Mintos adds Estonia’s BB Finance offering returns of up to 12.5pc

Mintos has unveiled BB Finance as a new originator on its platform, offering investors annual interest rates of up to 12.5 per cent.

BB Finance is an Estonian consumer lender, which offers loans under the brand Raha24. Its core product is installment loans of up to €4,000 (£3,451) with a maturity of up to 60 months, accounting for around 85 per cent of its portfolio.

Mintos has given BB Finance loans a risk score of 7.5, with subscores of 8.0 for loan portfolio performance, 9.0 for loan servicer efficiency, 6.9 for buyback strength, and 4.0 for cooperation structure.

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BB Finance currently has over 122,000 registered customers, more than 10,000 active customers and a loanbook of €15m. The firm has guided to annual profits of more than €2m by the end of 2023.

BB Finance previously listed Finnish loans on Mintos, but exited the lending marketplace in 2021 when it decided to wind down its operations in Finland to focus on its primary market of Estonia.

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“The main motivation for joining Mintos is to solidify and diversify the company’s funding structure as we are getting ready to use the market opportunity for significant scaling,” said Martin Kolu, chief executive and founder of BB Finance.

“The loan book was purposefully reduced due to a conservative approach taken with Covid-19 and with the past Estonian pension reform. Now having more robust and improved underwriting models, the company believes the portfolio can be doubled, especially with having a record number of clients and 20 per cent lower loan per client than pre-Covid. The current main driver of growth and significantly higher profitability is access to financing.”

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