted) price, congrats! At this point you will be introduced to the ‘After Sales’ manager who is responsible for closing the deal and ensuring you buy as many optional extras as they can cram on to a piece of A4 paper. A typical extra might be a warranty offered by the dealerships themselves, this will be presented in gold wrapping paper and sprinkles but the truth is it’s not any different to the warranty already in place that the car manufacturer offers on a complimentary basis.

You can also expect a number of gadgets to be thrown your way as luxury options, such as three 12V sockets in the boot of your car that only cost an extra €499. Unless you are a frequent camper or the type of person who carries around a portable kettle for emergencies, then you probably don’t need it.

Drive away happy

Now you know the facts and you’ve done your research, you can feel confident in your decision knowing you have a great car that won’t negatively impact your financial well-being.

Source: www.bondora.com

Kredit24 joins the Mintos peer-to-peer lending marketplace and offers Kazakhstan-issued loans

By MPI6th February 2018News, Peer-to-Peer LendingCentral Asia, EUR, Kazakh Tenge, Kazakhstan, Kredit24, KZT, Mintos, Short-term loans

For the first time on Mintos, now you can invest in Kazakhstan loans. Kredit24 has joined the Mintos marketplace and its short-term consumer loans in both euro (EUR) and Kazakhstani tenge (KZT) are available for investment. Kazakhstan is the first Central Asia country to be added to the Mintos marketplace.

Kredit24 is a pioneer in offering online micro-loans in Kazakhstan. It is a member of Silkway Ventures, the fast-growing international group of tech companies focusing on consumer finance and financial price comparison in Central and Southeast Asia. With the holding company based in Singapore, Silkway Ventures is a privately owned group that currently employs 120+ staff in three countries and consistently delivers double-digit annual growth for the past eight years.

“We have investor backing and are cash flow positive, but because of our fast-growing loan portfolio, we want to diversify our funding sources for loans issued. We see working with a European fintech player like Mintos as the next step in our development and are proud to be the first loan originator from Kazakhstan on the Mintos marketplace. Kazakhstan’s online finance market is growing quite rapidly, but there is still a lot of room for further expansion of our business in the country,” says CEO of Kredit24, Alexey Sidorov.

Kredit24 started its operations in 2013 and plans to expand into other countries in the region soon. The company’s services are delivered completely online and borrowers can get a loan in just a few minutes. Repeat customers can get a loan 24/7. Kredit24 offers flexible repayment terms. Because of its unique business model, since its inception the company has attracted 400 000 registered clients in Kazakhstan and has issued over EUR 14.5 million in loans.

You can invest in Kazakhstan-issued loans from Kredit24 in both EUR and KZT. The average loan on Mintos is EUR 100 with a repayment period of 30 days. For EUR loans, the expected return is up to 11% per annum. For KZT you can expect an annual return of up to 21%. Kredit24 instalment loans with longer maturities will be placed on the marketplace soon.

Kredit24 ensures all loans delinquent for more than 60 days will be bought back by the company. It will also keep 10% of each loan on the marketplace on its balance sheet to keep its skin in the game.

“Kredit24 joining Mintos is a huge bonus for the marketplace. Investors now have the opportunity to invest in 19 different countries, and with the addition of the Kazakh Tenge, ten different currencies. Central Asia, and Kazakhstan specifically, offer investors on Mintos exciting new investment opportunities – the chance to invest in loans from a rapidly developing market with exponential room for growth, and at great rates,” says Martins Sulte, CEO and co-founder of Mintos.

Kazakhstan is the largest economy in Central Asia and has maintained political and economic stability over the past 25 years. It has a rapidly developing alternative finance market. The country is growing at a strong pace and according to the World Bank is set to experience steady growth. Since 2002, the GDP of Kazakhstan per capita has risen sixfold.

There are two ways to invest in KZT loans on Mintos: transferring KZT directly to your investor’s account on Mintos or by converting your primary currency into KZT on the Mintos marketplace. For EUR to KZT conversions on Mintos, there is a market-level fee of 3.6%.

InviPay from Poland joins Mintos p2p lending marketplace and offers to invest in invoice financing

By MPI6th February 2018News, Peer-to-Peer Lendingbuyback guarantee, EUR, inviPay, Invoice Financing, micro factoring, Mintos, peer-to-peer lending, PLN, Poland

A new invoice financing provider from Poland joins Mintos. InviPay is the leading non-bank micro factoring fintech institutions in Poland. The company offers to invest in invoices in both euro (EUR) and Polish złoty (PLN) on Mintos with expected annual returns of 10%.

