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Post by emoney on Dec 2, 2015 9:53:18 GMT
Good morning. At eMoneyUnion we have a wholly owned FCA licensed lending subsidiary that participates in loans alongside the eMoney crowd. If a loan is a few thousand short we will close the loan with our own funds. We then put the loans on the secondary eMarketPlace at Par, this provides liquidity for new and existing lenders who wish to put their money to work there and then www.emoneyunion.com/lend/micro-loans/ Any platform that has skin in the game will have confidence in their underwriting procedures.  |
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shimself
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Post by shimself on Dec 2, 2015 10:36:57 GMT
Good morning. At eMoneyUnion we have a wholly owned FCA licensed lending subsidiary that participates in loans alongside the eMoney crowd. If a loan is a few thousand short we will close the loan with our own funds. We then put the loans on the secondary eMarketPlace at Par, this provides liquidity for new and existing lenders who wish to put their money to work there and then www.emoneyunion.com/lend/micro-loans/ Any platform that has skin in the game will have confidence in their underwriting procedures. Working this way your skin is not in the game until the loan is fully repaid, so it is good to hear but it isn't as good as it might be
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am
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Post by am on Dec 2, 2015 11:09:19 GMT
Good morning. At eMoneyUnion we have a wholly owned FCA licensed lending subsidiary that participates in loans alongside the eMoney crowd. If a loan is a few thousand short we will close the loan with our own funds. We then put the loans on the secondary eMarketPlace at Par, this provides liquidity for new and existing lenders who wish to put their money to work there and then www.emoneyunion.com/lend/micro-loans/ Any platform that has skin in the game will have confidence in their underwriting procedures. That's more or less what FC are doing, and it's not particularly popular with the active lenders there. The concern is that if any loan will fill (with platform funds if necessary) there's the risk the the pursuit of volume will lead to loan quality drifting downwards. Small scale exposure, laid off on the secondary market, may be insufficient to counteract that. Exposure on a larger scale should concentrate a platform's collective mind, but even then there is a risk of becoming overconfident in the platform's underwriting procedures in a benign market environment. One problem is that a platform having skin in the game doesn't scale particularly well - as volumes grow the capital requirements become prohibitive.
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Post by emoney on Dec 2, 2015 11:14:53 GMT
Good morning shimself, unlike the majority of platforms who's lions share of profits are predominantly day 1, the eMoneyUnion spread and profit is completely reliant on the entire loan cycle, we operate our platform on a net-interest margin spread, so each and every month a loan repayment is made our platform receives it's payment. |
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