SteveT
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Post by SteveT on Dec 14, 2015 18:15:50 GMT
Anyone understand why 18316 is rated D ?
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am
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Post by am on Dec 14, 2015 23:07:06 GMT
Anyone understand why 18316 is rated D ? Not really - the current ratio is low, but I think that's normal for retailers, who generally lack a debtors book. Net margin is under 5%, and is worse than that when tax is taken into account (it seems to be a sole trader). It's quite heavily geared even if the debts (mortgage?) aren't documented by FC. But unless there's something misleading about the balance sheet (e.g. property bought at a high and not revalued, or a large amount of goodwill arising on acquisition of the business and not amortised), or cash flow has collapsed in the last few months, this looks no different from an FC A+/A loan. I don't see why a business of this size is not a limited company.
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am
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Post by am on Dec 14, 2015 23:09:01 GMT
17157 fallen through -- "The borrowers circumstances have since changed. FC" in the 10 days since the loan was listed apparently. I think that (usually) translates to they've found a better deal from another lender.
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Post by transo on Dec 14, 2015 23:37:16 GMT
Anyone understand why 18316 is rated D ? Well it was rated as an E when they previously applied (and then didn't take the loan for "unforeseen reasons" according to the latest Q&A) in October.
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TitoPuente
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Post by TitoPuente on Dec 15, 2015 14:44:44 GMT
18316: This loan has been re-listed under the correct business name. Thanks FC.
Is there any T&C clause that prevents correcting a typo? Or it is just the usual lack of common sense.
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ablender
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Post by ablender on Dec 15, 2015 14:51:12 GMT
18316: This loan has been re-listed under the correct business name. Thanks FC. Is there any T&C clause that prevents correcting a typo? Or it is just the usual lack of common sense. People are discussing about the reason for the change of risk band not the correction of a typo.
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TitoPuente
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Post by TitoPuente on Feb 18, 2016 21:33:39 GMT
I thought it was worth to mention 17174, a large E of £263,160, went CVA after two payments:
18 Feb 2016
We have downgraded this loan as the company director has informed us that they are proposing a Company Voluntary Arrangement. We will be negotiating with the guarantor to ascertain how the loan will be repaid going forward. We will update investors with any further developments.
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SteveT
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Post by SteveT on Feb 18, 2016 22:59:55 GMT
I thought it was worth to mention 17174, a large E of £263,160, went CVA after two payments: 18 Feb 2016 We have downgraded this loan as the company director has informed us that they are proposing a Company Voluntary Arrangement. We will be negotiating with the guarantor to ascertain how the loan will be repaid going forward. We will update investors with any further developments. That could affect the E bad debt statistics a fair bit!
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blender
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Post by blender on Feb 18, 2016 23:13:15 GMT
I thought it was worth to mention 17174, a large E of £263,160, went CVA after two payments: 18 Feb 2016 We have downgraded this loan as the company director has informed us that they are proposing a Company Voluntary Arrangement. We will be negotiating with the guarantor to ascertain how the loan will be repaid going forward. We will update investors with any further developments. That could affect the E bad debt statistics a fair bit! Downgraded so far, but when they have to default it into loss there will be howls of anguish. Can they hold on until the next tax year?
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metoo
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Post by metoo on Feb 18, 2016 23:17:26 GMT
While I'm relieved I don't own this one, it always seems un-Fairly Crazy that if we didn't own a loan that goes RBR we can't take a look to see what the company was like when the loan was offered. Can anyone shed any light without breaking the rules? Were there any standout signs of weakness apart from the E-band? What type of business was it?
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fasty
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Post by fasty on Feb 18, 2016 23:49:59 GMT
While I'm relieved I don't own this one, it always seems un- Fairly Crazy that if we didn't own a loan that goes RBR we can't take a look to see what the company was like when the loan was offered. Can anyone shed any light without breaking the rules? Were there any standout signs of weakness apart from the E-band? What type of business was it? The company was in engineering associated with the marine, offshore oil and gas and offshore wind farms industries. Perhaps not an ideal industry to be in right now? It also already had a £150k debt taken on in the last year. Unfortunately I am significantly exposed to this one  . I did hold a much larger number of loan parts but started shedding them after there was a retry fetching payment last month 
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SteveT
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Post by SteveT on Feb 19, 2016 0:01:22 GMT
The explanation for needing the loan was "We have recently purchased a new site and need some funds in place to help us expand into the new premises. We need the money in place to refurbish the property, secure new stock, hire more staff members (of which we are looking to create 20+ new jobs for local people) and upgrade our software".
Could it conceivably be that lenders weren't being told the whole truth ...
Happily my exposure is just my standard E loan "minor punt"
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acky
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Post by acky on Feb 19, 2016 8:40:49 GMT
For what it's worth, 17174 was a Whole Loan reject, but then so many of the E's are. Looking at all E's accepted to date, there have been 97 offered direct to us, and 137 offered as whole loans, of which 72 (53%) have been rejected. So 43% (72/(72+97)) of the E loans that come our way have previously been rejected by the wholesale market. It seems the wholesale market's appetite for E loans is rather less than the retail market's. Compared to this 53% rejection rate of E loans by the wholesale market, the rejection rate for all other loans is 17% (and for A+, 11%).
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mikeh
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Post by mikeh on Feb 19, 2016 9:06:26 GMT
The explanation for needing the loan was "We have recently purchased a new site and need some funds in place to help us expand into the new premises. We need the money in place to refurbish the property, secure new stock, hire more staff members (of which we are looking to create 20+ new jobs for local people) and upgrade our software". Could it conceivably be that lenders weren't being told the whole truth ... Happily my exposure is just my standard E loan "minor punt" This sounds like tantamount to fraud to me. How can you borrow £263k for expansion and not be able to make the third repayment?
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blender
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Post by blender on Feb 19, 2016 9:47:17 GMT
Yes, this smells fishy. It is easy to say when you do not hold it, but lending to service companies for the oil industry is something I would not touch with the current oil prices. The oil companies will be taking an axe to the overheads. But I am also exposed to some E loans which could really hurt if they fail this early, and am taking no comfort from missing this one.
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