ashtondav
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Post by ashtondav on Mar 9, 2020 10:40:06 GMT
Why? I think many here are thinking their poor experience as a lender means the business is doomed. Viewed from a customer perspective (the borrower) they are delighted! FC is not losing money because of bad debt, you are. FC is losing money because it is spending so much on advertising and admin. I will defer judgement until the results. As lenders lose money, old and new lenders refrain from placing new funds into FC. No new funds = no liquidity to lend to whatever class of borrowers = No turnover = failed business. Plenty of demand from institutional investors. FC consider retail punters to be a waste of space. 99% of FC lenders have not lost money if they have over £2000 invested. You are extrapolating from a small vocal sample.
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Post by Mr Smith on Mar 9, 2020 11:30:33 GMT
On the other hand if the government cuts rates further that may impact on more people dumping money into p2p coupled with the approaching isa season. There are too many variables. But the most likely one is negative. The government dont control interest rates, the unelected banksters of england do. According to some people I read we are witnessing a debt deflation which will be followed by massive infrastructure spending followed by massive inflation. Interest rates might hit 20%.
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coogaruk
Hello everyone! Anyone remember me?
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Post by coogaruk on Mar 9, 2020 12:13:28 GMT
Interest rates might hit 20%. One can live in hope.
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Post by Mr Smith on Mar 9, 2020 12:18:02 GMT
Interest rates might hit 20%. One can live in hope. Shhh....dont let the debt monkeys here you say that. The worlds financial system collapsed in 2007/2008 and rather than form it, they stole our money via QE, lowered interest rates and let them do it al again. There was always going to be a day of reckoning. If it wasn't the coronvirus it would be something else. Can they stop the collapse....depends on what happens with the virus. Given that the UK government has just said: www.bbc.co.uk/sport/51777154"Coronavirus: British sporting events to continue as normal, says Culture Secretary Oliver Dowden" Then the UKs got the potential to be hit hard. The US, where the poor dont have access to healthcare could fast become a basket case. All very verry very worrying. I think getting you cash out of FC might be the least of our worries. Share price was at 142 in october 55p today. Down almost 90% from IPO.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 9, 2020 12:48:18 GMT
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adrian77
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Post by adrian77 on Mar 9, 2020 15:12:17 GMT
Interested in the above post about the new investor in FC - clearly these chaps are neither stupid nor amateurs. Not sure why they are buying into FC - maybe they are thinking about taking it over when the share price drops even more and having it run properly or maybe they are expecting a rally in the share price and plan to turn a quick profit personally the only thing I would do with FC stock is short it!
Be interested to see how this one progresses...
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Post by shanghaiscouse on Mar 9, 2020 15:46:03 GMT
As lenders lose money, old and new lenders refrain from placing new funds into FC. No new funds = no liquidity to lend to whatever class of borrowers = No turnover = failed business. Plenty of demand from institutional investors. FC consider retail punters to be a waste of space. 99% of FC lenders have not lost money if they have over £2000 invested. You are extrapolating from a small vocal sample. How can you possibly know this? I doubt you have any basis for this statement that 99% have not lost money. It also depends on the time period and whether or not they have closed out their accounts. I sincerely doubt that many people have made money in the last year looking on a single year basis instead of the "all time" basis. MOreover, until you close out your account and attempt to sell everything a lot of bad debts remain hidden.
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Post by shanghaiscouse on Mar 9, 2020 15:51:48 GMT
As lenders lose money, old and new lenders refrain from placing new funds into FC. No new funds = no liquidity to lend to whatever class of borrowers = No turnover = failed business. Plenty of demand from institutional investors. FC consider retail punters to be a waste of space. 99% of FC lenders have not lost money if they have over £2000 invested. You are extrapolating from a small vocal sample. Plenty of demand? The stock goes from 440p to 56p with no additional supply and you think there is plenty of demand?
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c88dnf
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Post by c88dnf on Mar 9, 2020 17:42:50 GMT
48 pence at today's London close, down 20.7% on the day (and 82.7% over the past year). Just about the only news that has made me smile today.
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ashtondav
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Post by ashtondav on Mar 9, 2020 18:13:42 GMT
Plenty of demand from institutional investors. FC consider retail punters to be a waste of space. 99% of FC lenders have not lost money if they have over £2000 invested. You are extrapolating from a small vocal sample. How can you possibly know this? I doubt you have any basis for this statement that 99% have not lost money. It also depends on the time period and whether or not they have closed out their accounts. I sincerely doubt that many people have made money in the last year looking on a single year basis instead of the "all time" basis. MOreover, until you close out your account and attempt to sell everything a lot of bad debts remain hidden. Actually its 99.5% and its direct from the FC website.
My own account (no withdrawals or sales) shows a return of 2.9% for 2019 (net interest on capital invested). Not brilliant but twice as much as Marcus and NOWHERE NEAR A LOSS.
Sellers, leaving themselves with only late payers and bad debts, will have much lower returns.
Your comments on hidden bad debt apply to any platform without a PF. Er, and that's the nature of p2plending.
What is clear is that many people who should never have invested in this industry have been sucked in by a naive belief they could earn 7% plus with no risk and have instant access. A pipe dream called having your cake and eating it.
Lending to small businesses is HIGH RISK.
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ashtondav
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Post by ashtondav on Mar 9, 2020 18:15:22 GMT
48 pence at today's London close, down 20.7% on the day (and 82.7% over the past year). Just about the only news that has made me smile today. Market down 8% today. No p2p lender in the top 4 has suffered that today. As a p2p lender that made me SMILE.
