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Post by extremis on Jun 29, 2016 16:10:47 GMT
invoice financing by both capitalia and debifo looks attractive given their short duration and track record. nevertheless, majority goes without buyback. Most invoice financing loans have 1 month term (or even less) and come without buyback guarantee; that means the default rate should be significantly less than 1% in order to make a profit. Banknote recent loans are a huge disappointment. Either their plan is to get some funds cheap from people with bad Auto invest profiles, or they are in some kind of financial trouble. I only hope the first scenario is true, cause i have invested in several of their loans and would like to see them keep their promise of buyback guarantee as personal loans have a very high rate of default.
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Post by extremis on Jun 15, 2016 17:24:05 GMT
littleinvestor, thank you for elaborating, i should be more careful with all those financial data. So, do you think Capitalia is not to be trusted with their loans?
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Post by extremis on Jun 15, 2016 17:02:35 GMT
Is it a joke? I am sure Chinatou's investors aren't laughing.
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Post by extremis on Jun 14, 2016 18:04:26 GMT
I'm not sure if Capitalia - to take another example, is doing too much of a DD in their clients like verifying business statements. I mean look at them, e.g. www.mintos.com/en/106866-01 : According the balance sheet, the business has a turnover with 2 employees of 60k Euros and still arrives to a 'net profit' of 25k Euros , this is not possible, or the employees work for free . How do you manage to read it, when i click on it it gets a bit bigger but still impossible to read? Right-click on it and choose "Open link in new tab" for Chrome browser or something similar for other browsers. However, i don't understand where is the problem with the specific loan, littleinvestor mentioned. 35K looks like an adequate sum to pay 2 employees.
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Post by extremis on Jun 13, 2016 17:49:17 GMT
I am new at p2p lending, currently investing on just one platform. I was considering to start investing on SS, but if they lower the interest rate, i will certainly look elsewhere.
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Post by extremis on Jun 9, 2016 23:00:18 GMT
I don't like it either; that makes Hipocredit (a Mintos group company) look like they are desperate for money. Even worse, this happens at the very same time that Mintos Refer-a-friend and affiliate programs are started. Is it possible that Mintos group is in some kind of financial difficulty? How else all this rush for investors' money could be explained? I was ready to invest more on Mintos, but now i think i should better wait and see how it gets along.
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Post by extremis on May 31, 2016 15:27:54 GMT
Yes, indeed, that would be great. But if i understand correctly what Martins said, they will only include currency that loans are originated in, currently: Georgina lari, Czech korunas, and Polish zloty. Of course, i wouldn't mind either any loans in USD, GBP, or even CHF, but that would require loan originators that have business in countries that use those currencies, isn't it?
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Post by extremis on May 30, 2016 22:32:57 GMT
1) You can sell at SM from 99% discount to 20% premium as long as YTM is positive, i.e. there is some benefit for the investor buying the loan. Since you are selling at a premium, YTM would be lower than interest rate. How much lower depends on the premium you are asking, but also on the remaining terms. So, if the loan is due e.g. tomorrow even 1% premium could result in a negative YTM.
2) Usually you get late interest payment even in case Buyback guarantee kicks in. But maybe it is different for different loan originators; you can always check the loan agreement (the pdf documents next to the loans in My investments tab).
3) SM is very important both for sellers and for buyers. Buyers can benefit from buying loan parts that are not available in PM (loans that you would want to invest in, but you missed). One could profit from buying at a discount rate, or even buy at a premium if there is a stream of timely repayments from the borrower that justifies it.
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Post by extremis on May 24, 2016 23:42:43 GMT
Yes, indeed. Which brings another interesting question: if p2p lending platforms have no money creation powers, then where will the loan interest come from? It will have to come from money created by other means, or the whole system collapses. Now, we all know inflation in EU is very low, while many p2p platforms offer 12% (and charge borrowers considerably higher).
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Post by extremis on May 23, 2016 20:03:37 GMT
But what if there are no loans that satisfy all the criteria of Autoinvest 1? Then we would have 500E that stay uninvested, while they could be invested in loans that satisfy criteria of Autoinvest 2 or 3. What i am doing is constantly deactivating and activating some of my Autoinvest portfolios; while that does work, it still requires human intervention. I strongly agree with ales that Autoinvest portfolio priorities would be highly desirable.
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Mintos
Defaults
May 22, 2016 22:44:24 GMT
Post by extremis on May 22, 2016 22:44:24 GMT
What happened to the tab (next to Investment Breakdown) in the Loan Listings section that used to give information about 60+ days loans?
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Post by extremis on May 18, 2016 12:18:15 GMT
Thanks, martins, for your fast response. I understand it's not Mintos fault, but still it would be nice to know more about people we are lending to (even if personal loans are typically covered by buyback guarantee). Perhaps, if it is not too much trouble, you could ask loan originators that issue personal loans to collect and provide Mintos with more information about the financial state of the borrower and purpose of the loan.
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Post by extremis on May 17, 2016 23:36:17 GMT
A suggestion for Mintos: it would be useful to know how much the borrower earns per year. Also, the purpose of loan (e.g. credit card debt, consumer loan, etc.)
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Post by extremis on May 17, 2016 20:10:50 GMT
There is something that bothers me for some time with Capitalia: if they can borrow at 12% at Nasdaq Baltic Market, why they list their loans on Mintos platform for 12-16%?
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Post by extremis on May 17, 2016 19:41:08 GMT
I think you've forgotten the definition of p2p, the borrower owes the lender and the platform takes a cut. So if the platform goes bust the obligation remains and the borrower has no right to walk away Ponzi schemes which may not have any real borrowers, or may have only a few or show. However TrustBuddy started it turned out to have eventually have some bogus loans with no prospect of recovery, as well as real loans with little to no prospect of recovery. The Ponzi of long firm risk is one of the more potentially dangerous ones due to that lack of real borrowers. Exactly, in Ponzi schemes there may not be any real borrowers. Most p2p platforms do not list borrower details (full name, address, contact information); for all we know information provided could be totally fictitious in order to lure investors in. The way i see it p2p lending has huge potential for abuse and the only thing that could stop them from turning to Ponzi is strict regulation. But, can we really rely on FCA for that? Now, even in the case of a legitimate p2p business, there is substantial risk. Sure, p2p means that the lender has a legal claim over payments from the borrower even in case of platform folding. But who is going to enforce borrowers to continue to pay their loans once they learn the platform has defaulted? Even if they wanted to, they couldn't since they do not have the lenders contact information. FCA regulation dictates that there should be a plan for a third-party to take over in case of default; however, no one expects it to go that smoothly.
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