arby
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Post by arby on Jul 19, 2019 16:42:08 GMT
The directors of fundingsecure have actually been quite clever - they have managed to convince Raj Kumar and Vijay Gandhi to invest no doubt large sums of money despite the issues with the loan book including the negligence related to the administration of the Art Loans. It would appear Luxmore has managed a successful exit.
Based on correspondence from Investors, public comment on message boards and in the media it became clear that Investor confidence was being eroded in the Company.
The level of non-performing loans continued to increase, further undermining confidence. This increase in the level of non-performing loans led to significant additional costs.
There was also increasing public scrutiny of the platform with regular comment within the media and online forums
Of course we know how that finished...
As the FS issues you mention were clear and widely known issues at the time of investment one would think that a worst case scenario based on more information than we have was considered before deciding to invest. No way to know for sure though.
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james21
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Post by james21 on Jul 19, 2019 18:34:35 GMT
FS have hyped a recent loan, gone full-on sales pitch with it. Listed at 9 percent, not a sniff. Now upped to 12 percent, it smacks of desperation. And even at 12 percent there is currently a £7,500 take up of this £365,000 tranche and all other tranches screwed if further tranches are not filled. Yes, I would say there was an air of desperation and with the whole load more investors just about to get their fingers burnt with the council block and more, then I would suggest things are going to get worse before they get better, if they get better. There's a price to pay for routinely handing out investors money with little to no chance of them ever seeing it again. Meanwhile, if our little god like friend (who I can't see :-)) is happy rearranging his deck chairs for a profit on the deck of the Titanic, I'm happy for him. The god like person (blocked) is taking the pain same as the rest of us but wont admit it
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pip
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Post by pip on Jul 21, 2019 6:21:12 GMT
I think even the collateral administrators would be quicker than this lot at closing out loans and will probably recover almost as much even after their fees! Just checking my holdings in FS as most are aware I take 24 months late as write off point. With Whitehaven still active I have 3 loans that meet that criteria amounting to < 1% of my current investment in FS. On smaller accounts < £10000 I manage they are returning >15% APR. If you require only 8-9% on <£25K this is quite easy selling around the 3-4 month point and being atypical and not greedy with the discount you offer on the maximum diversification portfolio. As to FS management I have recently had cause to contact them on an Issue and found them to be helpful and timely (reply to email within half an hour) Slight problem due to training issue which at least means the have new staff to hopefully make inroads into late loans and improve overall platform experience. I agree updates should at least be given on times promised. I can’t see any advantage to giving a date that can’t be met. There would be less negative impressions if no timeframe was given. I have no objection to updates being delayed if there is no significant change and the staff time is more productively used in dept recovery. I will once again post to remind investors that godanubis’ accounting is totally wrong. Not going to do a lesson on IRFS 9 but let’s just say recognising all the accrued interest and no capital loss on clearly defaulted loans is not correct. As he gets that wrong then his stated returns are meaningless. 15% return where you will likely never receive that interest or the capital returned is accounting with the fairies. I suspect we have somebody who knows they called this one wrong with head firmly in the sand.
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arby
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Post by arby on Jul 21, 2019 7:55:44 GMT
Just checking my holdings in FS as most are aware I take 24 months late as write off point. With Whitehaven still active I have 3 loans that meet that criteria amounting to < 1% of my current investment in FS. On smaller accounts < £10000 I manage they are returning >15% APR. If you require only 8-9% on <£25K this is quite easy selling around the 3-4 month point and being atypical and not greedy with the discount you offer on the maximum diversification portfolio. As to FS management I have recently had cause to contact them on an Issue and found them to be helpful and timely (reply to email within half an hour) Slight problem due to training issue which at least means the have new staff to hopefully make inroads into late loans and improve overall platform experience. I agree updates should at least be given on times promised. I can’t see any advantage to giving a date that can’t be met. There would be less negative impressions if no timeframe was given. I have no objection to updates being delayed if there is no significant change and the staff time is more productively used in dept recovery. I will once again post to remind investors that godanubis’ accounting is totally wrong. Not going to do a lesson on IRFS 9 but let’s just say recognising all the accrued interest and no capital loss on clearly defaulted loans is not correct. As he gets that wrong then his stated returns are meaningless. 15% return where you will likely never receive that interest or the capital returned is accounting with the fairies. I suspect we have somebody who knows they called this one wrong with head firmly in the sand. I fully agree. However, I would hope you would also agree that a large number of people have and continue to make significant returns through FS. Some win, some lose, that's unfortunately the outcome when playing this risky game.
