j1
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Post by j1 on May 28, 2019 19:52:12 GMT
fundingsecure , to prevent a run on the banks p2p providers, what reassurance (evidence) can you provide us that you are profitable and healthy and not about to follow Lendy and ... ?
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mullet
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Post by mullet on May 28, 2019 19:57:35 GMT
fundingsecure , to prevent a run on the banks p2p providers, what reassurance (evidence) can you provide us that you are profitable and healthy and not about to follow Collateral, Lendy and ... ? Not sure if a run on FS is possible - nobody can access their money
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cwah
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Post by cwah on May 28, 2019 20:53:20 GMT
I don't know how good or bad it is. But found out some hints:
- They've reported £181k in corporation tax payment for 2018, so they have at least a net profit of £952k. Which should be decent
- However, it seems that the balance sheet isn't very strong with a large amount of debtors (meaning fees waiting to be received from loans repayment) and an even larger amount of creditors due within 1 year (I assume legal fees, office, staff, etc.).
- That is probably the reason they registered some charges recently to ease their cash flow. So for now they should have enough cash to keep going.
- They are also regularly providing or renewing new loans, which mean more cash coming in every time they get activated
So I'd say in a much better shape than Lendy with the new charge registered as well as new loans, I don't see them entering administration at the moment. I think it will depend a lot on the loans recovery and the amount of bad debts/loans.
Hopefully it will deflate and things will get better!
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arby
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Post by arby on May 28, 2019 20:55:37 GMT
I believe they have recently secured a loan by offering a fixed and floating charge over the assets of the company. This implies the lender has some confidence in FS as a profitable going concern. However, I take your point that more direct communication from FS is always appreciated. Edit: a bit slow. See reply above mine for more complete answer  |
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Post by samford71 on May 28, 2019 21:11:38 GMT
j1 . Are you sure you really want to know about their profitability? If they tell you they were profitable last year, how much confidence would that really give you they will be profitable this year or the next?
Exhibit A : A platform that claimed huge profitability. Well lets say it didn't turn out so well for them or their lenders a few years later.
Remember the ONLY likelihood of a total loss is a massive fraud committed by the borrower. 1 in a 1000 seems to be very conservative, so we would put it at 1 in 10,000 maybe 1 in 100,000 given our DD and security measures in place and even then, those figures are conservative. All assets have indemnified valuations. Our legals are indemnified. We have a big pot of cash in the Provision Fund which is increasing all the time. We are the most profitable P2P lender in the UK, probably Europe and most likely the known Universe.Our overheads are very negligible (for now, as we are building the infrastructure and team to accomodate future growth)
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jaswells
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Post by jaswells on May 29, 2019 1:05:19 GMT
What I find interesting is when collateral collapsed I received a number of emails from p2p sites (including LY) re-assuring me of their stability. This time, nada. Maybe they will come as its still very early days. The trouble is the business model is now in question and not just the individual company.
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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 May 29, 2019 1:19:30 GMT
What I find interesting is when collateral collapsed I received a number of emails from p2p sites (including LY) re-assuring me of their stability. This time, nada. Maybe they will come as its still very early days. The trouble is the business model is now in question and not just the individual company. How many times do we need to say collateral did not collapse and there is no evidence the were not in profit. Anyway lots of companies run at a loss on the books and are in business for years. Deductible directors loans etc give an apparent loss for tax purposes. If you are not aware of ALL the increased risks of P2P you should not be investing.
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Post by beepbeepimajeep on May 29, 2019 6:29:55 GMT
How many times do we need to say collateral did not collapse 
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blender
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Post by blender on May 29, 2019 7:17:05 GMT
Collateral was brought down by regulatory issues, and some might say by the regulator. This is irrelevant to an argument about profitability. There is a problem with the model, imo, and that is that if borrowers in quantity decide not to repay, or cannot repay, then there is not sufficient income for the platforms to resource the necessary collections enforcement and make a profit. FC is suffering from this, imo.
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Post by brightspark on May 29, 2019 7:27:32 GMT
What I find interesting is when collateral collapsed I received a number of emails from p2p sites (including LY) re-assuring me of their stability. This time, nada. Maybe they will come as its still very early days. The trouble is the business model is now in question and not just the individual company. How many times do we need to say collateral did not collapse and there is no evidence the were not in profit. Anyway lots of companies run at a loss on the books and are in business for years. Deductible directors loans etc give an apparent loss for tax purposes. If you are not aware of ALL the increased risks of P2P you should not be investing. So the businesses failed in spite of an underlying soundness? Conclusion:- the failure was an out of its depth management team akin to the 2007 Nat West mishap. The solution? Tighter regulation/scrutiny of those in charge of such operations - presumably not favoured by the present government? Keep the onus on lenders employing the concept of sophisticated v non-sophisticated investors - believed to be the City's preferred route? Personally I think the first option offers better protection.
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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 May 29, 2019 8:44:58 GMT
Collateral also had atypical IT problems and bad choice of receivers which hindered the smooth take over of the platform by BDO .
It was a wake up call to FCA and other platforms to tighten up wind down arrangements and Lendy for instance should have a reasonable speedier outcome.
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invester
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Post by invester on May 29, 2019 9:47:42 GMT
I doubt FC are having liquidity issues - didn't their IPO raise a load of cash for the company?
A bigger issue might be whether demand dries up. If their projected loan rates go down any further (which they surely are going to be forced to do), then that could be bad news for them, as it seems there is less institutional money with FCIF gone.
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jonno
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nil satis nisi optimum
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Post by jonno on May 29, 2019 10:04:38 GMT
I doubt FC are having liquidity issues - didn't their IPO raise a load of cash for the company? A bigger issue might be whether demand dries up. If their projected loan rates go down any further (which they surely are going to be forced to do), then that could be bad news for them, as it seems there is less institutional money with FCIF gone. ; wrong "Funding". This thread relates to Funding SECURE rather than CIRCLE
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blender
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Post by blender on May 29, 2019 11:46:37 GMT
I think invester might be referring to my mention of FC. Their IPO did raise cash, but my point was about profitability. FC are also in trouble in gaining sufficient lender funds - given that the delay in selling loan parts is approaching two months.
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