MINTOS GUIDES
How to Use the Mintos Secondary Market to Exit Early
Step-by-step mechanics, pricing decisions and the liquidity risk you accept whenever you rely on finding a willing buyer.
Key points. The Mintos secondary market lets you list existing Notes for sale to other investors before the underlying loan matures. Liquidity depends entirely on buyer demand - there is no guaranteed exit, and during periods of stress you may need to accept a discount below outstanding principal to find a buyer. Mintos charges a flat 1% fee on the sale price when a transaction completes.
What the secondary market is and why it exists
Peer-to-peer loans typically have fixed terms running from months to several years. If you invest in a three-year consumer loan and later need your capital back, you cannot demand early repayment from the borrower. The Mintos secondary market solves this by creating a venue where you can list your position for sale to another investor who is willing to take over the remaining cash flows.
This mechanism transforms an otherwise illiquid asset - a locked-in loan commitment - into one you can exit, subject to finding a counterparty. The feature distinguishes Mintos from platforms that offer no secondary trading and require you to wait until maturity or default to recover your capital.
Mintos launched its secondary market in early 2016, shortly after the platform itself went live in 2015. Since then it has processed millions of transactions, with daily volumes rising and falling in line with overall investor sentiment and platform growth. The market operates continuously, with listings refreshed in real time as sellers post offers and buyers execute purchases.
How to list a Note for sale
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Navigate to your portfolio
Log in to your Mintos account and open the Investments or Portfolio section. This displays all Notes you currently hold, including outstanding principal, accrued interest to date and the originator name.
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Select the Note you want to sell
Click the specific Note row or open its detail page. Check that it is eligible for secondary-market sale - most performing Notes are, but positions already in default or subject to transfer restrictions may be excluded. The platform will display a clear eligibility status.
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Choose your listing price
Mintos shows the current outstanding principal plus any accrued interest earned since the last payment date. You can list the Note at this exact value (par), at a discount below par to attract buyers faster, or at a premium above par if you believe the underlying loan is unusually attractive. The final choice is yours - the platform does not force a particular price.
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Confirm and publish the listing
Submit the listing. Your Note now appears in the secondary-market order book visible to all investors. If a buyer accepts your price, the transaction executes automatically. Mintos deducts the 1% fee from the sale proceeds and credits the net amount to your available balance, typically within seconds.
If no buyer accepts your price within a reasonable period, you can cancel the listing and either relist at a lower price or hold the Note to maturity. There is no penalty for cancelling an unsold listing.
Pricing decisions: discount, par and premium
Setting the right price balances two goals: exiting quickly and minimising loss. A listing priced at 100% of outstanding principal plus accrued interest (par) may sell if the underlying loan is high-quality and the originator has a strong track record. A discount of 1-3% below par often clears within hours during normal market conditions, because buyers perceive immediate value - they acquire a claim to future cash flows for less than the nominal amount outstanding.
Conversely, a premium above par is rare and typically only succeeds if the loan carries an above-market interest rate or a buyback guarantee from a newly popular originator. Most listings cluster around par or small discounts, reflecting the reality that secondary-market buyers are themselves looking for attractive risk-adjusted returns and will not overpay.
During periods of market stress - for example, when an originator enters financial difficulty or broader economic news turns negative - discounts can widen to 5-10% or more. At such times, many investors attempt to exit simultaneously, flooding the order book with sell orders and overwhelming available buyer demand. Liquidity can evaporate, leaving you with the choice of accepting a steep discount or waiting for conditions to improve.
The liquidity constraint you must understand
The Mintos secondary market is not a guarantee of instant exit. It is a venue that depends on the presence of willing buyers. When investor sentiment is stable and new capital is flowing onto the platform, the market tends to clear efficiently. When sentiment deteriorates - triggered by originator defaults, regulatory changes or macroeconomic shocks - buyers disappear and sellers compete by lowering prices.
This dynamic became acutely visible in 2020 and again in 2022, when specific originator issues led to simultaneous sell-offs. Investors who needed liquidity immediately were forced to accept discounts well below par, while those who could afford to wait eventually saw market conditions stabilise. The lesson: secondary-market liquidity is not a substitute for holding a cash buffer outside the platform. If you might need your capital on short notice, do not allocate that portion to P2P loans, even with secondary-market access.
