jamesc
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FundingSecure (FS) in Administration
New Loan Coming
Oct 30, 2015 18:13:08 GMT
Post by jamesc on Oct 30, 2015 18:13:08 GMT
I asked FS and they said if its fills quickly then the drawdown is likely to be sooner than advertised
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jamesc
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Post by jamesc on Oct 30, 2015 14:01:46 GMT
Hi
Can anyone voice an opinion as to why Property loan seem to sell at increasingly lower rates closer to maturity is it just supply and demand or am I as usual missing something ? To me this seems counterintuitive as without any updates does not the risk of property loans increases closer to maturity ?
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jamesc
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Post by jamesc on Oct 29, 2015 18:08:22 GMT
Actually on that same subject does anyone know exactly what document's a borrower needs to complete (does anyone know someone who has borrowed through FC) ??
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jamesc
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Post by jamesc on Oct 29, 2015 18:06:32 GMT
Also does anyone have any idea what an FC director guarantee look like is it a standard document ?
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jamesc
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Post by jamesc on Oct 29, 2015 18:02:45 GMT
Do you really think its that, that there is no 'spare money' ? Even if a property has been re-mortgaged given the far stricter lending rules post 2008 there is likely still to be equity. And even though no spare money, what of money that is not spare, ( tied up in other assets ) in an enforcement situation the proceeds of said assets should be available to creditors. Or is it more a case where the loan is large there may really be not sufficient assets around to cover the loan but in the case of small loans or small outstanding's FC just don't try hard enough as there is no juice in it for them ?
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jamesc
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Post by jamesc on Oct 29, 2015 17:36:46 GMT
Any director who has given an unsupported PG and is aware that he could shortly be called upon to make good would be mad not to seek professional advice as to how to restructure personal assets to minimize the amount that could be payable under the guarantee. Yes, ultimately bankcrupcy is the end point but as already said that is seen as business as usual and even the short term restriction of directorships is circumvented by delegating to family members. The one case where unsupported PG's are usually honoured are where the borrower is also a director of a wholly unrelated business to the borrower (e.g. a main employer) where bankcrupty would mean resigning from the board of the unrelated business. There are many areas of Bankruptcy law that are there to stop a debtor from doing that, if it is seen to be an attempt to put assets out of reach of potential creditors and under such circumstances the Trustee in Bankruptcy can draw those assets back into the estate for the benefit of creditors particularly where a business fails soon after the loan is taken out any such restructuring would be invalid. Therefore I don't understand why many more of those guarantee's are not honoured ? As to my second point is there any opinion as to whether we have better security lending to unincorporated businesses ?
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jamesc
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Post by jamesc on Oct 29, 2015 16:27:41 GMT
When directors guarantee to honour the loan when a company cannot pay, what it really means is they do not guarantee anything, unless forced into it. The lawyers definition of the word "guarantee" has been detailed in another thread some time ago, and is certainly no what I understand by the word, but P2P platforms choose not to highlight that fact. Having said that, there are directors who do honour their obligations. Do you by chance remember which thread that was, that defined "guarantee" ?
If that is the case do we have better security when we lend to Non limited Companies, Individuals or Partnerships where we are in essence lending directly to person's rather than a limited liability company with flaky director guarantee's ?
Is whole process of debt recovery seems to be a black hole and given its usually the difference between making a good return on ones portfolio and not much more light needs to be shone on the subject.
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jamesc
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Post by jamesc on Oct 29, 2015 15:49:45 GMT
I know this is a difficult subject and has been mentioned on other threads, but why when a loan says it is Director Guaranteed is it to quote an often used phrase 'not worth the paper its written on'. Does not the Guarantee mean that if the loan is defaulted by the company then the directors who guaranteed it are liable to pay it and if they don't pay it or offer some sort of acceptable arrangement then a Statutory Demand can be issued and if not settled then Bankruptcy can be petitioned (or another debt enforcement method )and then the director's assets could be seized, which would mean if they had say equity in a property then that would be available for creditors ? Am I missing something because when I guaranteed my daughter's loan with her bank if she defaults then I fully expect the bank to come to me looking for payment and my refusal could result in the process I have described and then my house would be at risk. Why are these any different ? As I said before perhaps I am missing something and apologies if this has already been covered in a previous thread, however I thought it was worth reviewing particularly given its a Thursday !
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jamesc
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Post by jamesc on Oct 29, 2015 11:35:16 GMT
16779 ( £156k "E" ) seems to be remarkably unpopular. Is it the slightly lower rate due to the shorter term that is putting people off? I bought a few parts but not many, concerned that the low rate might make it difficult to shift on the SM. I didn't bother with it because there will be too much competition to flip it for quite a while. Isn't it the highest E yet? 15041 Was the biggest at £214k but that was when we still had auctions and it was the only E that went for higher than minimum bid rate at 18.4.
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jamesc
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Post by jamesc on Oct 29, 2015 8:54:05 GMT
40% in SS and the rest in FC although I want to diversify across other platforms by taking money from FC, just started with FS but loan flow is slow and considering AC,MT and TC does anyone know do any of these have introduction bonuses, etc.
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jamesc
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Funding Circle (FC)
E-Alert!
Oct 23, 2015 9:17:14 GMT
Post by jamesc on Oct 23, 2015 9:17:14 GMT
Oh in that case I think I must be one of your best customer's as I rarely get a chance to buy at auction I have to buy the majority of my E loans in the secondary market. If you don't mind me asking how is it that you are able to get in on so many of the E auctions ?
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jamesc
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Funding Circle (FC)
E-Alert!
Oct 23, 2015 7:24:20 GMT
Post by jamesc on Oct 23, 2015 7:24:20 GMT
I agree Nick I have done just that bought into every E loan as an exercise and actually paid a lot less than 0.9% Premium more like 0.5% which bases on your calculations leaves me ahead, an example the recent 16388 I have been able to buy at 0.3% premium funny enough from someone else called n**k (any relation ? )
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jamesc
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Post by jamesc on Oct 20, 2015 14:47:48 GMT
I think its a good thing SS allowing the ability for loans to go negative there is nothing more annoying on other sites when you are all set to buy something and when you press the buy button you get back something like' you cannot purchase at this time'. Given how much the majority of the loans trade the negative balances soon clear. And for anyone one that cares it was PBL60 that caused the overshoot, someone put £16k up to sell and a £10k and a £16k went through at the say time, only goes to show that are a a lot of people with a lot more money than me.
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jamesc
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Post by jamesc on Oct 19, 2015 11:17:19 GMT
I not sure what other are seeing but I have sold more in the last two hours than the last three days combined largely prop both manual and auto bids so perhaps FC have turned back the switch
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jamesc
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Post by jamesc on Oct 18, 2015 10:13:28 GMT
Hi Jonah
A heads up for what time would be a massive favour so I can make sure I'm logged on.
Thanks James
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