All loans originated by Rapido Finance have been suspended from the Mintos Primary and Secondary Markets because of the loan originators’ failure to transfer borrowers’ payments to Mintos investors on time. This means investors cannot buy or sell Rapido Finance loans, effective immediately until further notice.
Due to the current lack of payment activity from Rapido Finance to Mintos, as of October 23 the automatic execution of buybacks and the amortization of Rapido Finance loans will be discontinued accordingly. As a result, the payment dynamics to Mintos investors with active investments in loans offered by Rapido Finance will be interrupted. Once Mintos receives the borrowers’ repayments from Rapido Finance, it will direct them towards settling due payments and buybacks to the investors, and credit them to Mintos investors’ accounts.
We are working with the management of Rapido Finance in finding a feasible solution that will enable us to remove the temporary suspension and resume loan originator’s activity on the Mintos marketplace. We are fully committed to solving this issue in the best interest of our investors as soon as possible.
Overview
Rapido Finance S.L.U., which from the end of 2017 until the beginning of 2019 operated under the name EuroOne, is a specialist consumer finance provider, offering flexible loans to qualified customers in Spain. In order to launch the company’s operations in Spain, the current shareholders of Rapido Finance S.L.U. purchased the company, which previously operated under the NetCredit brand, in August 2017, and joined the Mintos marketplace in November 2017. On the Mintos marketplace, Rapido Finance offers borrowers’ loans from the LunaCredit product.
Rapido Finance’s total loan investment amount makes 0.09% of total loan investment portfolio of the Mintos marketplace. The current outstanding payments of Rapido Finance on Mintos is around EUR 430 000. For the majority of Mintos marketplace investors with active investments in Rapido Finance loans, the average investment is below EUR 1. Around 5 000 of Mintos investors have investments in Rapido Finance loans above EUR 1. So far, Mintos investors have made an income of approximately EUR 313 000 from investments in Rapido Finance loans.
If you have questions regarding this case, please reach out to our Investor Service team. We are thankful for your patience and understanding while we are working on this matter.
