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Post by nyquest on May 18, 2017 10:59:04 GMT
The business profile on this is laughable. No asset security, non limited company, nothing. Risk band A.
You can get money from people on FC for almost anything it would seem.....
Can someone give me £250k I'm thinking of starting an Elephant hand wash & chimpanzee valeting service in the Shetland islands.....I'll pay you all back, honest
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Post by nickdavies on May 18, 2017 11:58:16 GMT
You can find it on street view easily enough. Hmm.
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am
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Post by am on May 18, 2017 13:42:26 GMT
As the borrower is a sole trader lenders have recourse to all the borrower's assets, so I don't see why the lack of asset security would be a particular concern.
Compared to some of the stuff one sees on FC the business doesn't look too bad - it's profitable and it's got a healthy level of capital. (We've had A loans to loss making businesses, and A loans to businesses with negative NAVs.)
What would concern me, apart from not understanding how the business can use this money (at first sight the stocking levels could be serviced using capital and wholesaler credit), is that to service the combined loans requires around £75,000 p.a., on a business that on the last presented accounts generated a surplus of £20,000. This is situation where we would want to see more recent accounts in order to ascertain whether increased stocking levels supported by the previous loan have resulted in a commensurate increase in turnover and profits. Given that the loan is the same size of the current assets on the presented accounts this implies that stocking levels are being doubled, plus whatever contribution to increased stocking levels was included in the previous loan. I can only speculate the the refurbishment included an increase in the floor area of the premises and/or the borrower intends to sell high-ticket items such as mobile phones.
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am
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Post by am on May 18, 2017 13:56:20 GMT
You can find it on street view easily enough. Hmm. Do that assume that there is just the one business of that name?
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blender
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Post by blender on May 18, 2017 15:45:22 GMT
FC have never bothered what the loan is for, just whether the computer (deep thought) thinks the existing business is credit worthy. I often think that if Despicable Me had avoided the Bank of Evil and gone straight to Funding Charlatans, to fund his project to steal the moon, then he would have needed neither a business plan, nor to use the minions' savings.
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metoo
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Post by metoo on May 18, 2017 16:25:35 GMT
You can find it on street view easily enough. Hmm. Do that assume that there is just the one business of that name? There is a longer version of the business name in the Business Profile.
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Post by gidoppp01 on May 19, 2017 9:18:44 GMT
This is Funding Circle. It's all about fast funding up to £350k without asset security.
The main thing about FC, loans get funded 100% within a few days, and default rates have not gone worse than FC expected. Someone will always hand pick the loans, while FC will sort out the rest and keep them happy.
Having invested for 5 years, no loss yet, and have ignored plenty of comments to avoid STRESS.
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mikeb
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Post by mikeb on May 19, 2017 17:42:38 GMT
Can someone give me £250k I'm thinking of starting an Elephant hand wash & chimpanzee valeting service in the Shetland islands.....I'll pay you all back, honest Q: Is that chimpanzees doing the valeting, or is valeting for your unkempt chimpanzee? Let's see if FC moderate the question 
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blender
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Post by blender on May 19, 2017 21:39:05 GMT
I couldn't get past the elephants' hands.
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mikeb
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Post by mikeb on May 23, 2017 17:32:27 GMT
This is FC, you know. You're not supposed to even mention the elephant. No matter how big its hands are.
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adrianc
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Post by adrianc on May 23, 2017 20:35:19 GMT
Just so long as it's not doing jazz hands.
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Post by 2wolfbag2 on Jun 2, 2017 11:01:52 GMT
Heh you think that's bad - you should have a look at 37787 - I cant believe these loans actually get funded
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kt
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Post by kt on Jun 2, 2017 11:23:23 GMT
There are more and more loans like this.
What are FC playing at? Obviously there is enough money on autobid for these loans to fill, but surely they are opening themselves up to a massive spike in loan failures?
KT
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Post by grahamreeds on Jun 2, 2017 12:09:22 GMT
No, because late loans aren't defaulted to artificially manipulate the figures. I currently have 13 loans downgraded and 5 loans in this land of limbo. Every Thursday I hold my breath thinking one of them might go pop but not for a long while...
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adrian77
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Post by adrian77 on Jun 2, 2017 18:41:30 GMT
Ref ---What are FC playing at? Obviously there is enough money on autobid for these loans to fill, but surely they are opening themselves up to a massive spike in loan failures? --- I agree 110% - this is how I understand the FC non-property loan model as understood by a percentage of their clients 1) you give FC a load of waffle and you get the money 2) you may give a meaningless PG 3) you then blow the money in the business or on a cruise or whatever 4) you then default and if need be bankrupt the company ready for the wife to to buy and start again 5) forget about the PG as you are bust (although her indoors still has a nice family house) Job done - maybe there is a reason the banks won't lend at such low rates for unsecured loans ! Ref Fc poperty loans - despite the twaddle they gave us they clearly intended to expand this field to make loadsa money but they completely failed to think about the business model with the result they have handed millions of pounds over to sharp developers who have seized on their naivety and boy are FC (or rather we clients) are going to lose money on such loans. I did actually start a thead in crowd-funded-village.freeforums.net/thread/43/property-development-jacques-lane-37538as I said I was worried. FC have over 1.5m lent to this company over 3 (?) developments and given this company haven't the readies to repay their loan and can't seem to raise funds then I just don't see how liquidating the assets (as a hefty loss) can be avoided. Sadly this is the worse time for this as the UK market is definitely cooling and when buyers smell blood they try and force the price down and/or wait for further falls. Personally I think in the next 18 months we will see FC repossessions in double figures. Would I touch the FCIF - answers on a postcard - I will research it but it seems to be no more than spread-betting on debt to me. Funnily enough I think FC made the right decision to go into property and it could have worked if FC had a clue what they were doing. |
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