LinkedFinance - new website

at9qu5vp0wcix7

I have 2 Latvian loans in my portfolio - both are late. I believe the higher default rate is reflected in the higher interest rates offered on Latvian loans - generally 13.5%, compared with 12.5% on Georgian loans etc.

scheister

Mila Calm Ax wrote: »

Hope it has the buyback guarantee. If you do get a late payment, usually it is higher than the original anticipated payment.

so far my 5 loans are all on buyback guarantee. Did not notice the stats but looking at it and this is a Latvian loans 80% are current and 10% are 1-15 days late so hopefully payment will come in soon

spudwould

scheister wrote: »

so far my 5 loans are all on buyback guarantee. Did not notice the stats but looking at it and this is a Latvian loans 80% are current and 10% are 1-15 days late so hopefully payment will come in soon

I have been lending on Mintos for the last 7 to 8 months ... and I have had late payments and 2 defaults.
However you got the full amount paid back and on most I received the interest aswell.
It is better than any defaults on Linked Finance ... so far 1 repayment which LF said they will keep in their accounts as it was not enough to pay a months repayments to all investors. The others no repayments at all.
So for 3 defaults I have received NIL in repayments.

Also the ratio of investors to to businesses looking for loans is too high on LF and the terms of the loans are now being driven right down .... so I am a Mintos man from now on!

spudwould

strettie wrote: »

Linked Finance were included in the Sunday Business Post Hot 100 Irish start ups list. Thought you might be interested in hearing the following from the profile

Peter O'Mahony said that at the moment there were " zero defaults and zero arrears" on Linked Finance, adding " all our loans are bang up to date".
O'Mahony said that there were systems in place to protect the lender if businesses do default in the future.

Everyone here should set Tom Lyons the Sunday Business Post Business editor straight @TomLyonsBiz on twitter

Tweeted

spudwould

spudwould wrote: »

Tweeted

Checked and that post was from 14th April 2015
*Note to self .. do a little investigative work before tweeting :P

strettie

spudwould wrote: »

Checked and that post was from 14th April 2015
*Note to self .. do a little investigative work before tweeting :P

Hi spudworld confused by your last post which post is from April 2015

spudwould

strettie wrote: »

Hi spudworld confused by your last post which post is from April 2015

Peter O'Mahony said that at the moment there were " zero defaults and zero arrears" on Linked Finance, adding " all our loans are bang up to date"

The above quote.. maybe he is repeating what he said last year .. as we both know it is old news as there are plenty of late payments and defaulters. :P

sceach16

spudwould wrote: »

Checked and that post was from 14th April 2015
*Note to self .. do a little investigative work before tweeting :P

Quote was published last Sunday (10 April) in a current feature. Did the feature say that there were bad loans since the quote (April 2015)or did it say no bad loans at all.

Reading recent posts , there are several bad loans......... The question is did the SBP report this?

strettie

Unfortunately Sunday business post published this yesterday without any context that quote may be an old quote. Your tweet is not irrelevant spudworld lazy journalism also needs to be called out. :-)

Anyway an update The business post main twitter account replied to me and asked for details of issues with Linked Finance profile. I detailed the 5 defaults I knew of and the late payment I have experienced and linked them to this discussion group for details of other defaults and late payments posted here. They said they would refer to editor and journalist responsible.

JTMan

Water John wrote: »

I see a crowd called Orca Money who say they provide P2P analysis.
Is this any help in comparing different providers?

Orca Money seems to compare UK GBP providers rather than EUR P2P providers. Hence, it is of little use to an Irish investor.

gordongekko

sceach16 wrote: »

This loan closed on 24 March.Today (11 April) , my bid was returned with no interest. Not good enough.

Probably a total of .00000000001 cent due.

Smiler1955

spudwould wrote: »

I have been lending on Mintos for the last 7 to 8 months ... and I have had late payments and 2 defaults.
However you got the full amount paid back and on most I received the interest aswell.
It is better than any defaults on Linked Finance ... so far 1 repayment which LF said they will keep in their accounts as it was not enough to pay a months repayments to all investors. The others no repayments at all.
So for 3 defaults I have received NIL in repayments.

Also the ratio of investors to to businesses looking for loans is too high on LF and the terms of the loans are now being driven right down .... so I am a Mintos man from now on!

I thought this was a Linked Finance forum, do you work for Mintos or something?

sceach16

sceach16 wrote: »

This loan closed on 24 March.Today (11 April) , my bid was returned with no interest. Not good enough.

Got this response from Linked


"Thanks for the email. What happened here was the loan was for a specific piece of equipment and basically the deal fell through for the borrower ,so they wanted to return the funds to us. It is just one of these things that is outside of our control. As you know this actually costs us a lot in terms of both time and income as Linked Finance only gets paid when the loan is accepted and loan documents fully signed and set up.


