unmadem
Member of DD Central
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Post by unmadem on Nov 29, 2013 18:56:07 GMT
How can you tell if your the loan has been rejected or gone to pre-agreement etc ? Is there a status somewhere I am not noticing or is it just a case of seeing your money either reappearing in your account or a new entry on live loans list ?
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Post by mead187 on Nov 29, 2013 18:59:59 GMT
I got some of 4128 at 10.4% so im well chuffed, looks like its in pre-agreement  |
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Post by bracknellboy on Nov 29, 2013 19:52:38 GMT
I got some of 4128 at 10.4% so im well chuffed, looks like its in pre-agreement So therein lies a dilemma I would suggest: judging by the comments here (I'm not sure which one this is), it sounds like this loan would possibly/probably not have filled, or completed at too high a rate for the borrower, if it wasn't for the "flippers" coming in and putting in large chunks of money.
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unmadem
Member of DD Central
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Post by unmadem on Nov 29, 2013 20:00:05 GMT
How can you tell if your the loan has been rejected or gone to pre-agreement etc ? Is there a status somewhere I am not noticing or is it just a case of seeing your money either reappearing in your account or a new entry on live loans list ? Click on the 'repayments' tab on the top right of the listing page, to the right of Q&A. it'll either say "nothing / pre-agreement / scheduled". The latter is when it's drawn down where hopefully they will all turn into 'paid'!! Thanks that has been puzzling me for a while. I wouldn't have stumbled across it there. What happens if the loan is rejected ?
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Post by mrclondon on Nov 29, 2013 20:29:18 GMT
What happens if the loan is rejected ? The Repayments tab is also the place to look when the loan has been rejected or pulled (i.e. shown as 0% filled) as FC do generally fill in a comment. The underlying assumption behind these recent posts though is you have already added the loan to your watchlist whilst it was open for bids so that you have its url to hand during the acceptance / pre-agreement / rejection phase.
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Post by mrclondon on Nov 29, 2013 20:43:17 GMT
I'm actually feeling a little uneasy about the number of rejected loans recently given few (if any) have directly cited the rate as being uncompetitive.
Those of you who are FK lenders will recall the explanation provided by the borrower on FK's Q&A regarding the aborted FC 3948 request, namely that the request was put up by FC with the express hope of poaching him back from FK, and he hadn't requested it.
I wonder how many of the recent increased volume of requests are speculative phantom requests loaded by FC ... bearing mind a proportion of the requests are broker introductions it is not inconceivable that some of the loan requests we see have not been directly approved by by the borrower.
Me thinks we need to keep a note of the proportion of rejected loans which have no answers on the Q&A which could be indicative of this problem.
Was the "restaurant purchase not now going ahead" rejection today (no questions answered) a real or phantom request ?
The problem is FC have long since lost my trust, so I'm inclinded to think the worst when I see strange behaviour on their platform.
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Post by bracknellboy on Nov 29, 2013 20:55:48 GMT
I'm actually feeling a little uneasy about the number of rejected loans recently given few (if any) have directly cited the rate as being uncompetitive. ...... The problem is FC have long since lost my trust, so I'm inclinded to think the worst when I see strange behaviour on their platform. The latter is a perfectly normal human reaction I would suggest :-) The former however could be a consequence of FC setting borrowers rate expectations on recent historical rates and MBRs, only for borrower's to find that the current market dynamics is leading many loans to finish considerably higher. It would be interesting to know how many small loans closing out at or close to MBRs have not been drawndown in comparison to the ratio of larger/higher rate loans not being drawndown.
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Post by mead187 on Nov 29, 2013 22:07:25 GMT
I got some of 4128 at 10.4% so im well chuffed, looks like its in pre-agreement So therein lies a dilemma I would suggest: judging by the comments here (I'm not sure which one this is), it sounds like this loan would possibly/probably not have filled, or completed at too high a rate for the borrower, if it wasn't for the "flippers" coming in and putting in large chunks of money. The flippers certainly brought the rate tumbling down in the final few hours. The 11ish% on filling might have been a step too far for the borrower without their activity. An Average rate of 9.3% for an A loan is still very high. Am I right in saying the borrower can still pull out even though it says pre-agreement?
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pikestaff
Member of DD Central
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Post by pikestaff on Nov 30, 2013 8:51:50 GMT
The flippers c ertainly brought the rate tumbling down in the final few hours. The 11ish% on filling might have been a step too far for the borrower without their activity. An Average rate of 9.3% for an A loan is still very high. Am I right in saying the borrower can still pull out even though it says pre-agreement? Why do you think it was just flippers who came in late? Ordinary lenders also want to get the best rate they can, with their money tied up for the least time.
