LinkedFinance - new website

Wheety

Just saw that Just Desserts (Bgrsb) have this on their Solocheck page.

Their current partial address is Co. Mayo, and the current official company status is Normal, however please note the RiskWatch entry below.
Riskwatch
MEETING OF CREDITORS
Scheduled Date 18/09/2018

garrettod

CeilingFly wrote: »

LF have linked up with Retail Excellence to provide short term seasonal stocking loans. They should have gone into this area along time ago. They are still charging a 4% fee though, but rates from 6% and no early settlement charge will tempt some retailers.

While it may tempt retailers, will it tempt investors (aka Lenders) ?

Wheety

I haven't been checking the live loans but just had a look tonight and there are 7 loans all 'Funded in 1 second'. Total value of just over €250k.

Mental that people are just throwing money at this.

One of the loans is Fastway Couriers. Now why would an established business need a loan at 12%?

CeilingFly

Wheety wrote: »

One of the loans is Fastway Couriers. Now why would an established business need a loan at 12%?

Possibly an independent franchise of fastway - each area is owned independently and then each route is further franchised

garrettod

Wheety wrote: »

I haven't been checking the live loans but just had a look tonight and there are 7 loans all 'Funded in 1 second'. Total value of just over €250k.

Mental that people are just throwing money at this.

One of the loans is Fastway Couriers. Now why would an established business need a loan at 12%?

It's a Fastway Franchise, see:

Snapshot

This loan request at a glance:

Courier Post Ltd t/a Fastway Couriers (South West) was established in 2011.
Part of the international Fastway Couriers network, Courier Post holds the franchise for Fastway in the South West Region.
They provide their services primarily around the Limerick, Clare, and Kerry areas.
Courier Post Ltd would like to raise a facility of working capital to be used for ongoing contracts and to help meet rising demand.
They are seeking a 24-month loan of €53,000.

I've had very mixed experiences using the Fastway Courier service and would be very slow to recommend them as a reliable service, so pray that any loans I'm in for Fastway franchises are the better performing ones.

Peter File

Has anyone received money from a case in which the borrower defaulted and linked finance looked to enforce the debt?.
I am looking to withdraw my funds as loans are repaid as with autobids dominating the market there is no chance to research the loans before they fill up.

sceach16

Peter File wrote: »

Has anyone received money from a case in which the borrower defaulted and linked finance looked to enforce the debt?.
I am looking to withdraw my funds as loans are repaid as with autobids dominating the market there is no chance to research the loans before they fill up.

No....their recovery system is a bit like the tooth fairy.

Wheety

BGRSB trading as Just Deserts/Just baked:

Linked Finance attending a meeting of creditors yesterday regarding this company . It was confirmed the company has now been declared insolvent and the liquidation will commence . We spoke briefly to the guarantors pertaining to this loan agreement and advised them of their obligations to resolve the total balance remaining despite the liquidation of their business . We are due to re-connect with both borrowers in the coming days to discuss payment going forward , all updates will be published to lenders accordingly . Linked Finance remain confident this loan agreement will be repaid in full .

verdantz

I've many loans when the borrowers stopped payments, in these cases its still ongoing but so far none have been forced to pay the balance due.

eg Farm restaurant and others who are still trading

I was using autobid up until 6 months ago but stopped as the number of late loans increased significantly

Currently I've 10 loan repayments which were due in Aug but are still late. I've 12 lates so far in September (at this point in time so this doesnt include late payments which were paid a few days later)

verdantz

I won't name the company but I find the Linkedfinance email misleading. I lent 100 to this company, they had some problems and ceased trading. So from reading the email I expected I was repaid 89 of the original 100 lent.

Latest update:
Linked Finance have credited a settlement amount to your account today which will return a total of 89% of original investment back to lenders with no further obligations or legal action being sought against the personal guarantor . We feel this settlement amount received is the maximum achievable amount on this case considering the circumstances as per our previous correspondence. This loan agreement has now been closed and the remaining balance will show as a bad debt on your dashboard .

