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Lending & Finance Technologies (LF TECH) from Kazakhstan has launched on Mintos p2p marketplace

By MPI26th October 2018News, Peer-to-Peer Lendingbuyback guarantee, invest, investor, Kazakhstan, Lending & Finance Technologies, LF TECH, Mintos, peer-to-peer lending, Short-term loans

Lending & Finance Technologies (LF TECH) from Kazakhstan has just launched on the Mintos peer-to-peer lending marketplace and offers investors the opportunity to invest in its short-term consumer loans issued in Kazakhstan. The company is one of the leading short-term lenders in Kazakhstan and now lists its loans on Mintos in EUR and KZT for investment.

The company started its operations in 2012 when it opened its first branch. Since then, the group has opened 130 branches across the country, established its online product with an application review that’s less than 15 minutes, and expanded its presence in the Russian market. It aims to give its customers an individual approach, fast service and convenience when using its product. These benefits have attracted over 500 000 unique customers in Kazakhstan.

The average Kazakhstan-issued loan from LF TECH is EUR 100. The repayment period is up to 30 days and borrowers repay their loan in a single instalment. You can expect an annual net return of up to 11% for its loans listed in EUR and 18% for its KZT loans. In the future, LF TECH also plans to increase its offering on Mintos and place its car, and pawnbroking loans for investment.

All loans from LF TECH are secured with a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. In addition, to ensure the interests of the loan originator are aligned with investors, the company will maintain 15% skin in the game.

The company is 100% equity funded, hence, maintains a very strong balance sheet position. Since 2012, it has disbursed around 1 252 000 loans in Kazakhstan worth EUR 122.3 million. At the end of September 2018, its net loan portfolio amounted to EUR 19 million. The company expects stable growth and profits for future years in its home market and Russia, as well as plans to continue its expansion in South East Asia.

New high-yield Envestio project – Production of wood pallets – trade financing 1

By MPI22nd October 20181 commentNews, Peer-to-Peer LendingEnvestio, Factoring financing, invest, PALLET TIMBER COMPANY, peer-to-peer lending, timber processing sector

Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By introducing the new Investment Project Owner “PALLET TIMBER COMPANY” SIA with project “Production of wood pallets – trade financing 1″, Envestio expands the variety of industries available to invest in. “PALLET TIMBER COMPANY” SIA has a successful and profitable experience of producing sawn dimensional timber products and different types of wooden pallets.

The loan is fully secured by mixed commercial pledge and personal guarantee of the main beneficiaries of “PALLET TIMBER COMPANY” SIA.

As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

Investment opportunity

High-yielding investment in timber processing sector, factoring-type financing for a sawn timber and wooden pallets manufacturing company.
Secured debt, 20,67% planned annual return.
Investment principal buyback is available at 5% penalty rate.

Project description

The company PALLET TIMBER COMPANY SIA is a Latvian venture that is successfully working on the market of producing sawn dimensional timber products and different types of wooden pallets since 2012. The company operates modern production facilities in Riga, Latvia, which allows it to optimize raw products purchasing and logistics costs. Latvia is one of the richest countries in Europe in terms of forest – approximately one half of its territory is covered with woods. A vast variety and wide availability of different types of local raw timber makes woodworking industry one of the country’s most advanced and well-known at different export markets. PALLET TIMBER COMPANY SIA uses trademark “Made in Latvia” as an additional competitive advantage for its produce.

Flexibility is another key asset of PALLET TIMBER COMPANY SIA. Dimensional timber it produces has vast amount of different sizes, making it suitable for a wide variety of purposes of use in different markets with diverse standards.

The same refers to the wooden pallets, produced by PALLET TIMBER COMPANY SIA. Depending on specification of cargos and type of transportation and storage, the company offers pallets of different construction, durability, and area. For the production of separate order of pallets, it is also possible to use clients’ drawings and other requirements. The range of materials, which are used in the production process of the pallets include planks, beams, plywood, OSB, pressed cubes, as well as other materials. Examples of company’s produce can be seen in the pictures below.

PALLET TIMBER COMPANY SIA is looking to attract factoring-type financing enabling it to accomplish additional purchases of raw timber and increase sales, mainly to the export markets. The PALLET TIMBER COMPANY SIA currently is actively expanding to new markets (such as Turkey, United Arab Emirates, and Scandinavian countries) but additional funds will also be used in order to increase exports to current clients. The main export markets for the company’s produce include Germany (up to 48% of the company’s produce), Poland (16%) Belgium (8%), the Netherlands (7%), and other countries (21%). Advantageous geographical location allows fast delivery of company’s produces both across the Europe and also to the Eastern direction by land or sea.

