LinkedFinance - new website

lcwill

PanAC wrote: »

Hi All - Does anyone have any experience of using Bondora? I'm wondering if it is worth a dabble as an alternative to LF? Their website "looks" legit, I've instigated a test transfer of a few euro to them, but, before I venture further, I wonder has anyone any advice? Thanks.

I have been using it for a bit over 18 months - not a particularly good experience so far.

Of 240 outstanding loans, only 125 are current and 92 are more than 60 days overdue. Most of my loans have been made using their autoinvest function so it is not as if I have just been picking bad loans. Luckily I only put in E1k as a trial and I have not added to this.

If I wanted to cash out on the secondary market I would have to offer discounts of 50%+ at least, and in some cases even more. Yesterday I offered all of my 60+ day overdue loans on the secondary market with a 20% discount just to see what happened and so far sold only 2 of them.

Beginning last summer I started picking loans using my own criteria and was doing much better (and these loans are still amongst my best) but then Bondora introduced changes which basically made it impossible for individual loan pickers to get any of the good ones anymore - trying to force people to use their autoinvest function.

In the end I gave up fighting them and just set my reflows to be reinvested on their most conservative setting on autoinvest (expected return of 14.33%) but right now my returns have dropped even lower than that (supposedly I am at 13.46%, but it is dropping every week as my the amount overdue on my bad loans ticks up).

On the other hand I am a big fan of Mintos where my E1k experiment is going much better, with slightly lower returns but a much better secondary market, many loans with buy back guarantee, and many different kinds of loans (car, personal, mortgage, business, invoice financing etc).

PanAC

Thanks Icwill for your detailed experience of using Bondora. I'm not a fan of AutoBids, I much prefer to time & set my own bids, at least it has worked well so far with LF.
Mintos is next on my list for investigation, and thanks for your more positive comment about it.
At the moment I average 11.8% with LF, but that will start falling as fewer open rate auctions appear. I can't foresee any circumstance in which I'd use Fixed Rate bids, at least not at 8.5-8.8%. Three years ago most of my funds languished in bank term deposits. Nowadays they jog along in crowd funding. Live and learn!

sceach16

sceach16 wrote: »

New 1 yr fixed looking for 50,000 at 8.5%. Look carefully at their info and financial data. I asked the following and await a response.

"How much are you borrowing from your bankers and for how long? You are looking for 50k from Linked lenders also! Have you other borrowings? Your shareholders funds/net assets are less than 20K. How can you support current and additional borrowing and repay minimum of 50K in one year? "

Extract from linked blog


"When you see a fixed-rate loan, however, you know that not only has the business met our normal criteria, but it has also exceeded a range of additional requirements relating to balance sheet, repayment capacity, turnover and credit history metrics.

Many of our high-interest lenders might balk at the 8.8% interest available on 3-year, fixed-rate loans but we feel that based on the strength of the businesses that qualify for these loans, this is a fair rate of return that refelcts the lower level of risk associated with these stronger businesses."

See the reply on the site. Also note that the amount sought has been cut from 50k to 25k without comment! I have put another question on the site.

sceach16

sceach16 wrote: »

New 1 yr fixed looking for 50,000 at 8.5%. Look carefully at their info and financial data. I asked the following and await a response.

"How much are you borrowing from your bankers and for how long? You are looking for 50k from Linked lenders also! Have you other borrowings? Your shareholders funds/net assets are less than 20K. How can you support current and additional borrowing and repay minimum of 50K in one year? "

Extract from linked blog


"When you see a fixed-rate loan, however, you know that not only has the business met our normal criteria, but it has also exceeded a range of additional requirements relating to balance sheet, repayment capacity, turnover and credit history metrics.

Many of our high-interest lenders might balk at the 8.8% interest available on 3-year, fixed-rate loans but we feel that based on the strength of the businesses that qualify for these loans, this is a fair rate of return that refelcts the lower level of risk associated with these stronger businesses."

sceach16 wrote: »

See the reply on the site. Also note that the amount sought has been cut from 50k to 25k without comment! I have put another question on the site.

See the response on site from linked. It is largely waffle. Basically they have cut the amount sought because people will not lend fixed rate so they will try again later........ at a fixed rate???

sceach16

sceach16 wrote: »

Thats what worries me about fixed rate loans. :mad: Linked tell us they are good enough for 8.... so why is the borrower looking at 13.47 now and aparently willing to take it? Ended up at 13.34 average....4.54 points or 52% above 8.8!

Bids returned 7 days after loan closed, must have been a hard decision to make.

"The borrower has decided not to proceed with this loan.
They feel the blended interest rate is too high." :eek::o:confused:;):D:rolleyes:

tomwaits48

sceach16 wrote: »

Bids returned 7 days after loan closed, must have been a hard decision to make.

