southport
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Post by southport on Jul 5, 2017 14:32:43 GMT
I'm a little confused. Has the latest tranche gone live or has it been removed from the pipeline??
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twoheads
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Post by twoheads on Jul 5, 2017 14:34:12 GMT
Well the tranche went live but the loan only increased by £341,600 (this is £181k short of the original tranche 9 value).
So presumably, that's all the cash the prefunding brought in. (I did eventually decide to prefund the tranche in a small way.)
For some unfathomable reason, the SM availability vs Sales queue has increased slightly (by £1300) and now stands at £293,488 (from £292,188 prior to the tranche).
Let's hope the project can continue!
EDIT: Crossed with southport above. Loan value increased from £8,092,697 to £8,434,297. I received my full prefund request as, I suspect, did everyone prefunding this.
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southport
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Post by southport on Jul 5, 2017 14:39:58 GMT
Let's hope the project can continue! That's my concern. I would assume that the funding was guaranteed by lendy and if said funding is not forthcoming then I would presume there would be grounds for legal action ny the contractor which could put the whole platform at risk? Or maybe I'm presuming too much.
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Post by d_saver on Jul 5, 2017 14:59:09 GMT
Let's hope the project can continue! That's my concern. I would assume that the funding was guaranteed by lendy and if said funding is not forthcoming then I would presume there would be grounds for legal action ny the contractor which could put the whole platform at risk? Or maybe I'm presuming too much. Methinks you are presuming too much, but I'm not 100%. I did ask lendy a little while back as it was bugging me, and whilst it took a few goes over a few weeks and I never really got a complete or detailed answer to my question, the response was that the project would receive no further funds until 'all funds are in place'. I asked for clarification of the last of course, but didn't really get a decent answer. Only that they will remain in the 'available loans' until funded. Certainly felt like the question was being avoided, but I may be reading more into simple poor support responses than I should. I read it as funds must be found for the tranches via investors of the project does not get the money. i.e. Lendy does NOT have a contingency in place to fund this if investors do not [ edit: and I did ask specifically this question]. I am invested in this. It's one of my larger Lendy holdings. For the first time in a few months, I even funded this on the latest tranche. It's sooooo near completion, despite the SM, I believe a solution to any last period problems would be in the interest of all to resolve with further funding if needed.
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twoheads
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Post by twoheads on Jul 5, 2017 15:01:20 GMT
That's my concern. I would assume that the funding was guaranteed by lendy and if said funding is not forthcoming then I would presume there would be grounds for legal action ny the contractor which could put the whole platform at risk? Or maybe I'm presuming too much. I wouldn't think that Lendy can make such a guarantee to a borrower. How can they guarantee that investors will provide the cash? In my view they cannot.
The concern now is that, according to the loan particulars, the LTGDV may grow to a maximum of 60%. This means that there is still a possible £2.3M to be found for future tranches to complete the development. In the current climate, Lendy have little chance of raising the money from regular investors.
Perhaps they may consider raising the rate on this loan to get things moving again - try 13% and see what happens.
Alternatively: perhaps we should suggest they offer the next tranche at a higher rate (say 15%!). Their system probably couldn't cope with two rates for one loan but this could be overcome by introducing a new 'loan' to handle the later tranches offered at a higher rate.
I wonder are Paul64 and Lendy Support considering such an action?
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Post by d_saver on Jul 5, 2017 15:28:53 GMT
That's my concern. I would assume that the funding was guaranteed by lendy and if said funding is not forthcoming then I would presume there would be grounds for legal action ny the contractor which could put the whole platform at risk? Or maybe I'm presuming too much. I wouldn't think that Lendy can make such a guarantee to a borrower. How can they guarantee that investors will provide the cash? In my view they cannot.
The concern now is that, according to the loan particulars, the LTGDV may grow to a maximum of 60%. This means that there is still a possible £2.3M to be found for future tranches to complete the development. In the current climate, Lendy have little chance of raising the money from regular investors.
Perhaps they may consider raising the rate on this loan to get things moving again - try 13% and see what happens.
Alternatively: perhaps we should suggest they offer the next tranche at a higher rate (say 15%!). Their system probably couldn't cope with two rates for one loan but this could be overcome by introducing a new 'loan' to handle the later tranches offered at a higher rate.
I wonder are Paul64 and Lendy Support considering such an action?
I think that's a good route to ensure tranches are filled, but it eats into Lendy's bottom line as I doubt they could increase the rate to the borrower. Apart from the risk to their future business of any major failure of a loan like this though, it doesn't I think mitigate their risk on the loan directly, if the tranche fills or not as investors really take the risk, not lendy. It's in everyone's interest, Lendy and investors to see this make it though, so I cannot imagine a situation where a solution will not be found at a late stage like this. Failure of a loan like this I am sure would put a nail in Lendy's coffin I think (but maybe now I'm presuming too much)
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mary
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Post by mary on Jul 5, 2017 15:42:05 GMT
That's my concern. I would assume that the funding was guaranteed by lendy and if said funding is not forthcoming then I would presume there would be grounds for legal action ny the contractor which could put the whole platform at risk? Or maybe I'm presuming too much. Methinks you are presuming too much, but I'm not 100%. I did ask lendy a little while back as it was bugging me, and whilst it took a few goes over a few weeks and I never really got a complete or detailed answer to my question, the response was that the project would receive no further funds until 'all funds are in place'. I asked for clarification of the last of course, but didn't really get a decent answer. Only that they will remain in the 'available loans' until funded. Certainly felt like the question was being avoided, but I may be reading more into simple poor support responses than I should. I read it as funds must be found for the tranches via investors of the project does not get the money. i.e. Lendy does NOT have a contingency in place to fund this if investors do not [ edit: and I did ask specifically this question]. I am invested in this. It's one of my larger Lendy holdings. For the first time in a few months, I even funded this on the latest tranche. It's sooooo near completion, despite the SM, I believe a solution to any last period problems would be in the interest of all to resolve with further funding if needed. Worried now. Surely there is an underwriting backup plan? If I was the developer I would be very concerned if there was a possibility that my project could be halted due to my financier having a problem! And there's many other DFLs that need plenty more money, approx £10m+ for DFL19 alone!
