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Post by fundingsecure on Oct 7, 2016 16:25:20 GMT
1% cashback has now been added to three loans - to be paid when the loans are activated. The three loans are: Holt Road – £420,000, LTV - 56% - 5121524776 The Dell – Phase 1 – £575,000, LTV - 51.34% - 4000064049 The Dell – Phase 2 – £840,000, LTV - 43.08% - 1378674009 Full details available with each loan More information FundingSecure |
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Liz
Member of DD Central
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Post by Liz on Oct 7, 2016 17:01:41 GMT
1% cashback has now been added to three loans - to be paid when the loans are activated. The three loans are: Holt Road – £420,000, LTV - 56% - 5121524776 The Dell – Phase 1 – £575,000, LTV - 51.34% - 4000064049 The Dell – Phase 2 – £840,000, LTV - 43.08% - 1378674009 Full details available with each loan More information FundingSecure Just admit your model is wrong. Who wants no interest for 6 months? Who wants a complex SM, even worse than TC. Hundreds of listing to trawl through. I can't sell at par because of the design, I don't want to sell at a discount because i'm a non-taxpayer. Roll-up interest of 12% for 12 months, returns 12%. Monthly interest returns 12.7%. I also worry that a site that needs to offer cashback and bonus interest, is at risk of being unprofitable. SS, MT,TC for example pays 12% for funds, FS has to pay 13-19%. Linked to above, if FS needs to pay so much for funds, it may not have funds for monitoring loans, Due Dil, checking borrowers are genuine, chasing debt. As above, if FS is growing this fast, then the above will be ignored. And the management may lack experience. There are massive concerns about FS on another forum I subscribe to, About 80% of members, so this isn't just me. Edit: There is also a worry with some members that defaults and extended loans are rising fast.
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jw01
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Post by jw01 on Oct 7, 2016 17:08:10 GMT
What's your other forum?
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sqh
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Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Oct 7, 2016 17:25:46 GMT
Liz, FS is far better than TC. However, I do think the method of paying interest from day one needs to be amended to avoid multiple loan parts. My suggestion is that pre-activation funding is paid as cashback rather than interest. If a lender funds a loan 5 days before activation, then they receive 5/365 * 12% at the point of activation. Then all loan parts would have the same timeframe after activation, and we wouldn't have multiple entries. How about it fundingsecure ?
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Post by wickedxuk on Oct 7, 2016 17:36:28 GMT
1% cashback has now been added to three loans - to be paid when the loans are activated. The three loans are: Holt Road – £420,000, LTV - 56% - 5121524776 The Dell – Phase 1 – £575,000, LTV - 51.34% - 4000064049 The Dell – Phase 2 – £840,000, LTV - 43.08% - 1378674009 Full details available with each loan More information FundingSecure Just admit your model is wrong. Who wants no interest for 6 months? Who wants a complex SM, even worse than TC. Hundreds of listing to trawl through. I can't sell at par because of the design, I don't want to sell at a discount because i'm a non-taxpayer. Roll-up interest of 12% for 12 months, returns 12%. Monthly interest returns 12.7%. I also worry that a site that needs to offer cashback and bonus interest, is at risk of being unprofitable. SS, MT,TC for example pays 12% for funds, FS has to pay 13-19%. Linked to above, if FS needs to pay so much for funds, it may not have funds for monitoring loans, Due Dil, checking borrowers are genuine, chasing debt. As above, if FS is growing this fast, then the above will be ignored. And the management may lack experience. There are massive concerns about FS on another forum I subscribe to, About 80% of members, so this isn't just me. Edit: There is also a worry with some members that defaults and extended loans are rising fast. I agree with some of your concerns Liz. No doubt. I don't know if they are taking on too much or not, whether they will have a high rate of defaults or if they are increasing the staff in line with expansion. I share the concerns expressed by others, however to strike a balance I have emailed FS and I have always received fast responses even into the evening. They never seem to avoid the question and have always seemed genuinely interested. If they haven't got the answer they get it pretty quickly in my experience. Compared to other platforms I would say the customer service is actually pretty good. I haven't been in for a full loan yet as I only started with them 3 months ago so my first hand experience of how they deal with defaults etc is limited so far. I will say that they seem pretty open about the defaults, bad debt and losses and the figures are available on the stats page quite clearly. If there is an increase in defaults due to the increase in the number of loans but the recovery rate remains roughly the same I will still achieve 10%+ returns from FS and I will be happy with that. I would of course prefer monthly returns, no question about it, but 6 months doesn't seem too bad to me. Especially when there are other platforms requiring lock in for 3 years plus to achieve very low returns.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Oct 7, 2016 18:15:05 GMT
Would like to add my back of a cigarette packet calculations on the point of it being worrying that offering bonuses could make them unprofitable..
Even with bonuses, let's say they lend at an average of 2.25% and pay out 1.25% to us per month. They originated £6.35m in August which puts them managing £38million in total at any point in time: so that's £380k income a month based on the 1% difference.
Perhaps once we as investors have collectively put that £38million into FS we will be less likely to withdraw, we'll keep reinvesting it and they will be able to stop offering cashback.
