mj87
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Post by mj87 on Dec 13, 2015 19:20:07 GMT
Hello,
I was wondering quite a few of LC loans have not been able to reach the full allocated amount for the loans. The outstanding money for the loans, where does that come from.
If the money comes from LC own pocket. How deep are their pockets and is this sustainable for LC??
Input from LC representative would be greatly appreciated.
Thanks
MJ
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adrianc
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Post by adrianc on Dec 14, 2015 8:50:53 GMT
There's an in-house underwriting buyer - who's been discussed in a few threads here. They seem to then put their parts on the secondary market, "behind" those of us "normal" lenders.
"Sustainable"? <shrug> Who knows? Only LC internally know the source of their underwriting cash and the relationship between lengths of arms and depths of pockets.
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kaya
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Post by kaya on Dec 15, 2015 13:56:44 GMT
The platform seems to have been established on the basis of underwriting by 'private' investors who obviously have a strong connection. This gets the whole thing off the ground - that and generous incentives. The amount of 'topping up' needed has reduced on recent loans, but the need is still there. There is now more than one 'username' helping out in this way, and I would imagine that they have very deep pockets. They recoup some of their outlay on the secondary market, but this makes the present secondary market set-up unattractive for many of us - see poll. If the secondary market was opened up in the way that the poll results suggest is wanted, then my guess is that there would be many more higher-rate bids going in - and thus reduce the need for 'underwriting'. It is a balancing act, and they also want to keep the rates down for the borrowers, but they might have to take the plunge and open up the secondary market, or risk remaining stuck where they are. Personally I think they need to adapt and change if they want to continue the momentum of growth achieved so far.
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ablender
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Post by ablender on Dec 15, 2015 14:14:55 GMT
The platform seems to have been established on the basis of underwriting by 'private' investors who obviously have a strong connection. This gets the whole thing off the ground - that and generous incentives. The amount of 'topping up' needed has reduced on recent loans, but the need is still there. There is now more than one 'username' helping out in this way, and I would imagine that they have very deep pockets. They recoup some of their outlay on the secondary market, but this makes the present secondary market set-up unattractive for many of us - see poll. If the secondary market was opened up in the way that the poll results suggest is wanted, then my guess is that there would be many more higher-rate bids going in - and thus reduce the need for 'underwriting'. It is a balancing act, and they also want to keep the rates down for the borrowers, but they might have to take the plunge and open up the secondary market, or risk remaining stuck where they are. Personally I think they need to adapt and change if they want to continue the momentum of growth achieved so far. My pocket is so deep that it goes through a hole at the bottom. My hand can reach down but never actually reaches the lowest point.
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kaya
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Post by kaya on Dec 17, 2015 11:52:56 GMT
Perhaps a stitch in time might save nine.One gets tired of being stitched up by crafty evasions and excuses. Hopefully the deep pockets at LC are good at choosing who gets the cash, and the needle and thread won't be needed.
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r00lish67
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Post by r00lish67 on Dec 17, 2015 14:15:26 GMT
What's so frustrating for me is that the platform is generally slick, is marketed well, and customer service appears strong. And yet the flow of deals is so slow, the auctions painfully long, and the SM opaque and constipated.
Please LC, just:
a) Scrap/reduce the SM fees and allow a premium/discount feature.
and:
b) Focus on new loans, not new shiny ways of accessing your website that has no loans available to bid on.
Do these two things, and usage of the platform will gear up massively. The potential for flipping profit will ensure auctions are well attended and the best rate achieved for the borrower, whilst also providing much needed liquidity to the marketplace. This in turn will allow for larger loans being feasible on the platform and hopefully reduce reliance on the underwriter.
As it is, I'm rather concerned that this platform is starting to lag behind. It's neither offering the high rates of platforms like SS/MT nor providing a vast raft of opportunities on the PM/SM as per FC, so where's the Unique Selling Point? Being able to access it on my smartphone is not enough, I'm afraid.
5 digit loans are failing to fill over a two week period (failing without heavy underwriter assistance, that is), whilst elsewhere we are seeing 6 digit loans disappearing in the blink of an 'F5' press. Surely something has to change.
