zlb
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Post by zlb on Sept 7, 2018 21:30:01 GMT
Hi, there's clearly a lot of thought gone into this model in a range of ways, so I'm not aiming to be a detractor.
However, in trying to evaluate it, I can't help wondering about this kind of loan market and what can go wrong with it.
What kinds of things do people need to borrow for, short term? Are they the people who are always up to their free overdraft limit, sadly?
I wonder whether there are stats in the number of people who regularly borrow in this way.
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benaj
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Post by benaj on Sept 8, 2018 7:26:15 GMT
zlb , looking @ the bigger picture would probably put some people off investing. www.nao.org.uk/report/tackling-problem-debt/The fact is, there is a market for this because people are spending than what they are earning. The long term goal is to help these people repay debt early in the long term. Short term lending is only helping them short term.
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Post by nsiam on Sept 9, 2018 9:06:17 GMT
Hi, there's clearly a lot of thought gone into this model in a range of ways, so I'm not aiming to be a detractor. However, in trying to evaluate it, I can't help wondering about this kind of loan market and what can go wrong with it. What kinds of things do people need to borrow for, short term? Are they the people who are always up to their free overdraft limit, sadly? I wonder whether there are stats in the number of people who regularly borrow in this way. The most common reason for a Welendus loan is Unexpected Bills and Utility Bills. Given that about 50% of the UK adult population have less than £100 in saving, any unexpected bills or expenses may lead to borrowing which can be from family, friends, unarranged overdraft or short-term loans. We will be sharing some stats soon and I am happy to share the link when its released. Best, Nadeem
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 9, 2018 10:55:48 GMT
Hi, there's clearly a lot of thought gone into this model in a range of ways, so I'm not aiming to be a detractor. However, in trying to evaluate it, I can't help wondering about this kind of loan market and what can go wrong with it. What kinds of things do people need to borrow for, short term? Are they the people who are always up to their free overdraft limit, sadly? I wonder whether there are stats in the number of people who regularly borrow in this way. The most common reason for a Welendus loan is Unexpected Bills and Utility Bills. Given that about 50% of the UK adult population have less than £100 in saving, any unexpected bills or expenses may lead to borrowing which can be from family, friends, unarranged overdraft or short-term loans. We will be sharing some stats soon and I am happy to share the link when its released. Best, Nadeem I would imagine there are a lot of small one person businesses that have cash flow problems with slow payers. They would be reasonably good risk asset rich cash poor but cash expected.
Are you considering having any secured loans for slightly longer in the future?
P.S Don't you get a day off ??
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zlb
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Post by zlb on Sept 9, 2018 17:35:22 GMT
Hi, there's clearly a lot of thought gone into this model in a range of ways, so I'm not aiming to be a detractor. However, in trying to evaluate it, I can't help wondering about this kind of loan market and what can go wrong with it. What kinds of things do people need to borrow for, short term? Are they the people who are always up to their free overdraft limit, sadly? I wonder whether there are stats in the number of people who regularly borrow in this way. The most common reason for a Welendus loan is Unexpected Bills and Utility Bills. Given that about 50% of the UK adult population have less than £100 in saving, any unexpected bills or expenses may lead to borrowing which can be from family, friends, unarranged overdraft or short-term loans. We will be sharing some stats soon and I am happy to share the link when its released. Best, Nadeem thanks. Look forward to seeing.
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zlb
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Post by zlb on Sept 9, 2018 17:36:12 GMT
The most common reason for a Welendus loan is Unexpected Bills and Utility Bills. Given that about 50% of the UK adult population have less than £100 in saving, any unexpected bills or expenses may lead to borrowing which can be from family, friends, unarranged overdraft or short-term loans. We will be sharing some stats soon and I am happy to share the link when its released. Best, Nadeem I would imagine there are a lot of small one person businesses that have cash flow problems with slow payers. They would be reasonably good risk asset rich cash poor but cash expected.
Are you considering having any secured loans for slightly longer in the future?
P.S Don't you get a day off ??
yes, would be interesting to see the proportion of self employed here.
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benaj
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Post by benaj on Sept 9, 2018 18:17:57 GMT
I would imagine there are a lot of small one person businesses that have cash flow problems with slow payers. They would be reasonably good risk asset rich cash poor but cash expected. Are you considering having any secured loans for slightly longer in the future? P.S Don't you get a day off ??
yes, would be interesting to see the proportion of self employed here. Looking into my loan book, out of 56 borrowers (with current earnings), I only have 6 self employed, 1 on benefits and 1 working part-time. Others work full time.
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zlb
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Post by zlb on Sept 10, 2018 17:28:00 GMT
yes, would be interesting to see the proportion of self employed here. Looking into my loan book, out of 56 borrowers (with current earnings), I only have 6 self employed, 1 on benefits and 1 working part-time. Others work full time. thanks. interesting that this info is kept in the stats that you see.
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Post by df on Sept 18, 2018 21:54:55 GMT
The most common reason for a Welendus loan is Unexpected Bills and Utility Bills. Given that about 50% of the UK adult population have less than £100 in saving, any unexpected bills or expenses may lead to borrowing which can be from family, friends, unarranged overdraft or short-term loans. We will be sharing some stats soon and I am happy to share the link when its released. Best, Nadeem I would imagine there are a lot of small one person businesses that have cash flow problems with slow payers. They would be reasonably good risk asset rich cash poor but cash expected.
Are you considering having any secured loans for slightly longer in the future?
P.S Don't you get a day off ??
I'm not sure if expanding the range is a good idea. There are some negative experiences (e.g. Col, FS, MT)... Imo sticking to platform's core area of lending is much better strategy in the long term.
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elliotn
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Post by elliotn on Sept 19, 2018 3:53:07 GMT
I would imagine there are a lot of small one person businesses that have cash flow problems with slow payers. They would be reasonably good risk asset rich cash poor but cash expected.
Are you considering having any secured loans for slightly longer in the future?
P.S Don't you get a day off ??
I'm not sure if expanding the range is a good idea. There are some negative experiences (e.g. Col, FS, MT)... Imo sticking to platform's core area of lending is much better strategy in the long term. V good reasons to stick to the knitting - expertise, branding, customers know where they stand - I left RS because they were no longer (imo more predictable) consumer lender so I fully agree; that said main downside for platform is scalability whereas we can diversify across platforms.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Sept 19, 2018 20:07:56 GMT
I still thing taking the best bits from other platforms and proceeding slowly would benefit everyone in the long run
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Post by df on Sept 20, 2018 0:24:38 GMT
I still thing taking the best bits from other platforms and proceeding slowly would benefit everyone in the long run I can't see invoice discounting or SME cash flow loans as way forward for Welendus. Short term unsecured loans to individuals is big enough market to compete.
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Godanubis
Member of DD Central
Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
Posts: 2,011
Likes: 1,013
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Post by Godanubis on Sept 20, 2018 18:45:07 GMT
I still thing taking the best bits from other platforms and proceeding slowly would benefit everyone in the long run I can't see invoice discounting or SME cash flow loans as way forward for Welendus. Short term unsecured loans to individuals is big enough market to compete. As long as they can “cherrypick “ the less risky borrowers and offer them a substantially lower interest rate than the ridiculously high one size fits all short term loan market. There should be enough profit to give everyone a reasonable return and allow borrowers to service the loans comfortably.
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