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Post by Ace on Dec 29, 2023 9:28:28 GMT
A similar P2P platform, AblRate, which also lent to small and medium size businesses, has just gone into administration leaving investors millions of pounds out of pocket. That is following numerous other P2P platform failures. How financially stable is Qardus? What are the risks of this platform also going south like so many others? The two are not really alike, Ablrate were supposedly asset backed loans. That those assets were misrepresented was the cause (in most part) for its problems. Qardus is more like Funding Circle in model, so I would expect it to perform in a similar way. There are several issues I have with the platform but that it is making a lot of effort to recover one pf the defaulted loans and claiming to be going far beyond its obligation in doing so, is the reason I have stopped investing with them, I would expect that amount of effort to be standard and not a 'treat'. I completely agree with this. I've done very well out of Qardus, but every time I read that statement it makes my blood boil. A platform that doesn't do everything in its power to recover funds from a delinquent borrower, especially one that is taking the p*ss, won't be a platform for very long, regardless of its legal obligation to do so.
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Post by overthehill on Dec 29, 2023 11:29:54 GMT
A similar P2P platform, AblRate, which also lent to small and medium size businesses, has just gone into administration leaving investors millions of pounds out of pocket. That is following numerous other P2P platform failures. How financially stable is Qardus? What are the risks of this platform also going south like so many others? Who knows. A couple of loans late/not paying. Newish platforms are always a bit concerning, I wouldn't put my shirt on it. It was paying high rates, but the latest loan seems to have changed payment arrangements which make rates lower so less attractive than it was. Loan flow seems to have slowed down as well. You might hope being Sharia compliant borrowers would be more 'obliged' to pay back loans...
I might be wrong and I haven't looked at the recent loans but I don't think qardus rates are lower than before. If anything the rates will look better because now they show the actual real return rate.
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Greenwood2
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Post by Greenwood2 on Dec 29, 2023 11:35:56 GMT
Who knows. A couple of loans late/not paying. Newish platforms are always a bit concerning, I wouldn't put my shirt on it. It was paying high rates, but the latest loan seems to have changed payment arrangements which make rates lower so less attractive than it was. Loan flow seems to have slowed down as well. You might hope being Sharia compliant borrowers would be more 'obliged' to pay back loans...
I might be wrong and I haven't looked at the recent loans but I don't think qardus rates are lower than before. If anything the rates will look better because now they show the actual real return rate.
Before they paid interest on the whole loan amount each month even though the loan amount was reducing, the latest one is amortising properly. The advertised rate used to be much lower than the actual overall return, now it will be correct (presumably).
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Post by birdie on Jan 2, 2024 10:13:03 GMT
Another new investment opportunity has just gone live.
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jonno
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nil satis nisi optimum
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Post by jonno on Jan 2, 2024 10:20:14 GMT
Another new investment opportunity has just gone live. I can't see it; any clues?
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dave4
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Post by dave4 on Jan 2, 2024 10:21:59 GMT
Adult learning. Up north 12.96%.36months.max target £150k, acceptable amount £125k.
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jonno
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Post by jonno on Jan 2, 2024 10:39:24 GMT
Adult learning. Up north 12.96%.36months.max target £150k, acceptable amount £125k. Thanks for that. Are you on their "early heads up list" or whatever it's called, because I still can't see it and haven't had an email about it?
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dave4
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Post by dave4 on Jan 2, 2024 10:47:25 GMT
Yep a chosen 1.Its a bought position
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littleoldlady
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Post by littleoldlady on Jan 2, 2024 15:04:33 GMT
Quote:
The company has stable revenues and gross profit margins at c.£573k and c.90% respectively. The company is funded through the West Yorkshire Combined Authority adult education budget.
End
It's hard to see why they would need an expensive loan.
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jonno
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Post by jonno on Jan 2, 2024 15:19:29 GMT
Quote: The company has stable revenues and gross profit margins at c.£573k and c.90% respectively. The company is funded through the West Yorkshire Combined Authority adult education budget. End It's hard to see why they would need an expensive loan. For me, it's just hard to see
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littleoldlady
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Post by littleoldlady on Jan 2, 2024 15:22:59 GMT
Quote: The company has stable revenues and gross profit margins at c.£573k and c.90% respectively. The company is funded through the West Yorkshire Combined Authority adult education budget. End It's hard to see why they would need an expensive loan. For me, it's just hard to see I guess you will see the rest tomorow but this is the important bit. It makes the loan look safer, but why would they need it?
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jonno
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Post by jonno on Jan 2, 2024 15:30:19 GMT
For me, it's just hard to see I guess you will see the rest tomorow but this is the important bit. It makes the loan look safer, but why would they need it? Does it spell out exactly what they plan to use the loan for?
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littleoldlady
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Post by littleoldlady on Jan 2, 2024 15:31:35 GMT
I guess you will see the rest tomorow but this is the important bit. It makes the loan look safer, but why would they need it? Does it spell out exactly what they plan to use the loan for? "£150,000 that will be used for growth capital"
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jonno
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Post by jonno on Jan 2, 2024 15:40:51 GMT
Does it spell out exactly what they plan to use the loan for? "£150,000 that will be used for growth capital" Mm......Do you think the "90% gross margin" sounds a bit "iffy" or could be a typo. Otherwise that's some business model which, as you've alluded to, could internally fund growth much more economically than an expensive loan.
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Post by overthehill on Jan 2, 2024 15:57:51 GMT
"£150,000 that will be used for growth capital" Mm......Do you think the "90% gross margin" sounds a bit "iffy" or could be a typo. Otherwise that's some business model which, as you've alluded to, could internally fund growth much more economically than an expensive loan.
Isn't it just the nature of the business and their accountancy practices. It won't include debt interest, tax , operating expenses. I'd be more interested in net profit margin.
Like any other business growth loan, they must think that profits can be increased by more than the interest charge over the length of the loan and beyond.
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