I think if they rethink the complex secondary market and invest some money into a great website, that's easy to use on mobiles and doesn't have those annoying 140 page tables (using basic jquery datatables as far as I can see), then I think their strategy could pay off.
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Post by Deleted on Oct 7, 2016 20:42:24 GMT
1% cashback has now been added to three loans - to be paid when the loans are activated. The three loans are: Holt Road – £420,000, LTV - 56% - 5121524776 The D*** – Phase 1 – £575,000, LTV - 51.34% - 4000064049 The D*** – Phase 2 – £840,000, LTV - 43.08% - 1378674009 Full details available with each loan More information FundingSecure Just admit your model is wrong. Who wants no interest for 6 months? Who wants a complex SM, even worse than TC. Hundreds of listing to trawl through. I can't sell at par because of the design, I don't want to sell at a discount because i'm a non-taxpayer. Roll-up interest of 12% for 12 months, returns 12%. Monthly interest returns 12.7%. I also worry that a site that needs to offer cashback and bonus interest, is at risk of being unprofitable. SS, MT,TC for example pays 12% for funds, FS has to pay 13-19%. Linked to above, if FS needs to pay so much for funds, it may not have funds for monitoring loans, Due Dil, checking borrowers are genuine, chasing debt. As above, if FS is growing this fast, then the above will be ignored. And the management may lack experience. There are massive concerns about FS on another forum I subscribe to, About 80% of members, so this isn't just me. Edit: There is also a worry with some members that defaults and extended loans are rising fast. I am very puzzled about the negative comments and have to say I DO NOT SHARE ANY OF THEM. I would like to have the name of this other forum to be able to read in depth the argumentations. But for the comments above: 1) You are totally wrong about cashback and bonuses putting the company at risk. This is a consolidated model, which has been used also by FC (and for a long time, 1 year, practically on all their property loans), by SS and all major companies. None of those companies failed (and certainly they were not put at risk as a consequence of the bonuses). 2) Bridging loans typically pay 18% yearly (+initial fees; and some borrowers will pay more), so even paying on average 13-14 or even 15% to lenders, there is profit space remaining. 3) Growth is usually a good sign. The larger the base of lenders you can get, the more market share you can conquer and the more profit you will command in the future. i amnot sure where your comments on management come from. 4) I think you have never seen the start-up of a company. Most (if not all) the fintech companies invest massively in the first 4-5 years, expecting just to get market share, not immediate profits (some succed even with those...). This is all in a pre-written plan agreed with the initial/angel investors. You fail to understand the basics and talk about failure in the 'model' of a company which is emerging fast. 5) Yes a fresher web-site could be a plus. But definitely is not the core here (and the current one is usable anyway). I am sure FS will invest in it later, as SS did during their growth path, but it is not essential right now. 6) I have no problems at all with 6-month loans and interest at the end Much better 6 months and 13% with a real decision at the end of the loan than the FC model (where 8 months can be 14+ and uncertainty on what's next). 7) the SM market is cluttered but again can be used sorting columns of filtering by names. I have bought parts and see nothing strange there. Remember that FC with huge resources took probably 2 years to design a simple set of filtering fields to make its SM useable (it was a real disaster earlier). Just use it and be patient for improvements. I thank fundingsecure for the cashback and bonuses, which I appreciate. As always in bridging loans the FUNDAMENTAL thing is the evaluation. The thing I reccomend is to impose moderation and conservative assumptions to the evaluators. That's really critical to ensure the eventual recovery will go smoothly.
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SteveT
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Post by SteveT on Oct 7, 2016 21:03:20 GMT
6) I have no problems at all with 6-month loans and interest at the end Much better 6 months and 13% with a real decision at the end of the loan than the FC model (where 8 months can be 14+ and uncertainty on what's next). Just how long have you been lending here at FS, @hor1997 ? If you reckon FC is the only platform where property loans can massively overrun then you're likely to be disappointed (London parking spaces @ 471 days, Scottish boatyard @ 440 days, South Wales hotel at 427 days ...) [Ps. I'm already looking forward to digging out that post when you decide to launch your first anti-FS diatribe !]
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Post by martin44 on Oct 7, 2016 21:03:25 GMT
Would like to add my back of a cigarette packet calculations on the point of it being worrying that offering bonuses could make them unprofitable.. Even with bonuses, let's say they lend at an average of 2.25% and pay out 1.25% to us per month. They originated £6.35m in August which puts them managing £38million in total at any point in time: so that's £380k income a month based on the 1% difference.Perhaps once we as investors have collectively put that £38million into FS we will be less likely to withdraw, we'll keep reinvesting it and they will be able to stop offering cashback. I think if they rethink the complex secondary market and invest some money into a great website, that's easy to use on mobiles and doesn't have those annoying 140 page tables (using basic jquery datatables as far as I can see), then I think their strategy could pay off. Of course it is , assuming the borrower pays at conclusion of the loan, otherwise they get nowt. As they clearly state on their website. No set-up fees!
