LinkedFinance - new website

tomwaits48 · 15-04-2016 9:08am

wow....I'm not putting anymore money into LinkedFinance....this coupled with the Sunday Business Post lies about no defaults is enough for me

Wheety · 15-04-2016 9:18am

Yeah, I'm thinking about just letting my loans run out and put my money elsewhere. If they're sending emails like that and lying about defaults, it all feels very amateurish.

I still can't believe they sent that email. It'd be like eBay emailing you and saying 'Can you stop out bidding people at the last minute. It's upsetting some other members'.

Bubbaclaus · 16-04-2016 1:16pm

I'm not placing any more bids and will take my funds out as they come back. The email that they sent to the user above was the final nail in the coffin for them as far as I'm concerned.

If they are sending emails as idioticly incorrect as that then they clearly don't understand the basics of their own business. Quite frankly it is scary.

Wheety · 16-04-2016 2:18pm

Haven't looked at their blog for a while and apologies if theis has already been posted.

They've released their stats for loans. Presume it's on all loans (says since 2013)

https://blog.linkedfinance.com/loan-book-report-q1-2016

Has someone here said they've had defaults? Have you been told debt recovery is on going?

I also noticed that they will be offering 12 month loans instead of the standard 36.

sceach16 · 16-04-2016 3:09pm

Wheety wrote: »

Haven't looked at their blog for a while and apologies if theis has already been posted.

They've released their stats for loans. Presume it's on all loans (says since 2013)

https://blog.linkedfinance.com/loan-book-report-q1-2016

Has someone here said they've had defaults? Have you been told debt recovery is on going?

I also noticed that they will be offering 12 month loans instead of the standard 36.

Worth looking at.

lcwill · 16-04-2016 3:13pm

Wheety wrote: »

Haven't looked at their blog for a while and apologies if theis has already been posted.

They've released their stats for loans. Presume it's on all loans (says since 2013)

https://blog.linkedfinance.com/loan-book-report-q1-2016

Has someone here said they've had defaults? Have you been told debt recovery is on going?

I also noticed that they will be offering 12 month loans instead of the standard 36.

Thanks a lot for sharing this.

The big picture looks fairly positive despite all of our complaining.

They should also get on with releasing the underlying data like other marketplace lenders.

Cute Hoor · 16-04-2016 5:39pm

Wheety wrote: »

Haven't looked at their blog for a while and apologies if theis has already been posted.

They've released their stats for loans. Presume it's on all loans (says since 2013)

https://blog.linkedfinance.com/loan-book-report-q1-2016

Has someone here said they've had defaults? Have you been told debt recovery is on going?

I also noticed that they will be offering 12 month loans instead of the standard 36.

Thanks for this, hadn't seen it before.
Very good analysis being provided by LF in that.

I have had a default, and I have been told that debt recovery is ongoing, I'm not overly hopeful though, even though a directors guarantee was provided. Presumably the cost of recovery will be deducted from any amount recovered or will LF lie to the cost themselves

JTMan · 17-04-2016 6:20am

A loan could stay under the "active recovery" label for many years unless a fixed period of time is applied to the "default" label even if the loan is, for all intents and purposes, in default.

In the US, if a loan is 270 days in arrears, then often banks must label the loan as being in default.

LF should apply a fixed period to "active recovery". Also, any loans where 100% recovery of the debt is not possible, should be marked as "default" or "partial default", my understanding from this thread is that some of the loans in "active recovery" are unlikely to recover 100% of their loan value, as such, the loan should be marked as default as not all funds will be recovered.

spudwould · 17-04-2016 12:05pm

m320325 wrote: »

Just wondering if other lenders agree with me on this

If a loan is fully funded (above 100%), I BELIEVE it is MATHEMATICALLY IMPOSSIBLE to increase the average interest rate on a loan if I place a bid

(Remember if the current live rate is 14.6 then I must bid 14.5 or less)

Linkedfinance emailed me saying borrowers complained that my bidding tactics were increasing loan rates

"there is strategic bidding on your part, with the intention to keep interest rates as high as possible as the auctions near their close."

I believe Linkedfinance should be encouraging more bids as this actually reduces the interest rate for borrowers. They should explain this to the borrower instead of emailing me. I replied and told thrm it's impossible to increase the average interest rate, but they didn't admit they were wrong.

I am perplexed and down right annoyed to hear Linked Finance would reach out and tell one of their lenders that they are bidding too high.
I myself bid at the highest rate possible and I do not lend under a certain rate.
To be told how to invest your monies, especially if you are doing nothing wrong, is none of their business!
You do not see them "Advising lenders not to keep outbidding themselves(Which I see all the time) as it unnecessarily drops the rate of return on your investment.

PERPLEXED & ANGRY :P

spudwould · 17-04-2016 12:10pm

JTMan wrote: »

A loan could stay under the "active recovery" label for many years unless a fixed period of time is applied to the "default" label even if the loan is, for all intents and purposes, in default.

In the US, if a loan is 270 days in arrears, then often banks must label the loan as being in default.

