grahamg
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Post by grahamg on Apr 11, 2016 16:38:30 GMT
Another loan gone south after 3 payments. Decided to close it after taking 35K.
Also apart from the emails LC send does anyone know how to view the loan comments on the website, I can't find any way and it is all too easy to lose an email.
Similarly i am becoming unhappy that there is no information in the my investment list to indicate that a loan is distressed.
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Monetus
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Post by Monetus on Apr 11, 2016 17:11:43 GMT
Wow another? This is getting pretty ludicrous!
How are so many loans falling apart after just handful of payments on this platform?
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treeman
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Post by treeman on Apr 11, 2016 17:51:26 GMT
Well - taking the optimistic view this one may sort itself out ....... "We are sorry to advise that the owner has contacted LendingCrowd to notify us that he has closed the business and it will be going on the market. He has insufficient funds to meet the April instalment, however he expects to have funds to meet the next one. It is his intention to repay the debt in full once the business has been sold, however in the meantime we have suspended the sale of loan parts. We will continue to work with the owner to ensure that the debt is cleared in full."
The pessimist in me substitutes ' IF' for my bold in the above and it looks different.............. Another wait and see job ...............
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adrianc
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Post by adrianc on Apr 11, 2016 18:06:10 GMT
First to get me, but that's the majority of my join-up bonus...
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Monetus
Member of DD Central
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Post by Monetus on Apr 11, 2016 18:40:37 GMT
Seems LC is quickly becoming the "last resort" source of finance for failing SME's when they have nowhere else to go...
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pip
Posts: 542
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Post by pip on Apr 11, 2016 20:28:00 GMT
Where has the 30k gone? Did they refurbish the place and then close the business?
As I have said before why would anybody lend on a platform where the cost of defaults is higher than the interest earned.
I suggest lending crowd stop all new lending until they look at their loan review procedures.
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Post by Butch Cassidy on Apr 12, 2016 6:26:52 GMT
The outcome might not be as bad as feared, copied below is from my Q&A:
Me: "It is a shame for any business to close but what exactly is the borrower proposing to sell? The business, a lease, the building? Was the business actually refurbished as was the stated purpose of the loan? What value is estimated for the sale; as a closed unrefurbished business is a totally different proposition to a newly refurbed trading one?" The following answer has been posted in response:
"We hope to sell lease for between £x to £y. We would achieve more if the business was trading and being sold as going concern. Refurbishment fifty per cent completed, but not finished due to enforced closure by ****** Council. I am seeking legal advice to ascertain if there are any grounds to claim compensation from the council for loss of earnings. "
On the face of it if any sale is achieved even remotely close to the asking price there is a good chance of enough proceeds to fully repay the £35k loan - now LC must step up & prove their worth.
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pip
Posts: 542
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Post by pip on Apr 12, 2016 8:55:38 GMT
The outcome might not be as bad as feared, copied below is from my Q&A:
Me: "It is a shame for any business to close but what exactly is the borrower proposing to sell? The business, a lease, the building? Was the business actually refurbished as was the stated purpose of the loan? What value is estimated for the sale; as a closed unrefurbished business is a totally different proposition to a newly refurbed trading one?" The following answer has been posted in response:
"We hope to sell lease for between £x to £y. We would achieve more if the business was trading and being sold as going concern. Refurbishment fifty per cent completed, but not finished due to enforced closure by ****** Council. I am seeking legal advice to ascertain if there are any grounds to claim compensation from the council for loss of earnings. "
On the face of it if any sale is achieved even remotely close to the asking price there is a good chance of enough proceeds to fully repay the £35k loan - now LC must step up & prove their worth. Come on butch, smell the coffee. Councils don't enforce closure for no reason, must be some reason, there will be no grounds to claim Compensation, and to suggest so makes me very dubious about the lease claim.
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pip
Posts: 542
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Post by pip on Apr 12, 2016 9:24:32 GMT
www.tripadvisor.co.uk/Restaurant_Review-*** ******'*_Italian_Restaurant-London_England.html Done a little research, suggestion from tripadvisor is that the restaurant has been closed by the council for environmental health reasons since at least January. Surely the problem was known about when this loan was made and was a material piece of information? Was LC aware of this at the time? All in all, as with other defaults, a little research has shown that LC's investment profiles do not adequately identify material risks to the business. If at the time of the loan being made the restaurant was closed by the council, that would be pretty inexcusable to me. There must have been at least warnings from the council at the time?
