james
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Post by james on Jun 30, 2016 21:52:12 GMT
Mmmm! The money provider disagrees with the platform, withdraws underwriting funds "amicably", waits a few months (lurking on the periphery), and oh by jingo FK goes into surprise administration and the money provider leaps in and buys it on the cheap to rescue it .... and take over. Just hope Kay and the others are kept on. Indeed, that particular sequence of events reminded me of the stories about RBS though of course I don't know whether the allegations about RBS are true or whether it's just happenstance that that was what came to my mind as soon as I heard about it.
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james
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Post by james on Jun 30, 2016 22:02:06 GMT
I don't know anything about FK - is this just a FK specific situation or does it have wider implications? It'd certainly be interesting to know which other platforms rely on the same source for working capital, if any. GLI's feedback to the P2P in ISA consultation comes to mind: " Implement measures to ensure that ISA managers (platforms) act responsibly by making investors fully aware of the risks and the different risk profiles" If it hasn't changed from the consultation time it appears that firms backed by GLI include: " The Credit Junction, TradeRiver Finance US, TradeRiver Finance, Sancus, BMS Finance, Proplend, Ovamba, Raiseworks, Finexkap, LiftForward, Funding Knight, UK Bond Network, Dansk Faktura Bors, Finpoint, Crowdshed and Platform Black". It'll be interesting to see whether any of those seek to diversify their funding sources. There's always a risk that funding can be withdrawn from a small business and we don't know why GLI acted as it did, so it wouldn't be wise to assume that their motives were anything other than the best, though of course it is a risk to consider and it is sensible to consider that risk in evaluating platforms. One of those factors is of course that GLI did buy the business out of bankruptcy, so providing assurance of continued operations to existing lenders through the platform.
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ben
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Post by ben on Jul 2, 2016 19:46:34 GMT
That's not overpaying! Emoneyunion, loans to date: £1,682,015, is to be listed on Crowdcube tomorrow, at a pre-money valuation of £25M. An eye-watering 15x multiple. Better still the firm is apparently worth 18 times more than the previous funding round. Stone me! I missed that how does a company get a valuation of that much more then its loan book, as its profit can't be that much. Not used crowdcube who values it at that? I see that them going into administration didnt stop latest loan being filled.
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shimself
Member of DD Central
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Post by shimself on Jul 2, 2016 22:59:52 GMT
I missed that how does a company get a valuation of that much more then its loan book, as its profit can't be that much. Not used crowdcube who values it at that? I see that them going into administration didnt stop latest loan being filled. valuations are based on projections of future earnings. So it goes something like this, p2pwizzbang ltd in 5 years time will be the number one platform for p2x in europe sorry uk sorry England&Wales, and will be making 5M a year profit after tax and will therefore be worth 100M, so you, dear investor, will multiply your investment by four times in only 5 years, bargain. small print applies this is not a crock of useless hype with as much basis in fact as a brexit manifesto
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ben
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Post by ben on Jul 2, 2016 23:14:26 GMT
I missed that how does a company get a valuation of that much more then its loan book, as its profit can't be that much. Not used crowdcube who values it at that? I see that them going into administration didnt stop latest loan being filled. valuations are based on projections of future earnings. So it goes something like this, p2pwizzbang ltd in 5 years time will be the number one platform for p2x in europe sorry uk sorry England&Wales, and will be making 5M a year profit after tax and will therefore be worth 100M, so you, dear investor, will multiply your investment by four times in only 5 years, bargain. small print applies this is not a crock of uselessed hype with as much basis in fact as a brexit manifesto so you be adding another site to your declared interests with a bargin like that on offer.
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jjc
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Post by jjc on Jul 14, 2016 17:10:40 GMT
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kaya
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Post by kaya on Jul 14, 2016 18:13:42 GMT
Hmm, what's the LC bad press? Surely not!
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ben
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Post by ben on Jul 14, 2016 18:18:25 GMT
I can't believe they have 20 staff what do they do all day?
Although from FK point of view being owned by GLI now will probably help them.
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oldgrumpy
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Post by oldgrumpy on Jul 14, 2016 19:04:27 GMT
Unless the FK platform can now provide a very substantial increase in deal flow I believe no new retail money will flow in. I will just gradually withdraw now unless something worthwhile happens in the next three months.
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