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Post by GSV3MIaC on Feb 21, 2014 21:04:29 GMT
I see loan 5155 is not benefiting from 10% government funding (and is also extended to 14 days). Does this mean the government's pot has run dry, or just that this loan is judged too dodgy to be in receipt of the chancellor's hard earned (by us!) dosh? Guesses/answers on a postcard. (This has been cross-posted on the FC official forum where there is a faint chance (can I borrow that flying pig?) it'll get an answer ...
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Post by bracknellboy on Feb 21, 2014 22:07:02 GMT
and apparently with a Big Friday coming up: £1.4m to close.......
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Post by bracknellboy on Feb 21, 2014 22:17:46 GMT
Its possible that with a t/o of £116m in prior year it doesn't meet some criteria for govt dosh.
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jimbo
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Post by jimbo on Feb 21, 2014 23:05:25 GMT
Nope, looks like the Government dosh is indeed used up for the time being: FC Government Lending Pot Runs Dry... but fear ye not; they are going to plough in another £40 million in due course... |
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Post by yorkshireman on Feb 21, 2014 23:31:58 GMT
Nope, looks like the Government dosh is indeed used up for the time being: FC Government Lending Pot Runs Dry... but fear ye not; they are going to plough in another £40 million in due course... How much has HMG got tied up in late paying or defaulted loans?
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Post by bracknellboy on Feb 22, 2014 8:32:25 GMT
Nope, looks like the Government dosh is indeed used up for the time being: FC Government Lending Pot Runs Dry... but fear ye not; they are going to plough in another £40 million in due course... So apparently: "Today we’re pleased to reveal that they have now lent out their entire £20 million commitment to over 2,000 businesses across the country, helping to create an estimated 6,500 jobs. " Who estimated that ? So FC has singularly responsible for dolloping out govt money in a way which results in job creation at a cost of ~ £3,000 per job created. That is a very efficient use of govt money: I wonder who did the estimating ? FC perhaps ? The civil servant who first dreamt up the scheme ? I think we should know. "We’re also pleased to confirm that the Government-backed British Business Bank Investment Programme has decided to invest a further £40 million alongside private investors."
So are we going to have another extended period where the govt is single handedly responsible for anti competitive practices and consequent skewing of the nascent p2x market by hand picking winners to receive govt money, thereby giving the 'winning' platforms an unfair advantage ?
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blender
Member of DD Central
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Post by blender on Feb 22, 2014 9:07:35 GMT
Perhaps each new pitch will have to address the effect of the loan on jobs. Meaningless political propaganda.
I have mixed feelings about this new £40m - and the other money which surely must go through other P2P operators. Overall it must support the growth of the new sector, and the competing banks have had infinitely more public support than this drop in the ocean. So at the macro level it is fair. But at our auction level it is a market distortion from a lender which has no required minimum return. If they keep it to 10% (which I think they will) then at present the primary market could do with some more cash (or would suffer from losing 10%) and our portfolios could become more liquid on the secondary market. But that could all change in a few months if borrower volume reduces after the current promotions, or consumer lender cash increases as it did last year. In theory FC could use this £40m to stabilise the primary market, by varying the HMG percentage from 0 to 20% with advanced notifications as for the other interfering mechanism, MBR. It is distasteful to intefere with the market, but it is hard to grow this young sector in an environment with an artificially low base rate and state owned and supported banks instructed to lend to small business, and one can see a justification for some nurturing of FC and others. We lenders just have to adapt and buy when interest rates are high, sell when rates are low.
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Post by bracknellboy on Feb 22, 2014 9:59:38 GMT
I have mixed feelings about this new £40m - and the other money which surely must go through other P2P operators. wasn't clear to me whether this was another £40m across all qualifiying platforms or £40m for FC.
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blender
Member of DD Central
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Post by blender on Feb 22, 2014 10:53:47 GMT
Not clear from the text but the title of the piece is specific:
"The Government-backed British Business Bank programme announces plans to lend a further £40 million through Funding Circle". There must surely be more for others.
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Post by bracknellboy on Feb 22, 2014 11:56:47 GMT
Not clear from the text but the title of the piece is specific: "The Government-backed British Business Bank programme announces plans to lend a further £40 million through Funding Circle". There must surely be more for others. When in doubt, read the title !! Doh !