Established in 2015, InviPay is a market leader in innovation in Poland for invoice financing. InviPay is one of the few invoice financing companies in Poland to be completely online and supplies its services to small and medium-sized businesses through its website and user-friendly inviPay mobile app. InviPay provides factoring services to the businesses – issuers of the invoice – and takes over the servicing of the invoice. This means the purchaser of the service or goods will repay the invoice directly to inviPay. The application process is fast and flexible and customers can receive funds in approximately two hours, from downloading the app to having the funds in their account.

“In Poland, there are almost two million small and medium enterprises and they contribute to more than a half of Polish GDP, however, 81% of these companies experience a delay with receiving payments on time. InviPay plays a significant role for them to help close the financing gap. This is why we decided to join Mintos as the demand for our micro factoring products is increasing rapidly. By joining the Mintos marketplace we want to open a new flexible capital source so we can finance more clients and widen our market share in Poland, and then later abroad,” says Marcin Pasenik, CEO of inviPay.

InviPay has listed invoices on Mintos in two currencies – EUR and PLN. The average Poland-issued invoices are EUR 750 and PLN 4 900. The average repayment period in both currencies is 45 days. You can expect a yearly return of up to 10% for all invoices from inviPay.

All inviPay invoices listed in EUR and PLN that are delinquent for more than 60 days are secured with a buyback guarantee. The company will retain 10% of all invoices placed on Mintos on its balance sheet.

InviPay is one of the fastest growing factoring companies in Poland. In 2017 alone, the company’s turnover tripled in comparison to 2016. Since its inception, the total amount financed is more than EUR 50 million. In the past two years, inviPay has made nearly 75 000 transactions, and in 2017 experienced a 126% year-on-year growth in transactions from 2016.

Since its inception, the company has provided its invoice financing services to more than 3 000 clients and it is the exclusive provider of micro factoring services to the clients of three major players in the Polish banking industry – ING Bank, Alior Bank and Bank Pocztowy. The inviPay app is integrated with over 30 different databases from data collection companies which contain information about borrowers. This allows a potential client to be verified within 30 seconds. The company also has a highly-skilled risk department, that can assess clients that require individual attention.

Update 2 on Eurocent loans on Mintos peer-to-peer lending marketplace

By MPI6th February 20181 commentNews, Peer-to-Peer Lendingcompulsory administrator, Eurocent, Mintos, peer-to-peer lending

As the compulsory administrator was appointed to Eurocent, all commercial decisions now require his approval. Because of this, regular settlements with Mintos were stopped by Eurocent in December 2017. Meanwhile, the District Court of Krakow has not yet reached a decision whether Eurocent can commence the formal restructuring process.

The management of Mintos continues to be in close contact with the administrator of Eurocent about the company’s situation and possible future developments. Currently, Mintos is in the process of evaluating all options to retrieve the outstanding amount owed to investors on Mintos.

GetBucks joins Viventor peer-to-peer lending marketplace

By MPI31st January 2018News, Peer-to-Peer Lendingbuyback guarantee, consumer loans, GetBucks, kenya, MyBucks, peer-to-peer lending, Viventor

MyBucks, a leading FinTech company that operates a range of financial products and services across 13 countries worldwide joins Viventor peer-to-peer lending marketplace. The company will list the loans originated in Kenya under GetBucks brand.

Founded in 2011, MyBucks has established itself as a scene-setting market pioneer when it comes to modern financial services. Operating 4 banks and 9 microfinance institutions that offer loan, banking and insurance products, the company has issued almost EUR 400 million worth of loans.

In June 2016, MyBucks was listed on the Frankfurt Stock Exchange (FRA:MBC). Registered in Luxembourg, the company is of African origin with active operations in 11 countries across the continent. The company is also present in Poland and Australia.

“Our company’s vision is to embrace technology as a mean to provide better financial solutions to people all over the world. Getting listed on Frankfurt stock exchange was a major step towards showing our ambition indeed lies beyond just Africa. Partnering with Viventor, another ambitious FinTech company that seeks to provide better financial services through technology is not only another step forward for us, but also a collaboration that simply makes sense.”

Tim Nuy, Deputy CEO of MyBucks

GetBucks loans on Viventor

500-50000 EUR in size
12 months-48 months in duration
10%-12% projected annual return
60 day Buyback guarantee

The company will initially list its consumer loans from Kenya issued to local business owners. All loans are backed by a third party guarantor and have a collateral in place. In addition to the attractive yield, terms and Buyback Guarantee, all the loans will be listed in Euros. On top of that, GetBucks will maintain 5% skin in the game stake in every single loan.

You can now invest in loans issued in Kenya by Watu Credit on Mintos p2p lending marketplace

By MPI30th January 2018News, Peer-to-Peer Lendingkenya, Mintos, peer-to-peer lending, personal loans, Watu Credit

Kenya has just been added to the list of countries on Mintos! This is the second country from Africa and the 18th to be represented on the Mintos marketplace. Thanks to Watu Credit, you now have the opportunity to invest in Kenya-issued personal loans and reap returns of up to 13% per year.

