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.
