Hi there! Long time ago, huh? I’ve received lots of messages lately regarding Mintos lack of loan flow. Should I be worried about it? Will I lose all my money? I’ll try my best to address those queries at the end of this post (TL;DR you can feel safe by now).
What happened, team?
I decided to drop an email to their support team as in my previous experience they have been quite helpful and direct in their clarifications. This is what I asked:
I’d like to ask you why the number of loans are decreasing so fast. 600k about 2 months ago, now 63k, and decreasing each minute.
And this is the reply of Krzysztof Schmidt, the Head of Affiliate Marketing of Mintos:
In recent weeks Mintos is suffering from its own success. Please allow me to explain:
One of the main factors influencing the availability of loans in Mintos platform is supply & demand. Towards the end of the summer and September we have had welcome a significant number of new investors which remarkably increased the amount of investments through our service. This increased demand for loans affected how many are currently available in the platform.
Our Loan Originators partnerships team is working hard to increase our supply of loans. We are in the process of launching multiple new loan originators, therefore the balance and the number of loans available will soon be increasing.
Previous months situation was opposite, supply was bigger than demand, which caused the rates to be higher as loan originators were willing to fund loans faster. That lead to the number of loans “running out” this month.
We have observed similar situations in the past. Such fluctuations are written in the market place model and we are sure we will experience similar changes in the future.
In my opinion, he made a fair point, the number of investors has risen exponentially this year. Last December they welcomed the new year with 98K investors:
But nowadays there are more than 188K-ish registered investors! Damn!
On another vein, if we take a look at Mintos Statistics page, we’ll see a healthy graph like this one, and we might thing that there is no such recession:
But this is a cumulative sum! To see a self-explanatory graph, we must select “Per Month” option at the bottom:
As you can see, there is no such huge gap considering three factors:
- Today is 23rd of September: the month hasn’t finished yet, mate.
- Despite the number of loans has decreased, the total amount of money funded is not that low proportionally speaking.
- If we take a look at September of last year, there was also a slight decrease in the number of loans funded.
The bottom line
I think it’s not time to worry. If you keep tracking the loan providers using Mintos Explorer and Mintos Lender Ratings, and also the overall platform performance, you will minimize risks significantly. They have an excellent track record, and they have proven healthy transparency practices so investors can make informed decisions.
Any question? Already using Mintos? Do not hesitate in asking your doubts or sharing your personal experience in the comment section below.