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garrettod

Cute Hoor wrote: »

More positive news today with one of the loans in default being settled in full

Mind me asking which borrower ?

Thanks

Cute Hoor

garrettod wrote: »

Mind me asking which borrower ?

Thanks

Frock N Fabulous

garrettod

Cute Hoor wrote: »

Frock N Fabulous

Thanks.

Thought it might have been one of those wonderful eateries

golfman

"After much review , we have set a repayment plan with this borrower in order to resolve the outstanding payment pertaining to this loan . The borrower has committed to make 2 repayments by the end of May ( we expect the first by the 18th of May ) and a further 4 payments monthly , as soon as each payment is received we will distribute funds to all lenders . The borrower has been made aware of the potential legal action to follow if this payment arrangement is broken . We will publish updates as these payments are receipted . "

Well done Amanda!!!

Cute Hoor

Well done indeed Amanda!

Going after Enfield Coaches as well
'Despite our efforts this borrower has failed to engage , we have passed this case to our legal partners to review today , the first action from our solicitors will be to issue a legal demand to the guarantor , upon expiry of this we will advise all lenders of the current position and actions to follow.'

And Ready Steady Build
'Our legal partners have issued a final demand to this borrower who despite promises failed to make any payment or arrangement with our solicitors , We have instructed our legal partners to serve this borrower and begin proceedings for a judgement , all updates on this case will be communicated to lenders'

1huge1

After having lent money on the site for the past 3 years to over 10 borrowers, I've had my first missed payment.

West cork pies, though linked fiance says that they hope to get it sorted in the next week.

Can't complain, haven't had any issues before this.

Wheety

Any chance of Amanda going after Farm Foods next?

Cute Hoor

Yes indeed Wheety, when we see her succeeding against the likes of Farm Foods and the Ugli Duckling we will know that Amanda has really arrived, businesses that can obviously meet their obligations should be first to be hit and hit HARD. I can though understand her going after businesses that are showing early signs of flakiness, better to get them early before they become a real issue

Wheety

Yeah it's good to see someone whose role is to tackle this. I have a feeling it was been put on the long finger and the businesses could sense that. I actually logged on for the first time in a while and saw that there was an update on Farm Foods. Said they're going to set the lawyers on them.

CeilingFly

1huge1 wrote: »

After having lent money on the site for the past 3 years to over 10 borrowers, I've had my first missed payment.

West cork pies, though linked fiance says that they hope to get it sorted in the next week.

Can't complain, haven't had any issues before this.

Hope everything is good because their pies are devine.

Their two main retailers are dunnes and Supervalu, and one of those two are known for requiring precise invoices and even the smallest error can cause delay

garrettod

Cute Hoor wrote: »

Yes indeed Wheety, when we see her succeeding against the likes of Farm Foods and the Ugli Duckling we will know that Amanda has really arrived, businesses that can obviously meet their obligations should be first to be hit and hit HARD. I can though understand her going after businesses that are showing early signs of flakiness, better to get them early before they become a real issue

Absolutely no doubt, that the trick with arrears cases is to deal with them early.

As for those old foodie favorites, nothing less than legal action is appropriate. It seems that they've taken the pi$$ (and what's worse is that it would appear that some of the staff at LF have allowed them to do so by not taking definitive action before now).

sceach16

Extract from a letter from Linked re a loan in default

"the borrower is keen to avoid legal action or judgement against him however has minimal affordability at this time due to other creditor/revenue arrangements in place. " ( My emphasis)

Linked lenders come last in the Q.....the loan in question has been problematic since 2016.

I accept Linked have finally got something ( words, not money) but not for the first time!

The overall message to lenders is that you come last.

garrettod

sceach16 wrote: »

Extract from a letter from Linked re a loan in default

"the borrower is keen to avoid legal action or judgement against him however has minimal affordability at this time due to other creditor/revenue arrangements in place. " ( My emphasis) ....

I would be absolutely livid if Linked Finance sent me that on one of my loans - it's simply inexcusable that Linked Finance are taking that approach, they need to be in a court room as a matter or urgency, even if it's only to get their fair share of whatever resources are available to repay.

If the borrower / guarantor is in genuine dire straits, then there's the options provided through the ISI to deal with their unmanageable debts. Otherwise, it's the court process ... simple !

CeilingFly

garrettod wrote: »

I would be absolutely livid if Linked Finance sent me that on one of my loans - it's simply inexcusable that Linked Finance are taking that approach, they need to be in a court room as a matter or urgency, even if it's only to get their fair share of whatever resources are available to repay.