LF should apply a fixed period to "active recovery". Also, any loans where 100% recovery of the debt is not possible, should be marked as "default" or "partial default", my understanding from this thread is that some of the loans in "active recovery" are unlikely to recover 100% of their loan value, as such, the loan should be marked as default as not all funds will be recovered.

Just to let yous know my stats on debt recovery for my account.

One loan in default 284 days.(I bid on this loan twice) Ouch
One loan in default 49 days.
One loan in default 44 days.

Regarding the loan in 284 days default .. this is also listed as in "Arrears & recovery" ..!!!!

JTMan · 17-04-2016 2:12pm

spudwould wrote: »

Regarding the loan in 284 days default .. this is also listed as in "Arrears & recovery" ..!!!!

Farce. If Linked Finance were a regulated entity they would not get away with not labeling a 284 day as being in default. Seems like Linked Finance are calling defaulted loans "arrears and recovery" even when it seems that there is little or no prospect of full recovery including interest penalties. This is dishonest labeling. The "recovery" label should only be used when there is a very strong realistic prospect of full recovery including late payment interest.

From an accounting perspective, most businesses would not get away without adding at least a partial bad debt default accrual against a 284 day late payment.

sceach16 · 17-04-2016 6:47pm

m320325 wrote: »

Just wondering if other lenders agree with me on this

If a loan is fully funded (above 100%), I BELIEVE it is MATHEMATICALLY IMPOSSIBLE to increase the average interest rate on a loan if I place a bid

(Remember if the current live rate is 14.6 then I must bid 14.5 or less)

Linkedfinance emailed me saying borrowers complained that my bidding tactics were increasing loan rates

"there is strategic bidding on your part, with the intention to keep interest rates as high as possible as the auctions near their close."

I believe Linkedfinance should be encouraging more bids as this actually reduces the interest rate for borrowers. They should explain this to the borrower instead of emailing me. I replied and told thrm it's impossible to increase the average interest rate, but they didn't admit they were wrong.

All Readers

I think it is important that Linked be advised that if they try"influence" one
bidder, they risk the wrath of many more.Please email linked and advise them accordingly AND please post on this site so we can see the collective effect.

Squall Leonhart · 18-04-2016 9:35am

sceach16 wrote: »

All Readers

I think it is important that Linked be advised that if they try"influence" one
bidder, they risk the wrath of many more.Please email linked and advise them accordingly AND please post on this site so we can see the collective effect.

I have just sent the following query to LF;

Can you please advise if what I have read on a LinkedFinance thread on boards.ie is true?
Linkedfinance emailed me saying borrowers complained that my bidding tactics were increasing loan rates

"there is strategic bidding on your part, with the intention to keep interest rates as high as possible as the auctions near their close."

Have LinkedFinance e-mailed an investor to stop him attempting to get the most from his investments?

I will post their response when they get back.

Pete123456 · 18-04-2016 4:31pm

Question: How long after bidding closes on a loan does you bid become successful or unsuccessful? is it not strange to have a loan close two days ago and the bid still be live? is it just the person looking for the loan hasnt accepted it yet or what?

Also, what deems you bid successful? does your interest rate have to be below the average? or is it up to the borrower to decide?

Squall Leonhart · 18-04-2016 4:57pm

Pete123456 wrote: »

Question: How long after bidding closes on a loan does you bid become successful or unsuccessful? is it not strange to have a loan close two days ago and the bid still be live? is it just the person looking for the loan hasnt accepted it yet or what?

Also, what deems you bid successful? does your interest rate have to be below the average? or is it up to the borrower to decide?

Hi Pete,

I have had bids live 7 days after a loan closes (and returned to me). Bid stays live until the borrower decides to accept or reject the loan offer which they will decide according the interest rate offered.

Your bid does not have to be below the average in order for it be successful, very simple example...

5 bids are place on a loan, one at 10%, 11%, 12%, 13%, 14%

The average offer is 12%, but bids as high as 14% are accepted, and the 10% bid is also accepted.

Although it is highly unlikely, you could have a loan average at 9% and you have a bid at 15% accepted to form a part of it.

at9qu5vp0wcix7 · 19-04-2016 1:02pm

Has anybody looked at the Glorious Sushi loan? A bidder under the name of "MICROFINANCE IRELAND"has €10,000 on @ 8.8%. If this is the real Microfinance Ireland, why would they fund a business via Linked Finance, where they would be required to pay the 1.2% charge?

manafana · 19-04-2016 1:38pm

Mila Calm Ax wrote: »

Has anybody looked at the Glorious Sushi loan? A bidder under the name of "MICROFINANCE IRELAND"has €10,000 on @ 8.8%. If this is the real Microfinance Ireland, why would they fund a business via Linked Finance, where they would be required to pay the 1.2% charge?

i'd suggest they are exempt from the charge

sceach16 · 19-04-2016 1:55pm

Mila Calm Ax wrote: »

Has anybody looked at the Glorious Sushi loan? A bidder under the name of "MICROFINANCE IRELAND"has €10,000 on @ 8.8%. If this is the real Microfinance Ireland, why would they fund a business via Linked Finance, where they would be required to pay the 1.2% charge?

