You’ve decided to invest in Mintos – that’s a great decision. As one of the largest P2P platforms in Europe, Mintos offers an incredible chance to make great profits. How do you choose among the numerous Mintos loan originators though? How do you know which one will provide you with a solid return on your investment?
Using the Mintos Rating
First, let’s not redo work that’s already done, right? Mintos rates their originators, so why not use those ratings? Mintos rates originators on a scale of A+ to D. An A(+) originator is ‘low risk,’ B(+) originator is moderate risk, C(+) originator is elevated risk, and D originator is default risk.
Mintos takes into consideration the following factors:
– Operating environment
– Company profile
– Management and strategy
– Risk appetite
– Financial profile
You can gauge which originator would provide you with the best Mintos strategy by choosing among the rating scales. Are you looking for close to an absolute guarantee (A+), moderate risk (B) or are you really looking to take some risk with a C rated originator? The ratings should be one of the first factors you consider when looking for the right Mintos loan originators.
Do you Want a Buyback Guarantee?
95% of Mintos’ loans come with a buyback guarantee. Is that something that’s important to you? Some originators offer it and some don’t. Look closely to see if an originator offers it. If they don’t, it means they don’t stand behind their borrowers. In other words, they aren’t going to buy back the loan if the borrower defaults. Without that guarantee, it’s almost as if the originator is saying he/she knows that the borrower is going to default. That’s a much larger risk to take than finding an originator that offers that buyback guarantee.
Do the Originators Pay Interest on Delayed Loans?
Interest on delayed loans is where the money is at; if an originator doesn’t pay interest on delayed loans, you may want to look for a different one. With at least 10% of loan payments getting paid late, a part of your income can come from interest on delayed loans. If this source of income interests you, make it a part of your Mintos strategy to only choose Mintos loan originators that pay interest on delayed loans. Keep in mind, some originators don’t pay interest, but they do pay a penalty fee, which oftentimes turns out to be around the same amount, so don’t overlook those originators.
What Grace Period Would you Prefer?
Some Mintos loan originators offer loans that only have short grace periods. This gives you the chance to earn more interest. Loans with longer grace periods mean they have longer periods each month that they don’t pay interest. There’s typically a higher chance of earning extra interest on loans with short grace periods because they are more likely to fall late on their payments.
Mintos Loan Originators With a 100% Rate of Current Loans
Of course, you want to work with a Mintos loan originator that runs a good business, right? Why invest in originators that take on risky loans? Look at the originator’s rate – is it 100% or close to it? What’s your threshold? You may not require a 100% rate – maybe you are good with 75% or lower. You need to determine your threshold when looking for the right originator.
Does Country or Currency Matter?
Mintos offers loans from 68 different countries and in numerous currencies. Does this matter to you? If you want originators only from specific countries or you only want to work in specific currencies, pay close attention to what the originators offer. Keep in mind that if you need to convert the currency, Mintos does charge a currency exchange fee. While nominal, it still eats away at your profits.
Choosing the best Mintos Loan Originators
Using these points, you can create your Mintos strategy that helps maximize your portfolio. You’ll be able to narrow down your choices, and choosing the originators that offer the best guarantees, although no investment is 100% foolproof.
It’s important to choose the features that you prioritize the most. This will help keep you objective as you work your way through the originators. Mintos helps you along with your decision by doing some of the due diligence for you, but it’s important to do your own work too. Really make sure you understand an originator’s motives and abilities to manage his/her business so that you invest in the most lucrative loans available in the Mintos marketplace.