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 Sept 4, 2017 16:53:53 GMT
August saw 56 new loans totalling £11.7m
This is untrue. Fs class renewed loans as new because they give it a new number.
A clearer way to display the true state of origination would be to list renewals as a seperate line on the graph or add an explanatory annotation to prevent misunderstandings.
I know they will refuse to adjust this as it would show the true new loan process as being less than efficient at winning borrowers.
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Post by martin44 on Sept 4, 2017 19:06:09 GMT
August saw 56 new loans totalling £11.7m This is untrue. Fs class renewed loans as new because they give it a new number. A clearer way to display the true state of origination would be to list renewals as a seperate line on the graph or add an explanatory annotation to prevent misunderstandings. I know they will refuse to adjust this as it would show the true new loan process as being less than efficient at winning borrowers. Not surprised. 
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btc
Member of DD Central
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Post by btc on Sept 4, 2017 19:54:11 GMT
It's not the first time that fundingsecure has lied to us. I see there is no mention of the loss of capital in the newsletter. I think the mods should remove fundingsecure so that no one else is misled by their lies. |
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merlin
Minor shareholder in Assetz and many other companies.
Posts: 902
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Post by merlin on Sept 4, 2017 22:04:12 GMT
No one should be surprised by this spin letter. Have you ever known a business to report bad news about the business voluntarily? All they are looking for is more business.
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
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Post by stub8535 on Sept 4, 2017 22:11:05 GMT
No one should be surprised by this spin letter. Have you ever known a business to report bad news about the business voluntarily? All they are looking for is more business. Its not the fact of "bad news by the business" that is of concern. Its the false reporting of the growth in lending that is the issue. Carry that through to other platforms and add it all up and you get a bloated figure for the market size being quoted. The level of business this platform will get is not influenced by statistics. They have so much ill informed isa cash flowing it that they will not care. Only when inflow dries up will they start to pay attention (not)!
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Doc
Member of DD Central
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Post by Doc on Sept 5, 2017 11:21:58 GMT
Yawn ... The constant complaining on here only serves to drown out any useful due diligence.
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bg
Member of DD Central
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Post by bg on Sept 5, 2017 12:37:15 GMT
Yawn ... The constant complaining on here only serves to drown out any useful due diligence. Agreed. As far as I am concerned a renewal is the same as a new loan. The investors in the prior loan get repaid in full with interest.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
Posts: 11,334
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Post by ilmoro on Sept 5, 2017 12:43:49 GMT
Yawn ... The constant complaining on here only serves to drown out any useful due diligence. Agreed. As far as I am concerned a renewal is the same as a new loan. The investors in the prior loan get repaid in full with interest. And I suspect the majority of platforms 'inflate' their figures the same way. And why not. Its competitive out there and retaining the business probably involves some work
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bg
Member of DD Central
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Post by bg on Sept 5, 2017 12:51:40 GMT
Agreed. As far as I am concerned a renewal is the same as a new loan. The investors in the prior loan get repaid in full with interest. And I suspect the majority of platforms 'inflate' their figures the same way. And why not. Its competitive out there and retaining the business probably involves some work It's not so much that. If the lender pays the 6 months interest then it is effectively just a new loan, in fact I generally prefer it as it means the lender is committed to the asset. When the interest is rolled up I don't feel quite so confident but as long as the LTV remains within the platforms limits then I guess it's fair game (even though some of the valuations seem far from secure) but would probably not invest. Looking at it another way. If I were to lend £5k on the platform for 2 years I would be indifferent if every 6 months that sum remained in the same loan (with interest paid) or rolled into a new loan. I don't see why the stats should show anything different, it's not inflating as the unit of origination is 6 months. So a 6 month loan rolled 3 times is effectively 4 loans and should appear as such in the stats.
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phil
Posts: 190
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Post by phil on Sept 6, 2017 8:31:47 GMT
August saw 56 new loans totalling £11.7m This is untrue. Fs class renewed loans as new because they give it a new number. A clearer way to display the true state of origination would be to list renewals as a seperate line on the graph or add an explanatory annotation to prevent misunderstandings. I know they will refuse to adjust this as it would show the true new loan process as being less than efficient at winning borrowers. To be fair their newsletter gave a link to the August statistics page for those requiring more details which states 18 loans were renewals.
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phil
Posts: 190
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Post by phil on Sept 6, 2017 8:37:18 GMT
It's not the first time that fundingsecure has lied to us. I see there is no mention of the loss of capital in the newsletter. I think the mods should remove fundingsecure so that no one else is misled by their lies. Newsletter gave a link to the statistics page which shows loss of capital has increased, in my opinion loss of capital thus far is still next to nothing compared to the amount lent. However will be interesting to see how loans such as Knaresborough, Turbine, Yachts, Newcastle, Wimbledon ect. impact on this.
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