Market

Wood is the most preferred material for pallets across the globe, as it offers huge advantages in terms of response time and low startup cost for customized designs. Wooden pallets sometimes end up with sharp splinters causing injuries or protruding nails that damage food packaging. But due to the low costs, wood pallets will continue to dominate product sales in most areas across the globe. However, wood pallets these days are largely being replaced with plastic pallets. As food safety compliance and reusability is a growing attraction among manufacturers, they are looking for sustainable material handling options and thus, plastic pallets will continue to gain acceptance in a range of industries including foods & beverage, pharmaceuticals, groceries and automotive.

With a huge incremental opportunity, the global pallets market is projected to grow at more than 5% CAGR during the period of assessment.

During the period 2012 – 2016, the global pallets market expanded at a CAGR of 4.7%. However, during the forecast period – that is between 2017 and 2025 – the market is anticipated to grow at a CAGR of 5.4% owing to increasing demand for better and safe transportation coupled with the rise in demand for pallets from various industries like food, agriculture, chemicals etc. The global pallets market is projected to represent incremental opportunity of more than US$ 25 Bn between 2017 and 2025.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

22.11.2018 – EUR 17.56
22.12.2018 – EUR 16.99
22.01.2019 – EUR 17.56
22.02.2019 – EUR 17.56
22.03.2019 – EUR 15.86
22.04.2019 – EUR 1017.56

Total expected return: EUR 1 103.09

You can now invest in Latvia-issued loans from Creamfinance on Mintos p2p platform

By MPI22nd October 2018News, Peer-to-Peer Lendingbuyback guarantee, Creamfinance, instalment loans, Latvia, Mintos, MIntos Finance, peer-to-peer lending, Short-term loans

Creamfinance has expanded its offering on Mintos peer-to-peer lending marketplace as it has just placed Latvia-issued short-term and instalment loans for investment. Creamfinance has been ranked as the second-fastest growing company in Europe by the prestigious Inc. 5000 Europe ranking and you can invest in its loans from Latvia on the marketplace now and enjoy returns of up to 10%.

Consumer finance services provider, Creamfinance, was founded in 2012 in Latvia and has experienced consistent and fast growth ever since. The mission of Creamfinance is to make funds easily available to its borrowers. This is achieved by providing consumer loans online in a convenient and fast manner. The company utilises advanced algorithms and machine-learning capabilities to quickly evaluate and score its borrowers. Once borrowers apply for a loan, the average time it takes for the company to assess their creditworthiness is 50 seconds. In addition, it also offers a highly customised approach to its personal loan process and aims to become a one-click loan provider to consumers globally. As a result, the company has already attracted more than 93 000 customers in Latvia.

“Fintech is drastically changing our everyday lives and the business environment, especially during recent years. In addition to classic banks, the modern Fintech world includes increasingly more and sometimes much advanced financing solutions that bring together people with extra money with those who require it. We are confident that experience of Creamfinance Latvija in various countries around the world, the millions of customers and the state-of-the-art technology will provide added value and new opportunities for customers and businesses, who “meet” in Mintos platform, a business model of future available already today,” says Līga Treiliha, the CEO of Creamfinance Latvia.

On Mintos, you can invest in Creamfinance Latvia’s short-term and instalment loans listed in EUR. The average loan is EUR 350 and the repayment period is up to 14 months. You can expect a net annual return of up to 10%.

All loans from Creamfinance Latvia will come with a buyback guarantee and will be repurchased if the loan is delinquent for 60 days or more. To ensure its interests are aligned with investors on Mintos, it will also maintain 5% of each loan placed on Mintos on its balance sheet.

As of December 31, 2017, Creamfinance Group had an outstanding net loan portfolio of more than EUR 40 million and achieved an annual revenue of EUR 44 million. By the end of 2017, Creamfinance had issued total principal amounting to over EUR 400 million since 2012.