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Post by mead187 on Nov 30, 2013 9:42:19 GMT
The flippers c ertainly brought the rate tumbling down in the final few hours. The 11ish% on filling might have been a step too far for the borrower without their activity. An Average rate of 9.3% for an A loan is still very high. Am I right in saying the borrower can still pull out even though it says pre-agreement? Why do you think it was just flippers who came in late? Ordinary lenders also want to get the best rate they can, with their money tied up for the least time. Fair point they don't have "flipper" engraved on their username. When one user makes multiple bids in lots of small chunks one would assume they intend to flip at some point. If they don't intend to flip they must have a large portfolio and one would hope this kind of activity keeps them within the realms of having a diversified portfolio, if not then they're taking an unnecessary risk. It's only when the loan is accepted and you can see how many parts hit the SC that you can gauge how many were bought for immediate resale. Looking at the bids id say there's a couple of flippers in there at the higher rates - I cant be more precise because my Excel at home is unlicensed and I can do a quick pivot table.
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Nov 30, 2013 10:18:57 GMT
Why do you think it was just flippers who came in late? Ordinary lenders also want to get the best rate they can, with their money tied up for the least time. Fair point they don't have "flipper" engraved on their username. When one user makes multiple bids in lots of small chunks one would assume they intend to flip at some point. If they don't intend to flip they must have a large portfolio and one would hope this kind of activity keeps them within the realms of having a diversified portfolio, if not then they're taking an unnecessary risk. It's only when the loan is accepted and you can see how many parts hit the SC that you can gauge how many were bought for immediate resale. Looking at the bids id say there's a couple of flippers in there at the higher rates - I cant be more precise because my Excel at home is unlicensed and I can do a quick pivot table. It is a reasonable assumption to make but I always bought in £20, £40 or £60 units (on one occasion 40) because if needs must it is easier to sell them. I am still invested in well over 100 businesses but have sold off almost as many to move to Assetz because of the comfort and security that bricks and mortar gives instead of just vague promises.
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pikestaff
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Post by pikestaff on Nov 30, 2013 11:07:50 GMT
Me too. I always sell if a loan comes back from being late (ignoring first payment problems), and I have learned the hard way that small parts are much easier to sell.
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jimbo
Posts: 234
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Post by jimbo on Nov 30, 2013 12:15:03 GMT
Me too. I always sell if a loan comes back from being late (ignoring first payment problems), and I have learned the hard way that small parts are much easier to sell. If I'd done that from the word go, I'd have saved myself around 60% of the losses I've sustained on the Funding Circle Platform... Nowadays, it's all part of ongoing risk management.
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mikeb
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Post by mikeb on Nov 30, 2013 21:54:18 GMT
Those of you who are FK lenders will recall the explanation provided by the borrower on FK's Q&A regarding the aborted FC 3948 request, namely that the request was put up by FC with the express hope of poaching him back from FK, and he hadn't requested it. a) Boggle. I'd love to hear FC's explanation of loading a fake request on behalf of people that hadn't requested them -- will they be announcing this new behaviour on their blog I wonder? b) My hypocrisy meter just pegged, how can I claim a new one? 13. Terminating your membership of Funding Circle
....
We may end your membership of Funding Circle at any time and for any reason, including but not limited to if:....
....
you use the Funding Circle platform or any information accessible on or
obtained from it for the purpose of canvassing or soliciting any person
or enticing any person away from Funding Circle;
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mikeb
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Post by mikeb on Dec 5, 2013 19:05:20 GMT
Back to the original topic of "pathetic explanations", I've been hunting down some of my recent "vanishers", as there's been too many of them -- they don't make it easy to find them -- Watch List, gone. Loans list, gone. Hunting around in "rejected bids" and then cross referencing the loan numbers ... found them.
No company names, numbers, but this is where the Bermuda Triangle loans end up :-
“This auction is being rejected as director could not raise funds elsewhere to meet the full requirement for the asset purchase. Thanks,”
“Please note; The borrower has rejected the loan due to him managing to
increase his current overdraft facility to acquire the funding he
needed. Thanks FC”
Now those I would count as reasonable rejections. On the other hand, from the "With A Director Guarantee" corner :-
“The auction was rejected as the borrower was unable to send in a signed Personal Guarantee within the deadline. Thanks F”
“Auction rejected as the Directors will not commit to a Guarantee.” (even though it was a loan listed WITH a DG)
and another that said the "directors are currently leaving the business and will not sign a guarantee"
And then in the potential "Keystone Cop Accounting" department ...
“Auction rejected as the Borrower was unable to complete the acceptance process within the stated time frames. The loan will be re-listed next week”
“Could not contact the borrower in time to accept the loan. Funds have been released back to investors.”
“The borrower could not raise the full amount to purchase the asset. Funds will be released back to investors.” -- ummm, double the number you first thought of and apply again?
"Rejected and will be relisted, as rate was too high", even though the auction had not finished yet, and the final minute frenzy was way off in the distance.
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