Post by albermarle on Aug 15, 2017 16:06:50 GMT
There are a number of posts with info about this subject but most tend to refer to statistics about start up failure rates ( >50% after 5 years ) or the default % on the P2P platforms who are involved with unsecured/partly secured SME loans ( ie FC, LC, ReBS).
I have tried to find data on typical/historical defaults for more established SME's, who are not in a distressed state.
There seems to be not that much data around except the main high street banks responsible for the majority of SME lending, seem to have a default rate as low as 0.4%.
If this is true , it seems very low as to what we normally see with P2P . I can only think that it is because the bulk of their lending ( in £ terms) will be to established Medium sized businesses ( > £5 million turnover ) where they have done proper DD and kicked the tyres.
Whereas the bulk of P2P lending is to small/micro/sole traders , some established but a lot not, and where the DD is probably done from a distance and using a computer credit assessment program.
Still < 0.5% defaults seems very low, maybe I have got the wrong figure ?
I have tried to find data on typical/historical defaults for more established SME's, who are not in a distressed state.
There seems to be not that much data around except the main high street banks responsible for the majority of SME lending, seem to have a default rate as low as 0.4%.
If this is true , it seems very low as to what we normally see with P2P . I can only think that it is because the bulk of their lending ( in £ terms) will be to established Medium sized businesses ( > £5 million turnover ) where they have done proper DD and kicked the tyres.
Whereas the bulk of P2P lending is to small/micro/sole traders , some established but a lot not, and where the DD is probably done from a distance and using a computer credit assessment program.
Still < 0.5% defaults seems very low, maybe I have got the wrong figure ?