Worried about Funding Circle

System

P2P Lending turning out as well as I thought it would. These people aren't using P2P lending because they're excellent risks, they're using them because the mainstream banks with centuries of experience of risk assessment deemed them to be a bad risk.

Nazzynoodles

Trying to sell loan parts on Funding Circle as a test to see how long it takes...at least they give you an indication of how long it took to sell loan parts sold the previous week).Unfortunately, the timeframe is growing and my loan parts which I advertised in May would take 10 weeks to sell, but I anticipate it will be more.

I also invested in the IPO which has lost 73% of its value to date:(. (Should have invested in Greggs after the launch of their vegan sausage roll!). I don't believe I will recover my money for a long time, if ever, and I hear Funding Circle has been shorted, so any recommendations on what I should do? Sell current shares or pray they will grow in value over the next 10 years?

Roland_Flagg

I had a large chunk of my money in P2P but now it's just a small amount in Zopa and Ratesetter.

I'm in investing for the long term for modest gains, so I've realised that even though the stock market can have bad years, I'm better off and safer putting my money into something like a Vanguard LS40 for similar gains.

AnotherJoe

Nazzynoodles wrote: »

Trying to sell loan parts on Funding Circle as a test to see how long it takes...at least they give you an indication of how long it took to sell loan parts sold the previous week).Unfortunately, the timeframe is growing and my loan parts which I advertised in May would take 10 weeks to sell, but I anticipate it will be more.

I also invested in the IPO which has lost 73% of its value to date:(. (Should have invested in Greggs after the launch of their vegan sausage roll!). I don't believe I will recover my money for a long time, if ever, and I hear Funding Circle has been shorted, so any recommendations on what I should do? Sell current shares or pray they will grow in value over the next 10 years?

I have been in the stock market for about 40 years. I sure that prayer is ineffective as a mechanism for raising share prices. I can also state with confidence that what you previously paid and what the shares were previously worth, has little to no effect on prices in the future.

So, given that, can you think of something else, thats also also safer, that will rise in value more than Funding Circle might, "over the next ten years"? If you can, and I think that should take about ten seconds to think of half a dozen such investments, then why keep FC? Buy one of those instead.

fred246

I was originally going to invest in property and P2P but as lots of people recommend no more than say 10% in either. Property you may not be able to sell when you want and I was always worried that P2P could crash and you get nothing back. So in the end I have just got cash, shares and bonds and I am happy with that decision.

Oliver1191

I have been in the stock market for about 40 years. I sure that prayer is ineffective as a mechanism for raising share prices. I can also state with confidence that what you previously paid and what the shares were previously worth, has little to no effect on prices in the future.

So, given that, can you think of something else, thats also also safer, that will rise in value more than Funding Circle might, "over the next ten years"? If you can, and I think that should take about ten seconds to think of half a dozen such investments, then why keep FC? Buy one of those instead.

Get out of Funding Circle now. Sell all p2p now. Cut your losses if you purchased shares in any p2p lenders.

It's ok to make mistakes in your investing career. It's fine. AS LONG AS YOU LEARN BY YOUR MISTAKES.

I dabbled with FC. it was a mistake. I got emotionally sucked in. You feel so great lendung miney to others. It's lovely to think they have to pay you capital and interest every 30 days. It makes you feel powerful, great, even.

Be mindful of emotions when investing and how p2p companies may take advantage of your weakness.

It's ok not to be able to sell your loans. That's business! Tescos doesn't always sell everything every day. Some stuff takes ages, some stuff makes a loss and some stuff nuver sells. Hell some stuff turns out not be be what they expected and everyone feels conned. Same with lending!

Fortunately, i only dabbled with a few hundred. I kept withdrawing until everything was out...it took 2 years...for just 300!!! And that's ok. That's the business. Overall i made a loss. Some didn't pay. Some paid really late.

But that's ok because i learned from my mistake. I invested elsewhere and made way more than i lost.

I used to get tempted to go back. People talk of nonsense like diversification...as if the word itself justifies making the same silly mistake.

Fortunately, i have learned too much and wont go back there!

dread_uk

Had a bout 6k in FC for about 6 months now, in an ISA.

Just logged in for a quick look and noticed I have £180.50 I can transfer out, I have my balance set to auto invest, never seen it get past about £10-£30 before, I'm slightly concerned that FC isn't getting the business it once was.

Reading back through this thread should I be concerned ?

Or just ride it out

Alexland

They don't seem to be keeping you informed of their issues so with no understanding on what is going wrong I would be withdrawing it at the first opportunity even if it means losing the ISA wrapper. Sticking with a potentially failing P2P platform is very high risk.

aroominyork

Alexland wrote: »

They don't seem to be keeping you informed of their issues so with no understanding on what is going wrong I would be withdrawing it at the first opportunity even if it means losing the ISA wrapper. Sticking with a potentially failing P2P platform is very high risk.

Agreed. I have lost all confidence in FC. Naturally this forum, like many, is were people complain about things not going well; if there are any FC fans out there who think it is a well run and stable company with good products, it would be good to hear from you.

MoneyGeoff

The sell time is up to 79 days so if you are thinking of leaving you might want to start queuing now!