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ben
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Post by ben on Oct 7, 2016 21:05:42 GMT
The fact that they have to offer cashback is not to much of a concern as others have said others sites have used it. The problem to me is that FS were orginally a pawn broker site and they have moved into property. There model may have worked for pawn items as they had the items and they are generally easy to value and you know if there is a market or not. So taking the 6 month interest at the end was not really an issue as they could do the maths.
However property is a completely different ball game and need a completely different skill set just because some one is a good football and can run fast does not mean they are going to be a good 100 meter sprinter or rugby player, the real world does not work like that. To transfer to a different specilised area takes training experience and time, where FS seemed to have done it over a matter of months.
If a pawn item defaulted there was very little legal work to be done, very little the borrorower could do about this. If a property defaults there is a hell of a lot a the borrororwer can do to make it hard for FS to even take ownership of this. Then there is the potential that the borrorower has done more damage to the asset so is worth less, or if they planned on constucting something and were unable to it for whatever reason it might mean that nobody else is willing to take it on except at massive discount all of this takes specilist skills which is expensive.
There model with fees at the end will aslo lead to borrorower taking more chances, as they can borrorower the money attempt to make a plan work and if it does not just walk away at the end leaving FS holding an asset they would have no idea what to do with.
I think FS seriously need to look at there business plan as I think out of all the higher paying sites it will be the least likely to survive and in cases of defualt will have the biggest issues.
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Post by martin44 on Oct 7, 2016 21:15:11 GMT
6) I have no problems at all with 6-month loans and interest at the end Much better 6 months and 13% with a real decision at the end of the loan than the FC model (where 8 months can be 14+ and uncertainty on what's next). Just how long have you been lending here at FS, @hor1997 ? If you reckon FC is the only platform where property loans can massively overrun then you're likely to be disappointed (London parking spaces @ 471 days, Scottish boatyard @ 440 days, South Wales hotel at 427 days ...) [Ps. I'm already looking forward to digging out that post when you decide to launch your first anti-FS diatribe !] Don't mention Persian carpets.  
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Post by Deleted on Oct 7, 2016 21:24:43 GMT
6) I have no problems at all with 6-month loans and interest at the end Much better 6 months and 13% with a real decision at the end of the loan than the FC model (where 8 months can be 14+ and uncertainty on what's next). Just how long have you been lending here at FS, @hor1997 ? If you reckon FC is the only platform where property loans can massively overrun then you're likely to be disappointed (London parking spaces @ 471 days, Scottish boatyard @ 440 days, South Wales hotel at 427 days ...) [Ps. I'm already looking forward to digging out that post when you decide to launch your first anti-FS diatribe !] Well, my point is that compounding over 6 months is not a problem for most lenders, assuming the 6 months are 6 months (and not 6 years...). I have not analysed the full set of FS loans but I have seen a lot of reasonably rapid decisions on loans, with defaults, recoveries and moving on to the next loan, as any lending company should do all the time (i.e. without too much leeway to the borrower). I will make sure to push the FS people in the right direction if I see leniency or delays in the decisions... And of course will be the first criticwhen they go wrong (and I have already done it with the isle of Wight property loan, where the valuation of 1.2M seems pure fantasy to me...)
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stevio
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Post by stevio on Oct 7, 2016 21:32:35 GMT
Level of defaults were issue for FC and AC. Many here removed money. They are still going.
Just saying...
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stevio
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Post by stevio on Oct 7, 2016 21:35:24 GMT
Just how long have you been lending here at FS, @hor1997 ? If you reckon FC is the only platform where property loans can massively overrun then you're likely to be disappointed (London parking spaces @ 471 days, Scottish boatyard @ 440 days, South Wales hotel at 427 days ...) [Ps. I'm already looking forward to digging out that post when you decide to launch your first anti-FS diatribe !] Well, my point is that compounding over 6 months is not a problem for most lenders, assuming the 6 months are 6 months (and not 6 years...). I have not analysed the full set of FS loans but I have seen a lot of reasonably rapid decisions on loans, with defaults, recoveries and moving on to the next loan, as any lending company should do all the time (i.e. without too much leeway to the borrower). I will make sure to push the FS people in the right direction if I see leniency or delays in the decisions... And of course will be the first criticwhen they go wrong (and I have already done it with the isle of Wight property loan, where the valuation of 1.2M seems pure fantasy to me...) Good luck, you obviously think you have more 'clout'than everyone else then
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Post by martin44 on Oct 7, 2016 21:42:00 GMT
Well, my point is that compounding over 6 months is not a problem for most lenders, assuming the 6 months are 6 months (and not 6 years...). I have not analysed the full set of FS loans but I have seen a lot of reasonably rapid decisions on loans, with defaults, recoveries and moving on to the next loan, as any lending company should do all the time (i.e. without too much leeway to the borrower). I will make sure to push the FS people in the right direction if I see leniency or delays in the decisions... And of course will be the first criticwhen they go wrong (and I have already done it with the isle of Wight property loan, where the valuation of 1.2M seems pure fantasy to me...) Good luck, you obviously think you have more 'clout'than everyone else then Maybe he could get them to update the knaresborough loan.
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