Creamfinance also announced recently that its key strategic investor – Capitec Bank – increased its involvement in the Company. The initial investment agreement was signed in March 2017, and stated that Capitec Bank would acquire a 40% stake in the Creamfinance Group for the total of EUR 21 million in three tranches. The first tranche was paid in March 2017 (EUR 6.7 million). As a result of meeting of the financial covenants agreed in 2017, Creamfinance received the next capital injections of EUR 3 million each in June 2018 and September 2018 together constituting the second tranche . The increased investment from such a major player confirms Creamfinance’s reputation as a reliable loan originator on Mintos.

Currently, Creamfinance operates in seven countries – Latvia, Poland, Czech Republic, Georgia, Denmark, Spain and Mexico and has an IT office in Austria.

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

Peerberry p2p lending marketplace key figures for september 2018

By MPI19th October 20181 commentNews, Peer-to-Peer LendingCreditPlus, invest, investing, loans, peer-to-peer lending, PeerBerry, Ukraine

Today PeerBerry published the key figures and news for September 2018:

Investments by month (EUR):

PeerBerry Investments September 2018

The September investments through the platform brings a 13.3% increase over the previous month (from 4.58 million to nearly 5.2 million).

Funded loans:

After less then 11 months since the launch, PeerBerry have reached 30 million euros loans financed through the platform.

New loan originator:

Today PeerBerry announced the launch on the platform of the fifth loan originator: CreditPlus from Ukraine. CreditPlus was launched in June, 2017. The company is a member of Ukrainian Association of Financial Companies. CreditPlus has reached the great business results and is one of the TOP10 online lending companies in Ukraine.

Loans on the marketplace will be listed with 11.5% annual interest rate.

New language:

Great news for investors from Germany, the website is translated in their native language.

My-Passive-Income.eu impressions for September on PeerBerry platform

Even though sometimes there is a lack of investment opportunities, the money was rarely invested by Autoinvest in more than 24 hours. Adding a new loan originator is likely to compensate for this temporary shortage and the money on the investment accounts will be invested much faster.

New Envestio project – Fruits wholesale – factoring 5

By MPI19th October 2018News, Peer-to-Peer LendingEnvestio, Factoring, Fruits wholesale, invest, peer-to-peer lending, secured debt, SIA MERKURS-RIGANTE

Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By introducing the new investment project “Fruits wholesale – factoring 5”, Envestio continue cooperation with the representative of European food wholesale industry.

This loan is fully secured by commercial pledge and personal guarantee of the main beneficiary of SIA MERKURS-RIGANTE.

As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

Investment opportunity

High-yielding investment into food wholesaling industry, financing of working capital of a fruit wholesaler.
Secured debt, 21% planned annual return.
Investment principal buyback is available at 5% penalty rate.

Key data about the new project:

Loan ID

EN018053

Project start date

19.10.2018

Borrower

SIA MERKURS-RIGANTE, Reg. Nr. 40003214339, Latvia

Funding Target

€ 50 000

Loan Purpose

Factoring-type financing for the purchase and transportation of fresh fruits and berries

Loan Period

6 months

Interest Rate

21% per annum

Repayment of Loan Principal

In full at the end of the Loan Period

Investment principal buyback available

Yes, 5% penalty rate

Payment of Interest Payments

Monthly, on a specific date

Financing type

Secured debt

Guarantee from the Project’s owner

Commercial pledge in favor of Envestio Collateral Agent, Personal guarantee

Project description

Latvian company SIA MERKURS-RIGANTE has been working in the sphere of warehouse services and logistics since 1994. Recently the company launched a new business direction – delivery and wholesale of fresh fruits produced in Spain, Greece, Bulgaria, and Serbia on the market of Baltic states, Russia, Belarus, Kazakstan and other CIS countries. The assortment includes different kinds of stone fruits, strawberries, blueberry, citruses, apples, etc.

The business network is already active since June 2018. Having a number of contracted European suppliers, long-term experience in transportation and warehousing, possibility to use own infrastructure for the trade operations, necessary expertise in importation procedures, and high demand for high-quality product makes this business direction exceptionally promising and high-profitable.

SIA MERKURS-RIGANTE is looking to attract a factoring-type secured funding for the period of 6 months in order to finance additional deliveries of shipments of fruits to its partners within already established trade network.

Market

The market for imported fruits and berries in the Eastern Europe and CIS is still considered fairly underdeveloped and full of opportunities in comparison to Western Europe and US. A lot of people there still do not consider fresh fruits and berries to be an essential part of their food basket as consumption of these products currently is approximately 3,5 times lower than in the West. At the same time, as a result of the latest healthy lifestyle trends, growing personal income, and a number of other factors the demand for qualitative fruits and berries is increasing at a constant rate.

