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Mintos (P2P Lending Platform)

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  • Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    traprunner wrote: »
    Transferred funds yesterday evening and they were available on the site today. Looks like the 2-3 days processing time is gone unless it's only for new accounts.

    I have a question on reinvesting. It's probably a very stupid question but my brain doesn't seem to work this morning. If I invest €100 in a 30 day loan at 11.5% and continue to reinvest the capital and interest at the same rate and term for 2 years, would it result in a much better return than investing the €100 for 24 months at 12%?

    The interest rate shown is an annual rate. So you get 11.5% if the loan was for a full year. You dont get 11.5% back on a 30 day loan.

    But yes, you will get a better return if you take out 12 x 30 day 11.5% loans than if you took out a single 12% 12 month loan due to the compounding of the returns.


  • Registered Users Posts: 909 ✭✭✭sceach16


    I have a question on reinvesting. It's probably a very stupid question but my brain doesn't seem to work this morning. If I invest €100 in a 30 day loan at 11.5% and continue to reinvest the capital and interest at the same rate and term for 2 years, would it result in a much better return than investing the €100 for 24 months at 12%?[/QUOTE]
    The interest rate shown is an annual rate. So you get 11.5% if the loan was for a full year. You dont get 11.5% back on a 30 day loan.

    But yes, you will get a better return if you take out 12 x 30 day 11.5% loans than if you took out a single 12% 12 month loan due to the compounding of the returns.

    I have the opposite view. All rates of return(ROR)are based on the assumption that repayments are re invested at the same rate. (it is virtually impossible to calculate an ROR without this assumption.) So if U invest at 11.5% and reinvest, U will get a lesser return than at 12% (and reinvest at the same rate). Given the difference between 11.5 and 12% PA, the actual difference is tiny but I am a nit picker!


  • Registered Users Posts: 21 PanAC


    tomwaits48 wrote: »
    can someone explain to me....why would you buy a loan from the secondary market that has a premium attached? I don't get the concept. Surely you are on the look out for loans with a discount.....what am I missing here?

    Thanks!

    I'm fairly new to Mintos. So far I've bought a few loans on the secondary. They seem to offer higher rates than (13.5% against 12.5%) on the primary). Maybe its the rates generally dropping for secured car loans over the last few months. Anyway, its still better than my Linked Finance's average 11.8% that's dropping like a stone. Some of the secondary loans are hard to resist, with a track record of punctual repayments.

    Before I invest in a premium type loan on the secondary market, I calculate the real ROR for its remainder. If it's higher than 12% I dig deeper into it. I use manual bidding, I'm reluctant to use the "Auto Invest" system. Could just be the residue disgust I still feel for the Linked AutoBid junk.


  • Closed Accounts Posts: 738 ✭✭✭at9qu5vp0wcix7


    PanAC wrote: »
    I'm fairly new to Mintos. So far I've bought a few loans on the secondary. They seem to offer higher rates than (13.5% against 12.5%) on the primary). Maybe its the rates generally dropping for secured car loans over the last few months. Anyway, its still better than my Linked Finance's average 11.8% that's dropping like a stone. Some of the secondary loans are hard to resist, with a track record of punctual repayments.

    Before I invest in a premium type loan on the secondary market, I calculate the real ROR for its remainder. If it's higher than 12% I dig deeper into it. I use manual bidding, I'm reluctant to use the "Auto Invest" system. Could just be the residue disgust I still feel for the Linked AutoBid junk.

    Remember that interest diminishes over the course of a loan. A proven track record is great, but you can actually get this on many primary market loans. Many loans are only listed on Mintos recently, but have been repaying the originator for months or even years.

    ~8-12 month secured car loans are hitting the market at 14-15% in recent weeks, which is great considering that other loans (personal and invoice in particular) are dropping in interest very quickly.


  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    Remember that interest diminishes over the course of a loan. A proven track record is great, but you can actually get this on many primary market loans. Many loans are only listed on Mintos recently, but have been repaying the originator for months or even years.

    ~8-12 month secured car loans are hitting the market at 14-15% in recent weeks, which is great considering that other loans (personal and invoice in particular) are dropping in interest very quickly.