Apologies if this sounds over-critical I really do want LC to succeed and it feels so close and yet so far at the moment.
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ablender
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Post by ablender on Dec 17, 2015 17:17:10 GMT
I fully agree.
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Post by nanniema on Dec 17, 2015 21:11:18 GMT
Totally agree with rOOlish67.
What is concerning me is that up until a few weeks ago any of the above posts or comments would have been addressed almost immediately by a LC representative.
Does the stony FC type silence indicate that a) They don't care any more
b) The person who did care has given up
or c) s******r has given up and we should be really really worried.
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ablender
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Post by ablender on Dec 17, 2015 23:21:36 GMT
I would try to hang around a bit longer. As to increasing my exposure on LC. That is a different matter. I need to feel confident and silence kills confidence.
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kaya
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Post by kaya on Dec 21, 2015 10:35:18 GMT
The current loan request has a long way to go. I have spare cash sitting in my account, but it is not going in. If I had the option to sell my own loan parts later, at a rate I choose, then it would be going in.
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Post by lendingcrowd on Dec 21, 2015 15:54:53 GMT
Hi everyone,
To date almost all of the loans placed on the platform have been fully funded. Clearly the larger the pool of investors we have reduces the reliance on our core investors and as such our objectives for 2016 include:
• Increasing the number of investors using the platform
• Increasing the level of funds available for investing on the platform
• Shortening the average time loans remain on the auction (this has already reduced during the course of 2015)
• Maintaining our robust credit underwriting process (we have had no defaults to date)
Kind regards,
The LendingCrowd team
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kaya
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Post by kaya on Dec 21, 2015 20:32:47 GMT
So no changes planned for the secondary market then? No surprise there! Like many others, I was hoping that LC could step into the slot that FC has vacated, and provide a lively set-up, which must include a lively secondary market. The demand is surely there, but it should be remembered that the majority opinion expressed within this forum would not necessarily be the same as all lenders in general. Ultimately it is up to LC how they do things, and only time will tell whether they can succeed. Right now, it does'nt garnish much excitement. Yawn.
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grahamg
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Post by grahamg on Dec 22, 2015 19:22:08 GMT
Yes a big yawn. I had high hopes. The contrast between the glacial pace of loans at LC and the feeding frenzy at the other end of the market where similar size loans go in seconds or minutes is difficult to believe.
Sure they are doing a good job so far on loan selection but the problem is that the lenders know the loans won't fill without support so what's the rush and the current structure of the SM puts a further dampener on everything. Not heard a reasonable excuse as to why the fees went up as the potential revenue to LC is minute, they seem to have just killed something that was already sick. Needs more lenders and there is nothing so far to excite larger players. Joining cashback won't do it as beyond diversifying to 30 or so loans on the SM you are currently stuck on a glacier. So fundamental reform needed, any ideas ?
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micky
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Post by micky on Dec 31, 2015 19:26:24 GMT
As a new investor in LC these points concern me and cause me to hesitate increasing my lending. Also, for the first time i have bid on a loan, the C+ loan for GH E---- C ------- I notice that Salvator deposits large sums seemingly to hold the rate down, is this common practice? It certainly does not allow the loan to find a proper market rate.
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ablender
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Post by ablender on Dec 31, 2015 19:55:14 GMT
As a new investor in LC these points concern me and cause me to hesitate increasing my lending. Also, for the first time i have bid on a loan, the C+ loan for GH E---- C ------- I notice that Salvator deposits large sums seemingly to hold the rate down, is this common practice? It certainly does not allow the loan to find a proper market rate. Yes. S********r's contributions are a normal part of business here. What concerns me is that the LC representative said: "[Their] objectives for 2016 include: . . . . .• Shortening the average time loans remain on the auction (this has already reduced during the course of 2015) . . . ." Yet, the current C+ loan, GH ..... Ltd, has failed to fill in the allocated time. LC thought it might be suitable to extend the auction time. This still has not produced the desired results - still at 55% funding with 4 days to go. Will LC fill in the difference to launch the loan? Will they extend the bidding further? If they do extend further, will they give current bidders to opt out, or will they start paying interest immediately? I do not wish to have my money tied in for so long without earning interest.
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