Suspended- not Defaulted

Surely there is a reasonable expectation that many of these loans will run overdue?  Most repayment strategies involve a refinance or sale on the retail market, where delays can frequently occur, often out of the borrower's hands (solicitors/surveyors/banks).  

Doesn't make the project any less creditworthy, and if the borrower could demonstrate definitive repayment within term they'd be applying to a bank for much cheaper term finance!

Of the 30 DFLs:

• 4 are overdue (001, 002, 006 and 010). Others would be too if not for several extensions.
• 4 are suspended (001, 002, 016 and 017). Note: 001 and 002 are both overdue and suspended.
  

So, I think 24 DFLs would be currently classed as 'okay' in the sense that they are IOA (positive term) and can be traded normally.

For the suspensions, I'm using the list that mary posted in this thread on November 9th.

On the contrary, Lendy earn their fees at the start of the loan when it fills. The only danger the platform faces is possibly being unable to earn more fees from filling new loans and development tranches if investor confidence is badly dented.

I think us investors are a mercenary lot, most of us will invest if they think the can turn an acceptable profit. I know I'd happily keep investing in loans with genuinely low LTV, viable exit strategy and competitive rates if they were offered. If Lendy were to offer another loan like PBL143 I'd be increasing my holding again.

I was under the impression Lendy take the interest of a loan up front for the term of the loan under normal circumstances.

e.g 12 month at 12% loan for £100k, borrower receives say 100k - 2k (origination fee) - 20k (investor + Lendy interest) = 78k. Lendy keep the 2k + 8k and put the remaining 12k is an account to pay us monthly interest. OK, for the purposes of tax Lendy probably accrue their portion of the interest so it is 'earned' monthly but they have the cash in their bank and they only have to give it back if the borrower repays early. They also earn possible late fees and exit fees but the majority of their earnings are at origination.

I understood this from a video Lendy made expaining it at least a year ago though - is it wrong?

In practice even if the funds are held in a borrower client account that means it doesn't matter to Lendy's short term bottom line if the loan is suspended from the SM or in fact goes belly up. Lendy have their profit guaranteed provided the borrower doesn't repay early, which was the point I was trying to make. The platform is safe regardless of how many more loans they suspend (again in the short term, long term lack of originating new loans could casue it to struggle).

Fair point though I am slightly suspicious of that post now as it I think that was at the time of the old T&Cs.

I believe that prepaid interest does count as client money and is governed by client money rules. Lendy do keep the retained interest in the borrowers client account not their account (they have confirmed as such) and Im pretty sure AC treat it as client money as well given how they regularly seem to have delays paying it out because they have to get the trustee to authorise the payment from the client account. In the case of their 'fees' I guess this depends on how the payments are structured in the agreement but I still suspect they are segregated.

However, as copacetic has said not really relevant to the point he was making.

That amount is not puting smile on my face. There were some updates un suspended loans, lets see what the December will bring us.