Ukmikk
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Post by Ukmikk on Sept 7, 2023 19:29:15 GMT
Folks who invested in Fundingsecure's auction items wish they had had cash drag instead. It's a good diligent business as I'm sure they could loan out all the cash on NFTs , boats and fakes and head to the pub. Very insightful. They could also not take on board more cash than they have quality loans to lend it on.
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Ukmikk
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Post by Ukmikk on Sept 7, 2023 17:52:56 GMT
I've just withdrawn another £1k, to add to the £2k already withdrawn over the last couple of months. This still leaves about 1.6k cash remaining, in a total of about £22k left in this account. I find cash drag a bit of a problem on UB and it's annoys me that they make no attempt to manage this better.
I have my auto invest limit at £500, since this is now per loan with no control over per lender. How does this compare with other people's limits/cash drag situation? I find it very frustrating. Cheers.
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Ukmikk
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Post by Ukmikk on Aug 30, 2023 10:58:21 GMT
I seem to recall that lending always slows over the summer holiday period (and hence unlent cash increases) but then picks up again from September. I hope so as I'm being forced to WD cash from my accounts at the moment and would like to be able to return it again. I do feel that UB could manage cash flow on the platform better to avoid this.
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Ukmikk
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Post by Ukmikk on Mar 28, 2023 9:02:36 GMT
Do you have any idea what proportion of your overall investment these remaining zombies represent? I'm in withdrawal mode and I'm wondering what I'm likely to be left with stuck on the platform. Cheers. 7.5% by value, but I don't know how relevant to your portfolio. Understood, but gives me an idea. Thanks.
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Ukmikk
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Post by Ukmikk on Mar 24, 2023 11:42:02 GMT
Personally I'm getting the heck out of CP as I have a bad gut feeling about them. Been trying to get out for over a year actually but so many loans delayed and stalled I'm guessing it's going to take me another 3 years to get out. You'll be lucky. I have been trying to exit for over 3 years, and it is now over a year since there was any funds to withdraw. All my remaining loans are zombies, hiding in long grass having been kicked down the road and not paying anything. On the bright side, my total interest exceeds my remaining portfolio so I cannot make a net loss on the platform, unlike a similarly named platform with the word order reversed. Do you have any idea what proportion of your overall investment these remaining zombies represent? I'm in withdrawal mode and I'm wondering what I'm likely to be left with stuck on the platform. Cheers.
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Ukmikk
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Post by Ukmikk on Mar 23, 2023 17:35:05 GMT
What really concerns me, apart from the volume of overdue, is just how late some of these loans are.
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Ukmikk
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Post by Ukmikk on Mar 10, 2023 15:49:49 GMT
Yes that's the one. It was due to be repaid April 21 so a very long process to get it sold at auction. I'll give them another month and then try to find out whats going on. Thanks for the reply. Taking a closer look at this borrower's activity, he's certainly a prolific Unbolted borrower, and has been since he started borrowing in 2018. He has 18 outstanding loans totalling roughly £54k. 13 of these are Active and 5 (including the one we're discussing) defaulted. These defaulted loans total roughly £23k. In addition to the Acitve loans he has another 90 settled loans, 8 of which defaulted. This got me thinking as to why anyone would borrow so frequently from what has to be a very high cost lender. The following is pure speculation, but would explain what's going on. I suspect that the borrower has hit on an almost foolproof business model. He buys items that he specialises in at what he knows to be cheap prices. If he doesn't have an immediate place to move the item on for a profit, he pawns the item with Unbolted for at least as much as he paid for it while he advertises the item for sale. If, in the next 6 months, he gets an offer for the item above the total redemption price he redeems and sells it on for a profit. If it doesn't sell he let's it lapse at Unbolted. He makes no loss as he pawned it for at least as much as he paid for it. Unbolted (actually it's lenders) take all the risk as to whether Unbolted can recover the debt. I said that it was "almost" foolproof for one reason. He is relying on being able to pawn the item at Unbolted for at least as much as he paid for it. The only way he could be certain of that would be if he knew what the Unbolted valuer would value the item at! I was tempted to speculate further here, but... Should we be worried about this? Well, given that we haven't lost money on the 90 settled loans so far, I guess not. It seems to be a situation that benefits us all. As I said, pure speculation, but it's the only scenario I could think of that made sense to me. I thought this was the basis of all the business loans, and is basically a form of leveraging for the trader.
