Payroll and Direct Debit Loan Provider GoCredit Increases its Funding Security on Mintos

After their initial announcement of GoCredit going live on Mintos on August 13, 2021, the team is pleased to confirm that Mintos has “finalized” the Master Trust structure with the lending firm.

GoCredit is reportedly the second firm on Mintos (along with Alivio Capital) to have such “a unique security.”

As previously reported, the initial security consisted of a direct loan assignment as well as a pledge over loans listed on Mintos, “established in favor of Mintos investors.”

As stated in the update:

“With the current improvement, there is also a third-party trust provider securing the cash flows, and Mintos is the first beneficiary of the repayments coming from particular loan agreements.”

So, for instance, in the case of GoCredit default, any borrower repayments would go “directly to Mintos investors, and only after this would any remaining amounts go to the lending company itself,” the announcement explained.

Federico Diaz, CEO of GoCredit said that their firm prioritizes transparency and they aim to set the same relationship with Mintos investors.

Diaz added that they have many agencies that monitor their processes and they have established a third-party supervised Trust, “so the investors can be assured the cash flow will go to them as a priority.”

As noted in the announcement:

“With this structure security upgrade, the cooperation structure subscore has been improved to 8, resulting in an overall Mintos Risk Score improvement to 7 for GoCredit. As a result, investors can now invest in GoCredit loans not only through the Diversified strategy, but also the Conservative strategy. If you want to invest in these loans with a custom automated strategy, please make sure to adjust your strategy settings.”

As mentioned in the announcement, GoCredit was established back in 2011 and is employing 200 professionals. The firm has issued 26,000+ payroll loans and over 9,000 direct debit loans.

As explained in the update, drect debit loans are personal loans that are “automatically deducted once the borrowers receive a salary or pension in their bank accounts.” Payroll loans are “deducted by the employer (i.e. government agency) before the borrowers receive their net income effectively removing the risk of the borrower’s willingness to pay,” the announcement noted.

The Mintos Risk Score for loans issued by GoCredit “is 7 (updated from 6), with the subscores of 6 for loan portfolio performance, 6 for loan servicer efficiency, 7 for buyback strength, and 8 (updated from 6) for cooperation structure.”

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