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Post by Ton ⓉⓞⓃ on Oct 8, 2015 17:53:28 GMT
You can discuss new loan here or you can start your own thread(s), hope this organizes things better.
The "New Loans on LendingCrowd-STAFF ONLY" thread is now for LC staff only.
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Post by nanniema on Oct 10, 2015 13:24:58 GMT
With reference to the live loan to SAS Limited, is it just a coincidence that the questions ceased to be answered at about the time it achieved 100% funding. If so do we point out to them that this will keep the rate higher than may otherwise be attained?.
Also a small bid by sxxxxxxr on the same loan was cancelled. Is there provision for any one else to do the same or is it restricted to LC underwriters?
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SteveT
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Post by SteveT on Oct 10, 2015 13:59:56 GMT
With reference to the live loan to SAS Limited, is it just a coincidence that the questions ceased to be answered at about the time it achieved 100% funding. If so do we point out to them that this will keep the rate higher than may otherwise be attained?. Also a small bid by sxxxxxxr on the same loan was cancelled. Is there provision for any one else to do the same or is it restricted to LC underwriters? Half the live bids in that loan are from the in-house underwriter and at rock-bottom rates, knocking out genuine bidders.. I've no problem their underwriter stepping in and filling a loan that would otherwise close unfilled but this one should have been left to run as a proper auction and the market left to determine the rate. [Put another way, if s******r really thinks that business deserves to be able to borrow at 8.95% then he's welcome to it]
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indy
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Post by indy on Oct 10, 2015 17:01:32 GMT
Who in their right mind would lend to essentially a startup company with little or no security at 8.95%.........when you can lend at 12% all day long on loans secured against property.
If these rates keep getting pushed too low I will withdraw my money. I only joined to get the £100 bonus + £50 referal bonus, I will stick arround for a while and see how things pan out.
I guess if lots of people jump ship from FC the rates are likely to get pushed down.
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Post by nanniema on Oct 10, 2015 19:24:21 GMT
Who in their right mind would lend to essentially a startup company with little or no security at 8.95%.........when you can lend at 12% all day long on loans secured against property. If these rates keep getting pushed too low I will withdraw my money. I only joined to get the £100 bonus + £50 referal bonus, I will stick arround for a while and see how things pan out. I guess if lots of people jump ship from FC the rates are likely to get pushed down. I do not think they have grasped the fact that they now are approaching the point when they have sufficient lender volume to fill the loan at market rates, and that the increase in lenders is because of the auction facility, but that is only an incentive if it is a true auction. It is a chicken/egg situation. This particular loan may have been filled without sxxxxxxr's input, but because his is only there to bring the rate down, less 'real' lenders will lend proving his bids were needed - the classic self fulfilling prophesy. If the average does come down to 8.95%, and it makes me sick to say this, I might as well go back to the Flatulent Camel and take the straight 9.5% for an A 60 month loan or 10.6% for a B. Come on Lending Crowd - you are in a different league now, and I for one would love you to stay in it.
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registerme
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Post by registerme on Oct 10, 2015 19:43:02 GMT
Come on Lending Crowd - you are in a different league now, and I for one would love you to stay in it. Well, to be fair to Lending Crowd, they may not have been able to predict FC's actions ahead of time, and what the ramifications of those actions might be for their business. I do think they have an opportunity to grab a piece of the market that has been abandoned by FC, whether or not that will scale, well, time will tell. My current concerns with Lending Crowd are three-ish fold:- 1. Poor presentation of financials. Yes, they've put their hands up, and apologised, both of which are to be commended. But, it should never have happened. Assuming there were bidders other than an underwriter / founder, presumably LC would be amenable to a bid retraction if people didn't understand the (frankly contortional) numbers? Not an issue for me, because I didn't bid, but it doesn't instil confidence. How will it impact their ability to scale? 2. This may just be a problem of definition, and it may only be in my own mind, but I've never equated "SME" with "sole trader". 3ish. I've just read Shredded. I wonder how much of Lending Crowd's retail / SME / credit background was gained in RBOS and HBOS. RM
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grahamg
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Post by grahamg on Oct 10, 2015 20:54:28 GMT
I think the underwriting has a different purpose. If you look at the SM you can buy parts in all the loans they have issued. Because the numbers and deal flow is so low they need to give new lenders something to buy into and diversify else no £100 pound bonus. So its for SM liquidity. Will always sell your part above theirs and new lenders can always buy.
