alison
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Post by alison on Mar 7, 2014 9:30:38 GMT
I see there are 4 loans not yet filled.
- One has now finished but only 73% of £50k filled.
- One finishes today, having already been extended, and is only 59% of £50k filled.
- One finishes on Monday and is also only 59% of £50k filled.
- The last one is only 10% of £150k filled though it has only been up about 3 days.
Is it the quality of the loans, or the scare after the default, or a concern about the platform or the fact that a certain lender (r*****) has not been involved in any of them.
He/she does seem to be the key to whether a lot of loans are filled.
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bugs4me
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Post by bugs4me on Mar 7, 2014 10:59:44 GMT
The lender you are referring to has offered to fill at least two of those loans if adequate responses to pertinent questions are given. I suspect that is the reason his bids aren't forthcoming - it's also the reason why I'm not in. Unfortunately, answering questions in a timely and accurate fashion does not appear to be the forte of certain brokers/introducers on the ReBS platform. It's not just ReBS that questions are not answered in a timely fashion and failure to answer in full must be one of the biggest reasons for failure of a loan not flying. Also evasive answers are a big turn off in my book.
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alison
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Post by alison on Mar 7, 2014 12:14:58 GMT
It's not just ReBS that questions are not answered in a timely fashion and failure to answer in full must be one of the biggest reasons for failure of a loan not flying. Also evasive answers are a big turn off in my book. Agreed, bugs. More significantly, if the proposal has been brought to the platform by a broker, who collects a fee for getting the deal away and yet is still not forthcoming, it gives you a good indication of how you will stand if the debt ever becomes distressed - namely, on your own. I don't disagree regarding how critical responses to questions are. My concern is is that ReBS seem to rely on that certain big lender to fill so many loans. He/she seems to be the built in underwriter. It surely can't be healthy if he/she is essential to filling a large number of the £50k loans.
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bugs4me
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Post by bugs4me on Mar 7, 2014 12:58:45 GMT
Agreed, bugs. More significantly, if the proposal has been brought to the platform by a broker, who collects a fee for getting the deal away and yet is still not forthcoming, it gives you a good indication of how you will stand if the debt ever becomes distressed - namely, on your own. I don't disagree regarding how critical responses to questions are. My concern is is that ReBS seem to rely on that certain big lender to fill so many loans. He/she seems to be the built in underwriter. It surely can't be healthy if he/she is essential to filling a large number of the £50k loans. In my experience underwriters are only there to get the loan away - all things stacking up of course. Then they look to offload onto the secondary market. They certainly don't have a bottomless pit of money, or at least not one they're prepared to commit to on every single loan. So if they're stuck with loans that cannot be offloaded then this may be the cause of the 'drought'. Just a thought.
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wysiati
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Post by wysiati on Mar 8, 2014 13:11:57 GMT
Unfortunately, answering questions in a timely and accurate fashion does not appear to be the forte of certain brokers/introducers on the ReBS platform. Lack of responsiveness to Q&A is not unique to Rebuildingsociety but it is arguably among the worst in this respect. More troubling is whether ordinary lenders can even trust the financial information provided and/or the platform due diligence which is supposed to have been performed? There have been instances of incorrect or financial information being posted along with failures even to disclose existing loans. For example, take the current existing loan request for M*P C***s L*****d. Along with 2 Leasing commitments the only unsecured loan declared is £13k. No mention of the £100k Funding Circle loan taken out in mid-2013, of which almost £89k remains outstanding.
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Post by rugbylad on Mar 27, 2014 13:48:05 GMT
Speaking as both an investor across a number of p2p platforms, and also as an introducer of lending cases across several platforms, it seems that a lot of the questions are asked by the same people, who often only invest £10 - £30 on each loan, and often continuing questions from people who have declared that they won't invest.
Sometimes these questions appear from people trying to show how clever they are, or who can ask the most complicated question ?
Often the delay in answering questions is that the questions are very detailed, we have to refer back to the client who then has to refer to his or her accountant for a response.
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Post by rugbylad on Mar 27, 2014 14:59:26 GMT
I agree everyone has a right to ask questions, my gripe is with those that ask questions even after declaring themselves "out" (Perhaps they think they are a Dragon !)
Some investors ask for the sake of asking.
Some brokers will take a fee and run, personally, I like repeat business and to build a reputation within the p2p platform as a broker that can be trusted. With over 30 successfully funded p2p deals last year, would like to think I handle them well, whilst frustrated with silly questions...including those in relation to 'what if Scotland become independent ?"
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Post by bracknellboy on Mar 27, 2014 15:36:53 GMT
... whilst frustrated with silly questions...including those in relation to 'what if Scotland become independent ?" I think that certain lenders on FC are single handedly converting a significant number of business owners in Scotland from likely No voters to Yes voters. I want to scream and shout every time I see those posts from the same people. In fact I do scream and shout.
