agent69
Member of DD Central
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Post by agent69 on Mar 9, 2014 10:12:25 GMT
The turnover at Assetz has increased markedly since Christmas, mainly due to over £6m in short term bridging loans.
Just wondering if these type of loans should count as true P2P lending given their transitory nature. Don't get me wrong (I'm in most of them), but it just appears to distort the figures.
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Post by oldnick on Mar 9, 2014 11:07:33 GMT
The turnover at Assetz has increased markedly since Christmas, mainly due to over £6m in short term bridging loans. Just wondering if these type of loans should count as true P2P lending given their transitory nature. Don't get me wrong (I'm in most of them), but it just appears to distort the figures. "A rose by any other name would smell as sweet "
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Post by batchoy on Mar 9, 2014 13:00:01 GMT
The turnover at Assetz has increased markedly since Christmas, mainly due to over £6m in short term bridging loans. Just wondering if these type of loans should count as true P2P lending given their transitory nature. Don't get me wrong (I'm in most of them), but it just appears to distort the figures. A loan is a loan, regardless of the time scale and all loans are transitory (I've not come across one that has an infinite period) , it just depends on your view point as to how transitory they are. You could say anything less than a 25 year loan is transitory which would wipe out the lending figures just about every P2P lender. Also by saying anything of less than 12 months is transitory and thus does not count as lending, you end up with the curious situation that payday lenders make vast amounts of money by not lending.
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Post by Ton ⓉⓞⓃ on Mar 9, 2014 13:02:30 GMT
So long as it's increasing the scope of AC let it happen, assuming the risk is right. Of course it's short loans with possible month long drawdowns affecting the return of individual lender accounts.
What makes the most money for AC to get lots of smaller bridge type loans or a few big million pound loans?
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pikestaff
Member of DD Central
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Post by pikestaff on Mar 10, 2014 7:56:17 GMT
The turnover at Assetz has increased markedly since Christmas, mainly due to over £6m in short term bridging loans. Just wondering if these type of loans should count as true P2P lending given their transitory nature. Don't get me wrong (I'm in most of them), but it just appears to distort the figures. I think platforms should be compared on the basis of the current amount lent, not the cumulative total. Then the stats would be duration-neutral. Unfortunately this info tends to be hard to get hold of.
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Post by chris on Mar 10, 2014 10:11:44 GMT
Might be worth stating what problem it is that you're trying to solve. If it's trying to work out relative size of each platform then current loan book is not much better than total lent, as it does nothing to show current lending levels separately from historical ones. For example we're lending at roughly the same rate as TC at the moment but our total lent and loan book will both be smaller due to their platform being older. If it's short term loans skewing the rise in lending volumes then this is true of all short term lending such as pawn brokers, bridging finance, invoice discounting, pay day lending, even short term SME loans, etc. so it wouldn't be a unique phenomenon with AC.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Mar 10, 2014 11:03:02 GMT
Surely it's the quality of loans in terms of rates & default rates (being as low as possible percentage wise) that matter?! Big is not always beautiful, as illustrated by some other p2p players out there.
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Post by chris on Mar 10, 2014 11:07:28 GMT
Surely it's the quality of loans in terms of rates & default rates (being as low as possible percentage wise) that matter?! Big is not always beautiful, as illustrated by some other p2p players out there. Worth noting that whilst the default rate is important it's the losses that are more important and the two are related but not the same.
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j
Member of DD Central
Penguins are very misunderstood!
Posts: 2,188
Likes: 540
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Post by j on Mar 10, 2014 11:13:29 GMT
Surely it's the quality of loans in terms of rates & default rates (being as low as possible percentage wise) that matter?! Big is not always beautiful, as illustrated by some other p2p players out there. Worth noting that whilst the default rate is important it's the losses that are more important and the two are related but not the same. Losses is what was meant indeed chris. Wrong term used to express what I was thinking of
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