Yes it is the real one. They are also in Vmobile. They have some form of a partnership/business arrangement with Linked.I doubt if they pay fees but thats their problem. I reckon it is good for me as a bidder to have them in but it might mean lower returns....

at9qu5vp0wcix7 · 19-04-2016 2:07pm

sceach16 wrote: »

Yes it is the real one. They are also in Vmobile. They have some form of a partnership/business arrangement with Linked.I doubt if they pay fees but thats their problem. I reckon it is good for me as a bidder to have them in but it might mean lower returns....

Certainly a huge vote of confidence, but the interest rate isn't great for people looking to get a good return on their investment.

Wheety · 19-04-2016 5:01pm

I was wondering what happened to MICROFINANCE on there. There was an article a while ago saying they would be bidding on some loans but I only saw them once, VMobile.

scheister · 19-04-2016 6:46pm

Mila Calm Ax wrote: »

Has anybody looked at the Glorious Sushi loan? A bidder under the name of "MICROFINANCE IRELAND"has €10,000 on @ 8.8%. If this is the real Microfinance Ireland, why would they fund a business via Linked Finance, where they would be required to pay the 1.2% charge?

She talks about the microfinance ireland loan in the business profile

The loan is being used to purchase new production equipment. This specialised equipment will both increase our range of products and bring fantastic efficiencies to our production process. This is going to make a massive difference in helping us increase our turnover and ultimately increase profitability for the business. As you will see on the site this project is being funded by both Micro Finance Ireland and Linked Finance. The MFI APR of 8.8% is the standard rate charged by Micro Finance Ireland and is not a risk based rate.

at9qu5vp0wcix7 · 20-04-2016 12:17pm

Betcon loan returned. This now makes it 50% of my 'successful' bids which have subsequently been returned...

Squall Leonhart · 20-04-2016 12:20pm

Mila Calm Ax wrote: »

Betcon loan returned. This now makes it 50% of my 'successful' bids which have subsequently been returned...

It is definitely frustratingly hard to invest, and takes a long time.
Mintos seems better all the time.

tadcan · 20-04-2016 1:40pm

The last few weeks have looked like an experiment, with fewer high amount loans. Now there is a larger number of loans on offer, with a more varied loan amount. It should be easier to get a loan funded in the next month.

sceach16 · 21-04-2016 11:37am

tadcan wrote: »

The last few weeks have looked like an experiment, with fewer high amount loans. Now there is a larger number of loans on offer, with a more varied loan amount. It should be easier to get a loan funded in the next month.

Yes.It looks like Linked are varying sizes and putting longer duration on loans.Seems to be working for borrowers!

Squall Leonhart · 21-04-2016 11:40am

Yes, the lengthy bid time definitely favours the borrower. It's now quite easy it seems to get a loan 200%+ funded, making it quite hard to get anything higher than 12% or so on an accepted bid.

m320325 · 22-04-2016 2:19pm

Hi, did they confirm they sent me that email?

BTW I'm still placing bids using my repayments but I haven't deposited anything else since they me emailed me

Squall Leonhart wrote: »

sceach16 wrote: »

All Readers

I think it is important that Linked be advised that if they try"influence" one
bidder, they risk the wrath of many more.Please email linked and advise them accordingly AND please post on this site so we can see the collective effect.

I have just sent the following query to LF;

Can you please advise if what I have read on a LinkedFinance thread on boards.ie is true

Squall Leonhart · 22-04-2016 3:38pm

m320325 wrote:

Hi, did they confirm they sent me that email?

Hi,

LinkedFinance got in touch to explain there were two sides to every story and left a number for me to call them on should I feel discussing it. I didn't call.

They also advised they are aware of this threads in boards and do keep an eye on it but due to resource constraints they would not be active on boards and that any questions, comments, queries etc should be emailed to them or call them.

That's fair enough, I can see how it would be a resource drain and perhaps unproductive if they were active here.

sceach16 · 22-04-2016 4:21pm

Squall Leonhart wrote: »

Hi,

LinkedFinance got in touch to explain there were two sides to every story and left a number for me to call them on should I feel discussing it. I didn't call.

They also advised they are aware of this threads in boards and do keep an eye on it but due to resource constraints they would not be active on boards and that any questions, comments, queries etc should be emailed to them or call them.

That's fair enough, I can see how it would be a resource drain and perhaps unproductive if they were active here.

Thats fine but Linked needs to get a forum/method of communicating properly with lenders.....hope they keep their eye on this post....and ACT.

Wheety · 24-04-2016 11:02pm

It seems that waiting until near the closing time of a loan is now a very popular tactic on LinkedFinance to get the highest percentage. Just looking at the loan which closed tonight. It closed with just a few people at 13.9.

I've never seen it this bad

Can't really complain as I've done it too. If that's how the system is set up people will 'bid' like this. It's like Ebay when there's a popular item.

LinkedFinance - new website

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