Earn up to 15% with Finko Armenia Forward Flow

We’re happy to announce Finko Armenia (Varks) as the first lending company to offer Forward Flow on Mintos.

Forward Flow is a new and unique product in the crowdlending market. A Forward Flow represents a commitment to invest in a set of pre-agreed underlying loans, at a predetermined rate for a set period of time. For the duration of the Forward Flow, investors receive weekly interest payments based on the performance of these underlying loans. 

We’re convinced Forward Flow will bring more value to investors on Mintos. 

– Principal invested in a Forward Flow will keep working for the duration of the agreement, hence investors can reduce their reinvestment risk compared to buying individual loans.  

– In 2019, on average the weighted interest rate for outstanding Varks loans was ~12%. The highest rate for a loan was ~14%, and the lowest was ~8%. With Forward Flow, Investors can lock in interest rates for a longer time, and hence reduce their exposure to changes in the interest rates on Mintos. 

– On average, investors can expect to earn higher interest rates compared to similar individual loans on the market, as they commit their money for a longer period. With Varks Forward Flows, investors can expect up to 15% interest rate.

Varks Forward Flows will start with a principal of € 5 000 – 100 000, a maturity of 12 months, and interest rates of up to 15%. They are backed by a group guarantee provided by Finko group.

To obtain exposure to Forward Flows offered by Varks, investors will be able to invest in loans issued by Mintos Finance to Varks. In accordance with agreements concluded by Mintos Finance and Varks, within one month the loans will be secured by a pledge over part of the claim receivables of Varks to its borrowers. Mintos Finance is a Mintos group company. A detailed description of the structure is available in the Mintos Finance loan agreement and assignment agreement.

More about Forward Flow

About Finko Armenia (Varks)

Established in 2016, Varks.am is a universal credit organisation that offers its customers fast and easy access to funds through an effective application process. Varks.am is one of the leading alternative lending companies in Armenia. After applying at one of the 51 branches across the country, clients can receive their loan in cash or via bank transfer. 

Varks.am joined Mintos in February 2018, and in November 2019 became part of the Finko group. On Mintos, the company offers short-term loans with amounts of € 20-900 and 30 days average term. As of 31 December 2019, the company had a net loan portfolio of more than € 28 million. Varks has more than 450 000 registered customers and has processed 1.7 million loan applications since its founding. 

Varks aims to retain a leading position in the non-banking microfinance sector in Armenia by increasing its loan portfolio to € 35 million by the end of 2020, and by expanding its branch network across the country. The company has opened 18 new branches in 2019, and 10 additional branches are planned for 2020. Varks follows responsible lending practices and supports social responsibility projects.


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