NoRegretsCoyote
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A net return of 1.65% with the risk of total capital wipeout!€185 per year on €5,500, so 3.3%, or 1.65% after tax.
With Linked Finance you can re-invest the monthly repayments, so it's most likely that a lot less than €5.5k was put on the line in real terms.A net return of 1.65% with the risk of total capital wipeout!
A bit like the pickaxe makers during the Californian gold rush, I think LinkedFinance are the ones making the real money here.
Agreed, I'm no longer a fan but the adjusted return rate is running at 7.47%Given that the reported loan default rate is currently around 2%, where does the label "basket cases" come from?
the average loan is now € 100,000 - surely the banks can not be disinterested in those?I don't think they are basket cases. A factor is that they are seeking loans that are probably too small for the pillar banks to make economic sense.
I suspect that the banks require for more paperwork, scrutiny and time than Linked Finance
I think the risks are clearly stated and, obviously, some lenders are happy with the returns provided... the lender is the one taking the risk, no one else, and the lender doesn't get enough in return.
I think the risks are clearly stated and, obviously, some lenders are happy with the returns provided
the average loan is now € 100,000 - surely the banks can not be disinterested in those?
I suspect that the banks require for more paperwork, scrutiny and time than Linked Finance
That is changing.The Banks are regulated, and must follow the likes of the SME Code / Consumer Protection Code - that places significant additional obligation on them, that isn't placed on the likes of Linked Finance. Thats one of the reasons why Banks take longer than non-bank lenders, to approve and draw loans. Sadly, there are also various other factors, including a certain amount of unnecessary admin.
Don't forget, Banks are responsible for protecting peoples deposits, which they lend out.... LF are not.
That is changing.
I took out a LF loan back in 2014. Contract was fairly simple and the agreed rate was stated.Does anyone know how Linked Finance works from a borrower's point of view?
I had a look at their website and could not find the interest rate. I emailed them but they did not reply.
Ideally, I would like to see the contract that a borrower signs and how the interest is calculated.
Brendan
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