Mintos itself does not act as a market maker - it does not buy Notes to provide a floor price or guarantee liquidity. The platform operates as a pure matching venue, and all risk of finding a buyer rests with you.
Fees and timing
| Action | Fee | Settlement time |
|---|---|---|
| List a Note for sale | Free | Instant publication to order book |
| Cancel an unsold listing | Free | Instant removal from order book |
| Complete sale (matched with buyer) | 1% of sale price | Immediate credit to account balance |
| Purchase a Note from the secondary market | Free for the buyer | Immediate addition to portfolio |
The 1% fee applies only to the seller and is deducted automatically when the transaction settles. Buyers pay no fee beyond the purchase price itself. Once a sale completes, the proceeds appear in your available balance and can be withdrawn or reinvested immediately.
When the secondary market works well and when it does not
When liquidity is robust
- Stable or growing investor base on the platform
- Strong performance and reputation of the underlying originator
- Loans with shorter remaining terms and active buyback guarantees
- Low overall default rates across the Mintos marketplace
When liquidity is thin or absent
- Widespread investor concern following an originator default or restructuring
- Economic downturns or regulatory changes that reduce new platform inflows
- Long remaining terms or loans without buyback protection
- Sudden spikes in sell orders, creating an imbalance between supply and demand
Strategic use of the secondary market
The secondary market is most valuable as a tactical tool, not a daily trading mechanism. Use it when your circumstances change - a need for emergency funds, a desire to reallocate away from a specific originator or a decision to exit P2P lending entirely. Treating the secondary market as a routine exit assumes liquidity will always be present, an assumption that history has repeatedly disproven.
A prudent approach combines secondary-market access with a diversified portfolio across multiple originators and loan terms. Shorter-term loans naturally provide more frequent maturity events, reducing your reliance on secondary sales. Diversification across ten or more originators means that if one encounters trouble and its loans become hard to sell, the rest of your portfolio remains unaffected.
Avoid the temptation to flip Notes for short-term profit. The 1% fee and the need to undercut competing sellers make frequent trading uneconomical for most investors. The secondary market is an exit mechanism, not a speculation venue.
How this compares to platforms without secondary markets
Several P2P platforms offer no secondary market at all. On those platforms, once you commit capital to a loan, you are locked in until the borrower repays or defaults. Examples include Robocash and Lendermarket, where investors must wait for scheduled repayments to recover funds. This structure simplifies platform operations but removes any option for early exit, even if you are willing to accept a discount.
Mintos, EstateGuru, PeerBerry, Twino, Capitalia and Crowdpear all operate secondary markets, each with slightly different fee structures and liquidity profiles. Mintos' market is among the largest by transaction volume, reflecting the platform's overall scale. Comparing Mintos and EstateGuru on liquidity reveals that EstateGuru's market tends to clear faster for real-estate-backed loans, while Mintos offers broader loan-type coverage but more variable liquidity depending on originator sentiment.
Risk of partial or total loss of capital. Selling a Note on the secondary market does not eliminate credit risk - the buyer assumes that risk when they purchase your position. If you exit at a discount, you crystallise a loss. The secondary market provides an option for early exit but does not guarantee you will recover the full value of your investment. Always verify the liquidity conditions for your specific Notes before relying on the secondary market as your primary exit strategy.
Frequently asked questions
No. The secondary market depends on buyer demand. During periods of stress - when many investors want to exit simultaneously - liquidity can be thin or absent, and you may need to discount your position to attract a buyer.
Most Notes are eligible for secondary-market listing. Exceptions include positions already in default, certain restructured loans and Notes with specific transfer restrictions. Check the individual Note page to confirm eligibility.
Mintos charges a flat 1% fee on the sale price when a Note is sold via the secondary market. This fee is deducted automatically when the transaction settles.
Yes, you choose the listing price. A discount below outstanding principal plus accrued interest typically attracts buyers faster; a premium above market rate may leave your listing unsold. Price is always your decision, not dictated by the platform.
Next step: understand how Mintos' originator ratings help you identify which loans are worth holding to maturity and which you might want to exit early - read the originator ratings guide.