jnm21
Posts: 441 
Likes: 167
|
Post by jnm21 on May 2, 2018 3:43:15 GMT
Also kuflink did you have email problems Tuesday? I just realised that I did not get the investment email nor notification of a wallet top up (referral payout). I did however get the interest payout email. |
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on May 2, 2018 3:43:28 GMT
I got an email today offering 20% first loss, and the select invest page still says it What do you think? Rubbish admin or a change of heart? The investment page certainly shows the old style 20% skin! kuflink is this correct? The bottom of the e-mail for this loan says: 'P.S. As this loan is being drawn in tranches, Kuflink will continue to co-invest 20% in each tranche!'
|
|
jnm21
Posts: 441
Likes: 167
|
Post by jnm21 on May 2, 2018 3:46:14 GMT
Yes puddleduck - we crossed posts - I thought I would be the only one on at this hour!  PS Maybe kuflink are listening! |
|
|
|
Post by peerlessperil on May 2, 2018 7:38:24 GMT
The current loan on offer is a second tranche in a development funding loan.
The initial tranche was issued when Kuflink Bridging were still sticking in the 20%.
I struggle to see how they could mix tranches by removing the 20% subordination from subsequent tranches, otherwise the tranches are not pari-passu and they would have to formally split the loan and start again at a higher rate for subsequent tranches. Messy.
I notice their generic wording has now shifted to "up to 20%" as they go through the transitional period of having mixed loan types. No doubt we will fudge the wording as we go through our Brexit transitional period in a similar manner....
|
|
|
|
Post by kuflink on May 2, 2018 7:47:26 GMT
I got an email today offering 20% first loss, and the select invest page still says it What do you think? Rubbish admin or a change of heart? The investment page certainly shows the old style 20% skin! kuflink is this correct? Good morning, Yes that's correct, as stated in the email this particular deal comes with a 20% co-investment as it is a loan that is being drawn in tranches, and the first tranche was drawn prior to the change we recently made to our proposition. We haven't had a change of heart, this only applies to tranche deals that were initiated prior to our announcement. I hope this makes sense! Kind regards Rachel
|
|
|
|
Post by kuflink on May 2, 2018 7:49:35 GMT
Also kuflink did you have email problems Tuesday? I just realised that I did not get the investment email nor notification of a wallet top up (referral payout). I did however get the interest payout email. Hello, Thank you for highlighting this, I'm not aware of any issues with our email system - however I shall look into this today, Kind regards Rachel
|
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on May 2, 2018 7:52:19 GMT
Also kuflink did you have email problems Tuesday? I just realised that I did not get the investment email nor notification of a wallet top up (referral payout). I did however get the interest payout email. Hello, Thank you for highlighting this, I'm not aware of any issues with our email system - however I shall look into this today, Kind regards Rachel I also didn't get the usual e-mails - I made a withdrawal and didn't get the withdrawal mail. I did get the interest payment mail and the mail about the new loan. I see there is a new 'communications' setting tab on the main menu, I suspect this is why.
|
|
shimself
Member of DD Central
Posts: 2,563
Likes: 1,171
|
Post by shimself on May 2, 2018 12:41:35 GMT
I got an email today offering 20% first loss, and the select invest page still says it What do you think? Rubbish admin or a change of heart? Email suggests it's because previous tranches of this loan have drawn down with the coinvestment. My guess is that logistically it was too tricky to have separate tranches of the same loan with different types of protection, rather than this being a full change of heart. Yes sorry it's that. Skip read it
|
|
|
|
Post by kuflink on May 3, 2018 12:28:00 GMT
Hello, Thank you for highlighting this, I'm not aware of any issues with our email system - however I shall look into this today, Kind regards Rachel I also didn't get the usual e-mails - I made a withdrawal and didn't get the withdrawal mail. I did get the interest payment mail and the mail about the new loan. I see there is a new 'communications' setting tab on the main menu, I suspect this is why. Hello, Once again thank you for highlighting the issue with emails, this has now been resolved and you should continue to receive transactional emails, Thank you Rachel
|
|
|
|
Post by kuflink on May 6, 2018 9:56:42 GMT
Hi everyone,
we have been carefully evaluating your feedback and have had numerous discussions now to find a balance.
We believe in listening to our investors and after various discussions and feedback from our lending community we have decided to keep a 5% Kuflink stake in every loan on the platform. We believe this is positive thing to do as this is what you have asked for, however we are in fact going to go further, we are going to supplement our 5% skin in the game with our 20% fully inclusive first loss guarantee by our sister company Kuflink Bridging to ensure our community of investors remain confident in investing with us. Unlike other guarantees, we will cover both capital and interest for all loans going forward.
All our loans undergo extensive checks before we agree to fund any of them, this enables us to ensure all loans are fully monitored, from inception through to final settlement and this is why we have no losses on our deals. This means our reputation for delivering solid investments for our investors continues to grow.
While we ensure everything possible is done to ensure our investment community doesn’t suffer a loss these are property backed loans and your capital is at risk.
Please let us know your thoughts and feedback and we'll be happy to answer your queries.
Have a wonderful weekend!
