acky
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Post by acky on Oct 13, 2015 10:34:38 GMT
Acky, I did the analysis about 9 months ago, using money lost as a percentage of money reaching that month, and after discounting the effect of the infant mortality curve. It is made more challenging since you need to know when early repayments happened, which is not obvious from the loan book. A+ did look a bit better, but significance was, iirc, marginal and the difference was small. Thanks, GSC3MIaC. I agree, not knowing when early repayment happened is a problem for this analysis - I have kept earlier loanbook downloads, so inferred the latest possible date of repayment from comparing these - tedious and imperfect, but the best I could do. Maybe 9 months more data has changed the A+ performance a bit, and also your analysis was weighted by loan size, mine not, but anyway I think we are reaching the same conclusions as to the (un)attractiveness of FC's SME offerings at present.
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fasty
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Post by fasty on Oct 13, 2015 12:39:56 GMT
Loan request 16459 (B rated, cycle company) seems strangely familiar. Is this related to a request that I bid on weeks ago, but was rejected in the hope of a lower rate later?
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arbster
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Post by arbster on Oct 13, 2015 12:42:12 GMT
Loan request 16459 (B rated, cycle company) seems strangely familiar. Is this related to a request that I bid on weeks ago, but was rejected in the hope of a lower rate later? No, no, no - it was a technical problem... EDIT: In fairness, the original was also a fixed rate B loan.
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fasty
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Post by fasty on Oct 13, 2015 12:46:17 GMT
Loan request 16459 (B rated, cycle company) seems strangely familiar. Is this related to a request that I bid on weeks ago, but was rejected in the hope of a lower rate later? No, no, no - it was a technical problem... EDIT: In fairness, the original was also a fixed rate B loan. Oh, that's OK then. But I was right in recognising it!
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jamesc
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Post by jamesc on Oct 16, 2015 17:03:01 GMT
When Flighty Crows introduced fixed rates we were told that it would speed up the loan acceptance process so we would not have dead cash not earning interest lying around so much. Maybe its just me but there are at least four E loans in suspended animation not on the loan board but that have not been accepted or rejected yet is this normal ?
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blender
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Post by blender on Oct 16, 2015 17:08:10 GMT
It is normal for them to disappear once their 'auction' period has ended. The applicant borrower then has another 5 working days to accept. If you 'bid' on them you can see them.
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fasty
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Post by fasty on Oct 16, 2015 17:14:15 GMT
When Flighty Crows introduced fixed rates we were told that it would speed up the loan acceptance process so we would not have dead cash not earning interest lying around so much. Maybe its just me but there are at least four E loans in suspended animation not on the loan board but that have not been accepted or rejected yet is this normal ? Absolutely. I'm sitting on SIX as I write, and experience is starting to suggest that many will simply walk away. Not happy!
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min
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Post by min on Oct 16, 2015 19:10:39 GMT
When Flighty Crows introduced fixed rates we were told that it would speed up the loan acceptance process so we would not have dead cash not earning interest lying around so much. Maybe its just me but there are at least four E loans in suspended animation not on the loan board but that have not been accepted or rejected yet is this normal ? Absolutely. I'm sitting on SIX as I write, and experience is starting to suggest that many will simply walk away. Not happy!
Which implies that they weren't aware of interest rate until end of 'auction'. Maybe they are fishing on different p2p sites to get the best deal they can. Wouldn't you?
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fasty
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Post by fasty on Oct 16, 2015 19:59:11 GMT
Absolutely. I'm sitting on SIX as I write, and experience is starting to suggest that many will simply walk away. Not happy!
Which implies that they weren't aware of interest rate until end of 'auction'. Maybe they are fishing on different p2p sites to get the best deal they can. Wouldn't you? Well yes, of course. But I thought that one of the main "benefits" of the new system is that borrowers would know in advance what rate they were up against. I presume that the "E" grade loans also seem worse because they invariably get filled almost immediately, so they can spend a full week sitting in the marketplace before the clock starts ticking on a second week for the borrower to make up their mind.
