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Post by shanghaiscouse on May 15, 2019 13:12:17 GMT
I have become worried about FC (the IPO disaster, the falling returns, the delays in payouts) so for the first time I took a look through the portfolio and the loans where I have over £1,000 of exposure. I was imagining they would all be builders, but in fact for the larger loans I was exposed to landscaping businesses (£109k), a conference organiser (£202k) and an elderly home care business (£56k). However, I could see problems in all of them, the landscaper had not traded for 2 years and took a loan of £109k which seems excessive, the elderly home care had 2 years of trading losses, and the conference organiser was clearly a start up with no accounts at companies house so why they needed 202k is beyond me. Also none of them had assets secured against loans, 2 had directors guarantee but landscaper didn't. Perhaps bank lending practices are even worse, but I would never have lent so much money to any of these 3.
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Post by gravitykillz on May 20, 2019 10:02:02 GMT
I have become worried about FC (the IPO disaster, the falling returns, the delays in payouts) so for the first time I took a look through the portfolio and the loans where I have over £1,000 of exposure. I was imagining they would all be builders, but in fact for the larger loans I was exposed to landscaping businesses (£109k), a conference organiser (£202k) and an elderly home care business (£56k). However, I could see problems in all of them, the landscaper had not traded for 2 years and took a loan of £109k which seems excessive, the elderly home care had 2 years of trading losses, and the conference organiser was clearly a start up with no accounts at companies house so why they needed 202k is beyond me. Also none of them had assets secured against loans, 2 had directors guarantee but landscaper didn't. Perhaps bank lending practices are even worse, but I would never have lent so much money to any of these 3. Sell your loans while you can and move your money into crowdproperty at 8% or kuflink or even lendinvest.
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Post by danielbird193 on May 20, 2019 10:20:51 GMT
It does seem shocking but perhaps goes some way (a long way!) to explaining the default rates many F*pping Cash investors have reported in recent times.
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Post by shanghaiscouse on May 20, 2019 16:23:17 GMT
I have dug further. I am absolutely horrified by what I am finding. One loan I have, the company got the FC loan then after only 6 of 60 repayments wound itself up and FC's attempts at getting the money back are basically sending legal letters. But a brief review of companies house information finds that the debtor simply set up a new company and is trading the same business! I can find this in five minutes but apparently they can't!
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ceejay
Posts: 975 
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Post by ceejay on May 25, 2019 7:51:00 GMT
I got out some time ago and am now the proud possessor of a portfolio consisting entirely of defaulted loans. My overall XIRR is currently a smidge over 2%, which may increase depending on the amount of recovery. However, as recoveries this month come to about 30p, I'm not holding my breath!
The interesting thing I note, looking at the comments for my rump portfolio, is how dependent the recoveries are on the co-operation of the loan guarantor. And, surprise surprise, not many of them are co-operative! They will go missing, they will say it wasn't them that signed the papers, they will bankrupt themselves, or use any other legal device they can. That isn't really surprising, I suppose.
But my point is that this isn't anything that appears in the FC publicity: the fact that the likelihood of you getting your money back has very little to do with the businesses we're lending to, and much more to do with the willingness of the (invisible) guarantors to cough up.
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Post by shanghaiscouse on May 28, 2019 21:37:38 GMT
I don't like that the name of the guarantor is never disclosed. What DD do they do on them to make sure they are good for the money? And is it really possible that so many of the loans have NO asset security whatsoever? However, I think the main problem is that their recoveries team is not good and overwhelmed. The growth in loans must include an even higher proportion of bad loans. Yet the comments I see in my 'bad loans' show things like one year delays in following up with bad debts. Perhaps FC suffer from too much transparency? I still need to find out whether I, as the owner of a loan part to a lender, can petition that lender for bankruptcy without relying on FC because based on their history of dealing with this person I have no confidence they will do it.
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Post by gravitykillz on May 28, 2019 22:55:29 GMT
If you are looking for loan quality fc is the wrong platform.
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mikeb
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Post by mikeb on Jun 2, 2019 18:23:00 GMT
... whether I, ... can petition that lender for bankruptcy without relying on FC ... I wasn't aware it was FC's job to help lenders into bankruptcy. I think it's just a side-effect of the current system  I think you mean "borrower", perhaps? 
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Post by shanghaiscouse on Jun 5, 2019 11:21:22 GMT
yes, sorry english not my first language , you are correct, borrower
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