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pip
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Post by pip on Jul 21, 2019 8:45:18 GMT
Arby I have no access to such information. I can’t imagine that a large number of people make a profit from a site with such high levels of defaults. And platform risk for any flipping strategy is surely too high to risk.
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adrian77
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Post by adrian77 on Jul 21, 2019 8:54:21 GMT
exactly - but I thought this is not supposed to be a risky game as in Funding Secure
Also agree about the SM - if on the off chance FS goes into administration then I guess those of us with a high exposure on the SM are going to be sorely disappointed as they will be stuck with non-flippable loans on their books.
On the TV there are programmes such as "Posh Pawn" - each and every one of these dealers strikes me as totally switched on and very professional I just wish I could say the same for FS...
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arby
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Post by arby on Jul 21, 2019 9:27:47 GMT
Arby I have no access to such information. I can’t imagine that a large number of people make a profit from a site with such high levels of defaults. And platform risk for any flipping strategy is surely too high to risk. We all have access to every loan made to date and can easily see that just investing in every loan likely leads to breakeven depending on your default recovery assumption. So, those who either through luck or good judgment manage to avoid some of the poor loans will make money.
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arby
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Post by arby on Jul 21, 2019 9:31:59 GMT
exactly - but I thought this is not supposed to be a risky game as in Funding SecureYou thought you were going to get 14% return with zero risk? Now I at least understand why you are so put out that you only made a few % return.
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Post by Badly Drawn Stickman on Jul 21, 2019 9:34:18 GMT
Arby I have no access to such information. I can’t imagine that a large number of people make a profit from a site with such high levels of defaults. And platform risk for any flipping strategy is surely too high to risk. We all have access to every loan made to date and can easily see that just investing in every loan likely leads to breakeven depending on your default recovery assumption. So, those who either through luck or good judgment manage to avoid some of the poor loans will make money. Maybe best if they don't use that as an advertising campaign.
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arby
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Post by arby on Jul 21, 2019 9:51:05 GMT
We all have access to every loan made to date and can easily see that just investing in every loan likely leads to breakeven depending on your default recovery assumption. So, those who either through luck or good judgment manage to avoid some of the poor loans will make money. Maybe best if they don't use that as an advertising campaign. Yep  They're one of the few sites that provide complete access to all said information. They deserve some credit for that.
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adrian77
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Post by adrian77 on Jul 21, 2019 10:06:56 GMT
did I hell if so I would have put a serious wedge into FS - what I did think was that FS would
not throw our money down so many black holes which should have been avoided e.g. these glorified sheds Park Homes which just leaves me speechless. I don't think 5% would have been an unreasonable expectation but how many of us are going to achieve that - excepting those of us making 15% !
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p2ploser
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Post by p2ploser on Jul 21, 2019 11:02:52 GMT
Maybe best if they don't use that as an advertising campaign. Yep They're one of the few sites that provide complete access to all said information. They deserve some credit for that. Think they tell us only what they want us to know. 4th way review says it all for me and that was done in sept 18. Need to be clearer with their stats, need to be more transparent etc. Can’t wait for their next review!
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Post by martin44 on Jul 21, 2019 19:45:52 GMT
FS are a simple "find a loan" and "bung it on" platform ... when it goes pear shaped you will be left the shortfall...  simple as. |
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reinvestor
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Post by reinvestor on Jul 22, 2019 5:22:47 GMT
FS are a simple "find a loan" and "bung it on" platform ... when it goes pear shaped you will be left the shortfall... simple as. Haven’t you just summed up all p2p platforms?
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r1200gs
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Post by r1200gs on Jul 22, 2019 11:06:34 GMT
FS are a simple "find a loan" and "bung it on" platform ... when it goes pear shaped you will be left the shortfall... simple as. Haven’t you just summed up all p2p platforms? Perhaps, but some are much, MUCH worse than others.
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