Now you can select Capitalia loans by risk categories

28.11.2017

mintosblog

Capitalia now offers to invest in its loans by selecting them based on loan risk categories. This opportunity is available thanks to the new feature added to Mintos recently, which allows investors to see the loan scoring logic of the loan originator in more detail and select loans for investment accordingly.

Capitalia is the most experienced non-bank small and medium business loan provider in the Baltics. The company has seven loan risk categories that investors can choose from. Risk categories link the expected annual bad debt rate with the interest rate offered to investors on Mintos:

Risk Category Interest Rate on Mintos EABDR*
A+ 10%-11% 0.5%
A 11%-12.5% 1.2%
B 12%-13.5% 2.2%
C 13%- 14.5% 3.6%
D 13.5%-15% 4.1%
E 14.5%-18% 5.5%
E- 15.0%-19.0% 8%
*Expected Annual Bad Debt Rate

“The scoring models of Capitalia have significantly evolved over time. Through technical assistance and mentors provided by the European Investment Fund we have implemented all of the best-practice evaluation guidelines from the largest and most established European peer companies,” says Juris Grišins, CEO of Capitalia.

The scoring models of Capitalia are based not only on the evaluation of historic cash flow, but also on validation of financial reports, bank statements, public databases, tax payment history and more than 50 other data-points. Although the scoring system is semi-automated, Capitalia has deliberately designed the procedures in a way that the final financing decision is always “human-based”. The members of the Capitalia investment committee combine the experience of venture capital, investment banking, corporate banking and small-business financing.

Founded in 2007, Capitalia is a go-to lender for small and medium-sized enterprises that are seeking fast, simple, and transparent financing to grow their business. Since its inception, Capitalia has lent more than EUR 30 million to over 1 000 companies. Since 2014 Capitalia bonds are traded on the NASDAQ Baltic bond market. To date, Capitalia loans worth EUR 9 million have been funded through the Mintos marketplace.

Use this new feature to streamline your investment strategy. To select Capitalia loans according to risk categories, use the additional filter “Risk Categories” next to Capitalia’s name on the Mintos primary market or in Auto Invest tool.

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