Increasing demand cannot be met with local supply, mainly due to the climate conditions, which are not favourable for growing good-quality fruits and berries as well as weaker and low-automated local farming sector. It provides a lot of opportunities for the companies that are able to import products of a necessary quality from other economic regions.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

19.11.2018 – EUR 17.84
19.12.2018 – EUR 17.26
19.01.2019 – EUR 17.84
19.02.2019 – EUR 17.84
19.03.2019 – EUR 16.11
19.04.2019 – EUR 1017.84

Total expected return: EUR 1 104.73

New Crowdestor project – INCH2

By MPI18th October 2018News, Peer-to-Peer LendingCrowdestor, INCH2, invest, investor, operating capital, peer-to-peer lending

Crowdestor informed today that soon there will be a chance to invest in one of the fastest growing fashion brands in Northern Europe – INCH2.

Currently loan agreement between CROWDESTOR investors and INCH2 is being finalized, indicative loan conditions are expected to be as follows:

Project launch: 24.10.2018
Loan: EUR 100 000;
Term: 15-18 months;
Fixed interest rate: 17% per year;
Success interest rate cap: 5% per year;
Fixed interest payments: Fixed interest rate is paid monthly;
Success interest calculation and payment: if annual turnover in year 2019 exceeds 5 million EUR, 1% bonus is paid for each 1 million EUR above the base turnover (5 million EUR). Example, if turnover in 2019 is 7 million EUR investors receive 17% base interest rate + 2% bonus interest rate, if turnover in 2019 is 9 million EUR investors receive 17% base interest rate + 4% bonus interest rate. Success interest is paid in the end of loan term together with principal payment.

The company was founded by Olga and Edward Peterson. Olga as promising young architect and Edward with an expertise in online marketing started the brand in 2015.

Since day one INCH2 recognized the possibilities of e-commerce and started to look for ways to gather global audience using the latest online marketing technology and combining that with beautifully handcrafted shoe designs. INCH2 digital marketing campaigns reach around 20’000’000 people monthly and since foundation the company has sold more than 22’000 pairs of shoes generating 183’968 EUR in 2016, 1’651’505 EUR in 2017, 2’834’892 EUR by end of September 2018, and expecting to reach around 5 million in sales by end of 2018 with top markets in the USA, Russia, Germany, UK and France.

These eye-catching, refined designs of INCH2 have propelled the brand to be recognized all around the globe and has achieved support of 700’000+ committed followers on Facebook and Instagram. This analysis-based online exposure combined with unique designs has no limits as to how far the brand can go.

Now INCH2 manufacturing is extended to Europe’s best shoemakers. The brand’s footwear is being produced in Portugal at the same facility as such well-known brands as KENZO, LANVIN, MAISON MARTIN MARGIELA, GIVENCHY and others.

As a rapidly growing start up business INCH2 faced a situation where demand for the shoes out-weighted previous production capacity as a result delivery time is around 2 months.
INCH2 is looking for an investment that would give the brand a possibility to expand their sales offline through the most desired prime shopping venues and to enlarge stock for the existing women’s collection as well as just launched men’s collection and bags. After entering retail channels and reducing delivery time for online orders by having a valid stock, it is predicted to have a huge increase of INCH2 loyal customer orders around the globe.

Grupeer will launch a new type of loan – amortizing loans

By MPI16th October 2018News, Peer-to-Peer Lendingamortizing loans, buyback guarantee, Grupeer, invest, investor, peer-to-peer lending, SIA Monify

Grupeer announced that today they will launch a new type of loan for investment! They will introduce amortizing loans by their trusted loan originator SIA Monify. One of Grupeer’s core competencies is diversification tools: geographical, loan type (real estate or business loans), and now loan repayment schedule.

How does it work?

Currently, the principal is returned back to the investor when the maturity date comes, and interest is calculated based on the total loan amount. The key difference of new amortizing loans is that principal repayment will take place over the loan period and interest is calculated from residual loan amount (total loan amount less principal repayments according to schedule).

Why is it good for investors?

Grupeer’s investors will be able to diversify held investment portfolio and considerably reduce credit risk. Credit risk is associated with the failure to return the principal at maturity. All Grupeer loans are protected by BuyBack guarantee- when loan originator is obliged to pay the principal and interest rate in case borrower defaults. However, there is still unlikely scenario that loan originator fails. In that case, Grupeer will facilitate the investment return by hiring a lawyer, who will represent the interest of all investors. However, this will take time and will cause inconvenience. So, with amortization loans, this risk is reduced.