Established in 2015, Watu Credit offers asset financing and business loans for small businesses. Headquartered in Mombasa the company is currently expanding with branches already opened in Nairobi, Malindi, Nakuru and Mombasa region.

“Watu Credit is pleased to join the diverse family of loan originators on Mintos. With a population of 48 million and sustained economic growth, Kenya offers a dynamic crediting environment. Watu Credit prides itself on having established in a short period an expedient, efficient and customer oriented product for previously under-serviced customer segments thanks to a dedicated team and proprietary IT solutions. Our partnership with Mintos will ensure Watu Credit’s growth into other Kenyan regions,” says Andris Kaneps, CEO of Watu Credit.

Kenya-issued loans placed on Mintos by Watu Credit are personal loans offered to individuals wishing to purchase motorbikes and three-wheelers (tuk-tuks) for their business. Loans range from EUR 800 to EUR 1 600. The average repayment period is 14 months with a weekly repayment schedule. Investors can expect a yearly return of up to 13%. All loans placed on the marketplace by Watu Credit are secured by the vehicles purchased with the loan.

To keep its skin in the game, Watu will retain 15% of each loan placed on Mintos on its balance sheet. The company offers a buyback guarantee for all loans that are delinquent for more than 60 days. Historically, Watu Credit has a delinquency rate of 7%.

Watu Credit currently has 68 employees, and since its inception has gained 7 750 active clients. As of the third quarter of 2017, Watu Credit had an outstanding loan portfolio of around EUR 1.6 million and had issued more than EUR 5 million worth of loans.

Invest in short-term loans issued in Latvia by Bino.lv on Mintos P2P lending marketplace

By MPI13th December 2017News, Peer-to-Peer LendingBino.lv, Mintos, Short-term loans

One of the largest and fastest growing short-term consumer lending companies in Latvia – Bino.lv – has just joined Mintos. Bino.lv has placed on the marketplace short-term loans with an expected annual return of up to 12.5% for you to invest in.

Bino.lv was launched in February 2017 and has had strong growth ever since. The company may have been established just recently, but the management team of Bino.lv has around 10 years’ experience in the fintech industry. The CEO of Bino.lv, Toms Jurjevs is the former Regional Director of 4Finance – a global market leader in online consumer financing.

The experience of the management team can be seen in the rapid success of the company, as Bino.lv is already among the leading lending companies for short-term consumer loans in Latvia. Bino’s data-driven approach has enabled it to build a strong performing net loan portfolio of EUR 4.6 million relatively quickly.

“At Bino.lv we use the latest technology and a data-driven approach to score our clients and issue loans. This has enabled us to build a strong performing portfolio that we are proud to list on the Mintos marketplace. We are excited to start this collaboration and believe that our loans will be a great opportunity for investors all around the world,” says CEO of Bino.lv Toms Jurjevs.

On the marketplace, the short-term Latvia-issued loans range from EUR 50 to 425. The loans have a 30 day maturity and an expected yearly return up to 12.5%. Bino.lv will keep 10% of each loan placed on Mintos on its balance sheet to keep its skin in the game. All loans on Mintos from Bino.lv are secured with a buyback guarantee.

To obtain exposure to Bino.lv loans, investors will be able to invest in loans issued by Mintos Finance to Bino.lv, where repayments depend on the borrower’s payments. Each loan issued by Mintos Finance to Bino.lv will be pegged to a respective loan issued by Bino.lv to the final borrower. Mintos Finance is a Mintos group company.

ID Finance now offers Georgia-issued loans for investment in EUR on Mintos P2P lending marketplace

By MPI13th December 2017News, Peer-to-Peer LendingEUR, Georgia, ID Finance, Mintos, personal loans

ID Finance now offers its Georgia-issued personal loans on Mintos for investment in euro (EUR). These loans are the same as the Georgia-issued loans already on the marketplace from ID Finance listed in Georgian lari (GEL) – but in EUR for your convenience.

“Georgia is a country with great business opportunities. It has about four million people and promises serious growth of the fintech industry in the next few years. With this move, we have removed the currency risk for EUR investors. The five-fold growth of ID Finance’s revenue from the beginning of 2017 gives investors the confidence in high profitability and security of investments,” says Boris Batine, co-founder and CEO of ID Finance.

The average Georgia-issued loan from ID Finance on Mintos is EUR 1 000, with a repayment period of up to 12 months. The annual net return offered to investors in EUR will reach 11%.

The typical ID Finance borrower in Georgia is a 35-year-old highly-educated male. He is married and raising a child. He owns a house or an apartment, has a full-time job and earns 10-15% more than the average Georgian citizen.

