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Post by befuddled on May 29, 2019 9:47:41 GMT
I am struggling to see any positive to this company now
low and misrepresented interest rates
reduced capital (seems more defaults lately)
Long withdrawal times (getting longer, with no official explanation)
OK - free withdrawals - but negated as you can't sell all your loans, (I personally would prefer to pay a fixed % fee and be able to sell clean rather than have a portfolio left full of cr**)
Am I missing something - or is this company now a dud...!
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Stonk
Stonking
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Post by Stonk on May 29, 2019 10:55:58 GMT
I am struggling to see any positive to this company now low and misrepresented interest rates reduced capital (seems more defaults lately) Long withdrawal times (getting longer, with no official explanation) OK - free withdrawals - but negated as you can't sell all your loans, (I personally would prefer to pay a fixed % fee and be able to sell clean rather than have a portfolio left full of cr**) Am I missing something - or is this company now a dud...!
Truth is, FC are big and well-known and quite good at selling themselves to borrowers and lenders (in general, if not on here!), and they have quite a lot of cash to continue doing so. I think they would be one of the last P2P platforms to fail/close.
Even so, nothing lasts for ever, and some of my loans will probably be around longer than FC.
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Post by geosaddler on May 29, 2019 11:37:16 GMT
Surely the current lender situation at FC is not sustainable?! The 'vetting' process or lack off to borrowers is an absolute joke resulting in big time false advertising of the return rates....I've had several loans default before a single payment was made! And now with no plausible explanation it is near impossible to access your money. A 7-8 week wait to get only 60% of your requested amount in certain cases. Totally unacceptable.
To any potential investors, steer well clear! Don't be sucked in by the the slick headline rates, advertising campaign and platform. I noticed another thread on here called 'Trust pilot'. Well done to the folk that have added their 1 star reviews to raise awareness. I'll be popping along to add my bit.
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benaj
Member of DD Central
Posts: 4,878
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Post by benaj on May 29, 2019 12:17:33 GMT
I am struggling to see any positive to this company now low and misrepresented interest rates reduced capital (seems more defaults lately) Long withdrawal times (getting longer, with no official explanation) OK - free withdrawals - but negated as you can't sell all your loans, (I personally would prefer to pay a fixed % fee and be able to sell clean rather than have a portfolio left full of cr**) Am I missing something - or is this company now a dud...! What an interesting question? I can't see FC will be forced to shut down in the current climate even if individual investors getting lower return in the short term. Unless someone else is interested buying FC, with the their current strategy, it will be around for quite some time. Like others already said, FC is well "FUNDED" to operate for at least a few years and attracts big institution investments in FC loans.
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zlb
Member of DD Central
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Post by zlb on May 29, 2019 16:46:26 GMT
Do they still have government investment?
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Post by gravitykillz on May 29, 2019 19:51:50 GMT
Do they still have government investment? No
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on May 29, 2019 22:11:44 GMT
Surely the current lender situation at FC is not sustainable?! The 'vetting' process or lack off to borrowers is an absolute joke resulting in big time false advertising of the return rates....I've had several loans default before a single payment was made! And now with no plausible explanation it is near impossible to access your money. A 7-8 week wait to get only 60% of your requested amount in certain cases. Totally unacceptable.
To any potential investors, steer well clear! Don't be sucked in by the the slick headline rates, advertising campaign and platform. I noticed another thread on here called 'Trust pilot'. Well done to the folk that have added their 1 star reviews to raise awareness. I'll be popping along to add my bit.
False advertising?. Let me think is someone not in the news today accused of that ?  Let’s see how that pans out.
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Post by Deleted on May 31, 2019 2:44:11 GMT
The latest set of statutory accounts for FC (financial year ended 31.12.2018) show cumulative losses over the years since the inception of FC of £64.9 million. This sum represents the amount of original share holder capital investment lost because FC is not profitable. For that same financial year, FC lost £13.1 million on turnover of £93.6 million. Although going public meant that new funds were raised subsequently to shore up the Balance Sheet, unless FC can start making some profits it will eventually fail and go bust. The fact that it is a large player is no guarantee of success and at the present time the size of the FC operations just means that FC losses are large.
The accounts can be found by doing a Google search on ‘Funding Circle Companies House’ and then selecting the ‘Filing History’ tab.
The current FC share price is very sickly which is an indicator of the level of confidence that the financial markets have in FC.
The FC Investment Trust is to be wound up due to poor performance.
Potential lenders with FC should take time to understand the statutory accounts and how the financial markets are reacting to FC and to risk assess their FC lending accordingly.
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Post by spareapennyor2 on May 31, 2019 3:07:56 GMT
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Stonk
Stonking
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Post by Stonk on May 31, 2019 20:10:07 GMT
Strange that one of the reasons for the big losses is stated to be increased IT costs. And yet FC still cannot schedule the collection of payments correctly during a bank holiday and for several days afterwards, a fact which is now making it impossible for them to execute most sell requests reasonably. What exactly are these IT costs being spent on? The system is a lot simpler than it was 2 years ago.
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Post by GSV3MIaC on May 31, 2019 21:11:58 GMT
I think the system is patches on patches ... they changed the business model several times, but the underlying IT still thinks it is doing dutch auction bidding. They never did actually fix anything while I was wstching, they just failed fast and pivoted.
Of course they may have fixed it, since I last dissected their web pages..
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ashtondav
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Post by ashtondav on Jun 1, 2019 13:54:42 GMT
Do they still have government investment? Yes, the British Business Bank bunged in a wedge late last year. And the European Investment Bank announced they were bunging a wedge in in April. Whether that’s good or bad is another matter. As for selling your loans this will take ages for the simple reason lenders can get better returns from the likes of LW, RS and AC with more transparency and better protection. I’m not selling as it’s the best way of GUARANTEEING you end up with a crock of sh*te, but I am withdrawing repayments.
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zlb
Member of DD Central
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Post by zlb on Jun 1, 2019 13:58:08 GMT
Do they still have government investment? Yes, the British Business Bank bunged in a wedge late last year. And the European Investment Bank announced they were bunging a wedge in in April. Whether that’s good or bad is another matter. As for selling your loans this will take ages for the simple reason lenders can get better returns from the likes of LW, RS and AC with more transparency and better protection. I’m not selling as it’s the best way of GUARANTEEING you end up with a crock of sh*te, but I am withdrawing repayments. Do you mean that on selling, you end up with all defaults in your account remainder? Wouldn't it be better to sell in case those which are OK now go into default?
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Post by befuddled on Jun 3, 2019 13:02:31 GMT
...like if you had a barrel full of apples, 50% of which were bad, you sold the good ones, you now have 100% bad apples, but you're
arguably better off (as the barrel is clearly not a good place to keep apples.)
I am now owner of putrefying apples, which I suppose I will be owner of till the end of time...
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bigfoot12
Member of DD Central
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Post by bigfoot12 on Jun 3, 2019 15:27:00 GMT
I am now owner of putrefying apples, which I suppose I will be owner of till the end of time... You could call it a barrel of maturing cider and borrow money against it from Lendy, someone else.....
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Let’s see how that pans out.
