At Mintos, we aim to provide clear information about payments from lending companies. This article explains overdue payments, the different statuses of lending companies, and how recovered funds are distributed to investors.
What are overdue payments?
A payment becomes overdue when a pending payment from a lending company is not processed within 7 days of the scheduled due date.
Most overdue cases are caused by temporary issues, such as additional checks by banks processing the payment. In most cases, these issues are resolved on time, and payments return to normal without further complications.
You can always monitor overdue cases in the Loans portfolio section on your account. Just click on the overdue amount, and you will be redirected to the updates page.
Lending Company Statuses
Lending companies on Mintos are categorized based on payment performance:
- Active: A company is active if all payments are on time and its Notes are available on the Primary Market.
- Overdue: A company becomes overdue when payments are more than 7 days past due. Overdue cases are classified as temporary or ongoing.
Overdue Temporary
Temporary delays occur when payments are late, but not severe. Common reasons include:
Bank processing delays
Compliance and diligence checks
Currency control measures
These cases are usually resolved quickly, and payments return to normal without further issues.
Overdue Ongoing
Ongoing cases are more complex and have sub-statuses:
Negotiating: Mintos is in discussions with the lending company to maximize recovery.
Restructuring: A repayment plan is agreed, which could include structured repayments or agreed exits.
Litigation: Legal action is taken if agreements fail or are breached. This may involve enforcing claims or liquidation.
Liquidation: Remaining company assets are distributed to investors. Recovery can be partial, and timelines are longer.
Resolved: The case is closed, recovered funds have been distributed, and unrecoverable amounts are declared.
Recovering Investors’ Funds
Even in complex cases, recovery is often possible. Key points:
Recovered funds may be distributed at different times.
Distribution follows a priority order; some investors may receive funds before others.
Suspension of Investments
Mintos may temporarily suspend new investments if a lending company shows significant repayment risk or fails to meet buyback obligations.
During suspension:
New Notes are not listed
Existing Notes are removed from investment strategies
This would mean we would stop listing new Notes, as well as unlist existing Notes, so that they don’t get bought by strategies. If this ever did happen, we would inform investors – both by email and through the blog.
We don’t suspend the possibility of investors selling or purchasing Notes on the Secondary Market. In case of an unusual situation, the Secondary Market would be open and deals could take place, subject to the willingness of investors to trade.