kt
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Post by kt on Aug 22, 2016 14:18:59 GMT
There is currently an A+ rated loan. "We are a Chartered Accountants and require the loan to pay off our corporation tax.". There is no company name supplied other than 'Anonymous'.
98% filled on £28k.
How lax has lending at Funding Circle become?
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fp
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Post by fp on Aug 22, 2016 14:21:44 GMT
Thats not the first time, autobid will pick it up for the unsuspecting
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metoo
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Post by metoo on Aug 22, 2016 15:18:12 GMT
Not so anonymous really. A quick visit to companycheck.co.uk using the filters for Net Worth and Fixed Assets and setting ranges rounded up and down to the nearest £10 finds the company straight away. You have to get into their search screen using a dummy name for a company, then remove the dummy name from the active filters. I learned this somewhere on this forum in the past. Don't name them anywhere though!
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metoo
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Post by metoo on Aug 22, 2016 15:46:02 GMT
Thanks timmy, I couldn't find it. Useful resources was too obvious a place to look...
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dorset
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Post by dorset on Aug 23, 2016 8:33:30 GMT
As a general aside, there are three non-property loans filling at the moment an A+ an A and a B. Two years ago they would all have been at least one risk grade lower (A, B, and a C). Chances are only long term members have picked up on the way that rates are being reduced through changing risk profiling. If FC want to reduce borrowing interest rates then they should do so and keep the risk assessment stable over time.
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blender
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Post by blender on Aug 23, 2016 12:34:34 GMT
The effect you mention I agree with, dorset, but I see it rather differently. The only definition of the bands is the current and future expected loss rate, not a particular bench mark applied to current loan requests. So if the book at present is below the loss target, FC are able to adjust their current benchmarking of loan applications to suit market conditions - ie, yes reduce interest rates for competitive advantage when they need to. Of course the A+ is helped by the current zero losses on property, which I think means they can stretch the A+ SME benchmarking a long way. However, if any of these late property multi-project borrowers goes pop that will cause a big hit on the losses, before any recoveries are realised from the security. Possibly the first sign we will have of a forthcoming property default will be a tightening of the A+ SME benchmarking.
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