adrianc
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Post by adrianc on Dec 16, 2014 21:20:05 GMT
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Post by bracknellboy on Dec 16, 2014 21:38:52 GMT
Thanks for the link. Quite amusing, if i still didn't have a hefty chunk in FC (largely in run down mode). It would appear that more credit worthy businesses are being put off by answering 3 questions (What do you do, what is the loan for, why are you safe to lend to) rather than a more anodyne one, and that having the most basic grasp of the structure of their existing debts is likewise putting them off. Is it just me that feels that this is loaded with Orwellian Double Speak, and that I am confused as to why a business which is unable to articulate the original 3 questions in one or two sentences apiece, and lacks an at your fingertips grip on the structure of its debts, is more credit worthy than one than can jump this rather low bar ? Is it just that FC is trying to reduce its operating overheads by reducing the amount of data entry its required to do ?
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oldgrumpy
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Post by oldgrumpy on Dec 16, 2014 21:48:46 GMT
There will have to be dozens more pertinent questions from Adrian the three legged bloodhound (et al) which can be ignored by borrowers, or answered while wishing "why the hell didn't FC have the brains to ask us all this information in the first place?"
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blender
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Post by blender on Dec 16, 2014 22:58:59 GMT
There will have to be dozens more pertinent questions from Adrian the three legged bloodhound (et al) which can be ignored by borrowers, or answered while wishing "why the hell didn't FC have the brains to ask us all this information in the first place?" I don't think the Q&A will last much longer - unless the whole loan lenders (the major part of FC's business) require it.
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wysiati
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Post by wysiati on Dec 17, 2014 16:52:58 GMT
Much of this looks like concerted efforts are being made to expedite the lending process and remove unhelpful/borrower-inhibiting elements such as crowd due diligence.
It will be harder for the ordinary lender to outperform the averages and to differentiate between loans in a given risk band, but maybe that is part of the point, making falling back on autobid/platform averages appear a less onerous option than it once did in comparison to the manual alternative?
As long as Q&A still exists lenders can always start off for each new listing with the following:
1) Who are you?
2) What is the loan for?
3) Why are you safe to lend to?
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Post by davee39 on Dec 17, 2014 17:54:58 GMT
A move towards the original Zopa model perhaps.
Loans are categorized A+ to D- and bidding ends up finding a market level for a generic loan part at the selected risk band. If the risk banding is accurate everyone ends up with average losses.
I cannot see a scaling up of the current model to say 200 or 300 loans a week.
What is very clear is that this is an evolving business which wants volume to boost profits to reach Eldorado (An IPO.)
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mikeb
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Post by mikeb on Dec 17, 2014 19:11:46 GMT
...or reach the other Eldorado -- a failed soap  |
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