....Most loans are filled quickly (some in seconds) due to auto bids. So it would seem most bidders don't ever see the financials.
.... They were quite dismissive when I questioned it, and this was senior management replying. It's difficult to have confidence after that.
....Their Q3 Loan Book Report claims a 0.76% default rate.
....Ever since they changed from the bidding model, I stopped putting any more in there. With the current model, you would need to have auto-bids set up to get in on many of the loans. There's just no time to do any proper assessment of the numbers or business case before committing.
....I'd agree there are questions to be answered on the rating system also. Right now there is a firm formed 4 years ago as a freight/removals business claiming 30 years in operation as builders, the directors (I'm guessing husband and wife) are both listed as being in the 35-39 age group. They're looking for €100k and the loan has been rated at Grade B / 10.5%. There are other loans from long established businesses in more stable areas of business with much better financials getting a higher risk rating and attracting a 12.5% interest rate.
Ok Mr Earl. Does Linked Finance offer a Buyback Guarantee which appears available on other platforms. If Linked Finance dont they are more risky than platforms that do e.g Mintos
Indeed. In the case of those with guarantee, it's not actually the platform that offers the guarantee, but the originator. I think Montis have already had one originator collapse while still with active loans, and another 3 or 4 collapsed after being removed.Something to think about when considering others' offering guarantees too, needless to say
they continue to rely on very poor security for the loans advanced, and their autobid system is near dangerous for those who don't really understand the risks associated to lending to businesses.
Agreed. I contacted them after the conservative auto-bid settings I had in place resulted in a bid on a company that purported to be in business for decades yet a quick director check showed a stream of company dissolutions and subsequent formations every couple of years with variations on the name. Most loans are filling via auto-bids at the moment, so I've started withdrawing the small money I have there.
Unfortunately, not much CBI can do as the sector is currently completely unregulated here. They did issue a warning back in June 2014 which called out a lot of the concerns you have.. Yet, the Central Bank, is no where to be seen!!!
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