number5
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Post by number5 on Jul 25, 2018 18:20:50 GMT
Cashback of 1% offered by borrower/FS so all lenders pile into the loan. Quick before it's filled. Is this 1% cashback on the principle you invest i.e. invest £1000 you get £10 on activation?
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locutus
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Post by locutus on Jul 25, 2018 18:43:24 GMT
Cashback of 1% offered by borrower/FS so all lenders pile into the loan. Quick before it's filled. Is this 1% cashback on the principle you invest i.e. invest £1000 you get £10 on activation? Yes.
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rogerthat
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Post by rogerthat on Jul 25, 2018 19:53:40 GMT
"To help speed up the funding the borrower has authorised a 1% cashback. This will be paid to investors when the loan is activated.
This applies to all existing investors as well as new investors"
I haven't got a problem with that but clearly FS cannot see that the crux of the problem across the whole platform is the ever increasing potential debt mountain of late and overdue loans, that has made investors understandably hesitant in light of FS's perceived nonchalance in tackling it. Offer incentives by all means (even if it is the borrower in this instance ) but deal with the elephant in the room and restore some credibility first and the funding just might recover
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lucky
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Post by lucky on Jul 25, 2018 20:16:38 GMT
"To help speed up the funding the borrower has authorised a 1% cashback. This will be paid to investors when the loan is activated. This applies to all existing investors as well as new investors" I haven't got a problem with that but clearly FS cannot see that the crux of the problem across the whole platform is the ever increasing potential debt mountain of late and overdue loans, that has made investors understandably hesitant in light of FS's perceived nonchalance in tackling it. Offer incentives by all means (even if it is the borrower in this instance ) but deal with the elephant in the room and restore some credibility first and the funding just might recover Judging by the lack of interest in the loan despite the cashback offer it would appear many investors agree with your comments.
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bg
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Post by bg on Jul 26, 2018 6:23:01 GMT
"To help speed up the funding the borrower has authorised a 1% cashback. This will be paid to investors when the loan is activated. This applies to all existing investors as well as new investors" I haven't got a problem with that but clearly FS cannot see that the crux of the problem across the whole platform is the ever increasing potential debt mountain of late and overdue loans, that has made investors understandably hesitant in light of FS's perceived nonchalance in tackling it. Offer incentives by all means (even if it is the borrower in this instance ) but deal with the elephant in the room and restore some credibility first and the funding just might recover I would disagree and say it's just the natural cycle of money flows in and out of the platform. I'm not saying there aren't any issues or problem loans on FS but I can't say anything has significantly worsened in the last 3 weeks. People were making the exact same comments when liquidity was in a similar position mid May and it resolved itself by mid June. Likewise on numerous occasions over the past 2-3 years. 2811652081, for example should be repaying £600k tomorrow and all it takes is one or two other decent sized loans to repay (you never know!) and the liquidity situation can flip within a few days. There is only £1m for sale at a discount on the SM and clearing that significantly would greatly improve matters and lead to people feeling more confident to buy on the PM again. There are a whole host of factors affecting sentiment and I would imagine fears over a Brexit no deal are towards the top of that list. The vast majority of investors of course do not read this forum but they do see the news.
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Post by dan1 on Jul 26, 2018 8:57:44 GMT
"To help speed up the funding the borrower has authorised a 1% cashback. This will be paid to investors when the loan is activated. This applies to all existing investors as well as new investors" I haven't got a problem with that but clearly FS cannot see that the crux of the problem across the whole platform is the ever increasing potential debt mountain of late and overdue loans, that has made investors understandably hesitant in light of FS's perceived nonchalance in tackling it. Offer incentives by all means (even if it is the borrower in this instance ) but deal with the elephant in the room and restore some credibility first and the funding just might recover I would disagree and say it's just the natural cycle of money flows in and out of the platform. I'm not saying there aren't any issues or problem loans on FS but I can't say anything has significantly worsened in the last 3 weeks. People were making the exact same comments when liquidity was in a similar position mid May and it resolved itself by mid June. Likewise on numerous occasions over the past 2-3 years. 2811652081, for example should be repaying £600k tomorrow and all it takes is one or two other decent sized loans to repay (you never know!) and the liquidity situation can flip within a few days. There is only £1m for sale at a discount on the SM and clearing that significantly would greatly improve matters and lead to people feeling more confident to buy on the PM again. There are a whole host of factors affecting sentiment and I would imagine fears over a Brexit no deal are towards the top of that list. The vast majority of investors of course do not read this forum but they do see the news. I think it's more to do with the knock on effect of the Collateral administration. It takes time to unwind a high yielding portfolio such as those on L, FS, MT. Incidentally, that's what attracted me to the bling on Col, instant liquidity, well, except when the platform folded
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bg
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Post by bg on Jul 26, 2018 9:04:39 GMT
I would disagree and say it's just the natural cycle of money flows in and out of the platform. I'm not saying there aren't any issues or problem loans on FS but I can't say anything has significantly worsened in the last 3 weeks. People were making the exact same comments when liquidity was in a similar position mid May and it resolved itself by mid June. Likewise on numerous occasions over the past 2-3 years. 2811652081, for example should be repaying £600k tomorrow and all it takes is one or two other decent sized loans to repay (you never know!) and the liquidity situation can flip within a few days. There is only £1m for sale at a discount on the SM and clearing that significantly would greatly improve matters and lead to people feeling more confident to buy on the PM again. There are a whole host of factors affecting sentiment and I would imagine fears over a Brexit no deal are towards the top of that list. The vast majority of investors of course do not read this forum but they do see the news. I think it's more to do with the knock on effect of the Collateral administration. It takes time to unwind a high yielding portfolio such as those on L, FS, MT. Incidentally, that's what attracted me to the bling on Col, instant liquidity, well, except when the platform folded Of course that has had some sort of impact...it will have made people more cautious in general but also means no new money is going into Collateral - some of which will be directed to FS. I don't think the present overhang of loans has much to do with that though. Collateral went into administration back in February, FS saw massive selling pressure on the SM by mid-late May (over £350k for sale at the maximum 1% discount) but this had completely alleviated by late June. In fact June 21 - July 5 there was nothing for sale on FS SM at 1% discount (well if there was it was bought pretty quickly) so I don't think there has been a gradual unwind since Collateral went belly up.
