JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Jul 22, 2017 8:45:19 GMT
I seem to be out of step with most posters here, but I am not interested in risking my money with any company making consistent losses. One of the main risks with P2P is usually said to be platform risk and I don't subscribe to the theory that any of these platforms is "too big to fail".
It seems to me that rapid growth while giving ever lower returns to people believing that anything above bank deposit interest is good news, is not a great business model unless it shows a profit.
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ben
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Post by ben on Jul 22, 2017 14:41:07 GMT
I seem to be out of step with most posters here, but I am not interested in risking my money with any company making consistent losses. One of the main risks with P2P is usually said to be platform risk and I don't subscribe to the theory that any of these platforms is "too big to fail". It seems to me that rapid growth while giving ever lower returns to people believing that anything above bank deposit interest is good news, is not a great business model unless it shows a profit. Some have backers to begin with so will make a loss as they try to make market share, initial start up costs can aslo be expensive. It the ones that have been around for a few years and are still not making a profit that are probably more concerning. Although I am quite surprised with the amount not making money still but then I guess a lot have far to many employees for the size of business.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Likes: 897
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Post by JamesFrance on Jul 22, 2017 17:50:58 GMT
I would suspect that it will only take one unprofitable platform to fold with all the attendant publicity, for there to be a massive exodus from the sector by passive investors who suddenly realise that even the low interest sites are not risk free.
If that happens the ones making large losses with bloated running costs could be very vulnerable.
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mary
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Post by mary on Jul 22, 2017 18:18:06 GMT
I would suspect that it will only take one unprofitable platform to fold with all the attendant publicity, for there to be a massive exodus from the sector by passive investors who suddenly realise that even the low interest sites are not risk free. If that happens the ones making large losses with bloated running costs could be very vulnerable. I believe more than one platform has already disappeared, however mostly because their proposition never gained traction and therefore they never attracted many investors, and hence there was little comment or reaction. I don't know if investors lost money, although I assume so.
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rick24
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Post by rick24 on Jul 22, 2017 18:32:00 GMT
Good work and definitely an area worth highlighting and reviewing regularly. stuartassetzcapital said in a video interview that AC had broken into profit recently and MoneyThing stated on this forum that they were also profitable. Obviously both later data points than official fillings but potentially worthy of note? Of more amusing value, Li must be the most profitable p2p platform in the universe if they have overtaken Lendy. Congratulations to them! Yup, AC were profitable over the last financial year and continue to be profitable in this financial year. I'm not sure what has been made public so don't really want to say more but it may be worth asking our lender support team for an official statement on the matter. This is a very important consideration as far as I am concerned. I would rather not lend via a platform which is going to fall over at the next puff of wind. I have therefore allocated a relatively large proportion of my p2p funds to AC.
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Post by nellerdk on Jul 24, 2017 13:53:03 GMT
some notable p2p platforms were started with a boost from venture capital money. Surely, these VC guys must have had plans for how the p2p platforms can make them a profit in the future.
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Post by easteregg on Jul 24, 2017 14:44:01 GMT
I would suspect that it will only take one unprofitable platform to fold with all the attendant publicity, for there to be a massive exodus from the sector by passive investors who suddenly realise that even the low interest sites are not risk free. If that happens the ones making large losses with bloated running costs could be very vulnerable. I believe more than one platform has already disappeared, however mostly because their proposition never gained traction and therefore they never attracted many investors, and hence there was little comment or reaction. I don't know if investors lost money, although I assume so. There have been over 20 platforms that have ceased or suspended trading over the years and the full list is on P2P money: www.p2pmoney.co.uk/companies.htm
There were two platforms where UK lenders have lost money because of the closure - Quakle and TrustBuddy.
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Post by nellerdk on Jul 24, 2017 15:28:51 GMT
how much money was invested with respectively Quakle and TrustBuddy before they went bust?
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Post by Ton ⓉⓞⓃ on Jul 24, 2017 20:33:05 GMT
I believe more than one platform has already disappeared, however mostly because their proposition never gained traction and therefore they never attracted many investors, and hence there was little comment or reaction. I don't know if investors lost money, although I assume so. There have been over 20 platforms that have ceased or suspended trading over the years and the full list is on P2P money: www.p2pmoney.co.uk/companies.htm
There were two platforms where UK lenders have lost money because of the closure - Quakle and TrustBuddy.
Great charts easteregg, as always thanks! With Trillion am I right in thinking that they "suspendered operations" for a while and are now back in the game or is it more complicated than that? There were some stories that btl (Be the Lender) lost some Lenders money too. (We have a board of defunct or non responding platforms here)
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Post by easteregg on Jul 25, 2017 13:04:37 GMT
There have been over 20 platforms that have ceased or suspended trading over the years and the full list is on P2P money: www.p2pmoney.co.uk/companies.htm
There were two platforms where UK lenders have lost money because of the closure - Quakle and TrustBuddy.
Great charts easteregg , as always thanks! With Trillion am I right in thinking that they "suspendered operations" for a while and are now back in the game or is it more complicated than that? There were some stories that btl (Be the Lender) lost some Lenders money too. (We have a board of defunct or non responding platforms here) The projects on Trillion's home page seem to be old projects, although there is a recent post concerning one of their borrowers going into administration. Trillion stated they had suspended operations in the following blog: blog.trillionfund.com/changes-at-trillion-important-update/
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adrianc
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Post by adrianc on Aug 5, 2017 10:27:00 GMT
Really not surprised to see that LC is carrying big losses. They surely have to be one of the most likely candidates for the next to put the shutters up.
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