rogerthat
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Post by rogerthat on Jul 19, 2018 18:01:18 GMT
To me, they are getting what they deserve and I hope it forces them to take action on some of the ancient loans. Hear hear...but will they ?
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aligibbs
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Post by aligibbs on Jul 20, 2018 7:39:35 GMT
I wonder if they aren't getting filled somewhat due to the lack of repayments from loans that are going/have been bad for some time, like the circular motion of the money has been broken.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jul 20, 2018 8:40:32 GMT
When FS renew a loan the borrower pays the interest due and keeps the capital. FS return funds to lenders who don't want to rollover, so if the loan renewal takes more than a day to refill, FS need to provide short term finance to cover the shortfall. For small amounts it isn't a problem and FS bag the accruing lender interest on the shortfall. However, if lots of loans renew at the same time and don't refill quickly then the short term finance could be substantial. Currently, there is roughly £700k which needs refilling, that's effectively "skin in the game". I have no idea how much extra is available for short term finance, but if lenders don't refill loans then FS will just delay posting renewals even if the borrower has paid the interest.
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rs
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Post by rs on Jul 20, 2018 9:19:01 GMT
When FS renew a loan the borrower pays the interest due and keeps the capital. FS return funds to lenders who don't want to rollover, so if the loan renewal takes more than a day to refill, FS need to provide short term finance to cover the shortfall. For small amounts it isn't a problem and FS bag the accruing lender interest on the shortfall. However, if lots of loans renew at the same time and don't refill quickly then the short term finance could be substantial. Currently, there is roughly £700k which needs refilling, that's effectively "skin in the game". I have no idea how much extra is available for short term finance, but if lenders don't refill loans then FS will just delay posting renewals even if the borrower has paid the interest.
maybe FS should give cash back & bonus on some of the loans to get these filled.
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mullet
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Post by mullet on Jul 20, 2018 10:17:51 GMT
When FS renew a loan the borrower pays the interest due and keeps the capital. FS return funds to lenders who don't want to rollover, so if the loan renewal takes more than a day to refill, FS need to provide short term finance to cover the shortfall. For small amounts it isn't a problem and FS bag the accruing lender interest on the shortfall. However, if lots of loans renew at the same time and don't refill quickly then the short term finance could be substantial. Currently, there is roughly £700k which needs refilling, that's effectively "skin in the game". I have no idea how much extra is available for short term finance, but if lenders don't refill loans then FS will just delay posting renewals even if the borrower has paid the interest.
maybe FS should give cash back & bonus on some of the loans to get these filled.
12% for the 2nd ranking loan on N******* Avenue, Liverpool is a joke. There is a reasonable chance lenders will get nothing back from this one in the event of a default. Rightly so this is probably the slowest filling loan I've ever seen on FS - only £14.4k funded in a week.
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james21
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Post by james21 on Jul 20, 2018 12:29:36 GMT
They are putting another second charge up today again for 12%, in Frome you can see where this is going on the interest rate. And they posted this one on new loans on the board first time in over a month, consistent arnt they. Needless to say they does not interest me and no doubt quite a few on this board
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coop
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Post by coop on Jul 20, 2018 13:24:17 GMT
They are putting another second charge up today again for 12%, in Frome you can see where this is going on the interest rate. And they posted this one on new loans on the board first time in over a month, consistent arnt they. Needless to say they does not interest me and no doubt quite a few on this board I would say the Frome one doesn't look terrible if you're not fussed about liquidity. The sums add up (even with a years interest would still only need to recover c. £300k on a £420k loan) but with it being a personal home recovery could be a loooong old time in coming if it all goes south.
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coop
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Post by coop on Jul 20, 2018 13:25:05 GMT
When FS renew a loan the borrower pays the interest due and keeps the capital. FS return funds to lenders who don't want to rollover, so if the loan renewal takes more than a day to refill, FS need to provide short term finance to cover the shortfall. For small amounts it isn't a problem and FS bag the accruing lender interest on the shortfall. However, if lots of loans renew at the same time and don't refill quickly then the short term finance could be substantial. Currently, there is roughly £700k which needs refilling, that's effectively "skin in the game". I have no idea how much extra is available for short term finance, but if lenders don't refill loans then FS will just delay posting renewals even if the borrower has paid the interest. How can you tell which are the renewals? Are they the orange ones?
