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Post by westonkevRS on Apr 27, 2015 17:38:34 GMT
wibble, RateSetter is the only major P2P company in the UK that is gross and net profitable, as can be confirmed at Companies House latest accounts. To my knowledge. That said all of three major P2P companies have recently had equity investment of varying sizes (and Assetz are raising equity with their P2P lenders, see their thread). Most of which, I'm led to believe, still sit in the respective bank accounts (or "balance sheet") making them in theory quite stable for the foreseeable future. Caveat: This is only my understanding, and not a recommendation or guarantee. Own research required. @ westonkevRS
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Post by wibble on Apr 28, 2015 10:03:20 GMT
wibble, RateSetter is the only major P2P company in the UK that is gross and net profitable, as can be confirmed at Companies House latest accounts. To my knowledge. That said all of three major P2P companies have recently had equity investment of varying sizes (and Assetz are raising equity with their P2P lenders, see their thread). Most of which, I'm led to believe, still sit in the respective bank accounts (or "balance sheet") making them in theory quite stable for the foreseeable future. Caveat: This is only my understanding, and not a recommendation or guarantee. Own research required. @ westonkevRS Much obliged - that's the kind of transparency I really want!
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james
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Post by james on Apr 29, 2015 14:31:48 GMT
A big bonus at Zopa is the lower cost exit fee for cashing in loans, they charge 1% Strictly, that's true but it's incomplete because: 1. if interest rates are below the loan rate, the seller also loses capital to subsidise the rate that the buyer gets. 2. if interest rates are above the loan rate, the seller loses the profit and it goes to the buyer, initially, then sometimes to Zopa indirectly. 3. Zopa's indirect cut comes because Zopa offers rate guarantees and target lending rates. When rates are below past rates the extra interest rate that the buyer gets increases their average interest rate and reduces the level of subsidy payment that Zopa ends up making. Meanwhile the contribution to lending rates can allow Zopa to increase its fee while still meting the target interest rate for the borrower. Unless rates are very stable the seller loses more than 1% whatever happens, either in buyer subsidy or gain given to the buyer that can subsidise Zopa. Whether that's better or worse than RS and whether RS effectively uses seller lost sale profits to subsidise lending or offers is something i don't know, just haven't looked closely enough.
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Post by westonkevRS on May 2, 2015 17:40:49 GMT
wibble, RateSetter is the only major P2P company in the UK that is gross and net profitable, as can be confirmed at Companies House latest accounts. To my knowledge. That said all of three major P2P companies have recently had equity investment of varying sizes (and Assetz are raising equity with their P2P lenders, see their thread). Most of which, I'm led to believe, still sit in the respective bank accounts (or "balance sheet") making them in theory quite stable for the foreseeable future. Caveat: This is only my understanding, and not a recommendation or guarantee. Own research required. @ westonkevRS Looks like Funding Circle released their annual results this week, as reported by The Telegraph: www.telegraph.co.uk/finance/newsbysector/banksandfinance/11577827/Peer-to-peer-lender-Funding-Circle-doubles-sales-as-it-chases-growth.html" Funding Circle, the internet lender that claims to beat the interest rates on savings and business loans offered by banks, has more than doubled revenues as chases further expansion.
Accounts for the peer-to-peer lender show that its revenues grew by 122pc last year to £11.8m. However, losses increased from £4m to £10.9m as it almost doubled staff numbers." @ westonkevRS
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spiral
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Post by spiral on May 2, 2015 18:24:52 GMT
However, losses increased from £4m to £10.9m as it almost doubled staff numbers." Kev, perhaps you need to move across if doubling staff numbers increased costs by £6.9m. Not sure how many they employ but even if its 100, that means an average salary of about £140K and I'm sure you'd command higher than average
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Post by p2plender on May 2, 2015 18:25:34 GMT
Doubled debt chasers more like.
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shimself
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Post by shimself on May 2, 2015 19:18:55 GMT
RateSetter is the only major P2P company in the UK that is gross and net profitable, as can be confirmed at Companies House latest accounts. To my knowledge. Thincats tell us that they are profitable.
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Post by davee39 on May 6, 2015 9:45:36 GMT
I am only posting this here in the interest of healthy competition. I am delighted that Zopa has at last awoken from a lengthy slumber since I continue to invest there. The smaller person to person operations have not reached critical mass, so it is good to see two healthy horses in this race benefiting us all. www.altfi.com/data/analysis/965
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