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Post by shanghaiscouse on Jun 5, 2019 11:30:23 GMT
If you go into my portfolio, then set the "status" drop down box to "bad debt", then have a look at some of the larger bad loans you are exposed to, then click into the "Business Profile" tab, this is where the reason for needing a loan is requested.
My worst so far is loan 26052 - "Currently due to a quiet period, I need to loan as working capital and to further advertise in order to generate sales opportunity.". And they were surprised when this guy, who they gave £46,000 to (a business with only £300k turnover) went bust.
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Post by shanghaiscouse on Jun 5, 2019 11:44:39 GMT
In April 2018 FC lent £370,000 on the back of this statement "Due to exponential growth, our company requires larger working capital to remain sustainable between larger contractual payments. We have also won two large new contracts and the funds will be used for wages, stock, vehicles and staff". By August they had had stopped repayments and on 23 October they went into insolvency.
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Stonk
Stonking
Posts: 735 
Likes: 658
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Post by Stonk on Jun 5, 2019 17:53:13 GMT
In April 2018 FC lent £370,000 on the back of this statement "Due to exponential growth, our company requires larger working capital to remain sustainable between larger contractual payments. We have also won two large new contracts and the funds will be used for wages, stock, vehicles and staff". By August they had had stopped repayments and on 23 October they went into insolvency.
Good old "exponential growth" ... but unfortunately with a negative exponent.
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Stonk
Stonking
Posts: 735
Likes: 658
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Post by Stonk on Jun 5, 2019 18:40:06 GMT
There was, and maybe still is, an entire loan category called "Tax Payment Loan". I always thought that was a very bad sign for the company. If a company cannot keep money aside for taxes -- which are, after all, one of life's 2 certainties -- they're going to be stuffed sooner or later.
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Post by kowalski on Jun 6, 2019 14:55:16 GMT
I have this one that is late....
”Mango season is coming up, we have high demand for mango's and want to invest in these.”
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Post by gravitykillz on Jun 6, 2019 19:17:23 GMT
I have this one that is late.... ”Mango season is coming up, we have high demand for mango's and want to invest in these.” Lol
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Post by 2naphish on Jun 7, 2019 9:27:37 GMT
A Nigerian barrister told me that I have been left $6 million in a Will but I need a loan to pay up-front costs.....
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Post by shanghaiscouse on Jun 7, 2019 11:32:43 GMT
There was, and maybe still is, an entire loan category called "Tax Payment Loan". I always thought that was a very bad sign for the company. If a company cannot keep money aside for taxes -- which are, after all, one of life's 2 certainties -- they're going to be stuffed sooner or later. Yes, this category still exists, I am looking at one now in my extensive bad debt portfolio "We are a company based in Birmingham covering nationwide sites, our main customer is JD Wetherspoons. We require funding to clear old HMRC debt". What they are saying is they already don't make money or can't manage cashflow to pay their taxes. Surprise surprise they got a £52k loan but after only 2 of 48 payments they stopped paying and were put into insolvency by HMRC. So wherever that 52k went to, it doesn't look like it went to HMRC.
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Post by kowalski on Jun 29, 2019 7:28:14 GMT
Mango demand must be down this year as my Mango loan has just defaulted
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Stonk
Stonking
Posts: 735
Likes: 658
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Post by Stonk on Jun 29, 2019 17:55:22 GMT
Mango demand must be down this year as my Mango loan has just defaulted Mango ... mangoing ... mangone.
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Post by gravitykillz on Jul 4, 2019 14:04:42 GMT
Seems like fc just want to lend and don't care who they lend to. If that is not a red flag I don't know what is.
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Post by gravitykillz on Jul 4, 2019 14:05:24 GMT
I am so glad I left fc in 2016.
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