blender
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Post by blender on Dec 24, 2013 17:09:17 GMT
Yes we all know that FC stands for Father Christmas, and we all expect presents. Last year we had a 1% cashback incentive which did the job nicely, but this year I fear that when I open my account on Xmas day there will be no bonus from FC. Rates are getting high. How about a nice cashback offer FC?
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agent69
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Post by agent69 on Dec 24, 2013 17:31:03 GMT
How about a nice cashback offer FC? How about a guarantor that pays up when the loan defaults? That really would be a good present
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merlin
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Post by merlin on Dec 24, 2013 18:15:17 GMT
How about a nice cashback offer FC? How about a guarantor that pays up when the loan defaults? That really would be a good present Or how about FC doing adequate due diligence to ensure that the guarantor has the finances available to back his guarantee?
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blender
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Post by blender on Dec 24, 2013 22:36:03 GMT
Of course they do that. Not much of an xmas gift.
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Post by jevans4949 on Dec 26, 2013 12:01:35 GMT
Most of the documentation for potential loans (from any p2p lender) tends to focus on the primary business proposition. One wonders whether the same attention is given to the viability of the guarantees. Many of these seem to be based on the value of the guarantor's main residence. Naturally anybody forced to cough up is going to try to wriggle out of paying the full amount; maybe lending companies ought to look to whether the guarantor has other, more liquid, assets, and whether the guarantor has really understood the risk of the business failing - especially if the guarantor is a close relation or close friend, who may have been to embarrassed, or blinded by love, to refuse.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Dec 26, 2013 18:51:26 GMT
Most of the documentation for potential loans (from any p2p lender) tends to focus on the primary business proposition. One wonders whether the same attention is given to the viability of the guarantees. Many of these seem to be based on the value of the guarantor's main residence. Naturally anybody forced to cough up is going to try to wriggle out of paying the full amount; maybe lending companies ought to look to whether the guarantor has other, more liquid, assets, and whether the guarantor has really understood the risk of the business failing - especially if the guarantor is a close relation or close friend, who may have been to embarrassed, or blinded by love, to refuse. If you have got any doubts about the value of borrower guarantees on FC, have a look at the thread "Another Ball Cruncher -1718" which had four guarantors. This may give you some idea about how much faith to put into such things. However in fairness I have had two loans repaid by defaulting businesses or their guarantor in the last six months but have also had a greater number which have become bad debts.
If you want more safety look elsewhere than loans on FC only backed by guarantors. For example currently there is an item up on Assetz yielding 13% and backed by realisable assets.
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j
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Post by j on Dec 26, 2013 20:25:48 GMT
Most of the documentation for potential loans (from any p2p lender) tends to focus on the primary business proposition. One wonders whether the same attention is given to the viability of the guarantees. Many of these seem to be based on the value of the guarantor's main residence. Naturally anybody forced to cough up is going to try to wriggle out of paying the full amount; maybe lending companies ought to look to whether the guarantor has other, more liquid, assets, and whether the guarantor has really understood the risk of the business failing - especially if the guarantor is a close relation or close friend, who may have been to embarrassed, or blinded by love, to refuse. If you have got any doubts about the value of borrower guarantees on FC, have a look at the thread "Another Ball Cruncher -1718" which had four guarantors. This may give you some idea about how much faith to put into such things. However in fairness I have had two loans repaid by defaulting businesses or their guarantor in the last six months but have also had a greater number which have become bad debts.
If you want more safety look elsewhere than loans on FC only backed by guarantors. For example currently there is an item up on Assetz yielding 13% and backed by realisable assets.
I was with FC initially & sold all my holdings a number of months ago when they changed the whole rate system & autobiddres seemed to gulp loans within minutes with no else getting a look in. They didn't even bother to poll their members for opinion & then came back with a really condescending & aloof response when a few members complained. Not to mention the many deleted questions on their board by members asking polite but exploratory questions of borrowers on various loans (all fair as lenders put their money on the line).
There are better & more transparent p2p lenders out there...imho of course!!
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spyrogyra
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Post by spyrogyra on Jan 3, 2014 13:35:48 GMT
FC must be Father Christmas indeed,thank you. One would come to that conclusion after the Christmas bumper rates end abruptly in the first days of the New Year. And the rates of the new loans take a plunge down to almost one and the same % across the different categories. One can only wonder about the chances and the absolute mathematical precision.
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agent69
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Post by agent69 on Jan 3, 2014 14:50:41 GMT
FC must be Father Christmas indeed,thank you. One would come to that conclusion after the Christmas bumper rates end abruptly in the first days of the New Year. And the rates of the new loans take a plunge down to almost one and the same % across the different categories. One can only wonder about the chances and the absolute mathematical precision. Assuming there are a few deals stored in the pipeline from the Christmas period, I assume the rates will be soon on an upward trend (helped by FC's latest hike in minimum rates)
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blender
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Post by blender on Jan 3, 2014 16:25:30 GMT
FC must be Father Christmas indeed,thank you. One would come to that conclusion after the Christmas bumper rates end abruptly in the first days of the New Year. And the rates of the new loans take a plunge down to almost one and the same % across the different categories. One can only wonder about the chances and the absolute mathematical precision. I have to agree. In the OP I was looking for cashback as well, but perhaps that was rather greedy, even for me. But the later December period has given the best opportunities for puchases at high marginal rates all year, together with still the opportunity to sell the less productive parts of the portfolio and cover the fees with premium. We should know in a week or so where the new year rates will settle, but I think cash will come back and we will have marginal rates not much above the new MBR. We will wait a long time for another feeding frenzy.
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