LinkedFinance - new website

Leedsfan123

ABC101 wrote: »

I've been following this thread for a while. I've had no defaults to date, but I was very careful with whom I lent to. So far it has paid off etc.

However what is the "general feeling" with regard to default rate?

20%, 35% or what?

Is there official figures available?

I'd be the same as yourself, been lending for close to 2 years now and am quite selective. Have about 40 loans and all repaying.

According to Linked Finance's last report the default rate is less than 1% (.86%) It's all there to see on the webpage.

I know some people have been stung, but it's working for me so I'll keep lending.

sceach16

ABC101 wrote: »

I've been following this thread for a while. I've had no defaults to date, but I was very careful with whom I lent to. So far it has paid off etc.

However what is the "general feeling" with regard to default rate?

20%, 35% or what?

Is there official figures available?

Linked blog gives some figures and a quarterly loan report (30 June is due soonish). Their definition of default is 4 months not paying !
I am 2 years lending and until late last year all my loans were repaying. since then, I have 8 not paying and 3 others problematic. This is 11 from 163 loans.

ABC101

Leedsfan123 wrote: »

I'd be the same as yourself, been lending for close to 2 years now and am quite selective. Have about 40 loans and all repaying.

According to Linked Finance's last report the default rate is less than 1% (.86%) It's all there to see on the webpage.

I know some people have been stung, but it's working for me so I'll keep lending.

1% sounds too good to be true.

From reading this thread, it has got to be higher.

Squall Leonhart

Going by the definition of defaulting loans being 4 months missed repayments, I have 0 default loans from 40, 1 of which is a month in arrears, has been for 2 months.

Cute Hoor

I have invested in over 300 loans, 5 are in default (one has now started repaying), and 4 are late paying, combining both means 2.9% approx of my loans have issues. In terms of invested amounts 2.7% approx have issues, but when you take instalments repaid and interest earned that figure drops to 1.35% approx. Of the 9 with issues, there is no possibility of receiving any further return on just 1, the other 8 are still active with some still working with LF and others gone to collection agencies.

fflynn

Hillcrest Agencies, Grade B, just 5 payments made out of 36

We have not received the most recent repayment for this loan. Unfortunately the company has gone into liquidation, we are in contact with the borrower and will provide more information once we have it.

spudwould

fflynn wrote: »

Hillcrest Agencies, Grade B, just 5 payments made out of 36

The question has to be asked as to why was this loan approved and why at at a Grade B loan.

wordofwarning

sceach16 wrote: »

Their definition of default is 4 months not paying !

Mintos call a default 60 days of not paying your loan. Some of the lenders on it after the 60 days start legal proceedings. Others drag their heals. But generally they are quick at collecting defaulted payments.

I imagine pretty much any country in Europe must be better than Ireland for enforcing outstanding debt

tomwaits48

seems like LF is an easy last throw of the dice for struggling companies

fflynn

Gobowo wrote: »

Was it your choice to lend to them or you're using autobid?

at the time I was using autobid, turned off since then but now I don't get a chance to bid on many loans as they're already fully funded by the time i see them

wordofwarning

tomwaits48 wrote: »

seems like LF is an easy last throw of the dice for struggling companies

So of the companies on it are excellent. But a fair amount have not gotten finance from a bank or a CU for a reason.

Wheety

Farm Foods still haven't made their payment due on 27th June. Surprised about that. I loaned to them as I've eaten in their Dawson Street branch a couple of times and they're always busy. They're also on Leeson Street. It was only 30k too.

sceach16

Back on the platform for a third loan this year! Heading for 250,000 borrowed in 6 months. Two previous loans totallling 170,000 were grade A. This one is a strong grade B because of additional leverage.

We now have B and strong B.

Are the others now grade B also ? As far as I know, they have the same legal status as unsecured creditors.

As at 31/12/2016 Bank debt was 320k. 250K since borrowed on Linked. Stock end 2016 was 400k ...4 months turnover. Now borrowing for more stock.

sceach16

They employ 33 people and their staff cost is 88749 for y/e 31/07/16.
This what they say"We employ 33 people but we expect to grow this figure considerably. "

They were on Linked in February. No mention of how much or rate or grade. (Lenders may remember us as we featured on the platform in February of this year. )

They are now looking for 100k I year loan to buy materials for pprojects to be finished by September. Are they going to buy material? get it delivered and used in projects to be finished by September? (As mentioned, we have recently been awarded tender for work on a number of schools around the country that we need to finish before September. This 1-year, €100,000 loan will allow us to purchase the necessary materials and get started working on the schools right away.)

Their Y/E seems to be 31.07. 2016 showed vat/tax due of nearly 60k.