    Leon Melted Tap-dancer what do you mean "the interest diminishes over the course of a loan"? Doesn`t the interest rate stay the same, is it just the returns amount diminishes as the capital on the loan goes down.
    Those 14-15% loans are they with Buyback?


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  • Registered Users Posts: 952 ✭✭✭Prezatch


    I'm only using 1 month loans with buyback, best I see these days is 10% on both Mintos and Twino


  • Registered Users Posts: 81 ✭✭spudwould


    JoeyD wrote: »
    I'm only using 1 month loans with buyback, best I see these days is 10% on both Mintos and Twino

    I get 11.5% on my 30 day loans all with Creamfinance guaranteed buyback.
    This gives a monthly return of 1% a month on each loan ... but when compounded it is a higher return :D;):p


  • Closed Accounts Posts: 738 ✭✭✭at9qu5vp0wcix7


    For the first time, I have an unsecured loan with no buy-back guarantee that is now 60+ days late :/


  • Registered Users Posts: 259 ✭✭lcwill


    For the first time, I have an unsecured loan with no buy-back guarantee that is now 60+ days late :/

    Me too! Just changed my autobid to buy back guaranteed loans only. I had been picking up some non-guaranteed loans with low LTV and high interest rates but getting out of that game now.


  • Registered Users Posts: 1,667 ✭✭✭Frynge


    I have one as well but is is only €1.25.

    Had another one but it get cleared.


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  • Registered Users Posts: 1,308 ✭✭✭scheister


    purchased one of the lando loans on the secondary market as par cost as it was due to pay 3 days later.

    Loan is now 14 days late but looks like i'm going to make money money from the late payment penalty then i was from the interest on the actual loan


  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    No BuyBack Guarantee loans available on Mintos these days bar that 5% Mortgage from Acema which I don`t fancy tying up my funds with for 12 years.
    Anyone know the reason for this?


  • Registered Users Posts: 861 ✭✭✭tomwaits48


    scheister wrote: »
    purchased one of the lando loans on the secondary market as par cost as it was due to pay 3 days later.

    Loan is now 14 days late but looks like i'm going to make money money from the late payment penalty then i was from the interest on the actual loan

    do you happen to know if the late payment fees are subject to tax, like the interest payments?


  • Registered Users Posts: 1,308 ✭✭✭scheister


    tomwaits48 wrote: »
    do you happen to know if the late payment fees are subject to tax, like the interest payments?

    id think all interest is taxable whether loan interest or penalty interest


  • Registered Users Posts: 460 ✭✭iainBB


    I guess the power of mintos is that it seems stable as a lending investment platform but the non banks that it is working with seems small with very few employees if these bank started to fail people lose confidence in mintos, Is it worth even spreading load to different bank in mintos each bank has different area of focus and different rate of return.


  • Closed Accounts Posts: 738 ✭✭✭at9qu5vp0wcix7


    Is anybody else getting a huge increase in delayed invoice loan repayments in recent weeks?


  • Registered Users Posts: 460 ✭✭iainBB


    Is anybody else getting a huge increase in delayed invoice loan repayments in recent weeks?


    What non 'Bank? What type of loan?


  • Registered Users Posts: 391 ✭✭Yurple


    Is anybody else getting a huge increase in delayed invoice loan repayments in recent weeks?

    Yes ! So many business invoice financing are now late ! Nothing happened up to yesterday and received so many late interest returns today but still a lot late ... first time I seen it


  • Closed Accounts Posts: 738 ✭✭✭at9qu5vp0wcix7


    iainBB wrote: »
    What non 'Bank? What type of loan?

    Across all of the major providers of Invoice Financing. As Yurple said, I also received a huge backlog of payments today.

    It appears that car loans are the current best option for investment, with the rates being so low on Invoice Financing and Personal Loans.


  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    Can`t justify using Mintos at the moment when the best rates for Guaranteed loans is 11% compared with 13.5% on Twinos


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  • Registered Users Posts: 460 ✭✭iainBB


    First time ever using it and very first payment is late, not a good sign for continued investment.

    Secured car loan Estonia 15℅ mogo.


  • Registered Users Posts: 1,361 ✭✭✭dougee19


    Where have all the loans gone? Has been a week with under 2k loans available.. getting a bit weary now!

    Have ye all moved to different sites?