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Post by nickrebuildings on Mar 27, 2014 18:22:06 GMT
Hi All,
This is a good debate, and one that we had in the office earlier on. The behaviour of lenders as a crowd is surely one that will make a good psychological study, because from our point of view, short of acquiring enough volume so each lender only has to contribute a tiny amount each (£10) to fill a loan, the patterns are very difficult to read and there is no shortcut to success. There is sufficient money flowing through the site to fill loans that are listed, but for whatever reason, the cash seems to be spread out almost too evenly without reaching critical mass in some cases. Of course, lenders are entitled to lend to who they want and we wouldn't want it any other way. Diversification is a well-endorsed strategy in this market.
We've noticed that lenders like loans secured on properties over personal guarantees and there's plenty of discourse on this board that supports that view. We've always tried to make the financial performance of the business (available through the site) and its future prospects (through the listing and Q&A) and still believe this will be possible in time. Of course we invest in taking security now and will continue to do so. Security does seem to be king for the moment though - it's understandable that people want a fall-back, but if recovery rates in the market are relatively low (I've seen 12% on Funding Circle quoted on a thread on our platform, but please correct me if I'm wrong) then surely people are not lending on the prospect of getting 12% of their investment back?
Another thing we discussed was displaying more information up front on our loans to help introducers like rugbylad do their jobs more efficiently. We want lenders to ask their questions and they should have the right to ask whatever it is that helps them reach a decision, but I agree that if they're 'out' there need not be further questions. Brokers should earn their fee, but not burden their clients with endless questions - they have a job to do too!
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Post by bracknellboy on Mar 27, 2014 21:42:33 GMT
Hi All, ... Security does seem to be king for the moment though - it's understandable that people want a fall-back, but if recovery rates in the market are relatively low (I've seen 12% on Funding Circle quoted on a thread on our platform, but please correct me if I'm wrong) then surely people are not lending on the prospect of getting 12% of their investment back? .... Not following your logical deduction here. That is precisely why people want security. Whatever FCs figure actually is, its for a platform where the vast bulk of lending is unsecured (beyond a PG).
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j
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Post by j on Mar 27, 2014 22:29:25 GMT
Hi All, ... Security does seem to be king for the moment though - it's understandable that people want a fall-back, but if recovery rates in the market are relatively low (I've seen 12% on Funding Circle quoted on a thread on our platform, but please correct me if I'm wrong) then surely people are not lending on the prospect of getting 12% of their investment back? .... That is precisely why people want security. Whatever FCs figure actually is, its for a platform where the vast bulk of lending is unsecured (beyond a PG). 'Quote: (beyond a PG)' - Which tends to be worthless anyway as some of us know from personal experience with p2p
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mikes1531
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Post by mikes1531 on Mar 28, 2014 0:40:31 GMT
We want lenders to ask their questions and they should have the right to ask whatever it is that helps them reach a decision, but I agree that if they're 'out' there need not be further questions. Even if a potential lender says that they are 'out', there's always the chance that a few additional reassuring answers might be enough to convince them to change their mind. Also, they could be asking questions that other potential lenders hadn't thought of, or hadn't asked yet, so they could be helping other lenders make up their minds, and that's a positive outcome as well. Brokers should earn their fee, but not burden their clients with endless questions - they have a job to do too! IMHO the broker's job doesn't end after the introduction to the lender is made. The job isn't done until the loan is made. If that requires answering a lot of questions to convince lenders to lend, then that's just part of the job. One of the drawbacks of crowdfunding is that the 'crowd' is more than just a few investors, so it has to be expected that there will be a number of questions asked. If the broker doesn't want to have to deal with those then perhaps they shouldn't be trying to work with crowdfunding platforms.
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Post by rugbylad on May 2, 2014 13:35:55 GMT
We want lenders to ask their questions and they should have the right to ask whatever it is that helps them reach a decision, but I agree that if they're 'out' there need not be further questions. Even if a potential lender says that they are 'out', there's always the chance that a few additional reassuring answers might be enough to convince them to change their mind. Also, they could be asking questions that other potential lenders hadn't thought of, or hadn't asked yet, so they could be helping other lenders make up their minds, and that's a positive outcome as well. Brokers should earn their fee, but not burden their clients with endless questions - they have a job to do too! IMHO the broker's job doesn't end after the introduction to the lender is made. The job isn't done until the loan is made. If that requires answering a lot of questions to convince lenders to lend, then that's just part of the job. One of the drawbacks of crowdfunding is that the 'crowd' is more than just a few investors, so it has to be expected that there will be a number of questions asked. If the broker doesn't want to have to deal with those then perhaps they shouldn't be trying to work with crowdfunding platforms. You are quite right, as a broker, job is not finished until the loan has drawndown, and in some cases, until it has been repaid ! the frustration comes, from some rude, and sometimes personal comments we have noticed on the platform from investors (none against me thankfully  and also lots of questions from people who have declared themselves out, or just disclosing a personal opinion. Sensible and relevant questions are always welcome. In my honest opinion, some recent questions I have seen on the platform, posted in the early hours, seem more out of boredom than intention to invest !
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and also lots of questions from people who have declared themselves out, or just disclosing a personal opinion. Sensible and relevant questions are always welcome.