They say "The money that you lend to us will allow our company to grow at the rate that it is without cashflow ever becoming a worry."

fflynn

sceach16 wrote: »

They employ 33 people and their staff cost is 88749 for y/e 31/07/16.

do you have the loan number? not on loan listing page

Cute Hoor

sceach16 wrote: »

They employ 33 people and their staff cost is 88749 for y/e 31/07/16.
This what they say"We employ 33 people but we expect to grow this figure considerably. "

They were on Linked in February. No mention of how much or rate or grade. (Lenders may remember us as we featured on the platform in February of this year. )

They are now looking for 100k I year loan to buy materials for pprojects to be finished by September. Are they going to buy material? get it delivered and used in projects to be finished by September? (As mentioned, we have recently been awarded tender for work on a number of schools around the country that we need to finish before September. This 1-year, €100,000 loan will allow us to purchase the necessary materials and get started working on the schools right away.)

Their Y/E seems to be 31.07. 2016 showed vat/tax due of nearly 60k.

They say "The money that you lend to us will allow our company to grow at the rate that it is without cashflow ever becoming a worry."

Not sure what this means


MRA Electrical

Bids Returned

Hi Xxxxxxx.

Unfortunately, we are unable to proceed with this loan.

This loan was launched incorrectly as a 'first-time' loan in the system. We will correct this and relaunch the loan again in the morning. Apologies for any inconvenience.

SeanPammer

Cute Hoor wrote: »

Not sure what this means

Because some people have selected
- autobid except where company has had previous loan within 6 months

They had to refund all bids, as above was mistakenly ignored.

SeanPammer

sceach16 wrote: »

They employ 33 people and their staff cost is 88749 for y/e 31/07/16.
This what they say"We employ 33 people but we expect to grow this figure considerably. "

They were on Linked in February. No mention of how much or rate or grade. (Lenders may remember us as we featured on the platform in February of this year. )

They are now looking for 100k I year loan to buy materials for pprojects to be finished by September. Are they going to buy material? get it delivered and used in projects to be finished by September? (As mentioned, we have recently been awarded tender for work on a number of schools around the country that we need to finish before September. This 1-year, €100,000 loan will allow us to purchase the necessary materials and get started working on the schools right away.)

Their Y/E seems to be 31.07. 2016 showed vat/tax due of nearly 60k.

They say "The money that you lend to us will allow our company to grow at the rate that it is without cashflow ever becoming a worry."

Previous liquidation (MRA Entertainment) with last filed document a ‘G1 Special Resolution’
Same directors/address

http://www.solocheck.ie/Irish-Company/Mra-Entertainments-Limited-501997

Not sure how that affects ones decision to bid on this new loan.

SeanPammer

fflynn wrote: »

do you have the loan number? not on loan listing page

https://linkedfinance.com/loan/4359

sceach16

sceach16 wrote: »

They employ 33 people and their staff cost is 88749 for y/e 31/07/16.
This what they say"We employ 33 people but we expect to grow this figure considerably. "

They were on Linked in February. No mention of how much or rate or grade. (Lenders may remember us as we featured on the platform in February of this year. )

They are now looking for 100k I year loan to buy materials for pprojects to be finished by September. Are they going to buy material? get it delivered and used in projects to be finished by September? (As mentioned, we have recently been awarded tender for work on a number of schools around the country that we need to finish before September. This 1-year, €100,000 loan will allow us to purchase the necessary materials and get started working on the schools right away.)

Their Y/E seems to be 31.07. 2016 showed vat/tax due of nearly 60k.

They say "The money that you lend to us will allow our company to grow at the rate that it is without cashflow ever becoming a worry."

MRA electrical

Loan re launched today. No additional info.

sceach16

JK engineering supplies.

11 am. Payment due 7/07 has not arrived. Other payments due today have. Happened in May but payment arrived couple of days later. hope its just a cockup.



Looks like it was. Checked at 6.30 pm...it has arrived.

fflynn

sceach16 wrote: »

MRA electrical

Loan re launched today. No additional info.

financial summary is a little different

staff increased by 263k
net profit reduced by 74

Edit: I see they've now explained the reason for this in the Q&A

Strettie11

https://www.theguardian.com/business/2017/jul/18/peer-to-peer-lender-ratesetter-hit-by-struggling-loans

The peer-to-peer lender Ratesetter has been hit by £80m of struggling loans in the first major setback for the nascent online lending sector.

The company said it would use its own funds to prevent losses being taken by its 50,000 users, who are mostly small investors using the website in order to lend their savings to other individuals and benefit from higher interest rates than are available at high street banks. Some £2bn has been lent through the site, which currently promises returns of up to 4.7%.

Peter Behrens, Ratesetter’s co-founder, said: “We did something on behalf of our lenders that was quite clearly a mistake. It is not right for them to take that hit.”