As far as SAS goes asked several questions could not figure it out, husband and wife team, operates out of a residential address.
Motto: Never trust an accountant asking for money.
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Post by nanniema on Oct 10, 2015 21:14:28 GMT
Using the back of an envelope accounting method, wthout sxxxxxxr's contribution the situation at the moment would have been;
£15860 bid (79.3%) at average 13.27% with 4 days to go.
I would humbly submit that based on the figures, answers to date and the likelihood that rate would drop perhaps half a point further, that that would be a fair market valuation.
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Post by thesnoop on Oct 12, 2015 13:58:18 GMT
lendingcrowd : Could we perhaps have a statement from you regarding underwriting activity ? I would like to believe that in-house money would be added only to get struggling loans 'over the line' should they be in danger of not being filled as deadlines approach. As more money is starts to come onto the platform this should be required less often going forward. I would not expect it to be used to push rates down should loans already be filled, in effect competing with your own lenders. This kind of activity would lead to a serious erosion of trust. I for one have put money into the currently running auctions, bidding at rates I have chosen based on my perception of current lender market activity. Taking a hit by putting early underwriter money in at 'low' rates to secure a desirable average for the borrowers seems prudent and fair at this juncture. I do not, however, expect to be outbid by the house at the end of an auction when the loan has filled on it's own. Some sort of confirmation to this effect would be greatly appreciated.
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Post by grumbledore on Oct 13, 2015 18:46:18 GMT
With reference to the live loan to SAS Limited, is it just a coincidence that the questions ceased to be answered at about the time it achieved 100% funding. If so do we point out to them that this will keep the rate higher than may otherwise be attained?. Also a small bid by sxxxxxxr on the same loan was cancelled. Is there provision for any one else to do the same or is it restricted to LC underwriters? I've had a bid cancelled in the past. Back when the default bid setting was the lowest rate. I just emailed them and they cancelled it.
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adrianc
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Post by adrianc on Oct 13, 2015 21:18:35 GMT
As far as SAS goes asked several questions could not figure it out, husband and wife team, operates out of a residential address. Motto: Never trust an accountant asking for money. And the deal "fell through", all bids returned.
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jimbob
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Post by jimbob on Oct 14, 2015 7:04:06 GMT
The S**** S***** loan is the best looking one from an investment pov on the auction house, also A******* S****** financials/recent news of takeover of another company look good to me on the secondary market.
Thoughts people ?
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madpierre
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Post by madpierre on Oct 14, 2015 10:50:05 GMT
I have just received an email to inform me that one of the loans I have bid on is now fully funded. Looking at recent bids I see that 'you know who' put up over a quarter of it two days ago after already having funded a similar amount at the commencement of the loan. I really do not accept this as fair practice and will not be bidding on any further Lending Crowd loans unless normal market forces are permitted to prevail. Having recently departed another platform due to my principles of integrity, I perhaps ought to consider lowering my standards of propriety  |
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arbster
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Post by arbster on Oct 14, 2015 10:56:26 GMT
At the risk of repeating myself, I think you're being oversensitive... I think we've seen on many platforms that there's a place for underwriters, especially where a new platform is concerned. I took issue previously to LC's underwriter making his interventions late in the bidding process and knocking retail investors' bids out. This hasn't happened here, and apart from the impact on SM liquidity that could result from UWs offloading their investments later, I don't have a problem with underwriters lending at whatever rate they feel is appropriate. In this case, if he enables the loan to fully fund and I can still secure a rate that I feel reflects the risk, then we all "win". |
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madpierre
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Post by madpierre on Oct 14, 2015 11:35:02 GMT
arbster perhaps your criticism was understood and this time the underwriter has stepped in to almost fill the loan without knocking out any higher bids. This achieves a reduction in the average interest rate and also ensures that anyone else wishing to enter the bidding process has to do so at a lower rate thus knocking off the top bids. Same result but without direct responsibility. Perhaps I am being over sensitive and perhaps even cynical, heaven forbid I would agree that without underwriters many platforms would not succeed. I just would prefer that they refrain from manipulation and that platforms remember that if our money is desired then it should be respected.
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