mike
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Post by mike on Aug 6, 2014 16:55:07 GMT
I've come across this company recently and am considering it for potential future investments. You can read about their proposition here: www.archover.com/They appear to be an attractive place to place funds particularly in the short term with their 5% flat rate from 3 months up. However they have only launched a few months ago so don't have a track record and information is scarce. Anyone else had a look at this company? All opinions most welcome. Mike
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pikestaff
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Post by pikestaff on Aug 6, 2014 17:26:12 GMT
They look like a serious bunch but I don't understand how they can make enough money to make the business viable.
They are taking 6% fixed from borrowers (secured against their debtors), out of which they have to pay for credit insurance, and are paying 5% fixed to lenders. That does not leave much to cover administration costs. Their only other income is an upfront facility fee of 2.5%.
I can only suppose they expect volumes to skyrocket, with very little marketing.
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Post by westonkevRS on Aug 6, 2014 21:51:33 GMT
I met a bunch of them at the Investors Chronicle P2P conference at the FT's office. They seemed professional and intelligent enough individuals and I wish them well; although I haven't investigated their business offering and am not personally a lender on their site yet.
Kevin.
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Post by Ton ⓉⓞⓃ on Aug 11, 2014 8:51:57 GMT
They look like a serious bunch but I don't understand how they can make enough money to make the business viable. They are taking 6% fixed from borrowers (secured against their debtors), out of which they have to pay for credit insurance, and are paying 5% fixed to lenders. That does not leave much to cover administration costs. Their only other income is an upfront facility fee of 2.5%. I can only suppose they expect volumes to skyrocket, with very little marketing. Ah but they do say, As if this is a launch deal not to be repeated.
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Post by hugoarchover on Sept 8, 2014 17:02:08 GMT
Hi
The 2.5% facility fee was indeed an introductory offer and that is now set at 5%. Since our launch there have been multiple loans successfully funded. There is currently one project live on the platform and there are around 25 companies that have been vetted that we hope to make live on the platform in the coming weeks. This is a secure place to invest your money. There may be higher rates available on other platforms but we are not in the risk game.
Please feel free to ask any questions that you may have.
Hugo
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pikestaff
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Post by pikestaff on Sept 9, 2014 6:35:22 GMT
hugoarchover Thanks for the post, and welcome to the forum. I'm still not quite sure how you can afford to pay for the credit insurance. Will it come out of the facility fee? My main concern with a product that relies on insurance is that insurers are notoriously reluctant to pay out. What is your assessment of the risks of claims being rejected, and why? What will happen to lenders in the event of a claim being rejected?
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Post by hugoarchover on Sept 9, 2014 9:11:17 GMT
pikestaffThanks for the concern about our business model! The client pays separately for the insurance (or uses existing approved insurance) with the ‘Loss Payee’ being the lenders paid through trust accounts in the event of a claim. We only deal with Borrowers that are successful Grade A rated by us and can pass the significant secondary due diligence of the insurance companies that look at the Borrower and their client book. We are backed by the insurance agency Hampden Group and are experienced in the Lloyds market. We work with five major insurers with business policies designed exactly for what we are insuring – the insurance is very clear cut on areas for example like debtor books (Accounts Receivable) and are multiple pay policies (i.e. they would still pay out the remainder of cover if one debtor was in dispute) Where a dispute does arise on a single invoice we still work with the insurers highly experienced debt collection teams for recovery. We’ve spent nearly a year developing these systems to protect our lenders. Many of our lenders are institutions so as you can imagine they are very diligent on ensuring our systems are fit for purpose. I hope that helps. Hugo
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pikestaff
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Post by pikestaff on Sept 10, 2014 8:57:38 GMT
Hugo, my concern about your business model is because I only want to lend on platforms that I believe are viable! Now that I understand how the insurance is paid for, I am happier on that score and will take a closer look.
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Post by captainconfident on Sept 20, 2014 16:15:59 GMT
I was interested in this offering as it does address a couple of problems with other p2p platforms.
I came to the the bottom of the page, "Where Are We". Seriously, you're going to use the address of a London club as your business address? It makes it sound like Bertie and Pongo and the other Drones have thought up a wheeze where the money rolls in while they sit in the bar.
'Hugo Carmody' is a member of The Drones Club in the book 'Money For Nothing'. Coincidence?
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Post by hugoarchover on Sept 22, 2014 9:47:07 GMT
Hi Captainconfident
With an insurance offering that protects lenders money we are sorry that you find any reference to Lloyd's or a business restaurant where insurance is discussed offensive.
The building has office space and meeting rooms. Our backers own the premises so it keeps our costs down and means we are a lean business that can pass savings on to Lenders and Borrowers, unlike a bank. It seems to be popular with our active members.
Hugo
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shimself
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Post by shimself on Sept 22, 2014 15:19:06 GMT
Hi Captainconfident With an insurance offering that protects lenders money we are sorry that you find any reference to Lloyd's or a business restaurant where insurance is discussed offensive. The building has office space and meeting rooms. Our backers own the premises so it keeps our costs down and means we are a lean business that can pass savings on to Lenders and Borrowers, unlike a bank. It seems to be popular with our active members. Hugo It was funny though, and it's really your parents you should blame for giving you a name out of PG Wodehouse. As for Crutched Friars I'm still boggling. The £5000minimum is yet another element indicating you're not wanting to deal with the hoi polloi. It might not be fair but it is what it sounds like. What does active members mean? (this is a real question, not for humour). Comment on the registration procedure - it's all a bit forward, we've hardly met and yet already you want to know my most intimate details, bank account, dob etc. I would prefer to have a nose around first, look at the loans etc before telling you all this. Niggles, it insists on a county, most people don't have one (well the Blandings crowd do obviously)
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Post by elljay on Sept 22, 2014 17:11:39 GMT
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shimself
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Post by shimself on Sept 23, 2014 12:51:00 GMT
No need to get personal, shimself. Let's stick to discussing issues please. Yes, sorry Hugh, it went astray.
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Post by hugoarchover on Sept 23, 2014 14:17:13 GMT
shimself My second name is not Carmody so not sure where the obsession with PG Wodehouse has come from! Crutched Friars is an odd name but the City is full of them, the next street over is Savage Gardens! On a more serious note: Our loans start at £75,000 and many are in the multiple of hundreds of thousands. Funding Circle‘s model, for example, has investors lending on average around £170 per loan which produces a huge admin overhead for larger loans. We also believe there are a lots of those lenders who are not fully aware of the risks of total loss, so we took the decision to focus on sophisticated and with High Net Worth (HNW) investors who should know better. The registration process is a bit personal. We do it for AML checks and KYC (like an IFA would). However, we are changing the process very soon to do exactly what you suggest i.e. enable users to complete a short, sharp registration process which will enable them to have a nose about and then go through full registration if you want to go further. An active member is someone who has passed all the checks and can pledge for loans .
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shimself
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Post by shimself on Sept 23, 2014 14:26:32 GMT
Thanks for the reply. I'll stick to the point now, no more Wooster stuff.
I get the minimum amount; TC, who are in the same ballpark for loan size, say £1000 minimum.
Given the insurance, your USP, where do you see the risk of total loss?
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