michaelc
Member of DD Central
Say No To T.D.S.
Posts: 5,716 
Likes: 2,986
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Post by michaelc on Apr 20, 2017 21:20:10 GMT
You're way, way off the mark. Download FS's accounts from Companies House. They are profitable but make nowhere near the margin that you seem to think. And as for it being something you "could knock up", I couldn't really comment but I think you're massively underestimating the amount of hard work, investment and experience required to make a platform like this successful. Sorry I have to disagree. Their own website says that they lend at 30%-65%. I take on board someone else comments that this only applies to pawn loans but it would be nice to have clarity - i.e. to see a statement from FS or something on their website which states a ballpark figure for their property lending. Note also that pawn loans are still offered to us at 12%-14i%sh It was also pretty clear I think I was talking about the spread between what they offer lenders and that which we receive not the company's income. I understand they have costs and so on like all businesses and I might have made a mistake using language like "profit" but I still think it was fairly clear that the spirit of my post was about the spread or would it be correct to say gross margin? As for the comment you couldn't possible make but did, do recall Facebook started by knocking up a website. I wouldn't overestimate such costs either. I don't understand why if we're all independent here, why nobody is even a tiny bit bothered about the difference between 65% and 12% !
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bg
Member of DD Central
Posts: 1,368
Likes: 1,929
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Post by bg on Apr 20, 2017 22:02:07 GMT
You're way, way off the mark. Download FS's accounts from Companies House. They are profitable but make nowhere near the margin that you seem to think. And as for it being something you "could knock up", I couldn't really comment but I think you're massively underestimating the amount of hard work, investment and experience required to make a platform like this successful. Sorry I have to disagree. Their own website says that they lend at 30%-65%. I take on board someone else comments that this only applies to pawn loans but it would be nice to have clarity - i.e. to see a statement from FS or something on their website which states a ballpark figure for their property lending. Note also that pawn loans are still offered to us at 12%-14i%sh It was also pretty clear I think I was talking about the spread between what they offer lenders and that which we receive not the company's income. I understand they have costs and so on like all businesses and I might have made a mistake using language like "profit" but I still think it was fairly clear that the spirit of my post was about the spread or would it be correct to say gross margin? As for the comment you couldn't possible make but did, do recall Facebook started by knocking up a website. I wouldn't overestimate such costs either. I don't understand why if we're all independent here, why nobody is even a tiny bit bothered about the difference between 65% and 12% ! This has come up on numerous threads before and again I fail to see how it's relevant. The only question to ask here is are you happy to lend to XYZ at 13% based on the information supplied by FS. If you think it's a bad proposition then don't! The analysis above is akin to questioning why the likes of Starbucks are making a 1500% markup on each cup of coffee they sell. The answer clearly is overheads (not least substantial legal fees, IT costs, compliance costs and other staffing costs) but that aside it's a free market - if someone is making such spectacular profits then competitors will soon move in to undercut them. Fact is, it's a fairly competitive market already. The rates FS quote borrowers are typical bridging/development loan rates.
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ozboy
Member of DD Central
Mine's a Large One! (Snigger, snigger .......)
Posts: 3,168
Likes: 4,859
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Post by ozboy on Apr 20, 2017 22:39:50 GMT
Well, I don't see how it's completely irrelevant either?
It is always worth remembering that we take all the Risk, and we don't even get a say in when to Default an obviously Bad Loan, when it's our money.
Funny old business P2P.
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