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Post by loanstar on Dec 4, 2016 9:01:05 GMT
Here is a question for you all to consider. I have no current platform in mind. If a platform was to make a request for funds to help it to continue and grow would you lend ? I am aware that platforms have sort and obtained crowd funding. This question is asking you to consider a P2B loan. Have a peaceful Sunday.
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Post by wiseclerk on Dec 4, 2016 9:51:47 GMT
P2PFA rules discourage that, that's the reason Wellesley left the P2PFA.
As most p2p lending platforms are startups the interest rate for a p2b loan to a platform would have to be very high to get me interested (or I would have to have a very positive view on the financial future of that platform).
Generally I would rather consider equity than a loan.
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Post by loanstar on Dec 4, 2016 10:01:44 GMT
I was unaware that P2PFA rules discourage this. OK, so lets widen the question. Who would invest in a P2P platform? What would you expect in return?
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Post by Butch Cassidy on Dec 4, 2016 10:50:16 GMT
I would much prefer an equity stake rather than debt due to unlimited upside porential; Already invested in AC, via seedrs convertible round, still happy with their prospects (platform/shareholders not loan investors; 7/8% rates no longer high enough for risk involved).
Other well run platforms that I would be confident to hold an equity investment in (obviously depending on terms) would be MT,SS & Abl.
Return - as high as possible 
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hazellend
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Post by hazellend on Dec 4, 2016 16:27:17 GMT
Property moose have done this at 8-10%
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shimself
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Post by shimself on Dec 4, 2016 17:35:21 GMT
I was unaware that P2PFA rules discourage this. OK, so lets widen the question. Who would invest in a P2P platform? What would you expect in return? See my signature. It was a couple of years ago, because I thought they had a good chance of making it.
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Post by martin44 on Dec 4, 2016 20:19:42 GMT
I was unaware that P2PFA rules discourage this. OK, so lets widen the question. Who would invest in a P2P platform? What would you expect in return? 12% MINIMUM... I am not interested in investing at less than 12%, when it all goes t**s up, the platforms will not give a monkeys about our position, i am only interested in creaming my position while i can, when it starts to look rocky, i will be off. i call it Public capitalism..  
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bigfoot12
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Post by bigfoot12 on Dec 6, 2016 16:12:03 GMT
A couple of small startups that I know of have borrowed money from a lender at about 20% and I think the lender in each case was being kind.
At least 2 articles worth a read in Alphaville today - one discusses Wellesley.
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dandy
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Post by dandy on Dec 6, 2016 18:22:14 GMT
If most P2P platform companies appeared on a SME P2P platforms looking to raise debt, I wouldn't touch them with a 10-foot barge-pole! Poor/no security, weak balance sheets and loss-making is hardly a recipe for a good fixed-income lending opportunity. Even the big players like Zopa and FC have shown zero ability to monetize their billions of origination. Most of the smaller players (say those on the main board) aren't really sustainable businesses unless they scale volumes to multiples of where they currently are. The exceptions are some of the bridge lenders like LI and SS, who take such huge margins out of lenders that they are cashflow positive. I still wouldn't lend to them, unsecured, on a 3 to 5 year horizon though. As an equity play, there is more scope to be positive given the unconstrained upside. Nonetheless, I'm less positive than I was 18-24 months ago. I only invested in AC because I have money coming out of the LC IPO and wanted to keep some marketplace lending exposure, plus they stated they had an EIS wrap (limiting my downside to 38% of notional invested). I'm far less sanguine on the industry at this point, especially given LC and OnDeck valuations and where the P2P ITs are trading. I regret investing in the AC convert since I'm pretty worried they won't get the EIS wrap now. Whether the P2PFA likes it or not is irrelevant since they are just a trade body and not a very good one at that. More important it that financial companies aren't EIS eligible so P2P platforms much keep their agency status. Some of their recent AC products like the QAA may invalidate that which is why Wellesey's Seedrs raise can't be EIS. Why do you believe Assetz will not be EIS eligible?? They were stated to be eligible and as far as I am aware they do not lend their own money but are just a matchmaker/marketplace. Wellesley are not eligible as they borrow money via mini bonds and lend that money on their own balance sheet.
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bigfoot12
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Post by bigfoot12 on Dec 6, 2016 20:22:22 GMT
]Why do you believe Assetz will not be EIS eligible?... Wellesley are eligible ... Is that a typo? Wellesley are not eligible for EIS. They say so themselves.
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dandy
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Post by dandy on Dec 7, 2016 6:45:20 GMT
]Why do you believe Assetz will not be EIS eligible?... Wellesley are eligible ... Is that a typo? Wellesley are not eligible for EIS. They say so themselves. Yes. Corrected it now. Thanks ...
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