If the borrower / guarantor is in genuine dire straits, then there's the options provided through the ISI to deal with their unmanageable debts. Otherwise, it's the court process ... simple !

I disagree - revenue will always have priority even if you get a court order and having a judgement may end any hope of a company trading out of difficulty.

In a way I like that the borrower is being upfront about issues.

ISI is not for businesses. Examinership lite would be an option, but you'd still see substantial debt forgiveness including the lf loan.

garrettod

CeilingFly wrote: »

I disagree - revenue will always have priority even if you get a court order and having a judgement may end any hope of a company trading out of difficulty.

You will note that the quote above from sceach16 reads:

has minimal affordability at this time due to other creditor/revenue arrangements in place.

That tells me that there is more than just Revenue being paid, also that there is some level of ability to pay - even if it is "minimal".

I am familiar with preferential creditors, I am aware that Revenue can put an attachment order on a bank account etc., but that's not what I was referring to when I posted above, I was referring to the fact that the lenders have been told that other creditors are being paid ahead of them.

If this goes to court and a judgement is awarded, it gives the lenders a stronger position than the currently have. I am of the view that LF Lenders would be well advised to protect themselves, given this problem has been around since 2016.

You are being optimistic when you talk about the company trading out of difficulty, so have you also considered if the company goes bust - having paid the LF lenders nothing, while having made some payments to other creditors (not just Revenue) ? No doubt you have noted that the loan has been in trouble since 2016, so this is not just a short term issue that the business can trade out of over 3-6 months.

In a way I like that the borrower is being upfront about issues.

How do you know they are being "up front", they may be only telling part of the story ? What detailed information have they evidenced, and how do we know it's the complete picture ?

ISI is not for businesses. Examinership lite would be an option, but you'd still see substantial debt forgiveness including the lf loan.

I referred to the ISI because the Personal Guarantee is provided by one or more individuals (not a company). I said "Borrower/Guarantor" because we were not told who the Borrower was, or if they were a sole trader or partnership, or a company. If the Borrower is an individual, or a partnership, then the ISI is correct just as it is for the Guarantor(s).

If the loan cannot be repaid by the Borrower, then the Guarantor needs to pay it. If the Guarantor can't pay it then let them prove it via an ISI solution if they are genuine, or else they need to be taken to court.

Examinership Lite does not help the LF Lenders. It will result in increased costs for the business to have to pay for the Examinership, in addition to a call for a debt write down.

s7ryf3925pivug

I think the grading system is relatively new, but how risky have safe-looking loans proved to be? Do you find yourselves getting surprised by problems, or are the problems usually with loans that looked a bit risky in the first place?

lad6w

Elias Hallowed Sarong wrote: »

I think the grading system is relatively new, but how risky have safe-looking loans proved to be? Do you find yourselves getting surprised by problems, or are the problems usually with loans that looked a bit risky in the first place?

I have 5 loans that are officially in default or late according to LF criteria that were raised since the grading system was introduced :.
- 3 are grade A or B and all 3 of these were  for 12months (I will give LF a bye on one of these which is due to death of principal in the business, but only got that update since Amanda came onboard)
- 2 are grade Y for 24/36 months
Not a great vote of confidence for the grading system. As other people have stated earlier in the thread, a common perception is that LF grade too easy, to provide a low rate to borrower, but not rewarding the investor accurately for the risk we are taking. As LF get their arrangement fee upfront then their interests are not as clearly aligned with investors as they could be. The ongoing fee they earn is all LF lose not the upfront arrangement fee. If a  credit department is seeing equivalent of A/B graded clients going bad within 12months they should very quickly be forced to tighten grading criteria.

garrettod

Hello,

I stand by earlier comments on this thread.

I have little to no confidence in their grading system, it is overly generous with it's ratings, as clearly evidenced when you look at some of the borrowers that are awarded an "A" or "B" rating for example.

The ratings benefit borrowers, by allowing them borrow at cheaper rates. The rating system does not correctly reflect the level of risk associated with this type of lending, the security on offer, or the financial strength of the Borrowers. As such, it far from assists any of us as potential lenders.

I would caution anyone using the auto-bid system to be very careful in what options they select, given the auto-bid system is driven by the LF credit rating system.


.

Cute Hoor

At last an update on the Ugli Duckling, I have to say my heart bleeds for them (Ugli Duckling).

'The borrower was saddened to report the business has changed hands due to a financial downturn, The borrower is aware of his obligations as the guarantor and has explained he is currently unemployed, he asked Linked Finance to deal with his solicitor regarding any debt outstanding . We made contact with the borrowers solicitor who has requested some information regarding this loan in writing , this information has been sent today and we have planned to re-connect with the borrowers solicitor in 7 days '

Now lets be having some action on Farm Food Emporium

FinanceDublin

I see Rolling Donut have cleared their loan in full a fair bit early - maybe 10 months or so?