  • Closed Accounts Posts: 738 ✭✭✭at9qu5vp0wcix7


    dougee19 wrote: »
    Where have all the loans gone? Has been a week with under 2k loans available.. getting a bit weary now!

    Have ye all moved to different sites?

    The daily summary looks like the same amount of loans are going up each day, they just seem to be instantly snapped up by auto-invest (which dosen't work on my account, a year on :mad: ).


  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    My auto invest is working fine, Lodge funds in the morning, within minutes its allocated loans.
    Are you setting your interest rates too high, from what I can see at the moment you have to be prepared to accept ~11% on buyback loans.
    Also I stopped using Hippocredit (without going into too much detail)as they changed the terms of the investment


  • Registered Users Posts: 16,671 ✭✭✭✭y0ssar1an22


    thinking about putting some money into this. can anyone give me any tips/advice please?


  • Registered Users Posts: 3,875 ✭✭✭ShoulderChip


    thinking about putting some money into this. can anyone give me any tips/advice please?
    Go for it.


  • Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    thinking about putting some money into this. can anyone give me any tips/advice please?

    I have been using it for a year almost. I have 3 loans in default, but they all appear to be loans where I will get back the money (mortgage and a car loan with a low LTV).

    The car loans are the best IMO. You can get interest rates of around 12% and low LTV. The loan is backed by an asset, so if they default there is something to recover. I have only had one car loan default in year on the site.

    The customer service is great. They have a chat function, where they will be honest such as I can't answer your question but I'll pass it onto someone who can.

    Honestly I dont have anything bad to say about them.

    My tip would be go for car loans with low LTV and low durations ie less than 2 years. A lot of the time car loans are repaid before the end of the duration anyway


  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    thinking about putting some money into this. can anyone give me any tips/advice please?
    Go for it.

    Thats great advice, Clown!

    How about doing a bit of research first for yourself.

    Have a look at the lack of regulation regarding p2p lending.

    If any of the loan originators goes bust who gets paid first? The Mintos investor -nope, you can be sure he`s last on the list after the bondholders and every other creditor.
    Is your investments linked to a specific loans, again the reality is you are just one of the loan originators creditors. So get to the back of the queue behind the Bondholders,he government for any unpaid taxes, your office space leaser, any other unpaid goods/service provider etc

    I`m only touching tip of the Iceberg here, so instead of looking for investment advice from some unknown random internet Clown go and do a bit yourself!


  • Closed Accounts Posts: 2,379 ✭✭✭newacc2015


    Grecco wrote: »
    Thats great advice, Clown!

    How about doing a bit of research first for yourself.

    Have a look at the lack of regulation regarding p2p lending.

    If any of the loan originators goes bust who gets paid first? The Mintos investor -nope, you can be sure he`s last on the list after the bondholders and every other creditor.
    Is your investments linked to a specific loans, again the reality is you are just one of the loan originators creditors. So get to the back of the queue behind the Bondholders,he government for any unpaid taxes, your office space leaser, any other unpaid goods/service provider etc

    I`m only touching tip of the Iceberg here, so instead of looking for investment advice from some unknown random internet Clown go and do a bit yourself!

    Great points here! One question if I buy shares in a company, which is often a highly regulated entity. What position of payout am I? Pretty much the same payout as investing in P2P. So really P2P isnt as highly risky as you seem to think it is. Millions invested in blue chips that simply couldnt fail, yet they did...

    If you are entirely risk adverse, an post offers about 0.1% on savings at the moment. But even during the recession, your savings were possibly in line for a haircut too

    These P2P lenders publish annual accounts and you can see what their financial position they are in.


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  • Closed Accounts Posts: 1,007 ✭✭✭Grecco


    newacc2015 wrote: »

    These P2P lenders publish annual accounts and you can see what their financial position they are in.

    I can take it from that statement that you too haven't done much research into these either.
    Information is very high-level. (Not regulated -but thats ok by you). No cash flow statements of the loan originators, (I`m sure these might be necessary to assess ability of the them to honor the buybacks)
    No information on the originator’s balance sheet structure. They provide aggregated profit and loss statement down to EBITDA (earnings
    before interest, taxes, depreciation and amortization), which is not an IFRS measure and is meaningless for a financial institution since interest expenses are part of the cost of doing business.

    but hey, Go for it you seem to know it all


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