jimbob
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Post by jimbob on Jan 21, 2016 11:39:43 GMT
Err, no, the loan is £100k, not £50k. So the first part of the worked example is in the right ball park, with anything over c£205 being where the profit is. Of course CS's profit also come from the interest charged on the loans in the first place. Not sure what the split would be, 60/40 maybe, 60% coming from the interest? Financial Thing might have a better idea about that area of pawn. (yes, I spelled pawn correctly ) The thing to alleviate fears over values would be to see CS's achieved sales figures for these sort of items, but I doubt we will be privy to that info. I guess there is no harm in asking Ed MoneyThing if we could get some examples of past sales on a few different items? Maybe not to post them on an open forum, but pen an email perhaps? Oops ! Ignore everything I wrote... whistles.
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jimbob
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Post by jimbob on Jan 21, 2016 10:43:17 GMT
"I come to the shop with my brand new S5 Neo. Get £170 for it as a "loan". Never come back for it and the phone becomes pawnbroker's problem and I don't pay any fees or interests. And if indeed the shop paid for it £170 it needs to sell it for : £170 + shipping (£4+) + MT interests/fees (£10+) + eBay fees (£17+)+ PayPal fees (£4+) = ~ £205 to just get the money back, not to mention profit. "
The value in the pdf for that phone is £170. The total value of the pdf sums to £100k. The loan figure is £50,000 hence £85 has been in theory lent against the phone.
£85/£170 for the individual phone is what needs to be thought of against the £50k/£100k.
So in theory we need to sell the phone for "(+ shipping (£4+) + MT interests/fees (£10+) + eBay fees (£17+)+ PayPal fees (£4+))" ~ £120 to get back the interest, capital lent out against - and costs of sale on the phone.
Obviously they'll try and get as much as possible for the phone, but in theory £120 is 'enough'.
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jimbob
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Post by jimbob on Jan 19, 2016 18:32:38 GMT
The new value of the phone doesn't matter at £330 and doesn't affect our LTV at all. What matters is that the Neo can be sold for £170.
The new value of the stuff on the pdf would be ~ £200,000+ I'm guessing or so.
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jimbob
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Post by jimbob on Jan 19, 2016 18:28:06 GMT
Thanks both. Actually the prices look quite good (high) to me. There is nothing that tempted me as a bargain. Example: In the valuation document I can see the most expensive Samsung Galaxy S5 Neo for £170, so I assume this is how much they paid to borrower and I assume this is brand new phone. On eBay they list similar/same new Neo for £330 (the official value). That is in line with 50% LTV. But the small problem is that based on my recent experience same phone (or better because Unlocked) averaged or £220. Even now I can Buy Now for £205-£230. So for them to sell quick they need to accept below that lets say £200. The LTV doesn't look that good anymore - 85%. I think remaining difference barely pays 6m interests. The phone is valued at £170 in the docs, so providing the value is £170 after sales fees then the LTV of the loan is at 50%. Once interest and fees are added in we only need to achieve ~ £100 for the phone. Of course some won't sell - but we will get FMV + the rest for others and a fair portion will be redeemed at an APR of ~ 150% (Figure is rep APR from their site).
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jimbob
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Post by jimbob on Jan 19, 2016 16:19:28 GMT
Apologies to those that missed it... I was also a little taken aback by how quickly this loan was taken up. For some reason, we had approx. 50% more users on the site at 4pm compared with other recent loans. Regards, Ed I think the revolving basket nature of the security appeals, not dependant on one borrower or one specific item's worth...
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jimbob
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Post by jimbob on Jan 19, 2016 16:02:58 GMT
Gone in 58 seconds, although sub £100 was available for the last 15 seconds or so.
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jimbob
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Post by jimbob on Jan 19, 2016 11:15:30 GMT
I'm judging all the platforms I'm in by return without bonuses for the long run. Of course LC's bonuses were fantastic, but that doesn't represent the 'long run'. There have been no defaults yet, and hopefully ** M** will continue this trend. I looked through the accounts, and so far as I could work out the owner was owed a fair chunk by ** M** himself. So it's in his interests to keep the Co going, as even with pref creditor status he'd surely lose out if it folded.
Fwiw I reduced my exposure to £30 after a previous late payment. My guess is he is trying to refinance, the LC loan did appear to replace more expensive lines of credit itself.
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jimbob
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Funding Circle (FC)
18862
Jan 8, 2016 10:30:40 GMT
Post by jimbob on Jan 8, 2016 10:30:40 GMT
Stunning, a true masterpiece.
Perhaps the safest investment you'll ever make.
All the plaudits came out for Fun Cyclinder's greatest ever offer
Fitch, Moody's, and Standard and Poors grade A+++ bond market offerings have never provided this much return for so little risk. "Don't buy gilts lad, get thee money in unsecured hospitality loans".
So who is going to take the plunge with me on this one. The wonderful current ratio, and obvious resale potential for a magnificent profit are all too good on this one I think - and it has the Full Certification of an A+ rating. An opportunity too good to miss I think.
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jimbob
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Post by jimbob on Dec 21, 2015 12:14:19 GMT
Wonderful! Now we can get Tiny Tim that walking stick for Xmas. Available funds £0.89 Gold plated
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jimbob
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Post by jimbob on Dec 20, 2015 13:42:26 GMT
Withdraw from Flatulent Chickens, put more into other platforms. Keep track of it all on a spreadsheet
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jimbob
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Post by jimbob on Dec 19, 2015 10:56:39 GMT
I've stuck the £100 spare into the Essex storage facility. Why not live a little
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jimbob
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Post by jimbob on Dec 18, 2015 23:25:53 GMT
I think a £100 to all, then next £100 distroed is an excellent approach. The big hitters will still be able to get big parts of the big loans !
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jimbob
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Post by jimbob on Dec 18, 2015 17:14:00 GMT
Heh, have my £100 - asked for £100 but got sent (I thought !) £200. So £200 sent over...
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jimbob
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Post by jimbob on Dec 17, 2015 17:17:42 GMT
I've actually stuck a min bid in now, had 0 in the pipeline for this before.
Peak London still looks peaky, but (who knows !) 1st charge better than 2nd in my eyes !
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jimbob
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Post by jimbob on Dec 12, 2015 1:47:50 GMT
Not credited yet !
Which meant I missed out on the ring.
Still it should be in there by tommorow (Live chat wasn't available, I'll tell em tommorow) and so I'll keep it in there.
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