"The borrower has decided not to proceed with this loan.
They feel the blended interest rate is too high." :eek::o:confused:;):D:rolleyes:

I reckon you dodged a bullet with that company anyway.

rdavitt

Their website from a financial perspective is vague to say the least. Look at the graphs under "investment portfolio" for example. The bar chart is broken into 9-10% ; 10-11% yet you can lend between 9.1% and 9.9 %. For example if you have number of loans lent at 9.9% does it fall under 9-10 or 10-11 in the bar chart. This is basic finance reporting but Linkedfinance (a financial organisation which you would expect to be exact in their reporting at the very least ) can't get it !!..so reporting is not correct. Another example is when you look at "loans currently repaying" their total count is incorrect. You might have two loans at two different rates to one borrower but they count that as one loan. Also and may be just me being pedantic I would like to see a column showing "monthly payment amount" under the "lent" tab......comments?

sceach16

rdavitt wrote: »

Their website from a financial perspective is vague to say the least. Look at the graphs under "investment portfolio" for example. The bar chart is broken into 9-10% ; 10-11% yet you can lend between 9.1% and 9.9 %. For example if you have number of loans lent at 9.9% does it fall under 9-10 or 10-11 in the bar chart. This is basic finance reporting but Linkedfinance (a financial organisation which you would expect to be exact in their reporting at the very least ) can't get it !!..so reporting is not correct. Another example is when you look at "loans currently repaying" their total count is incorrect. You might have two loans at two different rates to one borrower but they count that as one loan. Also and may be just me being pedantic I would like to see a column showing "monthly payment amount" under the "lent" tab......comments?

QUOTE]

The portfolio chart used have a sub analysis of each category broken down into 0.1 increments. It was recently dropped. The bands start at x.0. That means 9.9 is in the 9/10 range. Their loans are, I think, based on a loan reference number so if you lend 2 @100 it shows the same as 1@200. The contra happens if a borrower gets a new loan. It has a new loan number so your number of borrowers is more than would appear "logical". Yes, I would like a monthly repayments figure too.

Linked will tell you changes/additions cost and I agree. They have made changes suggested by me and others and , in fairness, try to facilitate lenders (except on rates!). Email or use their blog to make points/comments (as well as this forum).

Cute Hoor

rdavitt wrote: »

Also and may be just me being pedantic I would like to see a column showing "monthly payment amount" under the "lent" tab......comments?

On the old website you could download a spreadsheet detailing all your daily repayments (Loan No, Due Date, Principal Due, Interest Due, Lender Fee, Borrower, Status, Loan Amount, Interest Rate, Sector), a most useful facility which let you know how much you were getting back daily which in turn allowed you to plan ahead re funding etc, what they have up there now on the 'Lent' tab is about as useful as an ashtray on a motorbike. I have repeatedly asked for this facility to be restored only to be (politely) fobbed off each time. Restoring this facility wouldn't cost them a cent as presumably the code used to generate the spreadsheet is still available to them. Because of their reticence I can only assume that they do not want lenders to have access to it, too much info for the plebs. I'm a bit pissed (hope I can use that word here) off with them tbh and I am just re-investing whatever I get back in, will probably start cashing out in the medium term.

Strettie11

Cute Hoor,

I think that report is still there

Go to Statement tab
On the right there is a download report box
If you want future repayment details leave the from date and change the to date 3 years into the future
ensure report is at option Repayment schedule
And format to CSV
Then click download and you will have your report

Cute Hoor

Strettie11 wrote: »

Cute Hoor,

I think that report is still there

Go to Statement tab
On the right there is a download report box
If you want future repayment details leave the from date and change the to date 3 years into the future
ensure report is at option Repayment schedule
And format to CSV
Then click download and you will have your report

You're a brick Strettie, thank you very much.
Now why couldn't LF have pointed me in that direction (from any of my numerous requests) rather than making me look stupid here.

Strettie11

No one looks stupid here. great thing about this forum many people here with help, advice and some excellent discusions.

Now where can I apply for my LinkedFinance Customer service job !!!

scheister

Strettie11 wrote: »

Cute Hoor,

I think that report is still there

Go to Statement tab
On the right there is a download report box
If you want future repayment details leave the from date and change the to date 3 years into the future
ensure report is at option Repayment schedule
And format to CSV
Then click download and you will have your report

Cute Hoor wrote: »

You're a brick Strettie, thank you very much.
Now why couldn't LF have pointed me in that direction (from any of my numerous requests) rather than making me look stupid here.

I looked for a similar report for LF and was nicely told where to go but interesting figures looking forward. LF will be rich from the 10 cent that will make from me in 2019 :P based on current loans

at9qu5vp0wcix7

Not looking good for the fixed rate loans lately, an increase to ~10% or more might be required to fill them consistently in future.