It is a rare occurrence and it obviously suits nobody."

I'm satisfied with this.

tomwaits48

Smiler1955 wrote: »

I thought this was a Linked Finance forum, do you work for Mintos or something?

no harm in discussing other P2P platforms.

Wheety

Linked Finance seems to have a huge number of investors now. I just had a bid rejected 12% at the last minute. Was plenty of people after me in the list. Just seems to be so many coming in and bidding at 7-8% now. I don't want to go anywhere near that rate as it's not worth it. Even 12 is low for me but I had the money there so went for it.

The next 4 loans are already fully funded so the rate will just drop on these over the next few days.

Have opened an account on Mintos but haven't deposited money yet.

at9qu5vp0wcix7

Wheety wrote: »

Linked Finance seems to have a huge number of investors now. I just had a bid rejected 12% at the last minute. Was plenty of people after me in the list. Just seems to be so many coming in and bidding at 7-8% now. I don't want to go anywhere near that rate as it's not worth it. Even 12 is low for me but I had the money there so went for it.

The next 4 loans are already fully funded so the rate will just drop on these over the next few days.

Have opened an account on Mintos but haven't deposited money yet.

Putting money in at 7-8% when it isn't guaranteed is mad - especially when you can put money into buy-back guaranteed loans at 12.5% on other platforms. Great for Irish businesses though, and I know many investors seem to care as much about helping businesses grow as their own annual growth rate.

tadcan

The number of investors and competition can go up and down, reducing the turn around time to reinvest when trying to get a higher rate. It could die down again in the summer.

at9qu5vp0wcix7

tadcan wrote: »

The number of investors and competition can go up and down, reducing the turn around time to reinvest when trying to get a higher rate. It could die down again in the summer.

I'm going to cool off my investing for now. Current CAGR is estimated to be ~ 7% (without factoring in the 1.2% fee), but that number will only decrease if I put in low bids to get into current loans.

The Notorious B.I.G.

Can anyone explain why so many bids (often of large enough amounts) seem to be made at very low rates (7-8%)? I accept that some bids are from friends of the business in question but I have never seen a loan where say a 10% bid was rejected. Surely investors are savvy enough to know they don't generally need to make such low bids to have them accepted?

Wheety

The Notorious B.I.G. wrote: »

Can anyone explain why so many bids (often of large enough amounts) seem to be made at very low rates (7-8%)? I accept that some bids are from friends of the business in question but I have never seen a loan where say a 10% bid was rejected. Surely investors are savvy enough to know they don't generally need to make such low bids to have them accepted?

Maybe it's new investors? I lent €200 to Burdocks at 8% as my first loan as I didn't realise you can generally get much better.

sceach16

The Notorious B.I.G. wrote: »

Can anyone explain why so many bids (often of large enough amounts) seem to be made at very low rates (7-8%)? I accept that some bids are from friends of the business in question but I have never seen a loan where say a 10% bid was rejected. Surely investors are savvy enough to know they don't generally need to make such low bids to have them accepted?

Yes ! I can. People bid what they want when they want ! More seriously, the decision to invest is entirely personal for personal reasons."Investors" like a good rate, others like to support a loan because its local, organic, craft beer etc. There is also the "helping" approach where a low rate is acceptable to lenders. I am an "investor" so like good rates and am happy so far....

at9qu5vp0wcix7

The Notorious B.I.G. wrote: »

Can anyone explain why so many bids (often of large enough amounts) seem to be made at very low rates (7-8%)? I accept that some bids are from friends of the business in question but I have never seen a loan where say a 10% bid was rejected. Surely investors are savvy enough to know they don't generally need to make such low bids to have them accepted?

The default rate is 8%... since there is no confirmation/review, I have had a bid go through at 8% when bidding from my mobile! I have actually seen this mentioned elsewhere in the thread. Obviously this isn't the only source of low bids, but certainly some of them.

sceach16

Wheety wrote: »

Maybe it's new investors? I lent €200 to Burdocks at 8% as my first loan as I didn't realise you can generally get much better.

Not to Burdocks but so did I to my first few! I now start close to 15%.

Wheety

I bid €50 recently at 8% as I clicked to enter a bid, then tried to go back by pressing the backspace button but hit enter by mistake :mad:

I think people join LinkedFinance and then think "Oh, look 8% interest rate. That's better than my bank". Not realising that the capital is reducing all the time and it's not like a savings account.

The Notorious B.I.G.

Wheety wrote: »

I bid €50 recently at 8% as I clicked to enter a bid, then tried to go back by pressing the backspace button but hit enter by mistake :mad:

I think people join LinkedFinance and then think "Oh, look 8% interest rate. That's better than my bank". Not realising that the capital is reducing all the time and it's not like a savings account.

