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Post by shanghaiscouse on Apr 26, 2020 15:39:13 GMT
never a truer word spoken - FC is finished and this will only delay the inevitable and be paid by we taxpayers I have to disagree, rather than being finished (at least in short to medium term) they are the only ones with any funds left on the balance sheet. They should be able to lead a consolidation. Its all the other P2Ps that didn't manage to raise any funds and who are ALL loss making and cash-flow negative that I would worry about. The only way to survive is to merge, probably three P2P need to merge into one and get rid of two sets of costs. Finally there will be one company who can at least break even at cash flow level.
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Post by Ace on Apr 26, 2020 16:09:45 GMT
never a truer word spoken - FC is finished and this will only delay the inevitable and be paid by we taxpayers I have to disagree, rather than being finished (at least in short to medium term) they are the only ones with any funds left on the balance sheet. They should be able to lead a consolidation. Its all the other P2Ps that didn't manage to raise any funds and who are ALL loss making and cash-flow negative that I would worry about. The only way to survive is to merge, probably three P2P need to merge into one and get rid of two sets of costs. Finally there will be one company who can at least break even at cash flow level. Is not true that all P2P platforms are loss making. 4th way did an article on some here. From memory, I think ABLrate and Unbolted are also generating a profit (I haven't checked). I hope you're wrong about FC. The last thing we need is for good platforms to be taken over by a bad one.
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Post by shanghaiscouse on Apr 27, 2020 11:52:45 GMT
They are the only ones left with a balance sheet. They did their IPO then poisoned the well for everyone else! Its an interesting strategy, a kind of kamikaze approach
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Post by jochietoch on May 19, 2020 6:53:16 GMT
Depending on how many existing borrowers are able to refinance onto such loans (or, at least, be supported by them in addition to their existing FC borrowing), this could also be quite beneficial for our repayments. Does anyone else start to see an uptick in early repayments?
I've had 5 so far in May totalling about 1.8% (of ~ 2.5k remaining in 250-ish loans), which is roughly double what I saw in the early months of the year. Probably too early to distinguish from random fluctuations - but if others see the same maybe this is indeed a sign of borrowers refinancing into CBILS loans?
Seems I ought to think of this as a bad thing - presumably it's not the non-performing loans that pay early, so I end up with the same number of future defaults compensated by less interest income. And yet I can't but feel excited at seeing more money returned to me earlier.
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chris1200
Member of DD Central
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Post by chris1200 on May 19, 2020 10:36:13 GMT
Depending on how many existing borrowers are able to refinance onto such loans (or, at least, be supported by them in addition to their existing FC borrowing), this could also be quite beneficial for our repayments. Does anyone else start to see an uptick in early repayments?
I've had 5 so far in May totalling about 1.8% (of ~ 2.5k remaining in 250-ish loans), which is roughly double what I saw in the early months of the year. Probably too early to distinguish from random fluctuations - but if others see the same maybe this is indeed a sign of borrowers refinancing into CBILS loans?
Seems I ought to think of this as a bad thing - presumably it's not the non-performing loans that pay early, so I end up with the same number of future defaults compensated by less interest income. And yet I can't but feel excited at seeing more money returned to me earlier. While I agree with the broad logic (generally it'll be the better quality loans that are able to re-finance), I still think this is a good thing for three reasons. Firstly, especially in the current climate, it's still very possible that loans which are able to refinance now might have got into trouble later. Secondly, related to the first point, there will be plenty of cases of loans lent to otherwise perfectly decent borrowers that are only experiencing difficulties because of the current situation - so their ability to refinance/get extra finance is very much a good thing for us as it makes default less likely, whether now or later. Thirdly, if you were looking to exit FC but were concerned at how long this will now take given we can't sell our loans anymore, clearly any repayment that gets funds to us sooner is a good thing (as you allude to in your final sentence)!
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