TheHouseCrowd gone into Administration!

I don’t know what they teach in accounting these days.
Ok, nor do I know what they taught back in the day!
But I doubt it says anywhere in an accounting module that FCA authorisation is a guarantee of not going into administration.

There are no guarantees of not going into administration, but some things do reduce the imminent likelihood. Four helpful ones are profitability, strong balance sheet, large cash positions, access to additional capital.

I’ve never looked at THC until today but if the main company is THE HOUSE CROWD LIMITED (co number 07893395) then it’s not very reassuring that they’ve always lodged the scantiest accounts information they can get away with and as late as possible. Most recent unaudited abridged accounts are to 31/05/2019. At that point net assets were circa £1.1m with 40% in cash and 60% in debtors. But that’s getting on for nearly two years ago. 

Of course there are no guarantees. There are no guarantees of my stock broker going bust either but how many out of the total have done so?

And how many p2p platforms have gone bust? Just take a look on this website how many are running and how many have gone bust.

And are you suggesting a retail investor should do night classes in accountancy and then research any _platform_ before they invest on it?

Just watched it (up to Debroah's verdict so far). Very interesting that she thought the main risk was the property market being iliquid and fluctuating and that people wouldn't realise that. I suspect many investors here (certainly myself) shared that view and we did realise that risk.

Sadly its completely wrong as the risk of the platform is a much bigger risk and that is something you would have thought regulation could solve but they're nowhere near to doing so.

michaelc
Are you suggesting retail lenders should invest in fintech-alchemy without any understanding of
- the industry with no track record,
- the industry the new boys are pretending to be better than,
- the start-up platforms with nil capital adequacy and nil retail financial services experience,
- debt and the companies they are lending to or the industries those companies are in?

michaelc is that what you did? 
Waxing lyrical on forums is no substitute for understanding. Nor is having an annual poll.
Understanding how to read P&L and Balance sheets is just a small fraction of the knowledge required to be involved in private debt through start up platforms in an industry that has many flaws.

But hey it’s all someone else’s fault when it doesn’t work out. 

Just watched it (up to Debroah's verdict so far). Very interesting that she thought the main risk was the property market being iliquid and fluctuating and that people wouldn't realise that. I suspect many investors here (certainly myself) shared that view and we did realise that risk.

Sadly its completely wrong as the risk of the platform is a much bigger risk and that is something you would have thought regulation could solve but they're nowhere near to doing so.

Drowned out by cries of Hail Frazer, Hail Frazer!