fasty
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Post by fasty on Dec 17, 2015 18:06:57 GMT
I am ready to eat my words and transfer money back to FC if they offer 4% cashback. Obviously not at the expense of a lower interest rate. You should change your user name to "adreamer"! Well they've stretched to 3% before...
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ablender
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Post by ablender on Dec 17, 2015 22:38:09 GMT
I am ready to eat my words and transfer money back to FC if they offer 4% cashback. Obviously not at the expense of a lower interest rate. You should change your user name to "adreamer"! Well, let us know if they do offer such cashback.
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Post by aloanatlast on Dec 18, 2015 6:45:07 GMT
Considering they've got £150m in near-cash burning a hole in their pockets, it's a total mystery why they would ever offer cashback ever again.
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blender
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Post by blender on Dec 18, 2015 9:07:12 GMT
Considering they've got £150m in near-cash burning a hole in their pockets, it's a total mystery why they would ever offer cashback ever again.
Yes, it could be 'game over' very soon.
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Post by GSV3MIaC on Dec 18, 2015 10:41:35 GMT
But £150m is only 2-3 months at current rate of lending, so a slightly longer term view might require them to keep the odd private investor (or at least WL buyer) on board for the future ..
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SteveT
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Post by SteveT on Dec 18, 2015 10:47:01 GMT
But £150m is only 2-3 months at current rate of lending, so a slightly longer term view might require them to keep the odd private investor (or at least WL buyer) on board for the future .. I'm expecting a second round of capital raising within months, likely around the March / April ISA season and targeted this time at small investors.
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metoo
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Post by metoo on Dec 18, 2015 13:09:20 GMT
Considering they've got £150m in near-cash burning a hole in their pockets, it's a total mystery why they would ever offer cashback ever again. The fund won't buy all tranches of large projects. It may even have some exposure limit for any one borrower, perhaps 0.5% of the fund? If Fine Castles can pull in more borrowers, they will need lenders to match. To grow the business until it becomes world dominating, both sides of the business have to grow. Remember, they say they are a tech platform, matching borrowers with lenders, not a Financial Company. There is always a tendency for imbalances between growth on the supply and demand side of loans. And they probably turn away the larger property projects as unfundable, so I expect they will always be testing that limit. All the platforms seem to struggle matching supply and demand. That is where CB comes in. They also pride themselves in being able to offer borrowers very fast execution. Again, CB makes it possible. CB has a role, provided they can find enough borrowers.
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blender
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Post by blender on Dec 18, 2015 13:44:42 GMT
Considering they've got £150m in near-cash burning a hole in their pockets, it's a total mystery why they would ever offer cashback ever again.
The fund won't buy all tranches of large projects. It may even have some exposure limit for any one borrower, perhaps 0.5% of the fund? If Fine Castles can pull in more borrowers, they will need lenders to match. To grow the business until it becomes world dominating, both sides of the business have to grow. Remember, they say they are a tech platform, matching borrowers with lenders, not a Financial Company. There is always a tendency for imbalances between growth on the supply and demand side of loans. And they probably turn away the larger property projects as unfundable, so I expect they will always be testing that limit. All the platforms seem to struggle matching supply and demand. That is where CB comes in. They also pride themselves in being able to offer borrowers very fast execution. Again, CB makes it possible. So I think the main objective is to grow big, not to have the widest margins. CB has a role, provided they can find enough borrowers. Do they really say they are a tech platform and not a financial services company? I really hope they know what they are and what services they provide to earn their money. The tech platform is just a means. What they are really developing of value is an efficient assessment process for loan applications from SMEs, giving acceptable and stable (we hope) losses when used with diversity. That is what they are selling and exploiting, together with the means of distributing the loans and repayments via a tech platform. If they were judged on the platform there's a thread on this board which would not help them exploiting it in other ways.
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bigfoot12
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Post by bigfoot12 on Dec 18, 2015 13:46:57 GMT
Considering they've got £150m in near-cash burning a hole in their pockets, it's a total mystery why they would ever offer cashback ever again.
