Peer-to-peer lending sites: MSE guide discussion

Thrugelmir

jamesd wrote: »

You mean like the property developer who wanted to borrow £8 million for a development and offered a security land independently valued at £25 million?

Which Company was this?

Thrugelmir

rwgray wrote: »

It only goes wrong if the whole economy grinds to a halt so fast that no-one can pull any cash out of a fixed-term, 12-month loan before the borrower and his development become worthless. Which is a risk, yes.

Plenty of reasons why it can go wrong. The whole economy being the least of the developers problems.

jamesd

agent69 wrote: »

So at best one on Monday and another in a few weeks time? ... I rest my case

You might want to read the post I linked you to again. All three things mentioned are ongoing sources of new loan supply.

If you're not willing to accept intermittent deal flow then you should consider some of the larger platforms instead, or alternatively consider not using P2P.

jamesd

Thrugelmir wrote: »

Which Company was this?

MoneyThing.

Thrugelmir

jamesd wrote: »

MoneyThing.

No one is going to raise £8 million without disclosing a lot more information. Investments of £5k simply aren't large enough. Angel investors that part with 6 figure sums are a tough bunch to deal with. Take some convincing. The fact that the land doesn't already have full planning permission. Makes it sound as if someone is taking a punt.

jamesd

That one ended up not getting to the stage beyond expressions of interest from possible lenders. For one from a different firm that's likely to complete you might take a look at the pending £2 million loan secured on an office block valued at £2.87 million via P2P platform SavingStream. It'll probably be filled within a few days of going live, perhaps as little as a couple of hours. SavingStream currently has higher deal flow and typically larger loan sizes than MoneyThing.

But what is it about those that interests you? Just not realising that there were loan deals in the millions around in the P2P space and wanting to know more about them?

agent69

jamesd wrote: »

You might want to read the post I linked you to again.

No, I'm fine thanks and understood it clearly the first time. It's full off marketing waffle about what might happen in the future. If I want unrealistic predictions about deal flow I can read the AC thread on the independent forum.

The original question was what's wrong with MT, and poor deal flow is clearly one of the issues. It might get better in the future, it might not.

Thrugelmir

jamesd wrote: »

But what is it about those that interests you? Just not realising that there were loan deals in the millions around in the P2P space and wanting to know more about them?

Just curious. My personal interest is primarily in the lenders themselves (as investments). Not in the actual lending to Companies. Have years of first hand experience of that from the other side of the fence. I was intrigued why a Company requiring funding at this level would choose such a route. Given that "security" was available against the funding. There's plenty of options available for Companies who wish to raise funding in the millions. If the proposal is financially sound.

jamesd

Thanks. Many of the property deals seem to involve development financing, so whatever the reason, the other options seem not to be fitting a fair proportion of the time.

jamesd

agent69 wrote: »

No, I'm fine thanks and understood it clearly the first time. It's full off marketing waffle about what might happen in the future. If I want unrealistic predictions about deal flow I can read the AC thread on the independent forum.

True, though MoneyThing do seem to do fairly well on this, not that anyone is perfect at predicting the future of deals they are working on.

agent69 wrote: »

The original question was what's wrong with MT, and poor deal flow is clearly one of the issues. It might get better in the future, it might not.

Yes, it's definitely the biggest issue for them, as well as SavingStream and Ablrate. In fact, pretty much any higher rate newish platform out there has this issue so it's a case of choosing whether to take that inconvenience for the rate or take a lower rate for more immediate investing.