wysiati
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Post by wysiati on Jul 18, 2014 12:15:09 GMT
Administration Order showing for this FC borrower. Loan downgraded to NRB status. The loan was only accepted early/ drawn down on 13/06/14.
Another example of a borrower with a rock bottom credit score (<=10) for most of the prior 12 months which then conveniently 'pops' up just prior to the loan being sought.
Separately, Begbies Traynor published its Q2 2014 report on UK corporate financial health reporting a significant Y/Y increase in the number of UK businesses experiencing 'significant' financial distress with an increase of c.40% Y/Y among SMEs.
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oldgrumpy
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Post by oldgrumpy on Jul 18, 2014 12:36:22 GMT
Administration Order showing for this FC borrower. Loan downgraded to NRB status. The loan was only accepted early/ drawn down on 13/06/14. Another example of a borrower with a rock bottom credit score (<=10) for most of the prior 12 months which then conveniently 'pops' up just prior to the loan being sought. Separately, Begbies Traynor published its Q2 2014 report on UK corporate financial health reporting a significant Y/Y increase in the number of UK businesses experiencing 'significant' financial distress with an increase of c.40% Y/Y among SMEs. Can that possibly be true?   :-SLook at point four in my screen shot below: ALL businesses have a healthy Experian Credit Record. NOT.Many months ago when I tackled them on this they said they couldn't find that statement on their website and gave the usual bland blather about "the credit record is only part of their assessment". When I showed them that image they (seemingly reluctantly) conceded that it might be misleading and would be looking into rewording it. It is still there on display; they are still in denial - have done nothing - (apparently) uncreditworthy business are thrown at investors daily!!! On FC site today I read "Every business on Funding Circle has been assessed by our experienced credit team. They are established and creditworthy and have typically been trading for around 10 years." Click on the first five words on the FC site and you will still see the screen shot I have shown again. Attachments:
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Post by davee39 on Jul 18, 2014 14:02:24 GMT
Some of the loan requests could be reworded
"We have run out of credit and are probably going to the wall. This FC Loan might turn things round". Not being of a philanthropic nature I tend to try to avoid these, even for a short term punt.
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Post by GSV3MIaC on Jul 18, 2014 14:44:34 GMT
You'd be OK if you defined ' short term' as < 4 weeks!
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oldgrumpy
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Post by oldgrumpy on Jul 18, 2014 14:48:24 GMT
Did 6485 make any payments?
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wysiati
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Post by wysiati on Jul 18, 2014 15:18:09 GMT
Did 6485 make any payments? The first repayment due on 13/07/14 was paid making news of the Order more of a surprise. Administration Orders do not come 'out of the blue' so perhaps FC should consider whether another 'discretionary' bailout of its lenders is appropriate in this case if repayments do not continue. Looking back the jump in credit score occurred shortly before the borrower assumed ANOTHER loan (legal mortgage) with a charge registered on 09/06/14 in favour of Svenska Handelsbanken Ab.
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oldgrumpy
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Post by oldgrumpy on Jul 18, 2014 15:21:46 GMT
Breath of flesh hair made one payment - so did crappy scrappy. No concessions there.
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wysiati
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Post by wysiati on Jul 18, 2014 15:32:45 GMT
Yes, I am not expecting anything and am glad to have no exposure.
It highlights for me what analysis of loan opportunities on the platform has mutated into (for me at least) - which ones do I think will not blow up within the time period I need to hold to get an acceptable balance of interest, achievable loan resale premium, and capital turn.
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ton27
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Post by ton27 on Jul 19, 2014 13:42:44 GMT
I had a small exposure but put it up for sale last night at no premium - it was gone by this morning.
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chrisf
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Post by chrisf on Jul 19, 2014 16:17:40 GMT
I had a small exposure but put it up for sale last night at no premium - it was gone by this morning. How did you manage to put it up for sale when it had been downgraded to No Risk Band?
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ton27
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Post by ton27 on Jul 20, 2014 17:03:16 GMT
Oops - my error - I didn't!
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:-SLook at point four in my screen shot below:
