dorset
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Post by dorset on Dec 8, 2016 14:45:18 GMT
This loan was defaulted today (£219k loan) after only two payments made. I have just called the firms main office and the receptionist claims that the firm is still trading. Any idea what might be going on?
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kaya
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Post by kaya on Dec 8, 2016 15:05:50 GMT
What might be going on? Business as usual of course! I have defaulted loans that continue to trade normally for...as longggggg as they possibly can, both here and elsewhere. That means for as long as they can spin out the excuses and obstifications, which I'm sure is something that solicitors are particularly good at doing. I doubt FC would encourage your pro-active approach!
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fasty
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Post by fasty on Dec 8, 2016 15:16:39 GMT
Oh, dorset! I thought that you had been here long enough to have learned about solicitors. And scrap merchants.  |
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am
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Post by am on Dec 8, 2016 15:18:33 GMT
So, what reason did FC give for defaulting the loan? (I'm assuming that details are now not accessible for persons not in the loan.)
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dorset
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Post by dorset on Dec 8, 2016 16:26:23 GMT
What might be going on? Business as usual of course! I have defaulted loans that continue to trade normally for...as longggggg as they possibly can, both here and elsewhere. That means for as long as they can spin out the excuses and obstifications, which I'm sure is something that solicitors are particularly good at doing. I doubt FC would encourage your pro-active approach! I would have thought that solicitors would find it more difficult to continue trading whilst under Law Society rules, holding client monies etc etc. Hence I was intrigued and most surprised that they are still trading.
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blender
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Post by blender on Dec 8, 2016 16:39:31 GMT
Perhaps we are forgetting FC's famous 'survive to revive' policy.
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pip
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Post by pip on Dec 8, 2016 16:40:49 GMT
Solicitors are on my don't touch list, too often the real reason for the loan seems to be to do something clever at the lenders expense. FYI also on the list is:
Accountants
Building maintenance companies
Estate/letting agents
Companies that claim they sell most of their stuff online without having a decent website
Any company where it is not at all clear what they do (a good 20% of listings on FC)
Anybody asking for a loan to fund a tax payment
Anybody that sights it being 'slow over christmas' or any other time of the year for that matter, leading to temporary cash flow problems.
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kaya
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Post by kaya on Dec 8, 2016 16:47:44 GMT
er, doesn't leave much, does it?!!
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fasty
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Post by fasty on Dec 8, 2016 16:53:41 GMT
er, doesn't leave much, does it?!! Presumably that explains why so many people on this forum have exited Fearfully Careless.
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jamesc
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Post by jamesc on Dec 8, 2016 16:56:39 GMT
Solicitors are on my don't touch list, too often the real reason for the loan seems to be to do something clever at the lenders expense. FYI also on the list is: Accountants Building maintenance companies Estate/letting agents Companies that claim they sell most of their stuff online without having a decent website Any company where it is not at all clear what they do (a good 20% of listings on FC) Anybody asking for a loan to fund a tax payment Anybody that sights it being 'slow over christmas' or any other time of the year for that matter, leading to temporary cash flow problems. Agree with most of them although I like Accountants or at least bookkeepers (nice easy business to understand and steady), I also like tax payment loans particularly for small businesses easy to understand the reason and often short (12 months), otherwise agree.
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dorset
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Post by dorset on Dec 8, 2016 17:43:37 GMT
Oh, dorset! I thought that you had been here long enough to have learned about solicitors. And scrap merchants. Funnily enough out of my 116 defaults over five years this is the first solicitor. As an update my monies recovered is now standing at 28.15%
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dorset
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Post by dorset on Dec 8, 2016 17:52:57 GMT
So, what reason did FC give for defaulting the loan? (I'm assuming that details are now not accessible for persons not in the loan.) FC heard that the firm was in discussion with insolvency practitioners and the loan repayments were about 2 months overdue. On paper looks a perfect loan: A+, £5 million fees, net income £900k, net worth £900k and the loan was to expand!!! Two payments made out of 24.
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fasty
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Post by fasty on Dec 8, 2016 17:53:21 GMT
Oh, dorset! I thought that you had been here long enough to have learned about solicitors. And scrap merchants. Funnily enough out of my 116 defaults over five years this is the first solicitor. As an update my monies recovered is now standing at 28.15% Reminds me that (despite my earlier comments) one of my largest loans is with a solicitor, and it's "E" rated. So is that a "Z" in real money? It was one of those "buy first, read details later" moments that I might live to regret. Churn time perhaps. Oh and BTW, my total recoveries are only 10% of the total bad debt
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Post by captainconfident on Dec 8, 2016 18:45:32 GMT
Oh sweet schadenfreude! As a long time participant in this board I knew the word "solicitor" was akin to typhus or throwing your money in the sea. I like accountants though. And architects. But I dont like the new A rates so I treat this site with Frank Contempt.
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fasty
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Post by fasty on Dec 8, 2016 19:23:38 GMT
Will the supply of new loan parts dry up over the festive period, leaving hordes of punters eager to purchase loan parts in Solicitors at a modest premium?
...or shall I simply dump them right now? I have had 4 successful payments so far.
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