Min Binning
Director
|
|
|
|
Post by hari on May 6, 2018 10:19:24 GMT
Dear all,
apologies once again for the radio silence, I will be more active on the forum. We've been having numerous discussions internally and we are trying to find the best possible solution hence asked our Director of Compliance to step in with the statement. As many of you all have pointed out, 20% is indeed a substantial amount of funds that have to be parked aside. However, lending alongside you is our USP and we will stick by it. We are at par with the industry to provide 5% skin in the game on a first in last out basis. Add to that a 20% first loss guarantee by Kuflink Bridging on both capital + interest is something unique to the industry. We are exploring some innovative ways of creating/displaying this cover for you.
Freeing up the additional capital will help us grow by investing in people, improving deal flow by building better systems and at the end of the day creating a profitable business that provides comfort to all of you while investing on our platform. Where possible, we will match our rates to the risks taken by you. We currently have an A1 rated loan at 7.2% pa which reflects our statement.
Hope these additional lines help clear some of your queries. Feel free to post your statements, will try my best to answer them and where possible will get our compliance team to provide input. I might not be able to provide all answers until Tuesday so please bear with me as I might be a bit slow in getting responses back.
Kind regards,
Hari
|
|
puddleduck
Member of DD Central
Posts: 537
Likes: 489
|
Post by puddleduck on May 6, 2018 11:02:34 GMT
Well it's a move in the right direction, although with only 5% there is less incentive for you to ensure accuracy in the LTV - losses realistically are only going to happen in case of repossession / fire-sales and I think if you still had the full 20% in the game you are less likely to accept pie in the sky valuations - we see on other platforms all the time. When your money is at stake, then it's in your interests to present opportunities with a sensible LTV. When we put up 95% of the stake, you have less incentive to push back on valuations that essentially are written to be 70% of whatever the borrower wants to borrow. 5% could easily be hand waved away as fees. We still need more info on the 1st loss change - there is or was talk of a provision fund - yet as far as I can see, no published coverage levels, or what your target funding is. I think you need to think about what 'Guarantee' means and how you will fund it in worst case scenarios, not best case with no losses (so far) I'm glad you are listening, but I am not convinced we have been heard.
|
|
|
|
Post by hari on May 6, 2018 11:28:13 GMT
Dear puddleduck, I'll get back to you on this. We will put together something in the coming days to help answer your queries. Kind regards, Hari |
|
|
|
Post by Ace on May 6, 2018 12:21:09 GMT
Hi Min, Hari,
I thank you for you're eventual replies, but have to say that, for me, the jury is still out. I have already invested £9k that was destined for Kuflink elsewhere. Mainly due to the recent changes, but also due to the inability to self select within an ISA.
I couldn't consider further investments with Kuflink without a clear description of both the proposed PF and 20% "guarantee". Why these haven't been explained, given the comments on here can only lead to conclusions that either: a) even Kuflink didn't/don't know what is intended yet, or b) Kuflink realise that at explanation would only make things worse. Either way it leads to a lack of confidence in Kuflink. A very clear and detailed description, with worked examples, is urgently required. Urgent because, without it, my (and I suspect many other's) referral bonuses will have to go elsewhere.
The return to a skin-in-the-game is welcome, but at 5% it's not enough on its own to entice me, so you're going to need to persuade me with the definition of your PF and "guarantee".
I hope you can persuade me and others on here. Good luck.
|
|
jnm21
Posts: 441
Likes: 167
|
Post by jnm21 on May 6, 2018 12:40:14 GMT
hari , kuflink , thank you for trying. I still feel bitter at the previous reply by Narinder; the two statements today mean that I will once again start looking at your offerings, but Narinder's statement was an insult to our intelligence (for me he came across as arrogant, insane or both to have thought we would swallow it) & that has not been addressed. I appreciate the an alternative poster may have been a seen as a good idea. I have not yet read the feedback on the other thread (thanks Hari for the tag there; I do read all posts on this board, but it got me here quicker), but I can predict what it says. I never got a Kuflink response to a post I made asking if we overvalued the 20% (basically 20% could be easily offset by fees & much higher percentages that would be the norm in the industry - with one in five loans fully defaulting you would potentially still turn a profit). Add to that when I asked which would have been more palatable; a reduction to a 10% skin or the 20% PF - this was designed to highlight how distrusted PF are; I got slated for suggesting a reduced skin (even though in light of these changes the thread may have done exactly what it was designed to do), but someone said about the 10% skin exactly what I had already said about the 20% skin, albeit more eloquently, too easy to mask with fees, etc. (http://p2pindependentforum.com/post/262466, littleoldlady ). May I suggest that you do out a table showing a sample of a 100K 12 month loan with 7% interest where the borrower draws the 100K & runs off paying back nothing, with the asset raising 70K after fees? Across the top 'old 20 skin', 'new 5+20% scheme', 'new 5+20% scheme if .... trading as Kuflink P2P platform has ceased trading' & 'new 5+20% scheme if .... trading as Kuflink Bridging has ceased trading'. Sorry, platform failure is not a nice topic, but for good reason is one of, if not the most prominent concerns of most P2P investors. Down the side 'Loan amount', 'Interest', 'Kuflink skin', 'Investors amount', 'Investors shortfall', 'Additional amount made good' & 'Made good by'. I'll try to knock up my understanding. Edit: well said Ace - you posted while I was pounding the keyboard!
|
|
