slippery
Member of DD Central
Posts: 83
Likes: 61
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Post by slippery on Sept 11, 2020 11:19:46 GMT
Perhaps camraid could also enlighten us on his/her funding solution affiliations. Yes of course. I work for a business finance brokerage and I am guessing the admins have picked it up from my e-mail address. I work in the business finance market but not really in the loan market. I have had dealings with some P2P lenders. I thought my knowledge of business finance would lend itself to investing in P2P. I have tried the stock exchange looking at growth shares with limited success. I then opted for a blue chip approach hoping for dividends which have collapsed. I am now seeking returns elsewhere and arrived at P2P. In the main I suspect opportunities are well vetted. My concerns are: - the ability to choose which loans to invest in (I am not sure about auto allocation albeit it offers diversity) - the level of communication about defaults and what constitutes a default versus a bad debt. - fraud. This is something we can't really control. However, the lack of communication in this area seems limited or highly confidential. It doesn't seem fair to new investors. camraid - I am quite alarmed that you used your work e-mail to register and post on a public forum. Given that you work in financial services, surely you have concerns that your compliance officer or PR might have concerns that readers will assume you are acting as a business rep? People might not spot your post indicating that you are just posting in your personal capacity.
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Post by camraid on Sept 11, 2020 12:18:27 GMT
Yes of course. I work for a business finance brokerage and I am guessing the admins have picked it up from my e-mail address. I work in the business finance market but not really in the loan market. I have had dealings with some P2P lenders. I thought my knowledge of business finance would lend itself to investing in P2P. I have tried the stock exchange looking at growth shares with limited success. I then opted for a blue chip approach hoping for dividends which have collapsed. I am now seeking returns elsewhere and arrived at P2P. In the main I suspect opportunities are well vetted. My concerns are: - the ability to choose which loans to invest in (I am not sure about auto allocation albeit it offers diversity) - the level of communication about defaults and what constitutes a default versus a bad debt. - fraud. This is something we can't really control. However, the lack of communication in this area seems limited or highly confidential. It doesn't seem fair to new investors. camraid - I am quite alarmed that you used your work e-mail to register and post on a public forum. Given that you work in financial services, surely you have concerns that your compliance officer or PR might have concerns that readers will assume you are acting as a business rep? People might not spot your post indicating that you are just posting in your personal capacity. I don't think that you have anything to be alarmed about. I also don't think that there is a compliance issue or PR issue. I didn't ask to be listed as a representative. In fact I changed my profile so it would not reflect that but the admins changed it back. They must feel it prevents any bias and offers some transparency. I am unsure why but I don't really mind. You seem to have an issue with it so why not ask admin yourself? It is a forum about P2P investment. That is something I am interested in learning more about. I would like to learn about the different platforms, the real returns, potential risks and potential workload for me as an investor. If you can offer any insight it would be appreciated.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
Posts: 1,057
Likes: 617
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Post by dave4 on Sept 11, 2020 16:46:36 GMT
My 2 pence worth.
Platform, look at its history, how has it performed, with good loans and bad.
Users feedback trustpilot ect, read them all. the good and the bad.
Ask questions, to the platform or on forums ect.
Loans. investigate as much as you can about the lender, the use of the loan ie care home, where is it why is it needed, is it a good idea long term ect .
Only invest what you can afford to lose and add a couple of years on to any payback timescale.
DON'T SIT BACK WAIT FOR IT TO PAY BACK. Keep an eye on it, how is it performing, how is current politics / health ect going to affect it. Think.
You will lose sleep, it will go wrong, you will know more about stuff than you thought possible.
You may even make a few quid.
Fraud is only 1 of many issues. but time spent investigating things is well worth it.
Good luck.
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Post by Ton ⓉⓞⓃ on Sept 12, 2020 14:59:34 GMT
<snip> Users feedback trustpilot ect, read them all. the good and the bad. <snip>
With Trustpilot (TP) there was a feeling that an individual was posting on there, even paying for reviews on TP, which were positive about a site, but they were pretty obviously paid for reviews when read - thus making the Platform look bad, perhaps they had paid for them. Reason being bad reviews would be investigated more closely and be removed if fake; positive posts often aren't checked fully. They probably didn't have much effect in bringing the platform down but just added to their feeling of embattlement. So in other words it might've been a rival platform or one of their own Borrowers paying for the fake positive reviews, to help bring down the platform.
Small loans might not get the same level of DD as large, it's just not worth it, in this situation the best advice might be just to be very well diversified and not over-invest.
A loan where a solicitor is overseeing a property transaction is "safer" than one where a Borrower draws down the loan. Safer in that, presumably you'll have a charge on an asset, if anything goes wrong you may be able to sue the solicitor.
Bridging loans often have more trouble than any other type of loan thus either the high coupon or low LtV. I'd say this is a specialist area but all loans are special in some way.
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Post by camraid on Sept 23, 2020 19:19:52 GMT
<snip> Users feedback trustpilot ect, read them all. the good and the bad. <snip>
With Trustpilot (TP) there was a feeling that an individual was posting on there, even paying for reviews on TP, which were positive about a site, but they were pretty obviously paid for reviews when read - thus making the Platform look bad, perhaps they had paid for them. Reason being bad reviews would be investigated more closely and be removed if fake; positive posts often aren't checked fully. They probably didn't have much effect in bringing the platform down but just added to their feeling of embattlement. So in other words it might've been a rival platform or one of their own Borrowers paying for the fake positive reviews, to help bring down the platform.
Small loans might not get the same level of DD as large, it's just not worth it, in this situation the best advice might be just to be very well diversified and not over-invest.
A loan where a solicitor is overseeing a property transaction is "safer" than one where a Borrower draws down the loan. Safer in that, presumably you'll have a charge on an asset, if anything goes wrong you may be able to sue the solicitor.
Bridging loans often have more trouble than any other type of loan thus either the high coupon or low LtV. I'd say this is a specialist area but all loans are special in some way.
Ton, thanks for this. Trustpilot is interesting. FC for example seem to be slated by investors and people who have been declined for loans. Those that are declined would not be considered clients and as such would not be asked for a review unlike the successful applicants who in the main are happy. I feel it is skewed on that basis.
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