The fund won't buy all tranches of large projects. It may even have some exposure limit for any one borrower... 0.75% of NAV to any one legal entity.
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metoo
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Post by metoo on Dec 18, 2015 14:49:36 GMT
Remember, they say they are a tech platform, matching borrowers with lenders, not a Financial Company. Do they really say they are a tech platform and not a financial services company? I really hope they know what they are and what services they provide to earn their money. The tech platform is just a means. What they are really developing of value is an efficient assessment process for loan applications from SMEs, giving acceptable and stable (we hope) losses when used with diversity. That is what they are selling and exploiting, together with the means of distributing the loans and repayments via a tech platform. If they were judged on the platform there's a thread on this board which would not help them exploiting it in other ways. Perhaps I should have left that out, especially as it was not the point of my post, and you are absolutely right. In the back of my mind, I picked it up from a few places. Most recently www.fundingcircle.com/uk/careers which says "So are you a finance company? No. We may work in the finance industry, but at our core we are a technology company that does finance." I suppose it is unfair to Fortran Computing to quote that, as it's their recruitment page where they are looking for good engineers to sort out the Fractal Chaos.
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blender
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Post by blender on Dec 18, 2015 14:56:25 GMT
Discovering that FC claims to be a technology company that does finance is the first event which has made me seriously consider getting out. But its b*llsh*t, surely, please?
Edit: It's all right, I have read 'about us'
We’re building
a better financial world
Funding Circle was created with a big idea:
To revolutionise the outdated banking system and secure a better deal for everyone.
Someone must be trying to make the tekkies feel valued. A silly idea, they're Orcs, they know they're Orcs. Treat them like Orcs.
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SteveT
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SM rates
Dec 18, 2015 15:03:11 GMT
via mobile
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Post by SteveT on Dec 18, 2015 15:03:11 GMT
Discovering that FC claims to be a technology company that does finance is the first event which has made me seriously consider getting out. But its b*llsh*t, surely, please? Their claim or their technology?
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am
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Post by am on Dec 19, 2015 17:57:13 GMT
Discovering that FC claims to be a technology company that does finance is the first event which has made me seriously consider getting out. But its b*llsh*t, surely, please? Edit: It's all right, I have read 'about us' We’re building
a better financial world
Funding Circle was created with a big idea:
To revolutionise the outdated banking system and secure a better deal for everyone.Someone must be trying to make the tekkies feel valued. A silly idea, they're Orcs, they know they're Orcs. Treat them like Orcs. FC's claimed competitive advantage is its credit rating algorithm, which in theory allows them to turn over loans faster and more cheaply, as they doesn't need do to expensive manual due diligence.
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blender
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Post by blender on Dec 19, 2015 23:52:13 GMT
FC's credit rating algorithm revealed: algorithmThat's not right - every second segment should be A+, separated by one of each other band.
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registerme
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Post by registerme on Dec 20, 2015 0:49:56 GMT
A million moon orbits ago, around a relatively uninteresting planet, on a small sea-bound island on the edge of a large continent lay a very especially uninteresting country. Apart, perhaps, from its history. I started out my working life for one of those most unworthy of things called a bank. I had the right education, at the cusp of the end of the wrong end of the wrong business at the wrong period of history.
At the time, and time being what it is (hah, go PV that!) the CIO of the business, exclaimed something along the lines of ".... we're a technology company that processes money....".
>>Hint<< Eagle. >>Hint<< Horrible not quite right copper oxide blue. He was right. He was fired.
Of course, when I recounted this story to the head of the Swaps desk, and turned his monitor off to fix his PC, the whole dam desk went down. Twenty plus traders earning thousands a day, because the rest of the world "needed" their services to manage fixed / floating, or perhaps floating / fixed, forced to go for a coffee.
Ah well, them's the breaks.
As much as the former CIO didn't allow me email!!!!!!!!, he was right about banks being tech companies that process money. If they weren't they wouldn't be subject to the disruption that they are.
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