dorset
Member of DD Central
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Post by dorset on Dec 26, 2016 11:13:28 GMT
Loan 23923 for £250k launched August 2016 as risk band D (I am in this loan at 13.8%).
New loan 30412 now launched for £215k to pay off existing loan and now graded A at 8%. After 4 days only 17% filled and not surprised. Cannot blame in any way the borrower trying to reduce loan costs.
Love to hear how Faulty Calculations could justify changing a risk grade from D to A after only six months. Needless to stay I will not be lending to 30412.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
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Post by stub8535 on Dec 27, 2016 18:31:36 GMT
D to a is a big leap but we are dealing with an algorithm here. Company could have moved down a band by borrowing reduced funds, add in a possible cleanup of credit file, a filing of better results and a Christmas suspension of reality and there we are!
Agreed it is rediculous. I wonder if the lights are on but no one is at home in fact towers! The bots have taken over!
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Post by transo on Dec 27, 2016 23:55:12 GMT
D to a is a big leap but we are dealing with an algorithm here. Company could have moved down a band by borrowing reduced funds, add in a possible cleanup of credit file, a filing of better results and a Christmas suspension of reality and there we are! Agreed it is rediculous. I wonder if the lights are on but no one is at home in fact towers! The bots have taken over! Whether it's the algorithm or a change in the company's fortunes it's been more of a roller-coaster than that. Over their 7 previous loans they've ranged from C (initially) up to A+ in 2015, then down to a D in July 2016. What I don't get is why they paid off the A+ loans (8%) over a year early using a D loan at 13.8%!?
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dorset
Member of DD Central
Posts: 281
Likes: 187
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Post by dorset on Dec 28, 2016 9:23:13 GMT
One day to go and only 20% funded - looks like they may have to live with the D loan. On the other hand FC could now regrade as a B loan and re-launch. The risk bands are now simply a way to manipulate the loan rate.
As an aside the D loan was against 2015 a/cs with a t/o of £5m and profits of £300k while the current A loan application was against the 2016 a/cs showing a drop in both turnover and profits of about 20%.
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jayjay
Member of DD Central
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Post by jayjay on Dec 28, 2016 9:58:21 GMT
I feel sure everything will fund very quickly when FC get back in this morning and turn autobid back on. No sign of much autobid cash throughout the last week so it has got to be piling up. Ratings will become irrelevant again.
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am
Posts: 1,495
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Post by am on Dec 28, 2016 18:01:19 GMT
D to a is a big leap but we are dealing with an algorithm here. Company could have moved down a band by borrowing reduced funds, add in a possible cleanup of credit file, a filing of better results and a Christmas suspension of reality and there we are! Agreed it is rediculous. I wonder if the lights are on but no one is at home in fact towers! The bots have taken over! Whether it's the algorithm or a change in the company's fortunes it's been more of a roller-coaster than that. Over their 7 previous loans they've ranged from C (initially) up to A+ in 2015, then down to a D in July 2016. What I don't get is why they paid off the A+ loans (8%) over a year early using a D loan at 13.8%!? As I understand it, FC won't lend you money if you've got a higher rated outstanding loan. So, if they needed the extra money, they had to pay of the A+ loans, or find another lender.
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