markr
Member of DD Central
Posts: 766 
Likes: 426
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Post by markr on Dec 22, 2016 14:35:17 GMT
Well, FC are certainly bucking the Christmas slowdown this year, currently 52 carefully selected Christmas crackers lined up for your delight and delectation. They've even had to send someone up into the loft to unpack page 2 of 2.
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mikeh
Member of DD Central
Posts: 499
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Post by mikeh on Dec 22, 2016 14:53:48 GMT
Great. Now if only I could find one worth investing in.
I have to say though that judging by their originations they don't seem to be suffering too much from the exodus of forum members here.
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kaya
Member of DD Central
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Post by kaya on Dec 22, 2016 16:51:54 GMT
Funding Circle have sent me my special Christmas present today  - my first 1k! ....in losses  |
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fasty
Member of DD Central
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Post by fasty on Dec 22, 2016 16:54:03 GMT
Funding Circle have sent me my special Christmas present today - my first 1k! ....in losses Did you buy... a turkey?
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kaya
Member of DD Central
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Post by kaya on Dec 22, 2016 17:12:05 GMT
37 turkeys, and counting...
I'm feeling a bit chicken, time to go the run and lend....elsewhere, methinks.
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fp
Posts: 1,008
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Post by fp on Dec 22, 2016 18:30:05 GMT
37 turkeys, and counting... I'm feeling a bit chicken, time to go the run and lend....elsewhere, methinks. Ouch, that will take some making back.....
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kaya
Member of DD Central
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Post by kaya on Dec 23, 2016 9:51:21 GMT
No no, the profits are still well ahead of the losses. Net return today is the lowest ever, 9.2%, and its been heading steadily south for a long time. Can't see a rosy future ahead here, so a major cull is approaching.
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r00lish67
Member of DD Central
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Post by r00lish67 on Dec 23, 2016 9:53:52 GMT
Another (Christmas) cracker of a loan opportunity..30402. To summarise:
Purpose: Company needs loan for working capital due to a bad debt 75% of the size of their last reported net profit, and also due to "severe machine problems". Well, at least they're honest.
Business: As deduced from their Q + A, some sort of laser cutting thing, probably heavily reliant on a lack of severe machine problems.
Financials: Current assets minus current liabilities = -£327,654. That was before the £66k bad debt and the severe machine problems.
Loan size: Double their last reported profit.
Security: None.
And for this golden opportunity? To you sir, 5.5% interest less our customary 1% fee. Well, it is an A+ of course... Merry Christmas!
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bg
Member of DD Central
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Post by bg on Dec 23, 2016 10:04:00 GMT
Another (Christmas) cracker of a loan opportunity..30402. To summarise: Purpose: Company needs loan for working capital due to a bad debt 75% of the size of their last reported net profit, and also due to "severe machine problems". Well, at least they're honest. Business: As deduced from their Q + A, some sort of laser cutting thing, probably heavily reliant on a lack of severe machine problems. Financials: Current assets minus current liabilities = -£327,654. That was before the £66k bad debt and the severe machine problems. Loan size: Double their last reported profit. Security: None. And for this golden opportunity? To you sir, 5.5% interest less our customary 1% fee. Well, it is an A+ of course... Merry Christmas! Yes but the stats don't lie. If they are really assigning too high a risk band to weak companies it will soon show through in the net returns after losses stats. The average platform net return will also decrease substantially which is certainly not in FC's interest.
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kaya
Member of DD Central
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Post by kaya on Dec 23, 2016 10:33:24 GMT
An avalanche of defaults in the not-too-distant-future is inevitable I fear. The loan book is getting too top-heavy with risky loans. The slide might begin anytime... But no more fearmongering. I'm sure all will be well. Really.  |
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fasty
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Post by fasty on Dec 23, 2016 10:33:27 GMT
Tempting to post a Q&A asking whether the A+ rating on 30402 is a mistake, and they meant "E"
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r00lish67
Member of DD Central
Posts: 2,692
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Post by r00lish67 on Dec 23, 2016 10:33:52 GMT
Another (Christmas) cracker of a loan opportunity..30402. To summarise: Purpose: Company needs loan for working capital due to a bad debt 75% of the size of their last reported net profit, and also due to "severe machine problems". Well, at least they're honest. Business: As deduced from their Q + A, some sort of laser cutting thing, probably heavily reliant on a lack of severe machine problems. Financials: Current assets minus current liabilities = -£327,654. That was before the £66k bad debt and the severe machine problems. Loan size: Double their last reported profit. Security: None. And for this golden opportunity? To you sir, 5.5% interest less our customary 1% fee. Well, it is an A+ of course... Merry Christmas! Yes but the stats don't lie. If they are really assigning too high a risk band to weak companies it will soon show through in the net returns after losses stats. The average platform net return will also decrease substantially which is certainly not in FC's interest. Agreed, although it'll probably take another year to see where we really are. The current stats largely reflect loans originated prior to introduction of fixed rates, which coincides with the (admittedly subjective) significant watering down of the quality of loans. All I currently know is that whenever I take a look at a new A+ loan on FC for old times sake, I usually find it to be some combination of funny and downright alarming
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r00lish67
Member of DD Central
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Post by r00lish67 on Dec 23, 2016 10:42:07 GMT
An avalanche of defaults in the not-too-distant-future is inevitable I fear. The loan book is getting too top-heavy with risky loans. The slide might begin anytime... But no more fearmongering. I'm sure all will be well. Really. The thing is with the A+ loans, it doesn't even need to be an avalanche. A mere dusting of 1.2% of these loans going bad doubles their expected annual bad debt rate.
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Post by GSV3MIaC on Dec 23, 2016 12:09:41 GMT
/mod hat off
'not quite', since the 0.6% is losses, not number of dead loans, so it rather depends how many payments they make before they expire, and how big they were, and how much (eventually) gets recovered. Remember your Twain .. "lies, damn lies, and statistics", iirc. The huge A+ property loans help the numbers a lot (as long as they don't default and lose money).
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blender
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Post by blender on Dec 23, 2016 13:33:36 GMT
They only need to get through the flotation.
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- my first 1k! ....in losses 
