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Post by jonathan on Aug 9, 2018 9:53:29 GMT
I had a loan default 2 months into their 60 loan... Working capital (56067)
How the heavens is this possible?
"***** ** * ** LIMITED" must be having a nice £52,750 holiday somewhere, hope we get postcards
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Post by captainconfident on Aug 9, 2018 10:40:12 GMT
Those of us with long memories are still fuming about "Breath of Foul Air", an early big default on the FC platform who managed only 0 or 1 repayment, I can't remember. To FCs credit, they do chase Mr. Foul Air from time to time.
In fact, you get used to the swings and roundabouts of unsecured business lending, where some A raters like Mr. Foul are off with the cash after one payment, while the most unlikely businesses see out full loan terms while loaded with interest rates in the high teens.
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benaj
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Post by benaj on Aug 9, 2018 10:44:21 GMT
Well, these things happen when lending money out in unsecured micro business loans and selected by FC algorithm. I have a few of these because it is almost unavoidable when having over 1000+ loan parts. I don't know much about FC loan decision, i.e, how many loan application rejected vs acceptance, but FC adverertise their loans as "fast, flexible", for business to "Expand, hire staff, boost cash flow or fund your next step with finance that arrives in days." Sometimes, a borrower cease trading before the first repayment see p2pindependentforum.com/post/275446/thread |
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blender
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Post by blender on Aug 9, 2018 10:52:58 GMT
With an IFISA from new fairer no-choice FC, we have had two loans fail without making a single payment. A shame they were in the ISA! Unacceptable!
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ton27
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Post by ton27 on Aug 9, 2018 12:25:28 GMT
Having had a few "working capital" loans go sour (not just on FC) I usually avoid such loans.
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Post by df on Aug 9, 2018 20:53:23 GMT
I had a loan default 2 months into their 60 loan... Working capital (56067)
How the heavens is this possible?
"***** ** * ** LIMITED" must be having a nice £52,750 holiday somewhere, hope we get postcards
This in normal. FC is not selective, they go for quantity - not quality.
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adrian77
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Post by adrian77 on Aug 9, 2018 21:13:55 GMT
I have sold up by FC holding 100% - looks like it was a good decision....
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reinvestor
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Post by reinvestor on Aug 10, 2018 7:01:46 GMT
A business that is located next door but one to mine (we are Hire Purchase lenders) has recently obtained a £70k working capital loan from FC.
Having seen bailiffs at their premises before and having looked at their accounts, I wouldn't lend them a penny! Unsurprisingly, he was overjoyed to get this cash.
Two weeks after getting it, he and his wife get new cars......
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m2btj
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Post by m2btj on Aug 10, 2018 7:07:47 GMT
Raises huge questions over FC's DD process...if any at all. Since FC changed it's self select investment option I've been running down my investment. Most of my defaults have come from AutoInvest.
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ashtondav
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Post by ashtondav on Aug 10, 2018 7:39:10 GMT
It’s all relative. If you’ve got a company with super accounts you don’t need a working capital loan. Lending to SMEs is risky.
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dorset
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Post by dorset on Aug 10, 2018 7:45:30 GMT
We all know that lending to SMEs is risky but a tiny bit of DD would not go amiss.
On a positive not got a 100% recovery on default 22283 this week. Well done to the recovery team which I feel operates quite well.
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Post by spareapennyor2 on Aug 10, 2018 8:02:43 GMT
Well done to the recovery team which I feel operates quite well. wish i could say the same about the london propertys / hotel if the recovery team / administrator can get something back on these i might feel better
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reinvestor
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Post by reinvestor on Aug 10, 2018 8:13:18 GMT
We all know that lending to SMEs is risky but a tiny bit of DD would not go amiss. On a positive not got a 100% recovery on default 22283 this week. Well done to the recovery team which I feel operates quite well. The company I refer to had a negative net position of £39,860 at 31/3/16. By 31/3/17 this had deteriorated to a negative £57,320.
They are losing money, have a factoring company charge and FC advance them £70k. Madness in my opinion.
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blender
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Post by blender on Aug 10, 2018 8:17:49 GMT
We all know that lending to SMEs is risky but a tiny bit of DD would not go amiss. On a positive not got a 100% recovery on default 22283 this week. Well done to the recovery team which I feel operates quite well. The company I refer to had a negative net position of £39,860 at 31/3/16. By 31/3/17 this had deteriorated to a negative £57,320.
They are losing money, have a factoring company charge and FC advance them £70k. Madness in my opinion.
Computer says yes!
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adrian77
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Post by adrian77 on Aug 10, 2018 11:02:28 GMT
how interesting - glad to know FC's money is being wisely invested.
I wonder if these are down as business assets and can be recovered - answers on a digital postcard....
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