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Post by Butch Cassidy on Apr 12, 2016 9:28:56 GMT
The outcome might not be as bad as feared, copied below is from my Q&A:
Me: "It is a shame for any business to close but what exactly is the borrower proposing to sell? The business, a lease, the building? Was the business actually refurbished as was the stated purpose of the loan? What value is estimated for the sale; as a closed unrefurbished business is a totally different proposition to a newly refurbed trading one?" The following answer has been posted in response:
"We hope to sell lease for between £x to £y. We would achieve more if the business was trading and being sold as going concern. Refurbishment fifty per cent completed, but not finished due to enforced closure by ****** Council. I am seeking legal advice to ascertain if there are any grounds to claim compensation from the council for loss of earnings. "
On the face of it if any sale is achieved even remotely close to the asking price there is a good chance of enough proceeds to fully repay the £35k loan - now LC must step up & prove their worth. Come on butch, smell the coffee. Councils don't enforce closure for no reason, must be some reason, there will be no grounds to claim Compensation, and to suggest so makes me very dubious about the lease claim. I would completely concur that any compensation claim would be a waste of time & money but that doesn't change the fact that presuming their is a valid lease (& that would be more likely than not) it will have some value & given the location it is likely to be of some interest. Now as to actual value, timescale & whether LC/lenders will get all/some/any of the proceeds is where the platform actually shows their true value to investors & the outcome of this recovery will help investors judge the ability & robustness of the platform when it comes to default, time will tell. Suffice to say I am mildly optimistic of seeing some if not all funds recovered & if that proves not to be the case it would seriously damage my assessment of LC as a platform regarding recoveries.
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pip
Posts: 542
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Post by pip on Apr 12, 2016 10:00:18 GMT
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Post by lendingcrowd on Apr 12, 2016 12:11:49 GMT
Hi everyone,
The circumstances surrounding the closure of the business are very unfortunate. The business traded up until the beginning of the month and we only became aware of the situation last Friday. Problems arose in January which impacted on the trading performance of the business and this led to it ceasing trading in early April. We provided investors in this loan with an update yesterday.
We will continue to issue updates to investors in this loan as we receive more information.
Kind regards, LendingCrowd
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Post by lionelrichtea on Apr 12, 2016 13:32:08 GMT
Food Hygiene and Safety: Poor (Poor = Some major non-compliance with statutory obligations; more effort required to prevent fall in standards.) Structural Compliance: Very Bad (The structure of the establishment (including cleanliness, layout, condition of structure, lighting, ventilation, facilities etc.). Very Bad = Almost total non-compliance with statutory obligations.) Confidence in Management: Little (Little = Varying record of compliance. Poor appreciation of hazards and control measures. No food safety management system.) Unfortunately the Food Hygiene Rating of zero ( ) was only applied a month after the auction started. Would not have invested if I knew the owner cared so little about the business.
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adrianc
Member of DD Central
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Post by adrianc on Apr 12, 2016 14:18:27 GMT
Done a little research, suggestion from tripadvisor is that the restaurant has been closed by the council for environmental health reasons since at least January. Surely the problem was known about when this loan was made and was a material piece of information? Was LC aware of this at the time? It does explain the need for refurbishment, at least... Except that's not what the loan request says.
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adrianc
Member of DD Central
Posts: 8,874
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Post by adrianc on Apr 12, 2016 14:31:16 GMT
Done a little research, suggestion from tripadvisor is that the restaurant has been closed by the council for environmental health reasons since at least January. Never mind "suggestions". TripAdvisor also has a photo of the prohibition order from the council stuck to the door of the place... The prohibition order is dated 21st January. So, by then, not only was the information available, but it had been to court after attempts to rectify the problem had failed...! That photo was posted on TA on 24th January. It clearly re-opened a week or so later, because there are other comments dated 9/11/12 Feb. 9th is 1 star, a pizza was served with a cockroach on it, which the waiter claimed was a piece of rubbish. The three reviews from 11th/12th are all 5 star. The only 5 star reviews. All the rest are 1 or 2 star. Fakes...? There is a second TA entry for a restaurant at the same address with a VERY similar name - A*****'s versus F** A*****'s - the shorter name, as per the loan, has another 5* from Feb, but then a bit more mixed. The oldest is 1* from June 2015, and mentions how much it's gone downhill, with a poor hygiene rating.
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