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Post by wickedxuk on Dec 24, 2016 1:29:07 GMT
While I wait for my access to the private board, in general how do people feel about the diamond shop loan?
I'm looking to diversify away from property and as the pawn items are few and far between on FS or MT or have very small bid limits, I would like some alternatives for 2017.
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agent69
Member of DD Central
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Post by agent69 on Dec 24, 2016 9:13:24 GMT
While I wait for my access to the private board, in general how do people feel about the diamond shop loan? I'm looking to diversify away from property and as the pawn items are few and far between on FS or MT or have very small bid limits, I would like some alternatives for 2017. I think it was one of the better regarded loans when it was with TC. Security is against stock, so there is an issue regarding how often anyone checks that levels aren't being run down. There was also a thread elsewhere regarding adverse effects on the business due to increased competition from synthetic diamonds (where quality is improving and costs reducing).
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Post by chielamangus on Dec 24, 2016 10:01:25 GMT
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Post by chielamangus on Dec 24, 2016 10:02:49 GMT
While I wait for my access to the private board, in general how do people feel about the diamond shop loan? I'm looking to diversify away from property and as the pawn items are few and far between on FS or MT or have very small bid limits, I would like some alternatives for 2017. I think it was one of the better regarded loans when it was with TC. Security is against stock, so there is an issue regarding how often anyone checks that levels aren't being run down. There was also a thread elsewhere regarding adverse effects on the business due to increased competition from synthetic diamonds (where quality is improving and costs reducing). My own research into manufactured diamonds, before the loan went live, suggested there was no problem currently because the technology required so much (expensive) electricity to produce the diamonds. Manufactured diamonds are not cheap. They are also aimed at the manufacturing market (all those diamond drills) rather than the luxury jewellery market.
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Post by wickedxuk on Dec 24, 2016 11:50:51 GMT
Thanks gents, much appreciated. I'm not quite willing to give AC a shot yet. The site is too difficult to use as there is no mobile version presently. As I rarely get chance to use the laptop for these things, not been able to conduct my p2p trades on my phone is a deal breaker before I've even started.
I do think this loan seems good for diversifying though so I will see what AC'a response is to my website feedback and why there doesn't appear to be a mobile version after so long developing the site.
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Post by oldnick on Dec 24, 2016 13:14:27 GMT
I have to say I don't trust the security on my phone for financial transactions (probably an outdated fear now?) so I don't know how their website functions for mobiles. The introductory pages look tidy enough though.
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Post by BrianC on Dec 24, 2016 22:27:57 GMT
I use the non mobile website on an iPhone and iPad no problem at all. Admittedly it's easier on the pad than the phone.
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pikestaff
Member of DD Central
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Post by pikestaff on Dec 25, 2016 7:55:47 GMT
While I wait for my access to the private board, in general how do people feel about the diamond shop loan? I'm looking to diversify away from property and as the pawn items are few and far between on FS or MT or have very small bid limits, I would like some alternatives for 2017. I think it was one of the better regarded loans when it was with TC... Hmm. I would say that it was a bit of a marmite borrower on TC and that confidence in the borrower was declining. I retain an exposure, but it is half what I had on TC. My reservations include: - Insatiable appetite for cash - Appalling stock turn - Very portable security - Flawed valuation methodology IMO - TC's new(ish) management appeared glad to let it go. PS A bit sad to be posting this today. Merry Christmas!
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Post by wickedxuk on Dec 25, 2016 9:52:45 GMT
I have to say I don't trust the security on my phone for financial transactions (probably an outdated fear now?) so I don't know how their website functions for mobiles. The introductory pages look tidy enough though. oh yes... the site before you register and log in is perfect. It's the main p2p dashboard and everything else when your logged in as an investor that let's it down.
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Post by wickedxuk on Dec 25, 2016 9:58:27 GMT
I have to say I don't trust the security on my phone for financial transactions (probably an outdated fear now?) so I don't know how their website functions for mobiles. The introductory pages look tidy enough though. I use Chrome on a Samsung Galaxy S6. Security is no better on the laptop, it's the site that determines the encryption method available. I guess the main difference is a lot of people maybe neglect to have an anti virus on a smartphone but would more often then not have one on a laptop or computer. Thanks for all the input from everyone I think I will monitor AC for a little while longer and if a loan comes along I like then I may dip in. For now I will stay passive... Merry Christmas 😎🎅✌
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
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Post by gibmike on Dec 25, 2016 12:29:30 GMT
I have invested in this loan, my thoughts:
1) Stock should be monitored quarterly by AC/ borrower. LTV should be changed accordingly. This should be standard procedure so not concerned.
2) Unlike property, the value of the diamonds should not be effected by the effects of recession.
3) The 11.5% interest is high enough to warrant the risk for me. Had it been sub 10% or 10% maybe I would have invested at a lower rate.
4) 64% LTV is also decent, gives a good margin of error.
Overall I am happy with it.
Mike
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Post by wickedxuk on Dec 25, 2016 13:39:12 GMT
I have invested in this loan, my thoughts: 1) Stock should be monitored quarterly by AC/ borrower. LTV should be changed accordingly. This should be standard procedure so not concerned. 2) Unlike property, the value of the diamonds should not be effected by the effects of recession. 3) The 11.5% interest is high enough to warrant the risk for me. Had it been sub 10% or 10% maybe I would have invested at a lower rate. 4) 64% LTV is also decent, gives a good margin of error. Overall I am happy with it. Mike Thanks Mike.
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pikestaff
Member of DD Central
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Post by pikestaff on Dec 25, 2016 14:28:40 GMT
I have invested in this loan, my thoughts: ...Stock should be monitored quarterly by AC... AFAIK, they can't. They can monitor the borrrower's stock list, but that's not the same thing at all. I would be more comfortable if the borrower had a statutory audit, preferably from a firm that understood how to audit stock.
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gibmike
Member of DD Central
What is a cynic? A man who knows the price of everything and the value of nothing.
Posts: 256
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Post by gibmike on Dec 25, 2016 18:59:41 GMT
Ah then yes, someone needs to monitor valuations as this progresses. You cannot base a loan on stock movements if the stock is being run down or replaced with lower value items.
Mike
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pikestaff
Member of DD Central
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Post by pikestaff on Dec 26, 2016 8:25:39 GMT
gibmike That's not really my point. If there was a competent statutory audit, we would have reasonable comfort as to the existence of the stock - albeit at a point in time. I don't think the valuation provides that. I'm not saying that that there is a problem, merely that I'd be more comfortable if there was a proper audit.
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