c88dnf
Member of DD Central
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Post by c88dnf on Aug 10, 2018 12:45:02 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.
Indeed. That's why I did my own analysis of FC some while ago and started withdrawing every penny I had with them. For me, there's simply too high a risk of loss to lend anything to FC.
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Post by jonathan on Aug 10, 2018 12:59:14 GMT
any other P2P companies you reckon are better than FC c88dnf ?
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Post by df on Aug 10, 2018 13:53:49 GMT
any other P2P companies you reckon are better than FC c88dnf ? Many of them are much better..... For example, LC is a very similar type - lending to SME. Here is my accounts' data as it stands at the moment: FC: 274 loans, 28 bad debt, 45 downgraded or late. LC: 286 loans, 3 bad debt, 4 late.
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benaj
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Post by benaj on Aug 10, 2018 13:57:07 GMT
any other P2P companies you reckon are better than FC c88dnf ? Many of them are much better..... For example, LC is a very similar type - lending to SME. Here is my accounts' data as it stands at the moment: FC: 274 loans, 28 bad debt, 45 downgraded or late. LC: 286 loans, 3 bad debt, 4 late. Do you mind tell us more, like about the age of the FC and LC account? similar to actual default to date vs expected default.
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Post by df on Aug 10, 2018 15:52:21 GMT
Many of them are much better..... For example, LC is a very similar type - lending to SME. Here is my accounts' data as it stands at the moment: FC: 274 loans, 28 bad debt, 45 downgraded or late. LC: 286 loans, 3 bad debt, 4 late. Do you mind tell us more, like about the age of the FC and LC account? similar to actual default to date vs expected default. FC - 21 month. "Annualised return" - 5.1%. Estimated return - 8.5%. LC - 18 months. "Actual rate of return" - 9.66%. Estimated return 9.68%. I'm not sure what expected defaults are, I wasn't reading statistics for long time, but I do expect more defaults on both accounts.
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ashtondav
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Post by ashtondav on Aug 10, 2018 18:22:59 GMT
Similar moans and groans over on the LC board. I'm sure "luck" plays a part in this.
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upland
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Post by upland on Aug 11, 2018 6:16:26 GMT
In the very early days some years ago for me I could not understand how one of the loans I had went bust without paying out anything. I fail to see that their directors did not know that they were bust before taking the loan. And this sort of thing seems to happen sometimes after an indecently short amount of time. However generally I have made money with FC , steady & a bit variable but no overall losses as yet.
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blender
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Post by blender on Aug 11, 2018 8:10:10 GMT
I always thought that there was a problem with undeclared contingent liabilities, like a totally unexpected large CCJ that appears soon after. The computer cannot detect and assess these.
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ashtondav
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Post by ashtondav on Aug 11, 2018 8:56:27 GMT
Trouble is insiders will always scr*w you over. Company A has a fantastic financial year which ended two months ago. Trading in those two months is terrific. The CEO gets a phone call cancelling 20% of this year’s business. (In case you didn’t know most SMEs are very exposed to a few large clients). He then Applies for a loan, with historic and current trading looking super, to buy him time. Next month he defaults.
Simples. That SMEs for you, it’s a high risk lending game, and we’re at the end of a ten year recovery so yes defaults WILL get worse.
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trevor
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Post by trevor on Aug 11, 2018 10:32:34 GMT
I have sold up by FC holding 100% - looks like it was a good decision.... Out of interest, who are you still invested with? FC is one of my core platforms. There maybe some very poor loans but the majority are OK giving me 7% which I'm happy with.
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bg
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Post by bg on Aug 11, 2018 10:41:48 GMT
I have sold up by FC holding 100% - looks like it was a good decision.... Out of interest, who are you still invested with? FC is one of my core platforms. There maybe some very poor loans but the majority are OK giving me 7% which I'm happy with. I'd be very cautious...you may think you are getting 7% but likely you have a lot of 'late' and downgraded loans building up which will become future defaults. FC deliberately do not make this obvious to the casual investor. I would click sell and see how much of your loan book you are able to sell right now, knock 50% of the loans you can't sell (which is a fair estimate of future bad debts) off your interest received and see if you then still have a 7% return (very unlikely I would say). As for other platforms, Assetz Capital are now comfortably my biggest holding. You should get 7-8% there with all loans secured against real assets.
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Post by df on Aug 11, 2018 10:47:30 GMT
Similar moans and groans over on the LC board. I'm sure "luck" plays a part in this. I'm sure it does, particularly with FC because of their massive loan book. However, on LC, luck is a bit less of a "player". I don't know what the entire loan book is, but when I look at SM - I'm in majority of loans. Also I'm in probably about 80-90% of loans originated in the past 18 months, there are only handful that I've either missed or deliberately didn't bid.
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upland
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Post by upland on Aug 11, 2018 11:39:57 GMT
As for other platforms, Assetz Capital are now comfortably my biggest holding. You should get 7-8% there with all loans secured against real assets. Me too , I get about that. Things generally proceed OK on AC for me.
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adrian77
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Post by adrian77 on Aug 11, 2018 11:45:16 GMT
was with *opa or rather no-hoper! complete waste of time and loss of money
was with Reb***ing S*cietY - thought it would have gone bust by now but time yet!
am emptying my Fu**g S*cure account quicker than Donald Trump takes to twitter
overall I feel p2p is heading for a cliff which will necessiate further regulations
Once FC bought in their black model that was the final straw for me...
Only one left in R*t* S*tte* where I have a rolling account but yet again they changed their model but it is useful for my business.
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trevor
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Post by trevor on Aug 11, 2018 19:45:34 GMT
Out of interest, who are you still invested with? FC is one of my core platforms. There maybe some very poor loans but the majority are OK giving me 7% which I'm happy with. I'd be very cautious...you may think you are getting 7% but likely you have a lot of 'late' and downgraded loans building up which will become future defaults. FC deliberately do not make this obvious to the casual investor. I would click sell and see how much of your loan book you are able to sell right now, knock 50% of the loans you can't sell (which is a fair estimate of future bad debts) off your interest received and see if you then still have a 7% return (very unlikely I would say). As for other platforms, Assetz Capital are now comfortably my biggest holding. You should get 7-8% there with all loans secured against real assets. AC is my biggest holding.
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