Mintos and UK-based litigation financier Fenchurch have mutually agreed “to wind down cooperation due to potentially increased reputational risk for Mintos and also the lending company, resulting from the ongoing liquidation of Fenchurch’s former parent company.”
According to the proposed payment schedule, Fenchurch will have “to transfer borrowers’ repayments as soon as they are received, at the latest by the end of August 2023.”
In principle an agreement has already been reached, and they are “working on formalizing necessary transactional documents.” Many Fenchurch loans are “taking longer than expected to settle as national lockdowns, covid restrictions, and other imposed government regulations in the UK have had a significant impact on the legal cases that Fenchurch has been funding for the past 24 months.”
Before Covid-19, court cases “took on average 9-12 months, while they now take 12-18 months (and some take even longer).” As a result, some investors might see that “some loans are taking longer to be repaid.”
Fenchurch is currently “pursuing refinancing options.” If the refinancing is successful, Fenchurch would be able “to buy back outstanding investments, and investors might receive their money earlier.”
To ensure investors are receiving adequate compensation for investments that will be paid back later than initially scheduled, interest on any delayed repayments “will be increased to 1.4x the base interest rate (investors will receive 13% on average).”
In another update shared by Mintos, it was noted that as new Notes are constantly being added to the platform, they’ve created a short overview where you can see “which lending company’s Notes have launched so far.”
You can find out more about these investment opportunities “with the linked base prospectuses that have been prepared in accordance with Prospectus Regulation and approved by the Financial and Capital Market Commission.”
For more details, check here.
As mentioned in another announcement posted by Mintos, the CEO of GoCredit, Federico Diaz, noted that the company “achieved a record-high net profit for the first half of 2022, almost €1.2 million (66% of all net profit in 2021 and +25% YoY).”
To share these solid results with investors on Mintos, the company has “launched a new cashback campaign.” For a limited time, you can earn cashback of “up to 1% on investments in Notes for GoCredit.”
For additional information, click here.