Crisis of confidence in the platform

Also to me the most worrying thing is that out of ALL lending the have ever done (£266m) over 16% of this is either overdue, lost or pending recovery (£43m total). So for every 100p invested in FS 16p is missing!

Not to mention that it's actually probably far worse than that; I for one don't have time to weed out all the dozens (hundreds?) of renewals on the loan book; I would take a best guess at their only being in the region of £200m of 'original' loans which would make that well over 20% overdue, lost or pending

It is interesting.  I'm running mine down (as of recently) thanks to being well caught up in Col so need funds from somewhere....Out of 46 loans (max loans i had i think was approx 60), only 6 are not late, 8 are unredeemed, 19 are > 6 months late (over 365 days active) late with the rest merrily bobbing along.  I'll keep an eye on things for futre re-investment, but some of the stuff I have seen recently does concern me like the piling comments...  I've had a steady stream of repayments which I like, but it is coming dangerously close to my unredeemed loans being > than my total interest earned over the life of my portfolio.  Time will, of course, tell.  I note from the all loans history, 53 are unredeemed vs 2,302 loans which is purely on that number 2.3%, which seems ok, pending pondering the late loans.  

I have some stats too.



88 loans in current investment. 128 completed and repaid, 3 unredeemed (some with partial recovery or recovery ongoing).


Earnings to date (from completed loans): 8.27% since October 2016, investment fund has been increased to 14x since start.


0 losses yet.

Nope, I only worked in that sector for 20 years...but what do I know compared to someone who invests in the stock market.  

I can tell that no bank considers a loan that is 1 day late non-performing.  The Basel/IMF definition is that a loan is non-performing when it is over 90 days late.  I can also tell you that the majority of bank loans are not very high risk/high rate speculative development/bridging loans which makes up the majority of FS's loan book.  Indeed the borrowers on FS have likely been turned down by the banks and other lenders..hence they are looking to borrow at 20-25% pa from FS.  I did not claim that banks have over 10% NPL's...i said that over half of bridging/dev loans in a typical bank will run over term (although many banks have dramatically reduced their amount of business in this area in the last few years).

I'm not going to go over and over these points.  But I think its worth mentioning my stats are now out of date given Development in Warminster just repaid (12 days late).  This means that the live loans has gone down by 1 but it wasn't non-performing so the NPL % has now gone up...what a shocking development..someone should take FS to task over it.

Precisely which post are you referring to?

BG , your post makes a lot of sense , one point , many of the borrowers have likely been turned down by banks, yes, many maybe but not all, P2P works well as a mez top up for established smaller developers and portfolio builders . The perfect example is a BTL high value purchase , bought well and under value (yes the still exist )  , off market or at auction , you can re gear for 6 months, CML rules , so 2nd charge, quick red book, borrow your refurb money , planning gain, re gear with primary lender at end and retain or knock it out. It’s not for a 20 house dev as you can get dev finance much cheaper but it has its uses as a product for low risk established developers as well , not just the numpties ..