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Post by markaldrich on Jul 21, 2018 21:34:46 GMT
Hi thought I would dip a toe in the water with LC as noted 4th way had now given 2 stars. However I'm used to seeing more details on security. I've gone for one loan with security and it mentions a charge over the director's property but no indication of whether 1st or 2nd charge no indication of LTV etc. Am I missing something? Also I noted mixed reviews on here with suggestions of high defaults but not sure if this is more historic? Any reassurance or comments otherwise very welcome.
Cheers
Mark
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r00lish67
Member of DD Central
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Post by r00lish67 on Jul 21, 2018 22:45:29 GMT
Hi thought I would dip a toe in the water with LC as noted 4th way had now given 2 stars. However I'm used to seeing more details on security. I've gone for one loan with security and it mentions a charge over the director's property but no indication of whether 1st or 2nd charge no indication of LTV etc. Am I missing something? Also I noted mixed reviews on here with suggestions of high defaults but not sure if this is more historic? Any reassurance or comments otherwise very welcome. Cheers Mark Re: defaults, that's more historic. You can download their loanbook from their stats page to have a check of their recent performance - they seemed to have very few defaults of late when I last looked a couple of weeks ago. However, I'm not sure whether their subsequent recovery practices have improved or not (certainly were terrible in 2016 - they didn't manage to recover a penny from any defaulted loan). Despite their poor start, I'm almost tempted to look again myself. My main niggling concern is that I'm not sure how they're ever going to be profitable in their own right, as they are dwarfed in scale by, for example, FC - who themselves struggle. That, plus the infamous 'lottery' SM with no queue position, no discounts/premiums, and a fee - a somewhat frustrating experience.
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elliotn
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Post by elliotn on Jul 22, 2018 6:35:54 GMT
No detailed security description on the loan page. Sometimes borrowers answer Qs but you”d need address for land registry and the most available will be the company’s registered address on Companies House where you’ll also see any charges to Edinburgh Alternative Finance, typically a debenture so look for other charges that may have priority to assess your risk levels.
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Post by markaldrich on Jul 22, 2018 6:41:39 GMT
Thanks both. Yes always makes me nervous when a platform is not profitable and the absence of explaining security seems a missed trick. Sounds like proceed with caution...
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Post by albermarle on Jul 28, 2018 9:28:33 GMT
No detailed security description on the loan page. Sometimes borrowers answer Qs but you”d need address for land registry and the most available will be the company’s registered address on Companies House where you’ll also see any charges to Edinburgh Alternative Finance, typically a debenture so look for other charges that may have priority to assess your risk levels. Checking Companies House for debenture details is only useful for existing loans . For new loans being offered you are in the dark about the details of any security. Sometimes they seem to have guarantors but again details are non existent. I started with LC 15 months ago . Currently earning over 10% but also over 10% of my loans are in various levels of trouble . It's a complete guesstimate but I think in the long term my real return may be more like 5% , unless there is a serious economic downturn ( Brexit?) then will probably be 'happy' just to get my initial investment back .
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elliotn
Member of DD Central
Posts: 3,063
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Post by elliotn on Jul 31, 2018 6:57:38 GMT
No detailed security description on the loan page. Sometimes borrowers answer Qs but you”d need address for land registry and the most available will be the company’s registered address on Companies House where you’ll also see any charges to Edinburgh Alternative Finance, typically a debenture so look for other charges that may have priority to assess your risk levels. Checking Companies House for debenture details is only useful for existing loans . For new loans being offered you are in the dark about the details of any security. Sometimes they seem to have guarantors but again details are non existent. I started with LC 15 months ago . Currently earning over 10% but also over 10% of my loans are in various levels of trouble . It's a complete guesstimate but I think in the long term my real return may be more like 5% , unless there is a serious economic downturn ( Brexit?) then will probably be 'happy' just to get my initial investment back . Yes, all registration of loan charges will be dependent on the loan completing/drawing down (given SIB funding, a low risk for LC). Fyi to OP, I’ve just completed my 1st month end rec and note just over 1/2 my loans by value have debentures/legal charges and there may be value in some of the PGs where the directors wish to avoid bankruptcy (but only where they can/want to avoid the concomitant sanctions). Overall, that’s a situation I’m comfortable with given the diversification of >100 loans in my 1st month compared to the equivalent 20 or so loans I had on TC (being partially wound down to fund greater SME diversification on LC/C2F).
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