Lendy about to fail?

I understand where you are coming from. The cutting back proposition reminds me of an old joke. A motorist stops and asks a pedestrian for directions to some local landmark. The pedestrian prefaces his reply with "Well. If I were you, I wouldn't start from here."

I was in a similar situation in my fifties watching a worst case scenario unfold with a very sizeable portion of my savings disappearing with Equitable Life. On the up-side it drove me into years of greater activity in a longer working life than I had anticipated were awaiting me in retirement, at the age of around 60.

Additionally the greater cynicism the experience encouraged meant that my remaining funds weren't at risk in the hands of financial institutions when the banking crisis hit.

Thankfully my confidence never recovered even when my finances did. I sensed a change in SS/Lendy after making a final purchase in March 2017. From then on I steadily disposed of almost everything Lendy when there was a near zero length queue of it on the SM. Had I not done I would now have nine Non Performing, five Claims Underway, four Interest Accruing and one IOA.

I have a fairly modest, inexpensive, stress free lifestyle and I am content with it. I must have Hobbit DNA in there somewhere. I don't feel a great need to totally maximise my possible income. I worked out a moderate amount that if totally lost on P2P, would affect the size of my estate but within quite reasonable bounds, not my life. That moderate amount apart from several K on DFL004/005 is beavering away for me, well away from Lendy.

You do realise Lendy made 3 million profit last year?

Don't misunderstand me, I have no wish at all to see Lendy fail, or even struggle. However, given the state of the loan book and suggested difficulty in filling loans, one has to wonder how much of that £3M could be allocated to, and how far it would go, in meeting the costs of recovering all or much of the outstanding potential losses.  I fear that some borrowers may be feeling more comfortable being pursued by Lendy than they would a massively resourced bank.

Not sure where I'm going wrong but, despite the recurring negativity from Lendy's regular "Prophets of Doom", I keep making good money here month-in, month-out. My Lendy account ties for 1st place (with Ablrate) in my XIRR rankings and my "net cash stake" is now down to little more than half my "total account value". Even in the hypothetical scenario of an oft-predicted meltdown, I strongly doubt I'd end up out of pocket.

I don't claim any special powers; just a basic reading of each loan's particulars, some elementary DD and a regular eye on platform updates and forum musings has kept me clear of most of the obvious landmines. Lendy's business model seems pretty stable to me: origination costs funded by upfront borrower fees, ongoing interest margin generates cash to cover operating costs, recovery costs are deducted from sums recovered.

I'm not blind to the risks of P2P (far from it!) but Lendy isn't high on my list of platform concerns.

Agree with a bit of DD and this forum I have not done badly. Its not all doom, some of the most prolific doom laden posters have stated they have sold or have nothing left in Lendy, so why do they bother posting at all.

I am still returning over 10% so I am happy. 

I believe that Lendy have learnt a lot over the last 12 months and are improving, still I can understand some peoples problems as a lot of the earlier loans were a little wayward in the valuations.

When the platform was in its heady days people threw money in with out carrying out any checks and my suspicion is the moaners are in this group.

In is in their interest to talk things up not down .

Worrying about anything never does any good.   Accept you have made some poor calls and then move on in life.  

Currently quite a few loans on Lendy are virtually unsaleable due to the secondary market overhang - you are not alone so don't panic.   With those for now accept the interest payments rolling in and bide your time.  Eventually things will/should move in your direction and you can then diversify perhaps to other platforms or into other areas of investment.   I speak from a position of strength being a lender to Wolverhampton,  Marylebone, the Arboretum etc etc via Lendy as well as being invested on the Collateral platform, London loan (FC), Rishton and Turbine loans (FS) - a real roll of honour. 

Although peer to peer was introduced  to the public as an easy in easy out investment the reality is that because debtor legislation is weak and some borrowers inclined to be economical with the truth or delusional,  lending needs a 5 year time frame. 

What do people not see in "Your Capital is at Risk" ?

If you are willing to spend time checking all the DD's and making your own checks you cannot blame Lendy for when Borrowers fail to pay, Lendy after all is just a facilitator to all this and guess what they are here to make money like the rest of us and why not.

There is nothing to stop people becoming their own P2P lender as far as I can see so if you are unhappy in the way Lendy are doing things start your own P2P.

Yes I have some loans tied up in defaults but then thats the lie of the land in this game, if you dont want "your capital" to be at risk put it in a bank