Good points. A combination of inexperienced investors and over sensitive mobile phones could be behind it!

Yurple

I have about 6 successful bids in so far but sadly one recently just pulled out but got my money back... no payments from others yet as I am new. SolarCraft has a wrong pay due date in my account... very strange.

Everyone here talks about mintos. I looked at the website and looks very intimidating - I am unsure where to start (besides opening an account and sending money of course)

Can anybody provide any tips or steps how to get started?

I dont understand how some loans are already ongoing and you can invest?

Other loans are personal loans of like 300 paying back in 7 days and the total interest is 1 euro 20 cent or something? Why would anyone invest for a total profit of 1.20 ? I do not understand.


Any tips greatly appreciated!

sceach16

Wheety wrote: »

I bid €50 recently at 8% as I clicked to enter a bid, then tried to go back by pressing the backspace button but hit enter by mistake :mad:

I think people join LinkedFinance and then think "Oh, look 8% interest rate. That's better than my bank". Not realising that the capital is reducing all the time and it's not like a savings account.

Extract from email with Linked

"For my tuppence, ye should remove both the 50euro and the 8%. I am aware ye have had other complaints about this including a suggestion that a confirm bid process/box be introduced. This would be a better solution and something that in the longer run is needed.

Can I suggest that ye might consider a users forum at the meeting as well!"

Linked are in the (slow) process of removing the 8%. If Ye keep the pressure up , they will react. also email them for a users forum, Please!!!

at9qu5vp0wcix7

sceach16 wrote: »

Extract from email with Linked

"For my tuppence, ye should remove both the 50euro and the 8%. I am aware ye have had other complaints about this including a suggestion that a confirm bid process/box be introduced. This would be a better solution and something that in the longer run is needed.

Can I suggest that ye might consider a users forum at the meeting as well!"

Linked are in the (slow) process of removing the 8%. If Ye keep the pressure up , they will react. also email them for a users forum, Please!!!

I had the following reply about a month ago:

I have made our technical team aware of this issue and I have requested that the display rate of 8% is removed from the bidding section as soon as possible.

I will work to ensure that this issue does not occur in the future.

My sincere apologies for any inconvenience this may have caused.

If you need any information or assistance in the future, please feel free to contact me directly.

at9qu5vp0wcix7

Yurple wrote: »

I have about 6 successful bids in so far but sadly one recently just pulled out but got my money back... no payments from others yet as I am new. SolarCraft has a wrong pay due date in my account... very strange.

Everyone here talks about mintos. I looked at the website and looks very intimidating - I am unsure where to start (besides opening an account and sending money of course)

Can anybody provide any tips or steps how to get started?

I dont understand how some loans are already ongoing and you can invest?

Other loans are personal loans of like 300 paying back in 7 days and the total interest is 1 euro 20 cent or something? Why would anyone invest for a total profit of 1.20 ? I do not understand.


Any tips greatly appreciated!

Mintos is intimidating at first, especially compared to Linked Finance, but it is easy to get used to it. For simplicity, stick to the Primary Market at the start. In the filter options, look for loans which have the 'Buyback Guarantee' if you want that added security.

Many of the loans on there are already in progress - something which took me a while to get my head around. Most of the long term loans such as secured car loans and mortgages.

At the moment, I invest mostly in short term loans (29 day usually) @12.5% interest. By reinvesting the money as soon as it is repaid, my annual growth rate from this strategy should be about 13%.

The example you gave of €300 paying a profit of €1.20 after a week, well imagine reinvesting that every week for a year, the annual returns on that would be very good!

newacc2015

The Notorious B.I.G. wrote: »

Can anyone explain why so many bids (often of large enough amounts) seem to be made at very low rates (7-8%)? I accept that some bids are from friends of the business in question but I have never seen a loan where say a 10% bid was rejected. Surely investors are savvy enough to know they don't generally need to make such low bids to have them accepted?

IMO I think it is done to the fact the businesses sell themselves on the site. You see their product, their life story and their visions for the future. Some people want to see them succeed and are happy to lend them money at 6%, even though you would could probably get 12-14% from the same business. It is like people buying local produce, even though it is more expensive and a lesser quality than a mass produced brand

Where as the same individual might not think twice about getting 15% interest on a loan on Mintos from some non-descript business in Eastern Europe. They dont know any more about the person other than their business industry and their loan amount. It is so impersonal, than they dont mind demanding 15% off them.

Look at Irish CUs and American CUs. You can get car loans from CUs in America with 2% interest. Car loans from your local CU can be 12% here. But Irish CUs market themselves as being for the community etc and therefore no questions why their car loans are such a rip off (it is not a shortage of funds, as they have €5bn doing nothing). If some thing is marketed right, Irish people will accept less than favourable conditions.