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Post by yorkshireman on Aug 12, 2014 12:13:58 GMT
FK have announced the launch of 2 shield loans.
Is there a “dash for trash” going on in the P2P world to accommodate riskier borrowers?
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Post by davee39 on Aug 12, 2014 12:22:34 GMT
There really is no need. FC already accommodates them, they call them 'A'.
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Post by jackpease on Aug 12, 2014 14:59:47 GMT
My instinct is to trust 'nice' firms like FK and distrust arrogant firms like FC however that has led me to end up with c£6k in FK and £500 of bad loans (8%) and c£15k in FC with £120 of bad loans (1%).
FK is not getting the kind of scrutiny on these bad loans that Assetz is!
Jack P
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Post by captainconfident on Aug 12, 2014 15:46:38 GMT
It matters when you bought those FC investments JP, because few people who have been in a couple of years have been as lucky or blessed as you.
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Post by batchoy on Aug 12, 2014 15:54:53 GMT
One wonders when we will be presented with one shield loans.
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Post by jackpease on Aug 12, 2014 17:43:48 GMT
It matters when you bought those FC investments JP, because few people who have been in a couple of years have been as lucky or blessed as you. 8% non performing rate on FK is blessed??? Some people must have REALLY lost a lot on FC! JP
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hendragon
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Post by hendragon on Aug 12, 2014 18:58:53 GMT
the shield rating of loans has less relevance than the ability of FK to deal with recalcitrant borrowers, and find creditworthy businesses. Perhaps we should give FK a shield rating. Any suggestions?
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Post by captainconfident on Aug 12, 2014 20:00:18 GMT
It matters when you bought those FC investments JP, because few people who have been in a couple of years have been as lucky or blessed as you. 8% non performing rate on FK is blessed??? Some people must have REALLY lost a lot on FC! JP I've also got 6k in Funding Knight, and £120 of that is "non performing" and I've been investing there from the start. I'm also receiving a full account from FK by email as to their steps taken in reviving these two impaired loans. Compare that to FC, well there is no comparison. FK gives a full account of correspondence with borrowers while the other place is mostly those platitudes we know so well. My FK account returns a net 10%, while FC is an annual 6.6 - 6.9%. Either I am mysteriously better at choosing loans on FK or more likely they are offering better quality. I'm guessing, JP, that your £500s worth of problems is from a disproportionate investment in a single loan on FK. Am I right?
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j
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Post by j on Aug 12, 2014 21:01:01 GMT
No shield loans?!
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baz657
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Post by baz657 on Aug 12, 2014 23:28:37 GMT
When they start offering us Green Shield Stamps with every loan (double stamps for bids placed on Thursdays) will be the time to really start worrying.
*** Google it if your not old enough to ache all over! ***
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Post by yorkshireman on Aug 12, 2014 23:53:57 GMT
When they start offering us Green Shield Stamps with every loan (double stamps for bids placed on Thursdays) will be the time to really start worrying. *** Google it if your not old enough to ache all over! *** Perhaps FC will be doing that soon to fill certain property loans.
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Post by jackpease on Aug 13, 2014 6:23:15 GMT
I'm guessing, JP, that your £500s worth of problems is from a disproportionate investment in a single loan on FK. Am I right? Well my strategy was (because i trusted FK) was to put about £100/120 on each loan as it came up, 60 loans ergo £6k total investment, so with four bad loans that's £400 straight away, and one i think was split into two loans so that was £200 making the £500 problem. The scary thing is how early all the four went bad. Yes we are getting lots of helpful information (in contrast to FC) but with some hints that some of the firms financial positions were not as declared to FK at the time of the loan. I am not sure why this isn't being aired or has it not been spotted by anyone else? Perhaps because FK is 'nice' we are less willing to ask awkward questions. I wonder if these four bad ones would be 'two shield' in the new system? JP
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j
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Post by j on Aug 13, 2014 9:28:02 GMT
When they start offering us Green Shield Stamps with every loan (double stamps for bids placed on Thursdays) will be the time to really start worrying. *** Google it if your not old enough to ache all over! *** Or the old Coop stamps...yikes!
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j
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Penguins are very misunderstood!
