Peer-to-peer lending sites: MSE guide discussion

Albermarle

However I consider a property loan (bridging rather than multi-tranch development loan) far more secure than lending to a limited company. The issue for you was the platform itself, not property loans per se.

I consider SME loans far more likely to default and with a Ltd company, the directors aren't on the hook (a personal guarantee is worthless more often than not).

This seems to be the general consensus that asset backed property loans are better than unsecured or semi secured loans to SME's:
I think for the better property loans this is true but there are a lot of dodgy ones around.
The one advantage of lending to SME's is that in most cases the owners are proud of what they do and are therefore reluctant to make a run for the hills , unlike some of the SPV cowboys in the property sector.

Albermarle

Top two lines should have been in quotes....

takesyourchances

Speaking of property loans the very long winded recovery of the latest Moneything property loan has recovered just 69% to date, very poor loan security but at least it was something back from it. I am not expecting anything else from it to be honest.



A few more of my secondary market loans are hopefully getting closer to selling on MT as well.



I was never with lendy, but recently there has been very little good to say about P2P.


Those of us in Collateral, it looks like we may be prepared for a very long wait going by some recent posts on the P2P forum. I know there is a lot of information that cannot go public on it.



I am still working on running what else I have left down, slowly getting there and some will take a bit more time. Also see there was some recent loan issues at Albrate too, I exited those loans and Albrate earlier this year as part of getting out of P2P, I had no issues with the platform at the time, just changing away from P2P as a whole and thankfully it was easy to get out of compared to MT's secondary market.


Many areas in P2P sure is the wild west of finance.

fun4everyone

takesyourchances wrote: »

Those of us in Collateral, it looks like we may be prepared for a very long wait going by some recent posts on the P2P forum. I know there is a lot of information that cannot go public on it.

I havent been reading that forum recently. In for mid 4 figures myself on collateral, could you sum up what has been posted recently?

I am resigned to a long wait regardless

masonic

fun4everyone wrote: »

I havent been reading that forum recently. In for mid 4 figures myself on collateral, could you sum up what has been posted recently?

I am resigned to a long wait regardless

Let me save takes the trouble: _________

Or putting it another way, there were minutes from the Creditors Committee meeting, but they were all marked 'Top Secret', so we'll have to settle for the assurances of one member that the right steps are being taken.

takesyourchances

fun4everyone wrote: »

I havent been reading that forum recently. In for mid 4 figures myself on collateral, could you sum up what has been posted recently?

I am resigned to a long wait regardless

There has been several posts from someone related to the new committee in the last couple of days, I had not read it in a while.



But if you read between the lines of these, it spells a long wait to me.



Some one asked "When you say it will take some time do you think before the end of 2019 is a realistic time frame?"



The reply was:



"Impossible to say - couldn't possibly comment on that as it depends on numerous factors.

As we've seen from several other (fully-operational) platforms, getting money in from borrowers can be a painstakingly slow process at times and I'm sure BDO are faced with the same challenges that the likes of Lendy, FS and MT all encounter on a regular basis within the P2P industry."

Going by this, does not seem to be anytime soon and it will soon be a year from this farse started. My proof of debt is £4560 what will come back remains to be seen, but certainly not expecting a penny anytime soon.

takesyourchances

masonic wrote: »

Let me save takes the trouble: _________

Or putting it another way, there were minutes from the Creditors Committee meeting, but they were all marked 'Top Secret', so we'll have to settle for the assurances of one member that the right steps are being taken.

We can only hope the right steps are being taken, I am sure the members of the committee have large enough sums invested to be taking on such a complex role. Not much is getting given out, we can only hope it'll all work out.



Lessons learnt for sure with my own investing and I personally don't see P2P as long term in any platform now, many are not even in profit themselves and then issues with MT and rubbish security and things. So take my licks and aim to reduce out which I am close to asides Collateral and some tied up MT defaults that may take a year or more still. I have a fair bit in the Liverpool loan and would be happy to see it sell or repay, sell prefered but I am behind a lot of others.

fun4everyone

Thanks both of you. Oh well, hope the administrators keep the repayments from loans coming in!

I am considering increasing my exposure again to p2p even with all this nonsense. Probably with a new platform or two. Will have a look around.

takesyourchances

fun4everyone wrote: »

Thanks both of you. Oh well, hope the administrators keep the repayments from loans coming in!

I am considering increasing my exposure again to p2p even with all this nonsense. Probably with a new platform or two. Will have a look around.

No worries, it'll be a long road I think and think best not to expect to see anything back anytime soon and hopefully in the background the repayments and any defaults are being dealt with.



I invested for a while after it all with a few other platforms, but running down unbolted as well after the rate cuts. Personally I can't see me going into P2P again but am still in it as such until things are run down and Collateral comes to a conclusion.



I am just putting my efforts into my S&S ISA investing and growing my IT's and dividends, my own personal view is I feel this is more sustainable long term and stock drops don't don't bother me as buy more. It's just a personal preference now after the hands on experiences over the last few years. .

masonic

takesyourchances wrote: »

But if you read between the lines of these, it spells a long wait to me.

The comprehensive non-disclosure agreement signed by the members of the Creditors Committee seems to be an unusual step in an Administration and we cannot know exactly why the Joint Administrators felt it necessary. Perhaps because any and all information relaid through members of the committee will be tainted with said members own interpretations and biases. There are certainly possible scenarios where there would be a long wait before an initial distribution, but 'impossible to say' means just that.

Incidentally I have some bad debt from a loan taken out in December 2015, for which we are still none the wiser as to possible outcomes or what has been going on in the background. That's held on a platform that's very much alive.

takesyourchances wrote: »

We can only hope the right steps are being taken, I am sure the members of the committee have large enough sums invested to be taking on such a complex role. Not much is getting given out, we can only hope it'll all work out.

I'm more concerned about their knowledge and experience than how much skin they have in the game. Which explains why I voted how I voted.

fun4everyone wrote: »

Thanks both of you. Oh well, hope the administrators keep the repayments from loans coming in!

I am considering increasing my exposure again to p2p even with all this nonsense. Probably with a new platform or two. Will have a look around.

TBH, I've been reducing from most platforms, although there are one or two gems out there, like a recent FS loan renewal in which a small acquisition loan ranked head of an entire development facility for an (allegedly) almost completed development.

I've started putting some money in RS again now that I can get 6.7-6.8% and I've found the occasional loan that's of interest over at Kuflink.