Lent: 100
Principal Repaid: 75.21 (this includes the settlement amount)
Interest Received: 13.78

Bad Debt: 24.79

So bad debt is 25% in my opinion. But linkedfinance call this 11% as they take the interest previously received from the principle (24.79 - 13.78 interest = 11.01)

So others who are more familiar with things like this, is it usual to describe this as having received 75% of the original principle or 89% of the principle?

benjamin d

How long has it been since Farm made a payment?? That's bananas that they're still not paying up. Both their restaurants are happily trading away. That one case alone is a huge black mark against Linked.

verdantz

benjamin d wrote: »

How long has it been since Farm made a payment?? That's bananas that they're still not paying up. Both their restaurants are happily trading away. That one case alone is a huge black mark against Linked.

11.5 months

but it seems Linked finance are still working on it, just the restaurant ignore the 30 days notice, so then they had to get a further 14 days notice. I've seen lots of updates about them failing to respond. maybe someone else here can explain it better

Wheety

The Farm Facebook page

Hello everybody and thank you very much for your kind comments .
Please note that Leeson St. Farm is no longer part of us and is currently closed for renovation.
We are here hail and hearty now in our 12th year in FARM Dawson St. 7 days a week lunch through dinner.
Hope to see you soon.
Farm Team

Cute Hoor

Farm Food Emporium is an interesting one.

When Mr Coffey applied for the loan he was the majority shareholder, his wife Carol and himself opened the restaurant in 2007 and his daughter Alison was also a shareholder. So, unless the ownership structure has changed since the loan was first applied for, and given that the restaurant appears to be running successfully, it is difficult to see how Mr Coffey can evade his responsibilities to the Linked lenders. I am also assuming that he will be pursued for costs. The recovery process is painfully slow but I guess that's the way the legal system and its practitioners work. Seems a pretty open and shut case to me.

Their first missed repayment was March 2017, Linked posted the following message
'We have not received the most recent repayment for this loan. Mr. Coffey hopes to have the payment in by the end of this week.'

The next repayment missed was May 2017 but it arrived 3 days later.

June 2017 was also missed but arrived 2 weeks later.

The July and August repayments were also missed and Linked posted the following message on 28th August 2017
'In Arrears - The borrower has now missed two repayments on this loan. We are continually trying to contact the borrower but so far have only received one email response with no reasoning for the missed payments. We will continue to try and contact the borrower and will provide any further information once it is received. Last payment received: 14/07/2017'

A (final) payment was received on 9th October 2017.

The next update from Linked didn't arrive for over 4 months, until 20th February 2018
'Active Recovery - Case being handled by third party collections agency.The borrower had advised due to the Luas cross city works they had experienced a downturn but had advised once this was complete they would be able to return to payments and catch up on the outstanding amounts owed. Since the work was finished the borrower has failed to make any payment, so as a result we have moved this loan over to our third party collections agency to enforce the loan contract and personal guarantee provided. Last payment received: 09/10/2017'

Ladyinthedark

Hi I’ve tried accessing this websire but I can’t get it to fully load .?
Does this websire offer finance to start up businesses

Wheety

Ladyinthedark wrote: »

Hi I’ve tried accessing this websire but I can’t get it to fully load .?
Does this websire offer finance to start up businesses

It does but you may be looking at a very high interest.

Are you looking to start a business? Did you try any of the Government schemes?

Ladyinthedark

Wheety wrote: »

It does but you may be looking at a very high interest.

Are you looking to start a business? Did you try any of the Government schemes?

I’m not aware of any government schemes where would I find that information

Wheety

Ladyinthedark wrote: »

I’m not aware of any government schemes where would I find that information

Have a read here.

http://www.startups.ie/partners/im-looking-grants-state-support/

Or here

https://www.thinkbusiness.ie/articles/business-grants-ireland/

You'd have to Google for more info or check dbei.gov.ie or enterprise-ireland.com

annelimerick

Hi, I've had 2 defaulters and no money recovered from those. I think they put very little effort into this, after all, LF themselves don't loose anything, so if it costs them money for legal people and they won't see any of that back themselves, why would they bother?

