The trouble with Mintos loan originators

What are loan originators ? A loan originator (often abbreviated as LO) is a company that lends money to borrowers, before putting to loan for sale through loan marketplaces such as , , , or . They commonly provide what’s called a buyback guarantee; this means that if the borrower defaults (usually by being more … Read more The trouble with Mintos loan originators

Lessons from Kuetzal and Envestio

Trust-shattering events In late December 2019 and early January 2020, it turned out that was probably a scam. A few days later, ‘s website became unreachable, and the management team disappeared. These events were a shock for many P2P investors, including me. Indeed, call me naive if you want, but I expected the main risk … Read more Lessons from Kuetzal and Envestio

Default risk : what if the borrower doesn’t pay ?

The #1 risk when investing in loans A borrower who doesn’t reimburse the loans is obviously the greatest risk when investing in P2P loans or through real-estate or business crowdfunding. In this article, we’ll examine the possible outcomes, based on real-life situations. Loans covered by a buyback guarantee Most P2P lending platforms offer loans covered … Read more Default risk : what if the borrower doesn’t pay ?

Crowd-lending and P2P lending lexicon

Crowd-lending and peer-to-peer lexicon This lexicon will explain the terms you’ll most commonly encounter when investing in loans. Several definitions are borrowed from external sources, while I wrote other ones. Crowd-lending Crowd-lending is the use of small amounts of capital from a large number of individuals to finance a new business venture (adapted from Investopedia). … Read more Crowd-lending and P2P lending lexicon