Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Apr 15, 2018 2:04:40 GMT
It is slowly being funded...  Just how long have Lendy got to get the funds?  Will they run out of time?  If they wanted to fill the DFL's, clogging the SM up with this loan and channelling funds into it won't help. Maybe Lendy will fund the shortfall themselves until it fills or use underwriters. Pulling it would mean L lose a large amount of upfront fees, that they badly need in the short term. Long term it may not be beneficial, but do they care about long term?
|
|
hazellend
Member of DD Central
Posts: 2,363 
Likes: 2,180
|
Post by hazellend on Apr 15, 2018 6:31:44 GMT
Only way to get this funded is a big DFL repayment or allow discounting on SM
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Apr 15, 2018 10:16:08 GMT
In the new P2P climate, any loan that needs 2% cashback to get it away is a duff loan with a capital D. High class loans don't need cash back on top of 12%. The other problem of course is that if it's a cash back loan you are stuck with it until the bitter end because so much of the funding will be from cashback hunters and not project supporters and enthusiasts.
A platform that is offering 12% interest and then has to offer 2% cashback on top and then still can't fund loans has got a problem. Right now it feels as though Lendy would struggle to raise the funds to make a loan against a wendy house.
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Apr 15, 2018 10:32:39 GMT
I bet they were waiting for the massive loan to repay as well to get funds reinvested.
Probably will be gone this week. What is it costing them, something like £200k a month to sustain this?
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 15, 2018 11:25:53 GMT
In the new P2P climate, any loan that needs 2% cashback to get it away is a duff loan with a capital D. High class loans don't need cash back on top of 12%. The other problem of course is that if it's a cash back loan you are stuck with it until the bitter end because so much of the funding will be from cashback hunters and not project supporters and enthusiasts. A platform that is offering 12% interest and then has to offer 2% cashback on top and then still can't fund loans has got a problem. Right now it feels as though Lendy would struggle to raise the funds to make a loan against a wendy house. I think it is more a sign of general sentiment in the P2P high interest sector. If banks follow suit and we see a high interest credit crunch we may see much higher interest rates.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 15, 2018 11:26:30 GMT
I bet they were waiting for the massive loan to repay as well to get funds reinvested. Probably will be gone this week. What is it costing them, something like £200k a month to sustain this? Nowhere near that much lol
|
|
invester
P2P Blogger
Posts: 612
Likes: 618
|
Post by invester on Apr 15, 2018 11:29:58 GMT
Ha yeah, got my months and years mixed up....
Just can't see it being completed though. You can see why Lendy want it over the line though, one of their biggest selling points to borrowers is that their platform could make the big loans happen where the others can't.
Not sure where the appetite is for multi-million loans now.
|
|
hazellend
Member of DD Central
Posts: 2,363
Likes: 2,180
|
Post by hazellend on Apr 15, 2018 11:34:07 GMT
Ha yeah, got my months and years mixed up.... Just can't see it being completed though. You can see why Lendy want it over the line though, one of their biggest selling points to borrowers is that their platform could make the big loans happen where the others can't. Not sure where the appetite is for multi-million loans now. I think there is appetite but not the cash. Lendy need to get cash back to their lenders either by loans repaying or improving SM liquidity with discounting. I was planning to use loan repayments to buy into Cardiff but no repayment forthcoming and my funds are tied up elsewhere after ISA season
|
|
|
|
Post by p2plender on Apr 15, 2018 13:13:43 GMT
My worry is that Lendy reach too far too fast - loans to finish existing projects won't fill if investor cash is tied up in new loans - for the sake of the existing loan book this loan should be pulled, and Lendy should concentrate on closing a few DFLs (eg DFl012, which needs 1.8m to finish apparently...) Problem is, Lendy need to keep the money coming in to keep the lights and kettle on. Pulling in new business is all they can do to enable this but clearly this is now failing - no surprise given the reputation they have created for themselves. It's like they're in a death spiral now. Pray they make it to Cowes week and hit on a few 'Tim nice but dim' types flush with cash in need of a home.
|
|
lucky
Member of DD Central
Posts: 79
Likes: 46
|
Post by lucky on Apr 15, 2018 15:36:48 GMT
Ha yeah, got my months and years mixed up.... Just can't see it being completed though. You can see why Lendy want it over the line though, one of their biggest selling points to borrowers is that their platform could make the big loans happen where the others can't. Not sure where the appetite is for multi-million loans now. I think there is appetite but not the cash. Lendy need to get cash back to their lenders either by loans repaying or improving SM liquidity with discounting. I was planning to use loan repayments to buy into Cardiff but no repayment forthcoming and my funds are tied up elsewhere after ISA season To be honest I think there’s a mountain of cash out there but investors are becoming wary.
|
|
Nomad
Member of DD Central
Posts: 755
Likes: 513
|
Post by Nomad on Apr 15, 2018 16:01:10 GMT
I think there is appetite but not the cash. Lendy need to get cash back to their lenders either by loans repaying or improving SM liquidity with discounting. I was planning to use loan repayments to buy into Cardiff but no repayment forthcoming and my funds are tied up elsewhere after ISA season To be honest I think there’s a mountain of cash out there but investors are becoming wary. I've just opened two new online "easy saver" accounts at 1.2% or so rather than increase my exposure to P2P or S&S.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Apr 15, 2018 16:36:08 GMT
I think there is appetite but not the cash. Lendy need to get cash back to their lenders either by loans repaying or improving SM liquidity with discounting. I was planning to use loan repayments to buy into Cardiff but no repayment forthcoming and my funds are tied up elsewhere after ISA season To be honest I think there’s a mountain of cash out there but investors are becoming wary. I agree that more p2pers have been moving to cash and they don't want to fund some of the very high risk loans that look like a car crash waiting to happen. If the right opportunities are out there, then people will fund them, but they are few and far between. I for one am happy to hold more cash than before. I am not touching these large, speculative developments. If was clear a long time ago that they wouldn't be able to fill them all and some would collapse! Even DFL' 1&2, that got funding, still failed.
|
|
agent69
Member of DD Central
Posts: 6,049
Likes: 4,438
|
Post by agent69 on Apr 15, 2018 17:56:20 GMT
To be honest I think there’s a mountain of cash out there but investors are becoming wary. I've just opened two new online "easy saver" accounts at 1.2% or so rather than increase my exposure to P2P or S&S. I recently opened 2 regular savers paying 3% and 5%. it'a only £600 a month paid into the pair, but it beats inflation.
|
|
GeorgeT
Member of DD Central
Posts: 1,322
Likes: 1,576
|
Post by GeorgeT on Apr 15, 2018 19:11:42 GMT
I recently opened a new savings account with Charter Savings Bank that is paying around about 2% and that was with a sum of money that would otherwise have gone into P2P but for now I'm content that it is at least FSCS protected. In the meantime I watch and wait.
|
|
ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,330
Likes: 11,549
|
Post by ilmoro on Apr 15, 2018 19:35:58 GMT
I recently opened a new savings account with Charter Savings Bank that is paying around about 2% and that was with a sum of money that would otherwise have gone into P2P but for now I'm content that it is at least FSCS protected. In the meantime I watch and wait. Time for an avatar change  
|
|
