Steerpike
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Post by Steerpike on Jan 4, 2015 15:16:16 GMT
I have been reviewing my spread of investments across 13 (!) platforms and annotating each as having security/insurance/provision fund, cost of the SM, 1 yr, 3yr, 5yr rates etc.
I have got to the point where I am not sure that I can remember exactly what it was that I liked about FK or why I am still invested here.
Can anyone remind me what I have forgotten?
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Post by wiseclerk on Jan 4, 2015 15:50:35 GMT
I have been reviewing my spread of investments across 13 (!) platforms and annotating each as having security/insurance/provision fund, cost of the SM, 1 yr, 3yr, 5yr rates etc. I have got to the point where I am not sure that I can remember exactly what it was that I liked about FK or why I am still invested here. Can anyone remind me what I have forgotten? P2P Lending on 13 platforms is an impressive vault of first-hand experience. Is there any chance I can get you to write it down for a guest post on my blog to share it with others?
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shimself
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Post by shimself on Jan 4, 2015 16:22:46 GMT
Some of the propositions are OK (I think and hope) at good rates. I've not witnessed a major foul up. 'nuff said
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Steerpike
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Post by Steerpike on Jan 4, 2015 18:37:41 GMT
Some of the propositions are OK (I think and hope) at good rates. I've not witnessed a major foul up. 'nuff said True, but the only other platform that I use that has no security and no provision fund is FC and the sheer volume of loans there makes diversification easy, some loans are secured, and the secondary market is active and 4x as cheap to use.
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jimbo
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Post by jimbo on Jan 4, 2015 23:56:23 GMT
For me, it's the openness of communication combined with the desire to support an unsecured business lending alternative to Funding Circle.
I also like the detail supplied with the propositions, and the fact that a platform backer (GLI Finance) has skin in the game on a large number of the loans. I should also mention I'm a small shareholder in GLI, so it's in my own interest to support the growth of an investee platform. However, I started investing in FK loans a long time before I bought GLI shares.
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Post by mrclondon on Jan 5, 2015 13:53:30 GMT
For me, it's the openness of communication combined with the desire to support an unsecured business lending alternative to Funding Circle. I also like the detail supplied with the propositions, and the fact that a platform backer (GLI Finance) has skin in the game on a large number of the loans. Ditto
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Post by captainconfident on Jan 5, 2015 15:17:05 GMT
For me it is investing alongside the big investors and my assumption that their due diligence, given the sums at stake, will be better than mine. Second, when there is a late payment, the full circumstances are outlined to the lenders together with comment from the borrowers.
The other similar platform gives little or no information about late payments and has no financial interest in the loans after taking their initial commission. Otherwise they have an incentive to default loans into the arms of their recoveries company which will take a cut of the amount recovered from lenders.
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shimself
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Post by shimself on Jan 5, 2015 17:00:58 GMT
For me it is investing alongside the big investors and my assumption that their due diligence, given the sums at stake, will be better than mine. Second, when there is a late payment, the full circumstances are outlined to the lenders together with comment from the borrowers. The other similar platform gives little or no information about late payments and has no financial interest in the loans after taking their initial commission. Otherwise they have an incentive to default loans into the arms of their recoveries company which will take a cut of the amount recovered from lenders. Do FK have some skin in the game then?
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oldgrumpy
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Post by oldgrumpy on Jan 7, 2015 12:59:03 GMT
For me it is investing alongside the big investors and my assumption that their due diligence, given the sums at stake, will be better than mine. Second, when there is a late payment, the full circumstances are outlined to the lenders together with comment from the borrowers. The other similar platform gives little or no information about late payments and has no financial interest in the loans after taking their initial commission. Otherwise they have an incentive to default loans into the arms of their recoveries company which will take a cut of the amount recovered from lenders. Do FK have some skin in the game then? Let's hope this means a far more active attitude to pursuing "personal guarantees" when companies fold than a certain other platform seems to apply. Today's Printing Firm for example, into administration after only two payments of a £150K loan - the personal guarantor is worth £1.38M "in property alone", so there should be no excuse for him to wriggle or delay. He may not.
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Post by jackpease on Jan 7, 2015 13:14:25 GMT
I've been investing across several platforms for a couple of years now, adopting the same diversification strategy over all the platforms - sadly FK is the only platform which has left me in negative territory - i suspect by quite a large margin when the processes work their way out.
Early on I asked the question 'why funding knight' and i thought the (previous version of the) website was really good, and the platform friendly and accessible so invested happily putting an equal amount of money on each loan as it came through. But so many have gone bad.
I still struggle to feel bad about FK and put it down to bad luck but with the latest printer collapse so soon after FK due diligence gave it a rosy future, my patience is stretched - if the personal guarantees behind this loan prove to be wafer thin then FK really needs to look hard at whether being nice is good enough.
Jack P
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shimself
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Post by shimself on Jan 7, 2015 15:26:31 GMT
More worryingly the borrowers seem to be asking themselves the same question - as I write there are NO new loans on offer
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min
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Post by min on Jan 7, 2015 17:39:53 GMT
More worryingly the borrowers seem to be asking themselves the same question - as I write there are NO new loans on offer Bit ISTR that they said before Xmas they have a bulging pipeline. Hopefully delays caused by FK doing due diligence.
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oldgrumpy
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Post by oldgrumpy on Jan 7, 2015 18:03:42 GMT
More worryingly the borrowers seem to be asking themselves the same question - as I write there are NO new loans on offer Bit ISTR that they said before Xmas they have a bulging pipeline. Hopefully delays caused by FK doing due diligence. Yeah ... and Bill the Printer said before Xmas that he had bulging orders in the pipeline .... but declined to make his third (or fourth) payment.
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Post by elljay on Jan 7, 2015 18:09:19 GMT
[mod hat on]
Hi all, just a friendly reminder not to identify the borrower now some strong accusations have been made in another thread. Thanks.
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oldgrumpy
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Post by oldgrumpy on Jan 8, 2015 17:03:39 GMT
Well, FK (as they usually do) is keeping us up to date. Good to see that formal correspondence regarding PG is so quickly mobilised. Even with the best outcome (for investors) this will now go on for a few months, so I hope FK can achieve partial repayment covering all outstanding payments and interest as an interim gesture from the guarantor to back up his verbal intentions.
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