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Post by mogzi on Dec 16, 2014 13:22:06 GMT
Hi. Could you tell me how much of your funds lent figure has actually been lent by yourselves or any of your subsidiary companies please?
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wysiati
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Post by wysiati on Jan 1, 2015 22:30:37 GMT
Hi. Could you tell me how much of your funds lent figure has actually been lent by yourselves or any of your subsidiary companies please? As discussed elsewhere it appears that the dominant lender on the platform has not been a subsidiary or internal source but rather FK's 20% shareholder - GLI Finance Ltd (GLIF's own disclosures appeared to suggest perhaps 40%+ 2014 YTD lending share on the FK platform as at the end of June 2014). With the next GLIF full year results release in particular (due end of March 2015) it will be interesting to see how dependent upon this connected party FK has been during 2014 and what the platform's headline figures excluding GLI Finance's FK loan book actually look like. Meantime, to the extent that such is possible, some further transparency from the platform might be welcome although the lack of any response to the original question is not particularly encouraging.
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Post by captainconfident on Jan 2, 2015 11:08:29 GMT
Meantime, to the extent that such is possible, some further transparency from the platform might be welcome although the lack of any response to the original question is not particularly encouraging. The existence of this internal underwriter or parallel investor provides stability and a degree of reassurance to small investors in this platform. Certainly one of the main reasons I invest here. You know enough of the position of this investor in the set up. What futher transparency are you in need of?
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wysiati
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Post by wysiati on Jan 2, 2015 11:59:43 GMT
Over-reliance upon a single entity can ultimately be a source of fragility/vulnerability just as for businesses in general.
If a platform is unable to attract a critical mass of funding from unconnected sources then that neither necessarily protects the interests of nor should it provide comfort to those outsiders.
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Post by captainconfident on Jan 2, 2015 12:48:46 GMT
Those are just truisms. What further transparency do you require?
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wysiati
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Post by wysiati on Jan 2, 2015 15:48:53 GMT
I give you the benefit of the doubt and assume you are just being provocative / deliberately obtuse. As a minimum, the info as described above without having to piece it together form multiple sources.
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wysiati
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Post by wysiati on Jan 25, 2015 16:37:40 GMT
The latest potential example is the current £340k auction. From recollection this had previously been listed (the core asset offered as security) in the same or a related loan form/structure involving a subsidiary on REBS but the offered rate was arguably non-commercial and was, I believe, rejected; the borrower/subsidiary company may also have approached FC but certainly did not appear as an auction on that platform.
FK has slightly changed the wording of its T&C regarding the maximum % of a loan request which may be funded by any single party. With this latest request it appears to have been largely or fully funded in full at the reserve rate in equal blocks.
It seems quite possible that the FK shareholder has provided most or all of that funding with the prior agreement of the platform. The loan will go ahead but external funding potentially gets crowded out and some lenders may feel they are being strong-armed into accepting a sub reserve-rate lend.
The shareholder does actually appear to be cognisant of such risks and confirmed when contacted that the level of funding support to FK should be expected to decline over time although there do not yet appear to be any tangible signs of such.
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Post by kayfundingknight on Jan 30, 2015 11:39:19 GMT
Hi. Could you tell me how much of your funds lent figure has actually been lent by yourselves or any of your subsidiary companies please? Hi, Apologies for not responding sooner. I have only recently taken over lender support and I'm afraid your comment slipped through the net during the handover. FundingKnight, as a company, does not invest in loans, however, members of management have, personally, invested in every new borrower. Other members have commented on our involvement with GLIF. Hope this answers your query?
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