The month of August 2019 was pretty eventful in the p2p lending world with a loan originator from Mintos stopping payments to investors. To people familiar with the matter, I am of course talking about Aforti Finance. Aforti had loans listed on three different platforms. The largest one is Mintos and then Viventor and Debitum Network.
Mintos, in my opinion, mishandled the situation and blocked all transactions from the originator. Of course, Mintos had downgraded Aforti and stopped listing loans on the primary market, but you were not able to sell the loans to the secondary market. On the one hand, this protected investors from panic selling the loans in their portfolio with substantial discounts like it happened on Viventor. On the other hand, investors should have the opportunity to sell their loans as long as the person buying them is making an informed decision. This doesn’t sway my ability to trust Mintos since it had already downgraded Aforti twice and has stopped listing loans on the platform. Personally, I only had one Aforti loan from way back when that I was able to sell with a small discount before they blocked the transactions.
Now there was Debitum Network. Aforti Finance’s assets were removed from Debitum Network, and the entire invested amount plus due interest were repurchased. According to Debitum Network, they come to this decision as a result of a thorough investigation of their financial situation while doing the 1st and 2nd quarter follow-up due diligence process. They claimed that they decided not to wait until investors got stuck with unpaid repayments and wait for the situation to be resolved. They wanted to protect investors’ funds and decided to act proactively.
This happened on the 25th of July, and it was more than two weeks before from the day that Aforti Finance stopped payments to Mintos and Viventor. I am not sure if this is what happened and Debitum noticed something unusual Afortis finances and decided to act accordingly or if something else happened that caused the two companies to part ways and for Debitum to put a positive spin to this.
If the first case is truthful (which I have no reason to believe it wasn’t just a too-good-to-be-true feeling), this is truly amazing from Debitum’s part.
The entire situation has been resolved now, and according to discussions on online forums and the Mintos newsletter, Aforti has resumed payments to investor’s accounts. Although the entire situation has been resolved, I still wanted to mention it in this blog post.
Now let’s get down to the actual topic of the post. My Income:
This month the rates on Mintos dropped significantly in comparison to last month, which was a historic high on the platform. I have always been happy with the 12% average rate so I won’t complain too much, but it was nice being able to buy loans from A-Rated originators with rates ranging between 14-16%.
This was one of the best months with a total income from Mintos in the amount of 68.47€, and the total profit as you can see is 973€. I am looking forward to reaching the 1,000€ mark that would be a significant milestone in my investment journey.
This is a monthly return of 1.18% which translates in an annualized return of 15.30%. This is so high because of some loans I sold at a premium at the secondary market.
Yet another uneventful month on Grupeer with a total profit of €11.36 which translates to a monthly yield of 1.09% and an annual yield if 14.13%.
Also an uneventful month on PeerBerry with a profit of €2.61, which translates to a monthly yield of 1% and an annual yield of 12.88%.
During August two people signed up on ViaInvest with my referral link, so 20€ was deposited in my account which I of course invested. The profit from interest was €4.21, which translates to a monthly yield of 0.95% and an annual yield of 12.19%.
Three projects were published this month from Envestio and it is nice to see that Envestio is picking up some steam. Rates were high on all three, with rates ranging between 16% and 18%.
Profit from Envestio was €7.56, which translates to a monthly yield of 1.40% and an annual yield of 18.40%.
This month my investment “Kabuki Restaurant at Salaris” paid another good chank of the principal on top of the usual interest payment, which probably means that the project is going well. That gave me some extra cash to invest in other projects with hopefully, higher rates.
Profit from Crowdestor was €4.99, which translates to a monthly yield of 1.18% and an annual yield of 15.34%. That comes a little “light” because of the uninvested capital from the partial repayment last month.
Profit from Bondster was €1.02, which translates to a monthly yield of 0.99% and an annual yield of 12.62%.
You can sign-up and receive 1% cashback for any funds you invest during your first 90 days. You also need to enter the promo code “P2PIncome” to be eligible for the offer.
Profit from this platform was €2.90, the same as last month, which translates to a monthly yield of 1.10% and an annual yield of 14.21%.
Kuetzal has started picking up some steam. Projects are getting subscribed faster, and there was one last month that was subscribed within 24 hours. Rates remain rather high but the summer bonus they had expired on 31/08/2019. It’s ok though since they already have the regular one in place with my promo code if you are interested in starting with them yourself.
Profit from Kuetzal was €4.27, which translates to a monthly yield of 1.41% and an annual yield of 18.65%. Again, since only interest is paid monthly, I am calculating the yield only from the funds I have invested in projects and not idling cash.
That is on top of the 0.5% cashback that you get for the first 6 Months by registering through my affiliate link and the 15€ free towards your first investment using coupon code “P2PINCOME”.
For the month of August 2019, I didn’t invest anything apart from the €20 from ViaInvest’s refer-a-friend program, and the total return from interest, late fees, and secondary market transactions was €107.39 that represents a 14.45% increase from last month (€92.91). My portfolio yielded 1.17% of the starting balance, which means a 15.17% annualized return. The percentage yield increased substantially from last month, and the passive income earned was a personal record. I am also very happy that I was able to break the €100, I know this is a low amount, but this is just the beginning, and I hope I can break the 1k mark someday. The total portfolio value has risen to €9,322.82.