The endangered loans are among the first signs that the fashionable peer-to-peer lending sector might not be immune to the problems that have plagued traditional banking. They have emerged just as the company has started to promote itself more as a business with establishment connections and less as a startup.


The City grandee Paul Manduca, chairman of Prudential, has just taken over as Ratesetter’s chair. Details of the website’s efforts to correct past mistakes come just weeks after the business’s co-founder and chief executive, Rhydian Lewis, was awarded an OBE in the Queen’s birthday honours list.

The company admitted that it had made £36m of loans to a company called Vehicle Trading Group Limited (VTG), a motor finance holding company that then fell into administration because it had taken on too much debt. Ratesetter said it had acquired the vehicle loans out of administration “in order to best protect our lenders’ interests” and that it would “expand our motor finance lending capabilities by integrating the two businesses into Ratesetter product lines”.

It also loaned a further £12m to an advertising company called Adpod, which during 2015 became 50% owned by VTG. The website admits that the loans, of which £8.5m are still outstanding, should not have cleared its own credit policy. It has now fully acquired Adpod to make sure that the loans will be repaid to the website’s users in full.


A further £32m has been loaned via George Banco, a provider of consumer credit, in which Ratesetter had taken an equity stake. Ratesetter now says it is withdrawing from its partnership with the company and will only be a “passive shareholder in the business”.

On Tuesday, the peer-to-peer lender told users lending money via its website that they could withdraw their deposits free of charge. The company said: “If you feel this information changes your investment, we are giving you the option to review your investment with us and sell out without incurring any fees.”

However, lenders were told that they might have to wait 30 days to get their money back.

adam88

I seen today that a loan was financed in 1 second. All by auto bids. That means that this company got 40k without one single person checking their financials. People are going to get some fright with this wreck less lending.

Would you lend someone money just because someone said they're good for it.

benjamin d

adam88 wrote: »

I seen today that a loan was financed in 1 second. All by auto bids. That means that this company got 40k without one single person checking their financials. People are going to get some fright with this wreck less lending.

Would you lend someone money just because someone said they're good for it.

That's common these days, particularly for smallish amounts over fewer months. I feel it will end in tears alright, especially with the less than transparent rating system Linked uses.

I've got a couple of autobids set up but I'm pretty uneasy about them, as you say there's no checking before a bid. It makes life a lot easier for Linked Finance though so it ain't changing anytime soon.

Robbie12

Yea linked finance is a weird animal alright -

I'm fairly new to it but from the data on their website <1% are defaulting so it felt safe and then further I assumed the defaulting must be occurring with liked of loans with Grade C and below but I haven't seen a loan under grade C yet(?)

I've invested 3k and hoping to just let it reinvest via autobid but when you consider taxes, LF fee, inflation and the impact any defaulting has on your ROI overall it's almost a break even scenario...


I only autobid for Grade a & b loans bu considering pulling out of Grade B altogether - take one of the latest - Skelligs chocolate


50k over 3 years & the company only made 10k net profit in 2015 and made a loass in 2016 - how on earth will they be able to make the ~1600/month repayment required? Why is this a grade B loan?


Also I always wondered about that John_B guy too :D I was thinking this must be a guy in it from the start reaping the rewards now:P

petethedrummer

1.36% of my loans are in default! 2 out of 146. So I must be doing something wrong. With that being said, both of those loans have made repayments since entering default status. Fingers crossed they continue.

I'm finding it harder to find anything decent to take a punt on lately. The autobids are mopping up anything I might be interested in. If they reduced the minimum bid I'd be tempted to throw a tenner on a few. 50 quid is a good night out!

Wheety

I'm thinking of withdrawing from Linked. I have 36 loans with no defaults. 2 are a bit troublesome as in their payments always seem to be late. I wonder if some people who borrow from them don't take them as serious as they would a bank.

Anyway, I have a good record because I like to read up on the company before investing. I won't set up an autobid as I don't want to just blindly lend money to some of them.

I was planning on withdrawing before when a well known Dublin City centre café were looking for a loan. It seemed like a good opportunity so I lent €200, my normal loans are only €50.

As of now, my bank is building up from repayments. Unless a good loan comes up which I still have a chance to bid on, I'll withdraw. I might move it to Mintos. I like the quicker turnaround available there and have now started to choose ones with Buy Back Guarantee only as I have 2 defaults over there.

BAAA RAM EWE

Rise in number of SMEs being rejected for bank credit - Central Bank

The rejection rate on bank finance applications increased from 11% to 13% between Q1 of this year and the same period in 2016

Firms with fewer than 50 employees were worst affected, with medium-sized firms (50-249 employees) seeing a drop in rejection rates.

At the end of 2016, nearly one in every five (18.7%) SME bank loans were in default.

Wheety

Farm Foods late again. Is there any punishment for a late payment?