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Post by Ace on Jan 12, 2024 8:41:06 GMT
I've had a look at the Kuflink accounts provided to CH but can't find the bit that mentions the loan impairment charges. A quick search on Investopedia says that impairment charges are a way for businesses to write-off assets whose value has drastically reduced. As I understand it Kuflink LTD don't own any of the loan security so this is something that I'd like to approach them for clarification on. Could you kindly highlight where the relevant section is please? Edit: and if anyone can help me understand how to crop out and quote a small part from a larger post I would be very grateful! To quote a small portion of a post I hit the quote button and remove the unwanted text. You're correct to say that Kuflink Ltd don't hold the loan security. The "up to 5% first loss" that Kuflink holds is held by Kuflink Bridging Ltd, which is where the impairment is listed (and also in the parent company Kuflink Group PLC). See the section titled "Impairment of financial assets" for an explanation. It's not clear to me to what extent Kuflink believe that the impairment will turn into actual losses. They don't detail what further level of impairment is attributable to investors and I don't see any way to estimate it from the information provided.
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scooter
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Post by scooter on Jan 12, 2024 23:08:19 GMT
"Further to our previous update, Our borrower is working on their refinance and its taking longer than expected."This is getting a little tedious.... I mean the capital "O" after a comma Same comment on so many loans..... you might have thought that they would have got better at estimating how long a refinance takes. I suspect it is just a cover comment for inaction from all sides. May I suggest "We've been sat on our hands for a month and our borrower has no motivation to act quickly in this matter and there is nothing you as an investor can do about it."I'm beginning to think they have recruited comment writers from FC.
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Post by racheld1974 on Jan 23, 2024 12:21:47 GMT
I was just about to jump back into Kuflink, may have a re think. I really appreciate the comments on this forum. Having invested in a number of p2p sites over the past 12 years, I have narrowed it down too . Loanpad, Proplend Qardus and Axia fund. With some money stuck in AC and Somo. It is annoying when you read the blurb stating that there are no losses but some of the loans are years overdue. Kuflink's group accounts show that they wrote off £8,417 in 2023, compared with £660 in 2022. I presume that this was within their "up to 5% first loss" tranche, and hence no loss to investors. They also show £711,715 of "loan impairment charges" (£521,312 in 2022). It's not clear to me exactly what this means. I've had a loan written off on Proplend this year, though there's still a chance of recovery on that one. There's one long defaulted loan on Qardus that I'm expecting to result in a partial loss. I had a loss on one case on AxiaFunder. It was part of a portfolio of 3 cases, so the loan overall returned a profit. No losses on Loanpad yet (and none expected). I assign an assumed level of losses to all platforms and continue to lend if net returns are as expected. I'm still happy to lend on all of the above mentioned platforms, though I am getting a bit wobbly over Qardus since they drastically cut lender returns on new loans.
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Post by racheld1974 on Jan 23, 2024 12:23:57 GMT
I've had a look at the Kuflink accounts provided to CH but can't find the bit that mentions the loan impairment charges. A quick search on Investopedia says that impairment charges are a way for businesses to write-off assets whose value has drastically reduced. As I understand it Kuflink LTD don't own any of the loan security so this is something that I'd like to approach them for clarification on. Could you kindly highlight where the relevant section is please? Edit: and if anyone can help me understand how to crop out and quote a small part from a larger post I would be very grateful! To quote a small portion of a post I hit the quote button and remove the unwanted text. You're correct to say that Kuflink Ltd don't hold the loan security. The "up to 5% first loss" that Kuflink holds is held by Kuflink Bridging Ltd, which is where the impairment is listed (and also in the parent company Kuflink Group PLC). See the section titled "Impairment of financial assets" for an explanation. It's not clear to me to what extent Kuflink believe that the impairment will turn into actual losses. They don't detail what further level of impairment is attributable to investors and I don't see any way to estimate it from the information provided.
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