The second benefit is a sooner availability of investment principal, which can be used for reinvestment. Setting up Auto-Invest function will automatically invest all money monthly received and will even further increase the return, as your money (which were sitting in the body of the loan) will be earning in the new project.

Please note, that because amortizing loans are a new product on the platform, auto-invest strategy can’t filter yet the amortizing loans vs. non-amortizing. So, if you do not wish your funds to be invested in the new type of loan, please disable the auto-invest temporarily.

New Envestio project – Crypto-mining Farm 200GTX1080ti – 2nd half

By MPI15th October 2018News, Peer-to-Peer LendingBaltreit SIA, bridge financing, Crypto-mining, Crypto-mining Farm, crypto-mining industry, Envestio, Nvidia GTX, peer-to-peer lending

Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By launching the project “Crypto-mining Farm 200GTX1080ti – 2nd half” (Project ID EN018051), by Baltreit SIA, an investment project owner that successfully completed several investment projects in the beginning of 2018, Envestio continues to expand the successful cooperation with the representatives of crypto-mining industry.

This loan is fully secured by mixed collateral and personal guarantee of the main beneficiary of Baltreit SIA.

As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

Investment opportunity

High-yielding investment in crypto-mining sector, financing of a crypto-mining hardware production process.
22% planned annual return.
Investment principal buyback is available at 5% penalty rate.

Project description

Baltreit SIA is a company, established by IT professionals in order to conduct different operations on the crypto-mining market, such as assembling and selling crypto-mining hardware, direct crypto-mining using own hardware as well as management of crypto-mining farms, owned by external parties. The company is constantly introducing new approaches in order to make mining process more efficient and achieve high profitability even in changing environment, which is observed on the crypto-mining market in 2018.

“Until either Volta or Turing comes along to replace it, the Nvidia GTX remains and will remain one of the most powerful graphics cards available in 2018. However, as good as it is a gaming GPU, it’s also an excellent mining GPU, but there are a few issues that stop it from ascending to the top of this list. For instance, it’s an extremely expensive GPU, and it draws more power compared to its competition. This means you’ll be getting less of a return on your investment, and it’ll take a while longer to cover your costs. However, if you don’t mind spending the extra cash for this GPU, (or if you want to game with the best graphics card around), then you’ll be happy with the results, as if you do a bit of tweaking you can reach a hash rate of 32 mh/s.” TechRadar, September 2018

Interest payments to investors will be covered by the income from other Baltreit SIA projects. Repayment of principal will be made from the money, received from the purchaser of the equipment.

Baltreit SIA is looking for short-term bridge-financing amounting to EUR 75,000 for 6 months, necessary for purchasing and assembling a set of mining hardware that will be afterwards sold to one of the company’s clients. The whole order consists of 200 GTX 1080ti graphic processing units (GPUs) that will be set up inside special rigs of a custom construction. These rigs allow centralized management of the whole mining farm, effective cooling, and lower electricity consumption, resulting in higher net profit from one GPU. In their turn, aforementioned GPUs allow great operational flexibility, thus ensuring longer life cycle of the equipment built on their basis in comparison to specialized mining equipment that can mine only specific crypto-currencies.

Market

Cryptocurrency market currently experiences exponential growth with total capitalization exceeding EUR 220 billion in September, 2018. This is a rapid increase from beginning of the 2017, when gross capitalization amounted more than 10 times lower number, i.e. EUR 20 billion. The market remains highly volatile, however, the technology behind it is constantly developing and the involved number of important players is growing.

Bitcoin remains the leading currency on the market with around 54% of total capitalization value. It is followed by Etherium with 10% and Ripple on the third place with 8%.

An increasing number of traditional institutions such as central banks, stock exchanges, and even some governments are demonstrating increasing interest to the blockchain industry market.

Sample repayment schedule

15.11.2018 – EUR 18.68
15.12.2018 – EUR 18.08
15.01.2019 – EUR 18.68
15.02.2019 – EUR 18.68
15.03.2019 – EUR 16.88
15.04.2019 – EUR 1018.68

Total expected return: EUR 1 109.68

New investment project in Latvia announced by Bulkestate – Apartment in “Sun Terraces” – Launch 16 october 2018

By MPI15th October 2018News, Peer-to-Peer LendingBulkestate, cashback, invest, Latvia, mortgage, peer-to-peer lending, Sun Terraces

Bulkestate announced today that it is preparing to launch a new investment project in Latvia.

