Mintos has some good news! The change of Metrokredit’s “skin in the game” from 15% to 10% will be introduced from the 20th of December, 2018.

As you know, Mintos use “skin in the game” to make sure that the interests of the loan originators on Mintos are more in line with your interests. By retaining part of their funds in loans, loan originators are gaining trustworthiness that Mintos strives to provide in the relationship between you, Mintos’ investors, and the loan originators on their marketplace.

“Skin in the game” can get “thinner” if a loan originator’s track record, loan book quality and financials improve. When those positive changes happen, Mintos can reduce the percentage of a loan originator’s “skin in the game”.

The Metrokredit Case

This is precisely what has happened with Metrokredit, the loan originator who has been active on Mintos since June 2018. Ever since its launch on the marketplace, the company’s business results have shown positive developments. Particularly, the company’s loan portfolio is demonstrating a high, but stable growth rate, with an improved loan performance.

Now let’s see some facts:

– Metrokredit’s gross portfolio as of October 2018: EUR 7 million;

– From April to November 2018, the average month-to-month portfolio growth is 31%;

– On a monthly basis, the company has had a positive EBITDA since April 2018, and has been profitable since May 2018, except for August 2018 when large investments in marketing were made, resulting in an even more rapid growth of the company;

– Since 2018 Q2, the company’s equity/asset ratio is above 40%.

How does this affect your investments?

The change of Metrokredit’s “skin in the game” from 15% to 10% does not influence your investments. However, it does have an impact on your next action if you are an investor whose preferences for investments are based on the “skin in the game” criteria.

The change of “skin in the game” will be applied only for new loans placed on the marketplace after the change has happened. For loans issued by Metrokredit already placed on the marketplace, “skin in the game” will remain 15%.

And when to expect the change?

As aforementioned, Mintos will introduce the change to our marketplace on the 20th of December.

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