TheSheriff

The fixed rate loan closing tonight stands at 35% funded with 2 hours left....really not good indeed.

Agree with the above poster , of the rate was increased so that I would earn 10% after link take their bit they would get my money. There is nothibg attractive about them at the moment

at9qu5vp0wcix7

TheSheriff wrote: »

The fixed rate loan closing tonight stands at 35% funded with 2 hours left....really not good indeed.

Agree with the above poster , of the rate was increased so that I would earn 10% after link take their bit they would get my money. There is nothibg attractive about them at the moment

Its a no brainer to not invest IMO - these loans have no guarantee/collateral, and I believe Sceach has worked out that given the default rate, LF's fee, and tax, they offer negligible returns.

Strettie11

Another 2 year fixed just dropped off site SHL Distributors

Strettie11

And another... 2 year fixed gone from site Foxpak Flexibles

m320325

Would anyone here be able to explain in simple terms what the 'Other Current Assets' are in the financial details of 'Eco Douglas'? They answered a few questions related to this but I'm still not sure what it means.

With previous borrowers I've seen 'Other Current Assets' which were a loan given to a related company, money used for research or Goodwill.

Strettie11

M320325

The answer given in no way answers the question. It is like a politician answering a different question

m320325

Strettie11 wrote: »

M320325

The answer given in no way answers the question. It is like a politician answering a different question

Thanks, I think most people seem to lend even though questions aren't answered properly

spudwould

m320325 wrote: »

Thanks, I think most people seem to lend even though questions aren't answered properly

Yes this is something I have also noticed.
When bidding on a new loan I firstly I go to "Financial Summary" TAB and second to the Q&A TAB. :P
If a company is not forthcoming with answers I tend to assume they have something to hide and will not offer my bid.
I think most bidders just bid for the sake of the loan and not on the status of the financial state of the company. :eek:

Theresak92

Just found this thread! Interesting reading

at9qu5vp0wcix7

Cartridge Green Q&A highlights some worrying issues. Their previous loan application stated a profit of ~30k for 2015, yet the new application indicates a loss of ~10k for the exact same period. It was put down to their actual costs being higher than they 'thought'. A swing of >10% of their turnover is quite a large margin of error, and demonstrates that many of the financial summaries are guesswork which have not been looked at in depth.

m320325

Mila Calm Ax wrote: »

Cartridge Green Q&A highlights some worrying issues. Their previous loan application stated a profit of ~30k for 2015, yet the new application indicates a loss of ~10k for the exact same period. It was put down to their actual costs being higher than they 'thought'. A swing of >10% of their turnover is quite a large margin of error, and demonstrates that many of the financial summaries are guesswork which have not been looked at in depth.

I can understand now why linkedfinance see it as important to only show the last signed off balance sheet.

In the case of Cartridge Green, the year ended in May 2015, loan went on LF in Nov 2015, how did the staff cost increase by 19% after November as I presume that payroll had already been completed 6 months earlier?

I noticed a few weeks ago on another repeat borrower that the actual accounts were much better than the management account from the previous loan.

https://www.linkedfinance.com/loan/3542
https://www.linkedfinance.com/loan/3143

spudwould

Today is the day that my 1st loan that has not been repaid hits the 1 year mark!(Yous are all invited to the party)
Anyways it will be interesting to see if this loan now goes to "Bad Debt" .. shall keep you all posted.

Just a quick update on one of my other "bad" loans .. LF informed me 3 months ago that they came to an arrangement for the company to pay "Bi-monthly" .. which meant the loan was not a 6 yr loan .... and my first repayment will be gave at the end of the month.. I waited 2 more months .. and LF then sent me a mail to inform that they can not meet this latter agreement of bi_monthly payments and LF will pursue the debt!
If the first bad loan is anything to go by I will update yas when this one has a first birthday :P

sceach16

I just asked Linked via their blog for an update on loan performance for end June.

sceach16

sceach16 wrote: »

I just asked Linked via their blog for an update on loan performance for end June.

2 days later. Request still not on Blog....Linked control input. Naturally no response either.

Just emailed them.

Got a response on blog and by email.

10/7/2016, 15:47:28

Any chance of an update for 30 June ?

13/7/2016, 11:07:17

Hi sceach, thanks for your comment. We are working on this right now and will have it in the coming days.

sceach16

sceach16 wrote: »

I just asked Linked via their blog for an update on loan performance for end June.

Text of email response from Alan in Linked.

"Your comment has been approved and I've posted a reply. Again, if you are looking for a quick response, probably best to contact the customer care team or email me directly.


The only time I see pending comments is when I go in to publish a new article or check something on the blog."

Squall Leonhart

Hi Sceach, I have looked at the blog but it's a bit confusing trying to find things on it, can you link to your question and LF's reply?