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Post by kcrane on May 2, 2019 15:57:54 GMT
I first invested in 2012 and well remember the hours picking out loans and trying to get the best rate. I have exited in 2019 (as far as I can).
I had £20k to £30k invested over the early years, a windfall allowed me to boost that over £100k in 2017.
Triggered by the 18/19 Funding Circle Tax Return I have made as full an exit as is possible during February to April 2019. My 18/19 FC Tax Return shows £9k earned in interest and £9k lost to bad debt.
I now have a legacy balance of £5k, of which £4k is "late". The remaining £1k is up for sale, but I expect it will be mid-June before I see a result as the selling time has got longer and longer.
I asked FC to send me a full list of my transactions (150,000+ rows of Excel) from which I can see that over the 8 years the difference between what I deposited and what I took out is a gain of circa £10k.
I did a quick calculation just based on annual snapshots of my invested balance.
If I had put the cash into a low risk investment at say, 2% compound per year, then I would have made £7k.
On the same basis, if I had looked for a 5% return, then I should have expected £18k.
Assuming I can extract half of my remaining balance over the coming years to add to my already crystallised £10k gain, it equates to roughly a 3.25% overall return.
My FC summary says I have made a 4.8% annual return. I think it overstates the situation because my remaining £4k balance is flagged as late and not yet as bad. If I can be bothered I may re-run my numbers in say, 12 months, once the late debts are resolved one way or another.
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mikeh
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Post by mikeh on May 2, 2019 16:39:03 GMT
Don't forget your net bad debt. You should get a few k in recoveries from that.
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Greenwood2
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Post by Greenwood2 on May 2, 2019 17:40:17 GMT
My FC summary says 80% annual return. I was in at the beginning, stopped lending for a long time started again and then stopped again when bad debts were increasing. No idea how they come to that figure.
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alanh
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Post by alanh on May 2, 2019 17:47:00 GMT
Similar experience. Started in 2014 and was doing OK. This time last year was fully invested but beginning to see a massive spike in loans going bad. Sold 80% of everything last June and then gave up completely in September and got out completely as much as possible. Tax statement for the year shows a small loss. Overall now I am left with £73k in bad debt of which £17.7k has been recovered (24%). I keep a weekly log and the recoveries seem to keep trickling in at £100-£200 per week so it could take a while! Overall it was quite nice when it worked, but the last year has been an absolute shocker.
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ashtondav
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Post by ashtondav on May 2, 2019 19:19:11 GMT
18/19 tax statement shows a return of c.5%. Only started with FCwhen the black box came in. I keep reinvesting and will assess matters in a year or so...
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Post by kcrane on May 2, 2019 19:44:23 GMT
Don't forget your net bad debt. You should get a few k in recoveries from that. How does that work, or at least, how is it visible? My summary only references live or late loans. I presume after they are cleared or go bad my summary will say zero, but in fact I will still have a substantial loan book of only bad debt. A quick look suggests it is circa £17.5k. Thanks for the tip, I had forgotten some of it might be recovered.
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Post by kcrane on May 2, 2019 19:52:41 GMT
Similar experience. Started in 2014 and was doing OK. This time last year was fully invested but beginning to see a massive spike in loans going bad. Sold 80% of everything last June and then gave up completely in September and got out completely as much as possible. Tax statement for the year shows a small loss. Overall now I am left with £73k in bad debt of which £17.7k has been recovered (24%). I keep a weekly log and the recoveries seem to keep trickling in at £100-£200 per week so it could take a while! Overall it was quite nice when it worked, but the last year has been an absolute shocker. Gosh, you must have had some total invested to have £73k bad debt.
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alanh
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Post by alanh on May 2, 2019 19:57:42 GMT
The bad debt is visible on your summary page under "defaults" with recoveries below it. Your "portfolio total" number is all the stuff you can't sell so will (probably) go into the default number over time. In the end you will end up with a "portfolio total" of apparently nothing, but will still ber receiving bits and pieces of recoveries from time to time.
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alanh
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Post by alanh on May 2, 2019 20:03:47 GMT
Out of interest what sort of percentage recoveries are people seeing? Specifically I mean the "recoveries" divided by the "defaults" number on the summary page. I currently have 24% and its creeping up. I think if it ever gets to 50% I will be ecstatic.
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Post by kcrane on May 2, 2019 20:54:56 GMT
Out of interest what sort of percentage recoveries are people seeing? Specifically I mean the "recoveries" divided by the "defaults" number on the summary page. I currently have 24% and its creeping up. I think if it ever gets to 50% I will be ecstatic. Mine is 20%
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mikeh
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Post by mikeh on May 2, 2019 21:10:42 GMT
Mine is currently 20% too but I remember someone saying here that theirs was around 40% so that's something to hope for!
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KoR_Wraith
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Post by KoR_Wraith on May 2, 2019 21:18:53 GMT
25% recovery of bad debts, no active loans left, I log in every month to withdraw small bad debt repayments.
I had ~£85k in there at the peak, sold up as much as I could around late 2015. Initially invested in late 2013.
Annualised return is reported at 7%
I was unaware of the loan flipping strategy possible in those times so unfortunately missed that added benefit.
All in all it, looks like a better outcome than I'm likely to get from my time with Lendy.
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Post by Ace on May 2, 2019 21:18:54 GMT
I'm dreaming of 40% recovery. I realise that my accounts are too young to have meaningful recoveries, but if you want a laugh...
My classic (invested in Feb 18) 0.02% recoveries. My ISA (invested in Feb 18) 0.003% recoveries. Relative's ISA (invested in Apr 18) 0.007% recoveries.
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Post by kcrane on May 2, 2019 21:27:11 GMT
I'm dreaming of 40% recovery. I realise that my accounts are too young to have meaningful recoveries, but if you want a laugh... My classic (invested in Feb 18) 0.02% recoveries. My ISA (invested in Feb 18) 0.003% recoveries. Relative's ISA (invested in Apr 18) 0.007% recoveries. Argh
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rogerthat
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Post by rogerthat on May 2, 2019 23:37:49 GMT
Classic Account atm 41.26% recoveries which MAY increase to around 50% maximum if im extremely lucky and / or live long enough
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