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Ukmikk
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Post by Ukmikk on Feb 28, 2023 15:53:28 GMT
They have made up losses on three loans in the past month that I am aware of, £10, £1550, £1795. In the same period, investors have lost £6514.19 in interest due to poor valuations auction returns. Not sure how you can lose something that you never had. Do I lose millions every time I play the lottery? I think you mean to say investors received £6,141.19 less interest than they had hoped to receive. Saying you lost interest suggests that you think that you are a saver rather than an investor. Unnecessarily pedantic. Probably brought on by your position in the league.
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Ukmikk
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Post by Ukmikk on Feb 2, 2023 15:58:38 GMT
As always I really appreciate your perspective on this Ace, thanks.
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Ukmikk
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Post by Ukmikk on Jan 24, 2023 17:08:22 GMT
Current Crowdproperty headline rates already look competitive compared to other P2P development loans such as Kuflink and CapitalRise - if you ignore cash drag.
I believe the rate rise is about the admin, growth and scale of overdue loans. I've got 12 late loans, 8 of which are > 6 months late. Another loan a week late and still no update.
I haven't invested since last June.
I've never used autoinvest so I'd say my situation is probably better than the average autolender who is in every loan - or I'm terrible loan picker!
I'm over 50% of my investments (11k out of 20k) late now. Some of it over a year late and much over 6 months. It's getting to be rather concerning actually, although I'm not panicking (yet), I would like to see this tightened up a bit. I agree, I'm in the same boat. I appreciate the additional interest and late does not mean lost, but it's not a great sign. I'm no longer investing until I see some of these late loans coming through. The modest uplift on the rates is not tempting me to change my mind.
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Ukmikk
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Post by Ukmikk on Jan 24, 2023 17:03:30 GMT
Hmmm, I didn't know this was possible. Thanks for the heads up guys, vigilance required.
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Ukmikk
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Post by Ukmikk on Dec 5, 2022 15:46:15 GMT
I first invested in AC about. 9 years ago plus or minus a bit, I can’t be bothered to find the exact date. After a few weeks i received a telephone call from them asking me if I was intending to invest more. Fast forward to today, oh how the message has changed. While I was waiting for my transfer out I received a call from AC to ask me if I realised I had X uninvested which was not earning interest. I said yes and was waiting to move it elsewhere. They asked why and I explained my reasons (rates too low and risks increasing, even before the current worse scenario). The employee seemed unsurprised and said he understood my reasoning, no counter argument offered.
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Ukmikk
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Post by Ukmikk on Dec 5, 2022 11:18:44 GMT
Overdue loans by value in my active account has remained fairly flat. It's actually reduced slightly to 30.9%. Mine is also about 30%. I haven't kept an ongoing record of the percentage but thought it had increased over the past few months - and has contributed to the fact that I have reduced my ongoing investment levels, although not significantly. Looking at the amount I have been receiving on Autoinvest (100% on the last few projects) I think other lenders might also be taking a more cautious stance. What do others think? I'm taking a more cautious stance and no longer making any new investments. I will move funds off the site as the (invariably late) repayments come in. There are just too many issues now with CP and the stagnant rates are just not good enough imo.
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Ukmikk
Member of DD Central
Posts: 445
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Post by Ukmikk on Dec 5, 2022 11:09:59 GMT
I may have misunderstood what you're saying, but.. if you have given notice and that completed before the lock-in, then the funds should be in your cash account and can be withdrawn. Cash is not locked in, as it's not invested, is it? I moved the funds from the 30DAA to the QAA once the notice period was complete. Then I dilly dallied over moving the money off the platform altogether. Ah, that's unfortunate. Lucky for me I left mine in cash account and completed a full transfer out about a week before the lock-in. Looks like my relationship with AC is now over.
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Ukmikk
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Post by Ukmikk on Nov 30, 2022 11:43:08 GMT
I am kicking myself for not being more on top of this. I had completed my notice period but just hadn't made the withdrawal instruction before they locked us in. I've never used the discounting function before but am considering it at this point. At the moment I have everything set to withdraw and it looks like I can't now edit to add a discount, rather I'll have to cancel the instructions and re-do them? Does anyone have any tactical tips about the best way to go about offering a discount? Thanks. I may have misunderstood what you're saying, but.. if you have given notice and that completed before the lock-in, then the funds should be in your cash account and can be withdrawn. Cash is not locked in, as it's not invested, is it?
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