Mucho P2P
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Post by Mucho P2P on Nov 22, 2018 14:34:25 GMT
[...] It is not a crisis of confidence in the platform, it is a crisis in the p to p industry. Their DD is generally poor to non-existent and their recovery actions a lesson in how to drag both feet. I have decades of experience in managing businesses, you dont need to be an expert in financial businesses to understand how a ptop business works, the principles are the same. I am at a loss to understand why its not effectively managed, and yes it does ultimately come down to the abilities of the people in charge. Will it get better? I honestly dont know I'm in full agreement with both these points. What is glaringly obvious is that very few p2p platforms have any non executive directors (NEDs) on their senior management teams. Many p2p platforms are startups not a diversification of existing business, and to believe they do not need the occaisonal advice, guidance and mentoring that NEDs (generally retired senior managers) can bring is verging on arrogance. Yes, expensive, but most SME businesses that employ NEDs believe the benefits hugely outweigh the cost.
I fully agree with you mrclondon and james21. I have personally approached several P2P businesses to offer both working/expansion capital and also expertise in areas they lack (NED, strategy, and the likes). From conducting Due Diligence (post NDA) on the businesses that wanted [needed] the extra funding, what became apparent is a that a certain number of P2P businesses have made basic [and in some cases, horrendous] mistakes and prefer to sweep these mistakes under the carpet and to forget about them where possible, regardless of the cost to them, either financial or reputational.
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bugs4me
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Post by bugs4me on Nov 22, 2018 14:43:44 GMT
I have decades of experience in managing businesses, you dont need to be an expert in financial businesses to understand how a ptop business works, the principles are the same. I am at a loss to understand why its not effectively managed, and yes it does ultimately come down to the abilities of the people in charge. Will it get better? I honestly dont know It’s basically grow up time and many a business starts from the kitchen table or a shed and goes from there. The same fag packet calculation mentality when starting and were vital to keep costs to a minimum continue to be utilised as the business grows. It simply doesn’t work like that but FS (and many other platforms) have been unwilling or unable to upscale their business model. It was mentioned on this forum over 12 months ago that they need to get a firm grasp on their deteriorating overdue loan situation but nothing has IMO happened. They still plough on regardless so any investor is left under the firm impression that borrower repayment is optional. It certainly doesn't help their credibility with those often absurd updates. Okay at FS, there’s a new sheriff in town management hierarchy in place but will it make any difference - I very much doubt it. Whilst the number of forum members represents a small minority of overall P2P investors, just looking at the number of visitors there’s little doubt that the forum punches way above it’s weight in influence. Unless or until a ‘maturity aspect’ is applied then I feel the available platforms for individual investors will gradually shrink to maybe just a few players who will no doubt be heavily reliant and of course influenced by institutions.
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Post by dan1 on Nov 22, 2018 16:48:49 GMT
I am the only one who believes RK may have taken a controlling stake in FS to take charge of recoveries? Something tells me it wasn't a Remington-esk impulse purchase.
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arby
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Post by arby on Nov 22, 2018 17:01:57 GMT
I am the only one who believes RK may have taken a controlling stake in FS to take charge of recoveries? Something tells me it wasn't a Remington-esk impulse purchase. He had full access to all the bad news that is surfacing and still went ahead. Yes, it gives some smidge of optimism, or at the least, insight into his own self confidence!
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james21
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Post by james21 on Nov 22, 2018 17:26:44 GMT
I am the only one who believes RK may have taken a controlling stake in FS to take charge of recoveries? Something tells me it wasn't a Remington-esk impulse purchase. You are the only one! I have read the two new stake holders are not involved with the day to day. My guess their aim would be to prioritise new loan flow and new investors and NOT managing the lates and defaults as this activity would not add to the bottom line of the business which will be their aim
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arby
Member of DD Central
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Post by arby on Nov 22, 2018 18:43:30 GMT
I am the only one who believes RK may have taken a controlling stake in FS to take charge of recoveries? Something tells me it wasn't a Remington-esk impulse purchase. You are the only one! I have read the two new stake holders are not involved with the day to day. My guess their aim would be to prioritise new loan flow and new investors and NOT managing the lates and defaults as this activity would not add to the bottom line of the business which will be their aim That's likely not true at all. Most of their investors will be repeat investors. There isn't an infinite flow of new lenders. The way to maintain and grow the business is to show the existing lenders they can get successful closure of their current investments.