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Post by d_saver on Jul 5, 2017 15:49:28 GMT
Methinks you are presuming too much, but I'm not 100%. I did ask lendy a little while back as it was bugging me, and whilst it took a few goes over a few weeks and I never really got a complete or detailed answer to my question, the response was that the project would receive no further funds until 'all funds are in place'. I asked for clarification of the last of course, but didn't really get a decent answer. Only that they will remain in the 'available loans' until funded. Certainly felt like the question was being avoided, but I may be reading more into simple poor support responses than I should. I read it as funds must be found for the tranches via investors of the project does not get the money. i.e. Lendy does NOT have a contingency in place to fund this if investors do not [ edit: and I did ask specifically this question]. I am invested in this. It's one of my larger Lendy holdings. For the first time in a few months, I even funded this on the latest tranche. It's sooooo near completion, despite the SM, I believe a solution to any last period problems would be in the interest of all to resolve with further funding if needed. Worried now. Surely there is an underwriting backup plan? If I was the developer I would be very concerned if there was a possibility that my project could be halted due to my financier having a problem! And there's many other DFLs that need plenty more money, approx £10m+ for DFL19 alone! Not to my knowledge and that is essentially the question I asked. Again, I might be wrong, but I think it's been mentioned here before that Lendy do not use underwriters. That's not to say they might not find an investor to dump a few hundred k in though, and I'm sure if they did increase the rate on a tranche and / or update the loan details with IMS report etc to provide investors the info they need to fund further (assuming it's all good), they could find the funding. They do seem to have been improving a bit on that side. Perhaps they are paying a little attention.
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mary
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Post by mary on Jul 5, 2017 16:13:59 GMT
Worried now. Surely there is an underwriting backup plan? If I was the developer I would be very concerned if there was a possibility that my project could be halted due to my financier having a problem! And there's many other DFLs that need plenty more money, approx £10m+ for DFL19 alone! There will certainly be underwriters in the background happy to jump in to save the day... at a premium. Not only that, the contract will be between LY & the underwater - if problems occur with the actual loan, the underwriters will still want their money (with applicable fees - such as late fees) Underwriters are a temporary solution, and works well as a short-term line of finance - the problem is when it inadvertently becomes long term. Lots of DFL Tranches - LY will find that many will be hard to fill Let us not forget that LY also have some capital that they can utilise - it possible this is currently what is being used to make up the shortfall(s) And there's that Savingstream Bond I recall? Just would be nice to have some reassurance rather than all the (probably misinformed) guess work being discussed here!
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toffeeboy
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Post by toffeeboy on Jul 6, 2017 14:19:27 GMT
And there's that Savingstream Bond I recall? Just would be nice to have some reassurance rather than all the (probably misinformed) guess work being discussed here! Then you should contact LY and stop asking us  > There is Bond - We have no idea what the uptake is > There will be underwriters - they will be expensive > LY has capital - they will be reluctant to use it Surely Lendy can't use the capital surely that would be breaking the FCA regulations
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 6, 2017 14:42:03 GMT
Then you should contact LY and stop asking us > There is Bond - We have no idea what the uptake is > There will be underwriters - they will be expensive > LY has capital - they will be reluctant to use it Surely Lendy can't use the capital surely that would be breaking the FCA regulations What FCA regulation? Nothing against skin in the game and several platforms do it in some form, usually through a connected third party of which Lendy has a selection within the group. ISTM the FCA are concerned about balance sheet security rather than specific funding models, so they happily allow large institutional backed platforms (OC, K) to prefund but prevent the smaller independent ones, (MT, LB)
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elliotn
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Post by elliotn on Jul 6, 2017 14:44:58 GMT
Then you should contact LY and stop asking us > There is Bond - We have no idea what the uptake is > There will be underwriters - they will be expensive > LY has capital - they will be reluctant to use it Surely Lendy can't use the capital surely that would be breaking the FCA regulations Kuflink fund 20% of each loan.
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seeingred
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Post by seeingred on Jul 6, 2017 17:27:43 GMT
This IS getting interesting.
Piles of default loans, poor updates, many promises of purchasers being found for defaulted loans, flippant replies to questions from investors (or flippant and inadequate replies), apparent lack of prefunding even for 'prestige' loans, a bloated and largely moribund SM (as far as we can tell) and many more DFL tranches to come.
Can someone in Lendy Towers cut through the damaging speculation and tell us exactly how they intend to prioritise and address the key issues to get this show back on the road?
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trevor
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Post by trevor on Jul 6, 2017 18:02:48 GMT
Difficult to sort out these issues when you've got to go sailing in Cowes for a week or 2.
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Post by martin44 on Jul 6, 2017 18:14:10 GMT
Can someone in Lendy Towers cut through the damaging speculation and tell us exactly how they intend to prioritise and address the key issues to get this show back on the road? I'm not sure what else they can do, when a loan reaches fruition and the borrower does not pay, it defaults, Lendy can only apply a certain amount of pressure, other than popping round to the borrowers house and giving them an indian burn, as for the SM , if the sales are all genuine punters who wish to sell, then thats not lendy's fault, and the updates are rubbish, i agree. 
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