Launch time: Tuesday / 16 October 2018 / 17:00 (EEST)

Project information:

Interest rate: 16%

Investment target: 270,000 EUR
Loan period: 12 months
Loan to value: 70%
Security: Mortgage

For this project Bulkestate offers the following special incentive pay (cash-back) for investors by sharing part of its fee received from the client:

Investors making EUR 10,000 or larger investment will receive 1% incentive payment from the invested amount, while
Investors making EUR 25,000 or larger investment will receive 2% incentive payment from the invested amount.

FIREOF now offers risk categories for its loans listed on Mintos p2p lending platform

By MPI15th October 2018News, Peer-to-Peer Lendingcredit score, FIREOF, invest, investor, Mintos, peer-to-peer lending, risk, risk category

Spanish mortgage lender FIREOF Management, which recently launched on Mintos, now offers investors the opportunity to invest in its loans by selecting them based on loan risk categories. The inclusion of the risk categories will allow investors to make more informed investment decisions.

FIREOF loans have a historical track record of 0% loss given default (LGD) and 0% bad debt rate due to the high loan-to-value ratio (average below 35%), thorough analysis of the borrowers and collateral as well as the personal guarantee provided for the loans. The risk of losing the principal has historically been very low and the main risk has been related to liquidity – locking in the investment during the court collection process which varies and averages 18 months.

FIREOF will provide loan risk ratings in each scoring category based on the predicted probability of default (PD) – assessment of the probability of loans becoming 90 days late when the court collections process is being initiated.

FIREOF Risk Categories

Category (Score)	PD*	Interest rate to investor
AAA (1000-851)	0,63% – 0,70%	5,00% – 6,00%
AA (850-701)	0,95% – 1,04%	5,50% – 6,50%
A (551-700)	3,76% – 4,15%	6,00% – 7,00%
BBB (500-551)	5,04% – 5,57%	6,50% – 7,50%
BB (451-500)	5,79% – 6,40%
B (331-450)	7,24% – 8,00%
C (0-330)	9,78% – 10,81%

* Probability of default (loans going into court collection, more than 90 days past due). Historically FIREOF has been able to recover 100% of principal for all defaulted loans.

FIREOF bases the risk categories on their scoring model that is being used to assess the riskiness of the loans they are issuing. Their scoring model, based on a FICO score (a type of credit score created by the Fair Isaac Corporation), has been specifically designed for the mortgage secured lending business in Spain. It takes into account various factors in three main areas to determine the credit quality: borrower profile, collateral liquidity and loan type risk.

FIREOF takes into account the loan type risk (35% of score), collateral liquidity (35-40%) and borrower profile (25-30%) to determine the credit score for each loan. Scores range between 0 and 1 000. In general, scores above 550 indicate a good credit quality. In contrast, loans with scores below 500 mean the credit quality is inferior – borrowers might find it difficult to repay monthly instalments, the quality of the collateral is sub-optimal or the loan type holds a larger risk. Currently, FIREOF plans to offer only loans with category BBB and higher for investment to Mintos investors.

Loan Type Risk

In order to determine the loan type risk, different aspects of loan parameters are taken into account, including the amortization type, the term of the loan, APR charged to the borrower, loan amount and reason for taking the loan.

Collateral Liquidity

To reach an acceptable score for collateral, collateral type (internal liquidity), market size and liquidation price (external liquidity) are analysed together with government public ratios to measure the potential of selling the collateral in case the borrowers of FIREOF fail to repay their liabilities.

Loan to value (LTV) and loan to liquidation value (LTLV) are calculated on a principal cap basis. In addition, fraud detection triggers are deployed at an early stage.

Borrower Profile

As a general rule, borrower information is provided and analysed by the Spanish central bank. The information analysed includes the average default probability by age, debt to income ratio (DTI) and payment incident records in combination with the minimum income (of the borrower). The decision-making process is continuously improved based on past performance information

Established in 2015, FIREOF is an asset-secured lending business whose mission is to provide a financial bridge to Spanish consumers. FIREOF pursues a win-win relationship with their borrowers. The company is fully licensed and audited and it provides its credit products through established brokers.