scooter
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Post by scooter on Jul 21, 2023 12:22:57 GMT
I'm confused! Is this good news or bad for P2P lenders? I call it "taking the P" out of P2P so it becomes I2P. I2P is likely cheaper to run, with less communication to manage, no forum to worry about, etc so why would they bother with P2P? I was genuinely going to stop taking my money out as the rates have increased and penalty interest is now being paid, and the loan terms at those rates will go on beyond what is first predicted, but now i feel i've been a tool (yes) to prop up a balance sheet to get a better investor than myself in place. I feel we are about to be ghosted as the kids say.
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Post by uksoul on Jul 21, 2023 12:42:15 GMT
I'm confused! Is this good news or bad for P2P lenders? I call it "taking the P" out of P2P so it becomes I2P. I2P is likely cheaper to run, with less communication to manage, no forum to worry about, etc so why would they bother with P2P? I was genuinely going to stop taking my money out as the rates have increased and penalty interest is now being paid, and the loan terms at those rates will go on beyond what is first predicted, but now i feel i've been a tool (yes) to prop up a balance sheet to get a better investor than myself in place. I feel we are about to be ghosted as the kids say. Many p2p platforms have institutional investment, benefits inc more projects to be funded, diversification, less reliant on retail investors capital to fully finance projects. There are benefits also to the retail investor. kuflink is expanding so this is a natural progression to take the platform to the next level. They have stated retail investors are integral to the business. The loan from Paragon is not sufficient to fully replace retail investors and substantially expand.
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SteveK
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Post by SteveK on Jul 21, 2023 12:48:43 GMT
Could it be that Kuflink feel they have more loans than retail lenders can accommodate so we may end up with fewer loans to choose from?
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Post by uksoul on Jul 21, 2023 13:08:48 GMT
Could it be that Kuflink feel they have more loans than retail lenders can accommodate so we may end up with fewer loans to choose from? They have said the loan allows for more loans to be funded and retail lenders take priority. The new funding will fill the gap where retail investment falls short.
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p2pfan
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Full-Time Investor
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Post by p2pfan on Jul 21, 2023 14:06:56 GMT
On balance, this is a very positive development for retail investors.
While there is a risk that retail investors will be undercut or replaced by institutional funding, by far the biggest risk is of wipe-out of all or most of our capital and interest if any P2P platforms suddenly closes down as has happened with a few others in the past. For instance, like most other lenders, I haven't received a single penny of my invested money back from TheHouseCrowd all these years after it went into administration.
An institutional lender will have done an enormous amount of due diligence into Kuflink before agreeing to provide a substantial funding line, so that reassures retail lenders that KF are substantially more likely to be in a healthy state.
Additionally, as others have stated, the funding from an institution makes it easier for projects to be funded and hopefully provides more profit for the platform meaning it is less likely to go bust.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 22, 2023 10:03:12 GMT
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