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  • FIRST POST
    • Tony12345
    • By Tony12345 27th Sep 17, 12:14 AM
    • 14Posts
    • 1Thanks
    Tony12345
    Thought on funding circle
    • #1
    • 27th Sep 17, 12:14 AM
    Thought on funding circle 27th Sep 17 at 12:14 AM
    Hi

    I have seen many loans default and there A+,A and B rated anyone have any experience is it worth my time and money ?
    Last edited by Tony12345; 27-09-2017 at 3:02 AM.
Page 1
    • B.Hobbit
    • By B.Hobbit 2nd Oct 17, 1:26 PM
    • 1 Posts
    • 0 Thanks
    B.Hobbit
    • #2
    • 2nd Oct 17, 1:26 PM
    • #2
    • 2nd Oct 17, 1:26 PM
    If I can have advice for you STAY AWAY FROM NEW FUNDING CIRCLE. It was a great platform, with very liquid secondary market and the best info about the borrowers I saw among P2P. They decided to completely destroy what they have and present you a blackbox where you have no control over your money whatsoever. Someone might prefer it that way. Fair enough, but what is worst, they removed the secondary market and most importantly the option to sell your holdings with a discount. Now you can try to sell, but there must be a buyer for a face value. First of all it means that FC is going to screw their customers by selling them loans on sub-par rates from secondary if someone will decide to sell. But much more importantly when the crisis hits, there will be NO WAY OUT. When many people decide (or would be forced to) sell their holdings, there will be NO BUYERS. You cannot offer your holdings at discount and noone would want to buy it at face value. There will be far more pepole trying to withdraw than to invest at that moment and with current setup they would just get absolutely screwed. When you will need your money the most, you won't be able to get them. Not even with an acceptable loss. They will be locked till the platform crash due to crisis and you will lose them all.
    • Alexland
    • By Alexland 2nd Oct 17, 7:12 PM
    • 749 Posts
    • 466 Thanks
    Alexland
    • #3
    • 2nd Oct 17, 7:12 PM
    • #3
    • 2nd Oct 17, 7:12 PM
    That's quite a pessimistic prediction. I prefer to take a more balanced view but still wouldn't invest in medium to high risk P2P loans for concern that many may go into default concurrently in the right economic circumstances. For low risk loans the return is comparable with banks (so what's the point) and s&s investments would do better in the long term.
    Last edited by Alexland; 02-10-2017 at 7:14 PM.
    • Flobberchops
    • By Flobberchops 2nd Oct 17, 7:40 PM
    • 595 Posts
    • 430 Thanks
    Flobberchops
    • #4
    • 2nd Oct 17, 7:40 PM
    • #4
    • 2nd Oct 17, 7:40 PM
    For low risk loans the return is comparable with banks (so what's the point) and s&s investments would do better in the long term.
    Originally posted by Alexland
    My thoughts exactly. When it comes to P2P, go big or go home!
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • agent69
    • By agent69 2nd Oct 17, 10:16 PM
    • 187 Posts
    • 91 Thanks
    agent69
    • #5
    • 2nd Oct 17, 10:16 PM
    • #5
    • 2nd Oct 17, 10:16 PM
    a blackbox where you have no control over your money ..... removed the the option to sell your holdings with a discount. .....when the crisis hits, there will be NO WAY OUT.
    Originally posted by B.Hobbit
    Lots of platforms have black box accounts and lots don't allow discounting on the SM (some don't even have an SM).

    And if the sticky brown stuff hits the fan, most P2P investments will be headed south.
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