Nexus joins Mintos marketplace. Nexus, a notable player in the small and medium-sized enterprise (SME) lending sector in Russia, launches on Mintos. Investors now have a chance to invest in business loans with up to 15% net annual returns for loans in Russian ruble (RUB) and up to 8% for loans in euro (EUR).
Nexus primarily focuses on high-growth companies looking for additional leverage to expand their portfolio with state and commercial contracts. The company’s team consists of 15 employees, and most of their customers (over 80%) are repeat customers.
The company has acquired more than 200 clients across Russia and grown its net portfolio with a total value of RUB 500 million (about EUR 7 million). Since its foundation in 2016, Nexus has issued more than 500 loans with a cumulative volume of over RUB 2 billion (about EUR 25 million).
Over 36% of Nexus’s funds used for loan issuance are attracted by shareholders, which guarantees a high level of Nexus solvency and resistance to potential credit market fluctuations. The company is also gradually increasing the share of tender loans, implying that funds are transferred to special accounts protected from undue debiting.
Nexus on Mintos
On Mintos, Nexus has received a Mintos Rating of B. The average value of loans issued by Nexus is around RUB 3.9 million (around EUR 55 000 with an average repayment period of 4 months.
As Nexus’s loans are issued for contract execution with less than 4 months average duration, loan repayment schedules are relatively predictable and with lower risks – as of 30 September 2019, the default rate is 2.0%.
In terms of standard onboarding procedures, Nexus carries out due diligence of key financials, comprehensive verification of borrowers (including interviews), analysis of external factors that can have an impact on the borrowers’ creditworthiness, as well as common financial reviews based on public data sources. Also, loans issued by Nexus have a guarantee by the owners and management of the borrowing company, and larger loans can be secured with collaterals.
“For us, joining Mintos is an opportunity to attract extra liquidity from a well-respected global marketplace and to demonstrate Nexus’s reputation and high level of expertise on the international microfinance market. As Nexus’s mission is to support creditworthy high-growth companies in Russia, we believe our partnership with Mintos should create a number of opportunities for investors on Mintos to earn from contributing to the SME environment in Russia,” says Sergey Zemlyanov, the CEO of Nexus.