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lucky
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Post by lucky on Jul 20, 2018 14:05:54 GMT
They are putting another second charge up today again for 12%, in Frome you can see where this is going on the interest rate. And they posted this one on new loans on the board first time in over a month, consistent arnt they. Needless to say they does not interest me and no doubt quite a few on this board I would say the Frome one doesn't look terrible if you're not fussed about liquidity. The sums add up (even with a years interest would still only need to recover c. £300k on a £420k loan) but with it being a personal home recovery could be a loooong old time in coming if it all goes south. Personally I steer clear of second charge loans, just not worth the hassle IMO
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
Posts: 1,426
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Post by sqh on Jul 20, 2018 14:55:47 GMT
When FS renew a loan the borrower pays the interest due and keeps the capital. FS return funds to lenders who don't want to rollover, so if the loan renewal takes more than a day to refill, FS need to provide short term finance to cover the shortfall. For small amounts it isn't a problem and FS bag the accruing lender interest on the shortfall. However, if lots of loans renew at the same time and don't refill quickly then the short term finance could be substantial. Currently, there is roughly £700k which needs refilling, that's effectively "skin in the game". I have no idea how much extra is available for short term finance, but if lenders don't refill loans then FS will just delay posting renewals even if the borrower has paid the interest. How can you tell which are the renewals? Are they the orange ones? Renewals are tagged in the description.
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coop
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Post by coop on Jul 20, 2018 15:24:26 GMT
How can you tell which are the renewals? Are they the orange ones? Renewals are tagged in the description. Sounds like this one issue could become a serious problem to them alone. How much funds could they possibly have to commit to positions like this? (by which I mean funding the gap between non-renewals and new investment) Could we foresee a scenario where they run out of money but dont tell us; and we have to wait for a literal run on the client trading account to bring it to light?? As in could this gap be being plugged by client money which would mean they go belly up when everyone withdraws?
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coop
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Post by coop on Jul 20, 2018 15:27:28 GMT
It's gone down to more like £600k now but when Lytham renews sure to jump up again...
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p2pmark
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Post by p2pmark on Jul 20, 2018 15:30:58 GMT
Could we foresee a scenario where they run out of money but dont tell us; and we have to wait for a literal run on the client trading account to bring it to light?? As in could this gap be being plugged by client money which would mean they go belly up when everyone withdraws? This is not permitted, and I believe would be criminal behaviour. I think one reason (among many) for the slowdown is the end-July self-assessment tax deadline.
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coop
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Post by coop on Jul 20, 2018 15:34:15 GMT
Could we foresee a scenario where they run out of money but dont tell us; and we have to wait for a literal run on the client trading account to bring it to light?? As in could this gap be being plugged by client money which would mean they go belly up when everyone withdraws? This is not permitted, and I believe would be criminal behaviour. I think one reason (among many) for the slowdown is the end-July self-assessment tax deadline. I'm aware it would be criminal and a breach of client money rules. But I used to work for a FTSE100 co and those kind of rules and laws can and do get broken all the time. And that was a pretty above board company; not some shady 2 bit operation like FS. Totally illegal; yet imo still totally possible.
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james21
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Post by james21 on Jul 20, 2018 15:48:51 GMT
Renewals are tagged in the description. Sounds like this one issue could become a serious problem to them alone. How much funds could they possibly have to commit to positions like this? (by which I mean funding the gap between non-renewals and new investment) Could we foresee a scenario where they run out of money but dont tell us; and we have to wait for a literal run on the client trading account to bring it to light?? As in could this gap be being plugged by client money which would mean they go belly up when everyone withdraws? I doubt they use their own money unless the directors invest in their own right, they use underwriters in other words they have a revolving loan facility to draw on for a short a period as they need to then pay it back
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