Funding Circle slow selling

Thrugelmir

aroominyork wrote: »

STOP PRESS... Funding Circle now selling fast. Well, their shares are. From a launch at £4.40 less than a year ago you can now pick them up for just over a quid. Maybe that says it all about the stability and prospects of the company.

Or the company was overpriced when it came to market.

aroominyork

Thrugelmir wrote: »

Or the company was overpriced when it came to market.

Four times overpriced? Whoever managed the placement for them is due a huge bonus!

aroominyork

I have some loans in the queue to sell and, as I think has been discussed before on the forum, while queuing you cannot see the amount of other loans that could be sold. I think the only way to assess that is by going through a list of your loan parts. Am I right that to be able to sell a loan part it must be Live and have have a current Risk Band, ie it cannot be sold if the Risk Band has been removed, or the loan status shows Late or Bad Debt?

Thrugelmir

aroominyork wrote: »

Four times overpriced? Whoever managed the placement for them is due a huge bonus!

UBER came to market at $45. Currently around $33. Any investment made carries risk.

Alexland

aroominyork wrote: »

Four times overpriced?

My view is the company is worth even less than the current valuation.

To persuade me to invest they would have to give away the shares for free.

aroominyork

aroominyork wrote: »

I have some loans in the queue to sell and, as I think has been discussed before on the forum, while queuing you cannot see the amount of other loans that could be sold. I think the only way to assess that is by going through a list of your loan parts. Am I right that to be able to sell a loan part it must be Live and have have a current Risk Band, ie it cannot be sold if the Risk Band has been removed, or the loan status shows Late or Bad Debt?

I phoned FC re this. My understanding is correct about being able to sell loans shown as Live with a Risk Band. However since I placed my current sell order those loans have all gone bad! Once I reach the head of the queue they will either sell the loans if they have come good again (which I'm sure will happen...) or they will write and tell me 'Sorry'.

socrates79

Shame on Martin Lewis for endorsing FundingCircle, and allowing a public company with so many issues to use his endorsement on their website:

"Funding Circle has been the most lucrative [peer-to-peer platform]. Since I joined in August 2012, drip feeding cash in, my returns, after all fees and bad debt adjustment, have been 6.2pc."
Martin Lewis, writing in The Daily Telegraph, 2013

kinger101

socrates79 wrote: »

Shame on Martin Lewis for endorsing FundingCircle, and allowing a public company with so many issues to use his endorsement on their website:

"Funding Circle has been the most lucrative [peer-to-peer platform]. Since I joined in August 2012, drip feeding cash in, my returns, after all fees and bad debt adjustment, have been 6.2pc."
Martin Lewis, writing in The Daily Telegraph, 2013

He's simply stating his experience between August 2012 and Oct 2013. He did also put ALL of bold text below in the article.

Many diligent people have decided P2P lending isn't for them. To me it seems to combine the risks of stocks with the low rewards of savings. So it just doesn't appeal compared to fund vested in diverse equities.


Peer-to-peer: Five things to consider

1 Your cash might not be lent straight away, and no interest is paid while it is waiting to be lent out. A few thousand pounds should be lent quickly, but if you’re lucky enough to have a large amount, say £50,000, to put in, it can take a number of weeks. There are ways to speed up the lending, but it usually involves getting a lower rate.

2 There’s no savings safety guarantee. With normal UK savings, the Government-backed Financial Services Compensation Scheme promises it will pay the first £85,000 lost per person per financial institution. Peer-to-peer lenders don’t have this.

3 Peer-to-peer isn’t yet regulated. There’s a consultation under way, as the Financial Conduct Authority will start regulating from April 2014; something the major lenders support as they want the legitimacy. This regulation isn’t likely to include deposit protection; instead it’s likely to be similar to the rules of the Peer-to-Peer Finance Association, which the big three, and thincats.com, are members of. They must adhere to a series of safety standards, including a solid capital base and ring-fenced unlent cash, so if the site went bust, your money should remain untouched.

4 If they did go bust, who would collect the loans? Technically the loans are between you and the recipient, so if the website folded, you would still be owed the cash by them. All trade body members are required to have insurance to pay for third-party collection – though if the company goes bust, things aren’t likely to run anywhere near as smoothly.

5 The unknown unknowns. There have been no big horror stories or glaring problems so far. Yet this is a new and innovative industry, so factor in the unknown unknowns, potentially risking cash in an unpredictable way. It’s sensible to spread any money you’re putting into these providers, so you’re less exposed to shocks. These three aren’t the only peer-to-peer sites, either; many more are springing up.

mikb

socrates79 wrote: »

Shame on Martin Lewis for endorsing FundingCircle, and allowing a public company with so many issues to use his endorsement on their website:

No -- more shame on you for dragging up a quote from 2013 and applying it to the current shameful situation at FC, and fundamentally, shame on Funding Circle for shafting their lenders over recent years.

As most people probably know, Martin Lewis does not endorse anything, and has said so numerous times.

You would find many people willing to say positive things about FC up to around 2017, myself included.

Then they very much changed the game, levelled, nay, spread manure over the playing field, and took the ball away.

The Funding Circle as it is now is working out great for someone, somewhere. It's not the investors/lenders through the platform, and it's not the shareholders that have seen their investment plummet.

Who's winning? It could be the directors of FC, and the businesses applying for loans they have no hope of repaying, but I couldn't endorse that point of view.

hahnchen

Article in The Times after loan sales hit the 120 day mark - https://www.thetimes.co.uk/article/funding-circle-investors-face-long-wait-for-money-m587cp6j7

Funding Circle say there are not enforcing the 120 rule, but are considering it.

From the returns information at https://www.fundingcircle.com/uk/statistics/ I would much rather buy some older debt than the new stuff I keep automatically lending to.