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Post by kuflink on May 19, 2018 0:47:25 GMT
Dear Ace I will get back to you on points 1 and 2. In terms of point 3, yes we will do everything within the FCA’s guidelines to recover the funds. We have a separate recovery team that keeps in regular touch with our borrowers. We have stenghened key areas of our business over our trading period to support various functions. As mentioned before, our commitment to the cause is paramount. Having worked for other alternative investment platforms, I do see this from a personal point of view that we have a strong team. We are investing in tech next to provide even better systems to help mange our processes efficiently and effectively. Will keep you all posted. Hari |
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Post by hari on May 19, 2018 9:48:44 GMT
Ace - yes you are right in 1) the amount you have stated is correct, I was thinking in my head to add the line "give or take a few" but pretty late in the day I guess and didn't type it in. Cheers, Hari
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shimself
Member of DD Central
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Post by shimself on May 19, 2018 12:12:28 GMT
hari , good to have some answers, but the BIG ONE still remains - if 'Kuflink' (whichever strand that offers the guarantee) goes bust, what then? In tough times they are more likely to go bust than most rivals because of taking the first loss. otoh, and depending on how tough the times are we are more likely to emerge unscathed. It's our hope that taking the first loss will make them less likely to take on iffy loans than some of their rivals would be If the loans perform then KL will have the profit on their co-investment to reinforce their balance sheet. But still I was much happier with the 20% co-investment, I will certainly be less inclined to give their offerings the benefit of any doubt now they are down to 5% and a promise
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jnm21
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Post by jnm21 on May 19, 2018 18:40:37 GMT
shimself what you say is correct, but the pertinent question is, is the 15% guarantee worth the power that displays it? Clearly 15% in the pot is worth more than 15% in the guarantee. Personally 15% down is worth more than 30% of a mythical no detail, thus no confidence, guarantee!
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jnm21
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Post by jnm21 on May 20, 2018 9:36:28 GMT
Ace, could you ask hari & kuflink how much worth the guarantee has if they go bust? Just to see if you have better luck - I'm sure it is the question & not the poster they are ignoring, but just in case!
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Post by Ace on May 20, 2018 9:57:46 GMT
Ace , could you ask hari & kuflink how much worth the guarantee has if they go bust? Just to see if you have better luck - I'm sure it is the question & not the poster they are ignoring, but just in case! ? kuflink ? I think this is a very pertinent question. jnm21 , I presume it's one that needs a committee answer, so will probably have to wait for a work day!
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jnm21
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Post by jnm21 on May 20, 2018 10:45:48 GMT
Ace I fully agree - I think a fortnight is more than long enough - certainly should be for a competent & transparent investment company... 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!  , kuflink, I appreciate your examples, but I think they are woefully optimistic. To assume that 1 month interest is due when settled is (in my novice opinion) naive - I am often accused of being naive about P2P, but even I can see that it will be much more. So month 1 is the first month not paid. I would assume that the lender would be given another 3 to come good - now 4 months interest (compounded at 8.25% as in default?) owed. By the 90 day sale price quoted, we must assume at least 3 months to sell - 7 months owed. Personally I would prefer taking 6 to 9 months to sell if we got 30 or 40% more, but set that aside. This all excludes other delays, such as legal wranglings, which I would expect - 12 months in my examples may even be woefully optimistic. Can I ask at what point the provision fund will pay out; on first missed payment (as some do), on the loan end date or when the issue is fully resolved? I ask because some in P2P rely upon it for monthly income.
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Post by hari on May 20, 2018 17:41:25 GMT
jnm21 Ace - I'll get back to you regarding the guarantee bit, I know the committee has worked out the response, just been away for a week so haven't been able to gather all the facts from all concerned parties. In terms of being optimistic, I somewhat disagree with the response as most of the loans have interest paid upfront or serviced on a monthly basis. This allows us to pay the interest to our investors on a monthly basis. We have very rare occasions where the interest gets rolled up. I'll however do a new table, please bear with me as I'll need to get compliance approval. Kind regards, Hari
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jnm21
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Post by jnm21 on May 20, 2018 18:38:42 GMT
Thanks hari. I genuinely want to understand - if a loan goes bad, surely interest is paid a month in arrears, i.e. at the end of the month in which it accrued? Then surely you would allow a borrower some time to turn things around? Maybe others can comment from experience on other platforms? How long from 1st missed payment to resolution? |
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Post by hari on May 20, 2018 20:13:44 GMT
jnm21 - yes you are absolutely right. While the borrower's loan is in arrears, at the moment we still payout interest to our investor community. We accrue interest on Kuflink Limited's side on a daily basis and transfer it at the end of the month or loan end date, whichever comes first on a month by month basis. I'll however get you information on when the loan goes into default. We do have substantial information and documentation and will post it here. Kind regards, Hari
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jnm21
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Post by jnm21 on May 20, 2018 22:55:24 GMT
hari, with the knowledge that you pay out even if not paid by the borrower, it is a good thing. You do need to watch though, doing so without telling folk you risk being accused of misleading investors (more so if/when you have a SM)! The P2P crowd, especially on here, is a tough one!
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Post by hari on May 20, 2018 23:52:59 GMT
jnm21 - that's a very valid point. We have from the outset within our client money requirements added these figures to insure payouts are made on time. Will get back to you for sure. Please bear with me a bit, I need to get compliance heads to give me an OK on sharing information. I am all for answering queries here and hope to find/train a community manager soon to help with the burden. Just a wee bit torn between my daily tech tasks at the moment. SM - hmmm, that is a conversation for the near future, we have some internal models/paperwork, need to get a go ahead from compliance / FCA and I think it gives investors a cushion. Cheers, Hari
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jnm21
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Post by jnm21 on May 21, 2018 5:43:39 GMT
hari, I fully appreciate what you say! Best advice would be under-promise & over-deliver. If you promise an update, deliver, even if it is an honest interim update, e.g. compliance have asked that we rework part of the update - it will be 4 or 5 days. For me anyhow, knowing that compliance are involved is reassuring! Radio silence leaves a gap & folk will fill it - with venting, sniping or worst of all speculation about why! Keep up the good work - I think you have done more to reassure investors on here than a few others (mainly your boss) - personally if you left Kuflink my money would follow on recent form! That said, my KL investment tap is off waiting for confirmation of what you now offer!
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Post by Ace on May 25, 2018 19:41:54 GMT
Dear Ace I will get back to you on points 1 and 2. In terms of point 3, yes we will do everything within the FCA’s guidelines to recover the funds. We have a separate recovery team that keeps in regular touch with our borrowers. We have stenghened key areas of our business over our trading period to support various functions. As mentioned before, our commitment to the cause is paramount. Having worked for other alternative investment platforms, I do see this from a personal point of view that we have a strong team. We are investing in tech next to provide even better systems to help mange our processes efficiently and effectively. Will keep you all posted. Hari Hi @hair/ kuflink, a week has passed and still no response to point 2! Did this fall between the cracks?
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jnm21
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Post by jnm21 on May 27, 2018 13:32:02 GMT
Ace I think this now falls into the category of contempt for customers! Not even bothering to tag them.
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