I'm only a very small lender in the game but I've decided to only withdraw from now on, 4 x a year (no fee) until it's all back. I used to like choosing businesses I wanted to support but there's no choosing just autobid madness. Not for me.

annelimerick

With regards to Peter's question, what efforts do LF go through to recoup money from defaulters, I'm copying updates from one of my defaulters. It seems to me that by writing regular updates, they're making it looks as if they're still on the case, but they're not really intend on getting us our money back.

Update 22-8- 18
Following conversations with this borrowers solicitor we understand the borrower is currently unemployed with no disposable income as per his financial statement to resolve the arrears on this loan currently . Linked Finance have lodged their interest with the solicitor which has been acknowledged and we plan to re-connect with the borrowers representation in 2 months .

Update 30-7-18
We have reached out to this borrowers solicitor again regarding the current affordability of the guarantor pertaining to this loan agreement . We understand the borrower has yet to provide same to the solicitor . We have asked the solicitor to stress the urgency of same to her client and advised failing receipt of same within 7 days we will be taking action against the guarantor .


15-5-18 We have made contact with this borrower . 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 . All updates after this conversation takes place will be published to lenders.

---

My question is: what happened to the 'within 7 days we will be taking action against the guarantor'?? And if they sell the business, shouldn't they use the proceeds to pay their debts?

Peter File

here is another company which borrowed €60,000 on a one year loan. Its over a month since we have heard anything

20 August 2018, 14:20
Update
Following the initial letter sent to this borrower we have been liaising with the company's financial advisor regarding the missed repayment on this loan agreement . We have been advised the company is facing some internal issues and cannot commit to making the monthly repayments currently . We have requested the most recent accounts and bank statements from this borrower to understand the current affordability and reason for the default . Once received this information will be reviewed with our credit department and an update will be published to lenders on the strategy going forward.

1 August 2018, 10:18
Repayment Missed
We have not received the most recent repayment for this loan. We have been liaising with the borrowers financial advisory regarding the current financial situation of the company and despite our efforts the borrower has failed to co-operate regarding the balance outstanding. Today an initial letter will be sent to the company and guarantor providing 14 days to resolve the balance overdue , failing same Linked Finance are prepared to take further action . An update will be communicated to lenders upon response from the borrower or expiry of this initial letter .

sceach16

sceach16 wrote: »

Two more today.......like the August ones, loans almost finished but now not paying.

In fairness, the 2 "September" non payers arrived late. 3 of the 4 August are still outstanding.

corglass

Can someone provide a high level overview of how Little no LinkedFinance earnings are treated from a tax perspective?
Thanks

Norderburse

Some further updates (but no actual payments) on non-performing loans posted today, glad to see some activity as the last updates on these loans was back in August. The delays in LF pursuing non-payers has put me off investing in further loans.

scheister

corglass wrote: »

Can someone provide a high level overview of how Little no LinkedFinance earnings are treated from a tax perspective?
Thanks

You pay tax annually on the interest portion you get for your loans. Form 11/12 is due to be paid by October 31st each year about 2 weeks later if you pay and file online. It is liable to income tax prsi and USC. LF should be withholding tax based on guidance issued by Revenue but have not seen any move towards this.

If a debt goes bad you get no tax relief for the loss

manafana

scheister wrote: »

You pay tax annually on the interest portion you get for your loans. Form 11/12 is due to be paid by October 31st each year about 2 weeks later if you pay and file online. It is liable to income tax prsi and USC. LF should be withholding tax based on guidance issued by Revenue but have not seen any move towards this.

If a debt goes bad you get no tax relief for the loss

the no tax relief bit is one that gets me, given your paying full income tax on it

scheister

manafana wrote: »

the no tax relief bit is one that gets me, given your paying full income tax on it

The department of Finance did a consultation on P2P finance last year id imagine the above will be looked into in any changes they make.

Wheety

If I withdraw the cash I have sitting in my account now, I will have made an overall profit of just over a Euro with loans still to finish.

I'll wait for it to build up a bit more. But more and more loans are late. 2 still in default.

Rogermillaybig

Some very good movement on the bad debts recently , a judgement today against one loan. lets see if it gets enforced.

sceach16

Rogermillaybig wrote: »

Some very good movement on the bad debts recently , a judgement today against one loan. lets see if it gets enforced.

I have not seen anything to cheer me up yet. A lot of we keep you advised but no cash returned.