While pending payments exist because lending companies settle the net payment on a weekly basis, we make sure the system is not being abused. The moment the settlement is late or pending payments are increasing, our team is in contact with the lending company to investigate why. We also impose a penalty fee for late settlements that is shared with investors – which means investors receive interest on pending payments. Last but not least, lending companies understand very well that investors vote with their wallets and will do whatever they can to keep their trust.
Like any funds of investors or lending companies, pending payments are segregated from Mintos’s own funds, and they are not related to Mintos’s liquidity. Loan repayments become pending when we are informed by the lending company via API that a repayment has been made by the borrower. At this point, the money still needs to be transferred to Mintos. Disbursements to investors are carried out automatically as soon as we receive the money, or when new investments in loans from that lending company exceed the repayments by borrowers.