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Post by davee39 on Feb 22, 2014 12:17:27 GMT
The £40m is actually GOOD news.
FC have clearly stepped up their sourcing of loan requests, and liquidity has been tightening, so continued Market Support is to be welcomed.
HMG will have suffered losses, but overall will be seeing a return of perhaps 5 to 6% on invested cash - which beats the Mega losses sunk into RBS.
As to competition, the other lenders in this space are minnows, without a track record, and not guaranteed to survive (I exclude Assetz because they have a specialised niche)
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Feb 23, 2014 12:50:24 GMT
The £40m is actually GOOD news. FC have clearly stepped up their sourcing of loan requests, and liquidity has been tightening, so continued Market Support is to be welcomed. HMG will have suffered losses, but overall will be seeing a return of perhaps 5 to 6% on invested cash - which beats the Mega losses sunk into RBS. As to competition, the other lenders in this space are minnows, without a track record, and not guaranteed to survive (I exclude Assetz because they have a specialised niche) I agree it is good news but only if other P2P lenders can also get a fair share of HMG money because of the unfair skew it puts upon the market. Perhaps my only caveat would be adding the word "successful" P2P lenders. However what do we deem as successful? IMHO Assetz must qualify as it claims to have more than broken even recently but I am not so sure about the others. Any views folks?
Regarding HMG's return on what it has lent so far through FC my guess is that it would be more that 5 to 6% as I doubt it pays FC any fees (unlike us). Its losses through defaults spread across the board could also be on the low side but I am only guessing.
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blender
Member of DD Central
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Post by blender on Feb 23, 2014 13:45:23 GMT
The £40m is actually GOOD news. FC have clearly stepped up their sourcing of loan requests, and liquidity has been tightening, so continued Market Support is to be welcomed. HMG will have suffered losses, but overall will be seeing a return of perhaps 5 to 6% on invested cash - which beats the Mega losses sunk into RBS. As to competition, the other lenders in this space are minnows, without a track record, and not guaranteed to survive (I exclude Assetz because they have a specialised niche) I agree it is good news but only if other P2P lenders can also get a fair share of HMG money because of the unfair skew it puts upon the market. Perhaps my only caveat would be adding the word "successful" P2P lenders. However what do we deem as successful? IMHO Assetz must qualify as it claims to have more than broken even recently but I am not so sure about the others. Any views folks?
Regarding HMG's return on what it has lent so far through FC my guess is that it would be more that 5 to 6% as I doubt it pays FC any fees (unlike us). Its losses through defaults spread across the board could also be on the low side but I am only guessing.
We have to consider what sort of lending is being supported by these HMG funds. There was a policy shift away from property and towards SME business, and I doubt they will wish to support personal loans. So RateSetter would be the first on my list (if they could handle it) and maybe TC if their business and operating model suits. But Assetz is property and so will be part of FC - so we will have to see the details of the FC qualifying loans. No statements from other operators yet? I would be stunned if HMG were not paying the 1% fee. No tax of course.
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Post by chris on Feb 25, 2014 8:54:25 GMT
But Assetz is property and so will be part of FC - so we will have to see the details of the FC qualifying loans. No statements from other operators yet? Whilst our loans tend to be property backed we see ourselves as an SME lender as well as property, and the majority of our loans at the moment are business loans.
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blender
Member of DD Central
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Post by blender on Feb 25, 2014 10:42:32 GMT
But Assetz is property and so will be part of FC - so we will have to see the details of the FC qualifying loans. No statements from other operators yet? Whilst our loans tend to be property backed we see ourselves as an SME lender as well as property, and the majority of our loans at the moment are business loans. Welcome off-piste Chris, and thank you for the correction. Overall I believe that the endorsement and support with HMG money is a good thing, and FC have certainly used it to promote the platform - as they should. Will Assetz have a part in the next tranche for its qualifying loans? If not, and since you state that Assetz is a P2P SME business loan platform, how do you see the competition issues if FC has a total of £60M of public cash, without any requiremts on return, to help to entice more borrowers?
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