pickles
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Post by pickles on May 19, 2018 7:57:02 GMT
How about Expansion/growth (53210)?
Low credit score suddenly jumps from 30 to 90 in Feb, so they get an FC loan at "A" grade. £200k loan with a turnover of under £100k.
They didn't even make the first payment!
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pickles
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Post by pickles on Apr 15, 2018 15:24:41 GMT
There was a lot of movement on the SM early this morning, and reasonable sized amounts. Someone bought in chunks of around £600, and at least ten of those chunks in one loan. I'm not sure I understand the need to chunk when you can buy and sell any sized part on MT.
What I really don't understand is people buying a £1 part in a loan with a month or two to run. Is the 1p of interest really worth the mouse clicks?
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pickles
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Post by pickles on Apr 5, 2018 12:11:22 GMT
I don't think what you see is down to a shortage of lenders. I have cash waiting to be lent and no orders pending. It doesn't seem possible that all 20 of the borrowers in your pending list have multiple loans *and* I already hold my limit in all of them. If you already held your limit in them, then they wouldn't be listed in my dashboard as "orders" - they would have completed into real loans. That's why I said "multiple loans" A business can have more than one loan with FC, the FC engine won't let you go over 0.5% in any one *business* not any single *loan*.
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pickles
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Post by pickles on Apr 3, 2018 21:09:35 GMT
16648 was defaulted nearly two years ago, when the guarantor passed away died. He had plenty of assets, though of course probate takes a while. So a year later they finally agree to put the house on the market. Funnily enough, there is a lack of interest at the asking price... the solicitor writes to FC after six months blaming everything from Brexit to leaves on the line. So now, after a year on the market, it's still not sold. What a surprise. How wet behind the ears are the FC highly experienced collection team?
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pickles
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Post by pickles on Apr 3, 2018 20:52:27 GMT
As you say, it's all speculation, but I'd speculate that a buyer would take over the loan on a refinance basis - they would have to have a new agreement with the borrower under their own terms anyway. They would then offer to transfer existing lenders in if they were agreement, and I would bet that a lot would (especially those not on this forum). The remainder of the loan would be then be offered under their own platform. I'd also speculate that many of these loans would fill quickly on another platform at lower rates to lenders, giving a healthy margin for the new platform. EDIT: this is a response to dualinvestor 's post from earlier.
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pickles
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Post by pickles on Apr 2, 2018 20:25:31 GMT
There's a sticky marked "Glossary" with a whole list of acronyms on this very board. You'll probably need it, some are a lot less obvious!
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pickles
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Post by pickles on Apr 2, 2018 20:05:47 GMT
About 130K has been queued on the SM today, anyone know if it's a particular loan or just the time of year?
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pickles
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Post by pickles on Apr 2, 2018 20:03:01 GMT
Wasn't the 1st advance meant to pay interest today? It seems the 2nd has but not the first? Anything to be concerned about?
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pickles
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Post by pickles on Apr 1, 2018 9:09:48 GMT
The FC engine's workings are still a mystery, but it seems to work in batches for buying, selling, paying interest, reconciling accounts, etc. All at different times.
I don't think what you see is down to a shortage of lenders. I have cash waiting to be lent and no orders pending. It doesn't seem possible that all 20 of the borrowers in your pending list have multiple loans *and* I already hold my limit in all of them.
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pickles
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Post by pickles on Jan 21, 2018 8:32:23 GMT
I don't no idea what the algorithm is exactly supposed to do for FC loan sales, but I can tell my experience here. The selling process is very robust. It usually sells just more than the amount you need, at the same time limiting the each loan does not exceed 1% of the portfolio except when your portfolio is below £2000. In my case it didn't - it left the biggest loans so that my exposure went steadily upwards.
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pickles
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Post by pickles on Jan 20, 2018 8:28:18 GMT
The way the FC selling engine chooses loans to sell is completely opaque, and having just sold out a five-figure portfolio I am none the wiser.
Back when the switch happened, I was 100% in property with 6+ months remaining, and heavy in some borrowers. The plan was to sell out before any hit the penultimate payment. Maximum exposure was around 4.0%. Yesterday was the first selling date. Quite a few property loans had paid early and been re-invested along with interest, so property was down to around 70% of the portfolio.
The autobid engine will only buy loans up to the 0.5% exposure limit. So surely the selling engine should work to increase diversification, or at least maintain it? Or, in the worst case it would be random? So by selling bit by bit, perhaps matching sale quantities to specific holdings, I should be able to sell up to the point that the shortest dated loans were gone and stop.
Not at all. Only the recently-acquired loans were sold at first, regardless of the amount chosen to sell. At one point my max exposure was at nearly 20%. I had to sell the whole portfolio to get the last near-dated loan sold.
The algorithm, whatever it is, wouldn't work on a normally-diversified autobid portfolio either. Trying to sell small amounts resulted in both parts of each loan being sold, instead of one part of each of a larger number of loans.
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pickles
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Post by pickles on Jan 16, 2018 20:58:13 GMT
This is the way I understand it, I'm sure someone will quickly correct anything I'm wrong about:
Your Portfolio Total should equal the initial investment + net earnings. It should also equal the total invested + cash in hand. Sometimes it doesn't exactly tally while the funding circle engines are doing their adding up.
Net earnings will be gross earnings minus fees and losses.
An outstanding loan part *only* goes into losses when it defaults. Downgraded loans are still in your portfolio total but not sellable.
There are a couple of nuances. Adding up your defaulted loans won't match the losses figure, because any recoveries are subtracted from that (and thus added to your net earnings) but they are *not* subtracted from the figure in the loan comments. Also, if you sell your loans the buyer will pay the outstanding interest up to the sale and fees will be subtracted.
Your best guess for how much you can take out would be to take the portfolio total, subtract the outstanding on the downgraded but not defaulted loans and add 90% of the accrued interest figure. Then subtract the outstanding on all loans with only 1 payment left as they can't be sold, but assume that most of them will be paid within less than two months, apart from any that overrun or default.
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pickles
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Post by pickles on Dec 15, 2017 14:21:45 GMT
I'm not sure I follow what the issue is? You had to opt-in to autobid. If you hadn't you'd still have your manually picked portfolio, even if the total size was decreasing.
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pickles
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Post by pickles on Dec 2, 2017 17:46:52 GMT
I put some loan parts up on the SM of one of our favourite platforms.
Lender 1 comes along and buys the lot, well almost, s/he buys it all apart from 1p. It wasn't a stray 1p either, the part was £xxxx.25 and they bought £xxxx.24
So an hour later I'm scratching my head thinking what kind of k*** does that, Lender 2 arrives and buys the 1p part. Now I'm totally confused.
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pickles
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Post by pickles on Oct 31, 2017 7:46:34 GMT
Thanks for the replies - a couple of great threads there that I could have easily found with a good search! Informative, and much to consider. If you want to remove profits from your company, you need to do so as income or dividend, which you will probably okay tax on again. Best to have a spouse who earns nothing, then you can get 17k savings income per year tax free (tax free allowance + starting rate for savings + personal savings allowance), which is like rocket fuel for your investment. I can assure you a non-earning spouse will cost far more than that to keep, even if you get one that's not crazy.
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