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Post by dan1 on Jul 26, 2018 9:51:21 GMT
I think it's more to do with the knock on effect of the Collateral administration. It takes time to unwind a high yielding portfolio such as those on L, FS, MT. Incidentally, that's what attracted me to the bling on Col, instant liquidity, well, except when the platform folded Of course that has had some sort of impact...it will have made people more cautious in general but also means no new money is going into Collateral - some of which will be directed to FS. I don't think the present overhang of loans has much to do with that though. Collateral went into administration back in February, FS saw massive selling pressure on the SM by mid-late May (over £350k for sale at the maximum 1% discount) but this had completely alleviated by late June. In fact June 21 - July 5 there was nothing for sale on FS SM at 1% discount (well if there was it was bought pretty quickly) so I don't think there has been a gradual unwind since Collateral went belly up. I thought I'd go and have a look at the cumulative amount in completed, active, and defaulted loans (ignoring cancelled loans)... All very well and good but it doesn't back up my assertion regarding the Collateral impact I'll defer to your better judgement.
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bg
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Post by bg on Jul 26, 2018 10:01:54 GMT
Of course that has had some sort of impact...it will have made people more cautious in general but also means no new money is going into Collateral - some of which will be directed to FS. I don't think the present overhang of loans has much to do with that though. Collateral went into administration back in February, FS saw massive selling pressure on the SM by mid-late May (over £350k for sale at the maximum 1% discount) but this had completely alleviated by late June. In fact June 21 - July 5 there was nothing for sale on FS SM at 1% discount (well if there was it was bought pretty quickly) so I don't think there has been a gradual unwind since Collateral went belly up. I thought I'd go and have a look at the cumulative amount in completed, active, and defaulted loans (ignoring cancelled loans)... All very well and good but it doesn't back up my assertion regarding the Collateral impact I'll defer to your better judgement. How can the cumulated level of completed loans ever decrease? I take data snaps of the SM every 15 mins. Here's a graph of loans for sale at 1% discount over the past 3 months. You can see the spike in may which disappears and then the more recent spike. I have no idea why it comes up as such a small size though....have tried fiddling but can't seem to do anything about it (views much bigger when I open on my computer).
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locutus
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Post by locutus on Jul 26, 2018 10:02:30 GMT
df What happened to the Loan Completed line? Shouldn't that always be increasing as I thought all the lines were cumulative unless I have misread the chart.
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r00lish67
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Post by r00lish67 on Jul 26, 2018 10:03:40 GMT
So glad everyone else said that - looks a really interesting graph potentially, but yes, don't see how completed can cumulatively decrease..
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r00lish67
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Post by r00lish67 on Jul 26, 2018 10:08:50 GMT
How can the cumulated level of completed loans ever decrease? I take data snaps of the SM every 15 mins. Here's a graph of loans for sale at 1% discount over the past 3 months. You can see the spike in may which disappears and then the more recent spike. I have no idea why it comes up as such a small size though....have tried fiddling but can't seem to do anything about it (views much bigger when I open on my computer). Hi bg - we can click your graph to expand it, so no problem. And thanks, very interesting.
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Post by dan1 on Jul 26, 2018 10:09:41 GMT
bg , locutus , r00lish67 - poor choice of word 'cumulative'. The graph shows the sum of loans completed between the loan active and loan completed dates. The intention of the chart is to show the total invested (in capital only) on the platform and the breakdown between completed, live, and defaulted. Edit: the downward trend in completed is to be expected because few loans complete within the 6 month term and the very nature of the property development/bridging loans (which dominate the statistics by value) means that overruns are inevitable.
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paulb
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Post by paulb on Jul 26, 2018 10:11:31 GMT
I suspect, with no evidence to back it up, that majority of lending is "recycled" cash and that (ideally) a chunk of cash available for lending actually comes from borrowers, in the form of interest, rather than new money from investors. As there are a lot of overdue loans, there's less money available, meaning loans are slow to fill, even with the bonus - are people really likely to dump in fresh cash for the sake of 1%, given the apparent high chance of not getting it back any time soon?
Paul.
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Post by dan1 on Jul 26, 2018 10:16:32 GMT
I thought I'd go and have a look at the cumulative amount in completed, active, and defaulted loans (ignoring cancelled loans)... All very well and good but it doesn't back up my assertion regarding the Collateral impact I'll defer to your better judgement. How can the cumulated level of completed loans ever decrease? I take data snaps of the SM every 15 mins. Here's a graph of loans for sale at 1% discount over the past 3 months. You can see the spike in may which disappears and then the more recent spike. I have no idea why it comes up as such a small size though....have tried fiddling but can't seem to do anything about it (views much bigger when I open on my computer). Thanks for the chart bg. The SM is an interesting indicator but note the level of ~£350k of loans at -1% is insignificant compared to the tens of millions of active loans with more than one month remaining that could be offered at -1%. The SM may represent the current state of available cashflow on the platform and this would be expected to by cyclical with end of tax year, payment on account, holidays even... it'll be interesting to see whether the level decreases post Jul 31, the SA payment on account deadline.
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