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trium
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Post by trium on Nov 22, 2018 19:59:20 GMT
I'm waiting for someone to mention the update bonanza that has occurred (at least on my account) today. Not particularly earth-moving updates, but exactly what people have been asking for (ie news even if it's not much).
A short time ago we had the welcome inclusion of a caveat in a loan description to indicate that the development was likely to be ongoing after the 6-month term. This followed some debate on this forum about "extended" loans and was clearly intended to address any negative issues. We have recently seen more transparency regarding multiple loans/projects involving the same borrower, addressing another common complaint. Someone at FS Towers is getting their act together.
Credit where it's due? (Tin hat on)
Edit - well now I've read the rest of today's posts I can see that those updates which have been commented on have mostly provoked hostile and negative reaction. What a pity - now I suppose they'll stop posting them again.
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mariner
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Post by mariner on Nov 22, 2018 20:51:04 GMT
What is the point in posting updates which can only be descibed as cr*P?
Reading between the lines, my take on it is …………someone, possibly a school leaver or student has been hired & given a mandate to go through the loan book & update the ones which are non problematic & with still a while to run, what about the Powerboats, Park Homes etc etc etc……………….
And would anyone with any business acumen or experience in the real world post such drivel as:
"We have spoken to the borrower this morning who was unable to speak but will call back later today"
Would you accept that as an Update? or just getting numbers up?
Wonder if he did call!!
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Jan 1, 2019 18:36:42 GMT
Crisis what Crisis ?
Somebody does think there is a crisis, and just piled in with nearly £1m.
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trevor
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Post by trevor on Jan 1, 2019 18:51:52 GMT
Put £200k in for a 4% bonus and £500k for a 5% bonus. Why not put in £700k for a 5% bonus? Have I missed something?
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Post by dan1 on Jan 1, 2019 18:57:10 GMT
Put £200k in for a 4% bonus and £500k for a 5% bonus. Why not put in £700k for a 5% bonus? Have I missed something? Bonuses are paid on cumulative investments although I wouldn't recommend 28,000 investments of £25, seems a tad onerous to manage.
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rogerthat
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Post by rogerthat on Jan 1, 2019 19:46:53 GMT
Crisis what Crisis ? Somebody does think there is a crisis, and just piled in with nearly £1m. Still eating Paracetamol  ..im guessing you're referring to shares ?
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lucky
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Post by lucky on Jan 1, 2019 20:13:11 GMT
Crisis what Crisis ? Somebody does think there is a crisis, and just piled in with nearly £1m. Still eating Paracetamol ..im guessing you're referring to shares ? Someone has just invested around £1m in three loans—-what can one say!
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
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Post by ozboy on Jan 1, 2019 20:49:10 GMT
Still eating Paracetamol ..im guessing you're referring to shares ? Someone has just invested around £1m in three loans—-what can one say! Wonder if they got Mates Rates. Know wot I mean? 
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Post by charliebrown on Jan 1, 2019 23:44:40 GMT
Still eating Paracetamol ..im guessing you're referring to shares ? Someone has just invested around £1m in three loans—-what can one say! Rather them than me. My experience over the last 2 years with LY and FS has been horrendous. It’s beyond risky, it’s wreckless. There’s so much that can and does go wrong and the people behind the platforms are incompetent at best and I wouldn’t trust them to handle another 1p of my money let alone 1m. It’s such a shame that most of the disasters were avoidable. I still love the idea of p2p and I’m hoping that one day we’ll get some better run platforms that we can trust.
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..im guessing you're referring to shares ?