How does this work on LF? Am I just getting principle back or the interest that should have accrued also? Presumably just the former.

manafana

FinanceDublin wrote: »

I see Rolling Donut have cleared their loan in full a fair bit early - maybe 10 months or so?

How does this work on LF? Am I just getting principle back or the interest that should have accrued also? Presumably just the former.

think they clear loan principal plus the next months interest.

garrettod

Cute Hoor wrote: »

At last an update on the Ugli Duckling, I have to say my heart bleeds for them (Ugli Duckling).

'The borrower was saddened to report the business has changed hands due to a financial downturn, The borrower is aware of his obligations as the guarantor and has explained he is currently unemployed, he asked Linked Finance to deal with his solicitor regarding any debt outstanding . We made contact with the borrowers solicitor who has requested some information regarding this loan in writing , this information has been sent today and we have planned to re-connect with the borrowers solicitor in 7 days '

Sounds like the Solicitor is trying to buy a bit of time because his / her client has told them nothing about the debt.

Anyway, what's this about a financial downturn, the rest of the country is enjoying economic growth (to one degree or another) ?

If the business has changed hands, then there was some value in it - otherwise, why would someone else take it on, rather than start with a clean slate etc. ?

garrettod

Hello,

Just a reminder to all, pay very close attention to the financial information being provided for each Borrower on the website.

There have been a number of occasions where there have been errors in the detail provided (i.e. no interest paid in the accounts, despite there being notable bank debt).

One can't help but wonder if these input errors (assuming that's what they are) are impacting on the the debt servicing calculations being used at LF and also, in the credit rating systems ?

sceach16

garrettod wrote: »

Hello,

Just a reminder to all, pay very close attention to the financial information being provided for each Borrower on the website.

There have been a number of occasions where there have been errors in the detail provided (i.e. no interest paid in the accounts, despite there being notable bank debt).

One can't help but wonder if these input errors (assuming that's what they are) are impacting on the the debt servicing calculations being used at LF and also, in the credit rating systems ?

This nothing new. I rarely look now because I am not lending. When I was lending, I regularly saw inconsistencies (I am charitable) in the figures provided. I used post questions in the Q/A and often posted the question on this forum.

At the end, posting questions did not generally result in a response...Linked had to approve the question before it is posted and responses are most uncommon.

daniel_mcrea

urgecaution wrote: »

That's a quick fail! Hopefully just a delay.

Did you notice that Ready Steady Build is listed on LF as a Limited Company but in reality it (he?) is a sole trader? LF might want to be more careful about info they provide to prospective investors. Some might well be less inclined to support sole traders.

I will never hire Romans at Ready Steady Build again. Sub contractors and suppliers not paid. I''m left to pick up the pieces. Total disaster - Avoid!

daniel_mcrea

Cute Hoor wrote: »

Well done indeed Amanda!

Going after Enfield Coaches as well
'Despite our efforts this borrower has failed to engage , we have passed this case to our legal partners to review today , the first action from our solicitors will be to issue a legal demand to the guarantor , upon expiry of this we will advise all lenders of the current position and actions to follow.'

And Ready Steady Build
'Our legal partners have issued a final demand to this borrower who despite promises failed to make any payment or arrangement with our solicitors , We have instructed our legal partners to serve this borrower and begin proceedings for a judgement , all updates on this case will be communicated to lenders'

I will never hire Romans at Ready Steady Build again. Sub contractors and suppliers not paid. I''m left to pick up the pieces. Total disaster - Avoid!

daniel_mcrea

Cute Hoor wrote: »

Ready Steady Build, a 20k loan to 'purchase equipment'.

I will never hire Romans at Ready Steady Build again. Sub contractors and suppliers not paid. I''m left to pick up the pieces. Total disaster - Avoid!

daniel_mcrea

unadublin wrote: »

Ready Steady Build - Loan 4662
Grade D
Payment 2 of 24 missed 29th January

I will never hire Romans at Ready Steady Build again. Sub contractors and suppliers not paid. I''m left to pick up the pieces. Total disaster - Avoid!

garrettod

Eh,

Okay, I think we got the message

CeilingFly

Its that type of revenge posting that would stop many businesses from looking at lf for a loan.

Maybe just loan numbers and initials should be used?

Loan 4662 RSB

It was a D rated loan. So risky from day 1.

And I suspect that the poster is an unpaid contractor rather than a lf lender.