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Post by Deleted on Oct 16, 2015 21:30:28 GMT
Which implies that they weren't aware of interest rate until end of 'auction'. Maybe they are fishing on different p2p sites to get the best deal they can. Wouldn't you? Well yes, of course. But I thought that one of the main "benefits" of the new system is that borrowers would know in advance what rate they were up against. I presume that the "E" grade loans also seem worse because they invariably get filled almost immediately, so they can spend a full week sitting in the marketplace before the clock starts ticking on a second week for the borrower to make up their mind.
Even assuming they did not know before the auction, certainly borrowers must know the proposed rate at the auction 100% funding time... So FC should really reduce the total time allowed to companies to '5 days after auction 100% funding or completion, whicever is coming earlier'. For example: Expansion And Growth Loan Expansion/growth (16273) the auction was fully funded on the 5 october at 17:55 and yet, as of now 16 october at 22.30 the borrower has not decided/communicated to FC.... It is extremely likely they have been going round banks and other p2p sites looking for cheaper finance and with more credibility given the FC offer... What is FC (or us lenders) gaining from this? Nothing!
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blender
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Post by blender on Oct 16, 2015 22:12:36 GMT
Well yes, of course. But I thought that one of the main "benefits" of the new system is that borrowers would know in advance what rate they were up against. I presume that the "E" grade loans also seem worse because they invariably get filled almost immediately, so they can spend a full week sitting in the marketplace before the clock starts ticking on a second week for the borrower to make up their mind.
... It is extremely likely they have been going round banks and other p2p sites looking for cheaper finance and with more credibility given the FC offer...
What is FC (or us lenders) gaining from this? Nothing!My feeling is that this is right in many cases. The E borrower knows the rate at the start of the auction, but only because that is when he knows he is an E borrower. He does not know that when the process is started. I do think that some who apply and find that they are E borrowers with 18% rate will be happy to be considered creditworthy, without security. Others will have been expecting a better band when they started the process. In both cases they may be keen to borrow at lower rates, one looking elsewhere on the basis of being proved creditworthy by the FC process, the other looking to do better because they have been misjudged. In either case the process can be strung out. They do not know their band and rate when they apply for a loan, and when they do know it is not just a matter of deciding whether the rate is acceptable, it is whether it is their best rate.
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jamesc
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Post by jamesc on Oct 16, 2015 22:39:10 GMT
Basically are we saying for the same reason that some of us like E loans 'the enhanced rate albeit with enhanced risk' is the very same reason that borrowers are more likely to reject or at least take longer to accept, so that money placed in an E loan bid is more likely to be either left idle than say money in an A loan ? Are there any stats as to which loans get rejected by the borrowers most ?
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Post by bonfemme on Oct 20, 2015 8:37:31 GMT
When Flighty Crows introduced fixed rates we were told that it would speed up the loan acceptance process so we would not have dead cash not earning interest lying around so much. Maybe its just me but there are at least four E loans in suspended animation not on the loan board but that have not been accepted or rejected yet is this normal ? E - 16273 - "FC Comment: This auction has been rejected as the borrower was unable to accept within the given time frame. Thanks, FC. Tuesday 20/10. This loan was funded on 5 October. FIFTEEN DAYS!! How much longer can they possibly need? Very, very annoyed. What a complete and utter waste of time.
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Post by pete101 on Oct 20, 2015 8:58:04 GMT
I have queried the acceptance time in general terms with FC. My understanding is that FC intend to move to a form of pre-acceptance. This is logical as the borrower knows before the loan is offered to lenders what the interest rate will be, so it should be possible for a loan to be offered, filled up and transferred to borrower within hours without the possibility of rejection. The period of getting competitive quotes etc is then moved to before the loan is offered to lenders. I would hope that some sort of penalty will be applied should borrowers still reject the loan offer.
As far as I am concerned, the above will be the only benefit of fixed rates to me, so it had better happen soon.
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SteveT
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Post by SteveT on Oct 20, 2015 17:55:37 GMT
Were there really only 4 new loans listed today, or did others fill and draw down on the same day?
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