coop
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Post by coop on Apr 16, 2019 14:43:08 GMT
Hard to see how they turn this around form here tbh. The required strategy is very simple. All they have to do is be successful with the recoveries. If they are, then lots of people will have made very large returns through FS and the business will be in a good place to continue. If they don't, then yes, it's not looking good. A pipeline of new loans only serves to paper over the cracks. FS have repeatedly said they are restricting new loans to concentrate on recovery efforts. All well and good if they can stay solvent without the income from new loans!
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arby
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Post by arby on Apr 16, 2019 14:52:20 GMT
The required strategy is very simple. All they have to do is be successful with the recoveries. If they are, then lots of people will have made very large returns through FS and the business will be in a good place to continue. If they don't, then yes, it's not looking good. A pipeline of new loans only serves to paper over the cracks. FS have repeatedly said they are restricting new loans to concentrate on recovery efforts. All well and good if they can stay solvent without the income from new loans! Successful loan completion would make up a large chunk of their revenue.
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coop
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Post by coop on Apr 16, 2019 15:01:55 GMT
Really? I had somewhat assumed they would take a lot of advance fees etc so they would get most of their money at the offset.
I may well have assumed wrong!
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arby
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Post by arby on Apr 16, 2019 15:06:10 GMT
Really? I had somewhat assumed they would take a lot of advance fees etc so they would get most of their money at the offset. I may well have assumed wrong! From the T&Cs: 6.2.5 Net proceeds of sale of Assets shall be used to settle amounts due in the following order: Principal amount of Loan which was funded by, and is repayable to, the Investors (allocated pro rata in accordance with the proportion of the Loan amount which each Investor invested); Direct costs incurred by FundingSecure through the setting up and the administration of the Loan including, but not limited to, storage costs, referral fees and valuation fees up to the date of sale; Interest due to the Investors up to the date of sale (allocated pro rata in accordance with the proportion of the Loan amount which each Investor invested); Administration fees due to FundingSecure not recovered through clause 6.2.5(ii) above; The balance (if any) will be returned to the Borrower. This is why I'm always a bit baffled when so many people say "FS would act differently if it was their own money they were handing out". In reality, they are handing out their own money as their business (+ wages etc) requires a stream of loan repayments. It is in FS's own interests to prioritise repayments. The conflict of interest between FS and the lenders isn't quite as big as people make out.
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littleoldlady
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Post by littleoldlady on Apr 16, 2019 17:55:32 GMT
Those terms apply to defaulted loans where the assets have been seized. FS get their income from new loans and their business model depends on continuous expansion.
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SteveT
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Post by SteveT on Apr 17, 2019 12:04:43 GMT
3 more defaulted FS pawn loans (rings / stone) apparently closed out today, each one leaving lenders nursing significant capital losses (32% / 49% / 54%). I could never be bothered sniping for bits of these little pawn loans, and now I'm glad I didn't! The valuations are clearly no better than those of their property loans
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ozboy
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Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Apr 17, 2019 13:09:37 GMT
3 more defaulted FS pawn loans (rings / stone) apparently closed out today, each one leaving lenders nursing significant capital losses (32% / 49% / 54%). I could never be bothered sniping for bits of these little pawn loans, and now I'm glad I didn't! The valuations are clearly no better than those of their property loans But FS Pawn Loans are "safer" than Property?? I mean, FS Pawn Valuations are beyond reproach.
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adrian77
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Post by adrian77 on Apr 17, 2019 13:47:01 GMT
not very impressive is it - however that is a lot lower than the losses we can expect for the art loans, park homes, speedboat(s) etc etc. I had hoped bling would be a somewhat safe bet but doesn't look that way based on these figures.
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coop
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Post by coop on Apr 17, 2019 13:48:16 GMT
3 more defaulted FS pawn loans (rings / stone) apparently closed out today, each one leaving lenders nursing significant capital losses (32% / 49% / 54%). I could never be bothered sniping for bits of these little pawn loans, and now I'm glad I didn't! The valuations are clearly no better than those of their property loans Hopefully dan1 can add to his table and keep track because FS have apparently abandoned updating that particular figure...
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gc
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Post by gc on May 1, 2019 0:59:19 GMT
3 more defaulted FS pawn loans (rings / stone) apparently closed out today, each one leaving lenders nursing significant capital losses (32% / 49% / 54%). I could never be bothered sniping for bits of these little pawn loans, and now I'm glad I didn't! The valuations are clearly no better than those of their property loans Hopefully dan1 can add to his table and keep track because FS have apparently abandoned updating that particular figure... That's because, the way they are going, IMO, no amount of "number massaging" is going to make them look good.
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coop
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Post by coop on May 16, 2019 15:31:36 GMT
Updates seem to have dried up a bit again recently... 2 small jewellery defaults and a multi-loan property the only updates today; only 10 other loans (counting multiple tranches of the same property as one) updated this week.
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adrian77
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Post by adrian77 on May 16, 2019 17:51:07 GMT
totally agree with the prior post - hopefully we will get an update about the Park Homes tomorrow as it will have been a week since payment was due. Stating the homes are sold/not sold would be fine for me. As I said the auction site told me they were sold but now I am beginning to wonder if a buyer has pulled out.
FS don't worry we are not going to forget about this one and sweeping it under the carpet is not an option.
If they have not been sold then a complete and utter disaster...
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rogerthat
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Post by rogerthat on May 17, 2019 10:22:22 GMT
Almost 18mins to raise £4.5K on a Rolex watch...1138394282..its not long ago that my screen would have frozen due to the feeding frenzy for such a small offering..worrying times.
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arby
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Post by arby on May 17, 2019 10:30:11 GMT
Almost 18mins to raise £4.5K on a Rolex watch...1138394282..its not long ago that my screen would have frozen due to the feeding frenzy for such a small offering..worrying times. Possibly, but I also suspect there is possibly a case of looking for an interpretation to support your view. As a counterpoint, the recent Patek Philippe raised £55k in a minute. It could be argued that the primary difference is such a low bid limit on the Rolex guarantees it will take a while to fill.
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iRobot
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Post by iRobot on May 17, 2019 10:47:59 GMT
Almost 18mins to raise £4.5K on a Rolex watch...1138394282..its not long ago that my screen would have frozen due to the feeding frenzy for such a small offering..worrying times. Possibly, but I also suspect there is possibly a case of looking for an interpretation to support your view. As a counterpoint, the recent Patek Philippe raised £55k in a minute. It could be argued that the primary difference is such a low bid limit on the Rolex guarantees it will take a while to fill. Yep, no doubt 6 - 12 months ago there would have been congestion, but £50 max means 90 lenders, so one every 12 seconds on average. Perhaps more telling are the lack of complaints from lenders who 'missed out' and that the max should have been smaller!
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