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Post by j on Aug 13, 2014 9:30:15 GMT
I'm guessing, JP, that your £500s worth of problems is from a disproportionate investment in a single loan on FK. Am I right? Well my strategy was (because i trusted FK) was to put about £100/120 on each loan as it came up, 60 loans ergo £6k total investment, so with four bad loans that's £400 straight away, and one i think was split into two loans so that was £200 making the £500 problem. The scary thing is how early all the four went bad. Yes we are getting lots of helpful information (in contrast to FC) but with some hints that some of the firms financial positions were not as declared to FK at the time of the loan. I am not sure why this isn't being aired or has it not been spotted by anyone else? Perhaps because FK is 'nice' we are less willing to ask awkward questions. I wonder if these four bad ones would be 'two shield' in the new system? JP You raise a very good point jackpease. I dabbled very briefly with FK last year but found better security elsewhere & switched, thankfully. It would be good if other came on here to share their experiences, good & bad, to help others make a more reasoned decision on whether to invest on FK or otherwise.
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Post by nicky on Aug 13, 2014 18:04:11 GMT
My instinct is to trust 'nice' firms like FK and distrust arrogant firms like FC however that has led me to end up with c£6k in FK and £500 of bad loans (8%) and c£15k in FC with £120 of bad loans (1%). FK is not getting the kind of scrutiny on these bad loans that Assetz is! Jack P Hi jackpease, First and foremost, thank you for the compliment  I don't generally like to jump in on a discussion about us, I'd really rather let you all talk and air your views openly without feeling as though the interested party under discussion is butting in every few minutes defending themselves... not least as I think it has a bit of a dampening effect on the conversation.  But I'm a little worried by the figures that you've quoted above, is it possible that those figures are achieved by an amalgamation of the figures for loans 'In Recovery' and 'Non performing', combined with 'Loans written off'? We decided right at the start of FK to maintain a policy of complete transparency, regardless of whether we come out of it looking good... or not. This particularly concerns information on loan repayments and so we declare any issues at very early stages. We therefore decided to classify our loans into 4 categories; Performing, Non-performing, In recovery and Written off. Explanations of each category can be found on the Loan Stats page here: www.fundingknight.com/invest/loan-statistics/ (hover over the information buttons on each section for the full definition) But to save you all some time, essentially it is this:
Performing loans are those which give us no reason to believe that the loan won’t be paid. There may be the odd payment that is late, but we are still comfortable that the loan will be repaid.
Non-performing means that the borrower either has a repayment due of more than 45 days or, if earlier, we are no longer comfortable that the loan will be repaid. We are in regular discussion with the borrower and will post updates to the “additional info” box on the loan details, as these discussions progress. Loan parts may still be traded on the Loan Exchange, but with additional risk warnings, and the sale offer will no longer show a Shield Rating or an expected annual return to prospective buyers. At this stage, it is possible that the loan could return to ‘Performing’ but our concerns are sufficient that we wish to make early disclosure of them to Lenders.
Loans in debt recovery are those where we have become aware of a material event which has caused us to either start formal debt recovery proceedings, or start asking for payments from the guarantor. A material event could be that a company has entered liquidation or that the Borrower is not communicating with us. At this point, trading on the Loan Exchange is suspended.The recovery of loan debt and security, especially in calling in personal guarantees, can take a long time, particularly if care is being taken to maximise the amount recovered rather than to conclude the case quickly. There is therefore no basis as yet for estimating the likely amount recovered from loans in recovery.
Loans written off mean there is no potential for further settlement through debt recovery proceedings following a business failure. At this stage, it will appear on Lenders’ tax statements as a capital writeoff, but will no longer appear on the “My Dashboard” page which is a reflection of your current portfolio.
The definitions of each aren't quite as clear cut as a good loan/bad loan and therefore if you take all the loans that aren't strictly 'Performing', then the figures do look high. However, if you take into account that a number of loans in each of the other categories are either making payments (albeit not bang on time) or that the PG holders are making regular payments personally, then the figures are considerably better. For example, there are currently two loans sitting in 'Non performing' which are making payments, but they are consistently late and have therefore been classified as such to highlight concern. There is also one loan sitting 'In Recovery', where the PG is making regular (but erratic value) payments whilst he resolves his issues. We have, to date, written off just one loan - S**** UK - and one is not making payments at all, but the liquidators assure us that there will be some recovery from the sale of a large asset. I hope that makes some sense of the figures and the categories. It's very difficult to find suitable headings to provide a 'catch all' for the very varied circumstances of each, but the detail is in the updates tab of the loan description and we do try to provide you with every bit of information that we can, pretty much as soon as we have it, so it should be a bit easier to make an educated guess about a likely outcome from that info. In fact, I'll stick my neck on the line (personally, not FK) and quite happily take a bet that the figures you've quoted won't all be lost as bad loans.... how about a bottle of wine if you ultimately achieve a loss of more than 50% of your quoted £500 on the loans you've currently got listed in any of the three 'other' categories?
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