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Mucho P2P
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Post by Mucho P2P on Mar 9, 2020 23:14:59 GMT
As lenders lose money, old and new lenders refrain from placing new funds into FC. No new funds = no liquidity to lend to whatever class of borrowers = No turnover = failed business. Plenty of demand from institutional investors. FC consider retail punters to be a waste of space. 99% of FC lenders have not lost money if they have over £2000 invested. You are extrapolating from a small vocal sample. I wish I was extrapolating from a small vocal sample. I have 1000's invested in FC (client for nearly 10 years), not just 2k, and lost a load. I have an inside track to a significant number of P2P firms, right up to CEOs/founders, both here and abroad. Not sure which institutional investors would be allowed (by the Articles of Assoc) to invest in P2P company loans, maybe you would be kind enough to PM me to name a few? There are safer investments for these "institutional" investors. Cheers. MP2P
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Mucho P2P
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Post by Mucho P2P on Mar 9, 2020 23:17:27 GMT
48 pence at today's London close, down 20.7% on the day (and 82.7% over the past year). Just about the only news that has made me smile today. Just hope to liquidate the rest of my funds before they become a penny stock!
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tjtl
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Post by tjtl on Mar 12, 2020 7:48:03 GMT
Full Year Results (tried creating a new three- not sure if it worked)
Funding Circle Holdings plc Full Year 2019 Results Embargoed until 7.00am, 12 March 2020 THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014 Funding Circle Holdings plc ("Funding Circle"), the leading small and medium enterprise ("SME") loans platform in the UK, US, Germany and the Netherlands, today announces results for the year ended 31 December 2019 ("2019"). Samir Desai CBE, CEO and Founder, said: "In 2019 we grew loans under management to a record £3.7bn up 19% year on year. The actions we took in 2019, in response to the uncertain economic outlook, reduced growth but improved investor returns and were the right response for the long-term benefit of the company and our customers. We start the year in a stronger position as a business and confident in delivering an accelerated pathway to profitability targeting Adjusted EBITDA break-even for the whole business in the second half of 2020. Our UK business was profitable in the second half of 2019 and loans under management in the US continues to follow a similar growth trajectory to the UK. We are reorganising our Developing Markets business, which represents c.8% of Group revenue but c.60% of Group Adjusted EBITDA losses in 2019, to deliver a better and more profitable model. Our new instant decision lending platform in the UK and the US has begun to roll out and will provide a step-change in the borrowing experience for SMEs." Financial Summary: · Revenue of £167.4 million (2018: £141.9 million) up 18% despite a challenging economic environment. · Adjusted EBITDA1 of negative £27.5 million (2018: negative £23.4 million) with loss margin of 16% (2018: 16%). · UK business operating profit of £3.0 million in H2 2019 (H2 2018: negative £5.4 million). The UK business represents c.65% of Group revenue. · Loss before taxation and exceptional costs of £49.9 million (2018: £45.0 million)2. Loss before taxation of £84.2 million (2018: £50.9 million)2 including a non-cash exceptional write-down of £34.3 million of goodwill and intangible assets related to the Developing Markets. · Basic loss per share of 24.4 pence (2018 loss: 18.2 pence)2. · Free cash outflow3 of £49.4 million (2018 outflow: £40.9 million). · Net assets of £319.0 million, (2018: £401.0 million)2, including a mix of cash and short and long term investments. Operating and Strategic Summary: · Leading SME loans platform o Record loans under management of £3.73 billion (2018: £3.15 billion), representing year-on-year growth of 19%. o Originations of £2.35 billion (2018: £2.29 billion), representing year-on-year growth of 3%. o c.80,000 small businesses have accessed funding through the Funding Circle platform as at the end of 2019. o Net promoter score between 80-90 for borrowers in the UK and US. · Improving returns attracting more funds to the platform o Proactive actions taken in 2019 to reduce conversion (loans/applications) show early signs of improving net returns for investors. Investor returns are expected to deliver 5.0-7.8%4 in the UK and US for loans originated in 2019. o New investor products launched in 2019 in line with strategy to diversify funding sources: § Successfully launched the Funding Circle-sponsored ABS Bond programme in 2019 with two securitisations completed and 30 institutional investors joining the Funding Circle platform. § Two new private funds launched in 2019 with UK Private Fund raising an initial £30 million of lending commitments from the Merseyside Pension Fund. · Completed initial build of Instant Decision lending platform o New instant decision lending platform drives superior customer experience and competitive advantage. The new platform includes historical data on c.1 million loan applications from the last ten years and is powered by Funding Circle's 8th generation of AI-enabled credit models. o Initial pilots rolled out in Q4 2019 in the UK and first loans took on average 6 minutes from application to approval. On track to roll out to c.50% of borrowers by the end of 2020. · Refining model in Developing Markets to better serve SMEs o Reorganising German and Dutch businesses, which are developing markets for Funding Circle, and represent 8% of revenue and 60% of Adjusted EBITDA losses, to originate loans for local lenders within each market compared to originating loans to institutional and retail investors. o New model accelerates Group path to profitability with lower overall losses in both countries. Outlook: · Focus on improving conversion across the platform, keeping net returns attractive and delivering profitable growth. · Combined UK and US revenue to grow by c.15%, skewed to H2 2020 due to seasonality and lapping credit tightening actions taken in H1 2019. · The reorganised Developing Markets5 contributing c.£7m of revenue in 2020, weighted to H1 2020 from the wind-down of the existing model with H2 2020 seeing the scaling of the new model from a low base. · Targeting Group Adjusted EBITDA break-even in H2 2020 reflecting operational leverage as the business scales. · Group Adjusted EBITDA losses for the year to halve benefiting from the new approach in the Developing Markets and marketing spend falling modestly as a percentage of revenue. · Trading for the year has started well. We continue to assess the possible impact of COVID-19 on borrowers and investors. We have not seen an impact of the virus on recent trading, but we are monitoring the situation closely.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Mar 12, 2020 10:26:41 GMT
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