ID Finance will offer a buyback guarantee for loans that are delinquent for more than 60 days. For each loan placed on the Mintos marketplace, the company will keep at least 10% on its balance sheets to retain its skin in the game.

Since joining Mintos in March 2017, more than EUR 10 million has been funded. ID Finance has issued 1.3 million loans worth USD 300 million to date. For the first 10 months of 2017, ID Finance issued loans worth USD 152 million and generated USD 100 million in revenue, a 93% period growth. The company has been profitable since 2015.

Established in 2012, ID Finance is the largest online consumer lender in the CIS region and a leading one in Europe. ID Finance has over 4.2 million registered customers. The company’s headquarters are in Barcelona, and it operates in Spain, Kazakhstan, Georgia, Poland, Russia, Mexico and Brazil. Following the company’s geography expansion plans, ID Finance is boosting its presence in Latin America.

GetBucks offers new investment opportunities from Botswana on Mintos P2P lending marketplace

By MPI13th December 2017News, Peer-to-Peer LendingBotswana, buyback guarantee, GetBucks, long term, Mintos, personal loans

Thanks to GetBucks the Mintos marketplace now has even more investment opportunities in Botswana. In addition to short-term loans, investors can now also invest in longer-term personal loans issued by GetBucks in Botswana.

Personal loans issued by GetBucks in Botswana have one of the lowest default rates on the market. This is due to special agreements which allow for monthly payments to be deducted from the borrower’s salary.

GetBucks personal loans in Botswana are issued by two GetBucks subsidiaries, GetBucks Botswana and TU Employee Benefits (Proprietary) Ltd. Both subsidiaries have special agreements with workers unions – GetBucks Botswana has an agreement with the Botswana Government Workers Union, while TU has an agreement with the Botswana Teachers Union.

Borrowers of both subsidiaries are mostly taking out loans for either personal consumption, or to pay for education. Larger loans are used for home and farm renovations or to purchase cattle.

Botswana-issued GetBucks loans, ranging from around EUR 82 to EUR 40 740 are now available for investment on Mintos. The repayment period is from 6 to 36 months. The expected annual net return for investors is 11-13%.

For loans that are delinquent for more than 60 days, GetBucks will provide a buyback guarantee. To maintain its skin in the game, the company will keep at least 5% of each loan available on the Mintos marketplace on its balance sheet. The obligations of GetBucks Botswana and TU will be guaranteed by the MyBucks Group.

Established in 2011, GetBucks is part of the Frankfurt-listed fintech company MyBucks. The Group operates in 12 countries across three continents – Africa, Europe and Australia. The company offers customers unsecured consumer loans, banking solutions and insurance products through its different brands.

TU was founded in 2012 and has granted EUR 27 million worth of loans. GetBucks Botswana was established in 2012 and has provided EUR 8 million worth of loans. GetBucks has three subsidiaries in Botswana – Cashcorp, GetBucks Botswana and TU. Together, they have funded EUR 35.3 million worth of loans.

The revenue for MyBucks has been growing at a rapid pace over the past four years, reaching EUR 62.2 million by the end of their fiscal year in June 2017. In the past year, the group’s operating profit has grown over 30% to EUR 14.5 million.

GetBucks joined the Mintos marketplace in June 2017, initially offering short-term personal loans for investment issued in Poland. The company began offering loans from Botswana in August 2017. GetBucks has funded loans worth EUR 2 million through Mintos.

New Mintos “Invest in long-term” cashback campaign launched

By MPI5th December 2017News, Peer-to-Peer Lendingcashback, loans, long term, Mintos

For a limited time, Mintos is offering a bonus for investing in long-term loans. Until December 31, 2017, for each new investment you make on the primary market in loans with a maturity of two years or more, Mintos will pay an immediate cashback. The longer the loan maturity – the larger the cashback. We will offer up to 5% of the sum invested:

Cashback amount	Maturity of loans
5%	60 months or more
4%	48 to 59 months
3%	36 to 47 months
2%	24 to 35 months

To participate in the campaign, you need to have enrolled by clicking a button on the campaign page which can be found on your Investor’s Account once you login on Mintos.

“Investing long-term has many benefits. Loans with a maturity of two years and more on average have higher interest rates. As the maturity of these loans is longer, these higher rates can be locked-in for longer as well, thus avoiding cash drag effect. Also, investing in long-term loans allows for a better diversification, because this way investors can access types of loans and borrowers that have a different profile than the average short-term loan takers. We hope that in combination with our cashback campaign, all of these benefits will help our investors reach their investment goals in a more efficient and rewarding way,” says Martins Sulte, CEO and co-founder of Mintos.

If you are a new investor, don’t forget that you can get 1% bonus of your invested amount (more info here).

For other bonuses visit our Cash-back & Bonuses page.