kt
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Post by kt on Jul 7, 2015 21:04:16 GMT
I have read in another place that Funding Circle purchase parts of loans to ensure they fill. Is that the case? Do they then sell these in the secondary market over time?
Is Funding Circle shifting away from small lenders?
*Random Thought* What new things will Funding Circle bring to us after E rated loans?
KT
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registerme
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Post by registerme on Jul 8, 2015 7:05:24 GMT
Yes, they do. Check a number of threads in this forum, especially "prop em up". They push some loans across the finish line. Presumably they then sell on on the secondary market. How much of their balance sheet is used for this is an interesting question.
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am
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Post by am on Jul 8, 2015 7:30:45 GMT
*Random Thought* What new things will Funding Circle bring to us after E rated loans? KT They announced asset finance loans a while back, but as far as I know only one actually listed. It was a rather unsuccessful listing, but I think this was due to failures on FC's part and problems with the particular loan, rather than due to any lack of appetite for the asset class.
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markr
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Post by markr on Jul 8, 2015 11:32:11 GMT
They announced asset finance loans a while back, but as far as I know only one actually listed. It was a rather unsuccessful listing, but I think this was due to failures on FC's part and problems with the particular loan, rather than due to any lack of appetite for the asset class. I thought there was more than one. Weren't the cranes and broadcast telly equipment asset finance loans?
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am
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Post by am on Jul 8, 2015 11:42:40 GMT
They announced asset finance loans a while back, but as far as I know only one actually listed. It was a rather unsuccessful listing, but I think this was due to failures on FC's part and problems with the particular loan, rather than due to any lack of appetite for the asset class. I thought there was more than one. Weren't the cranes and broadcast telly equipment asset finance loans? I don't know. There have been several loans for the purpose of financing asset purchases which have been entitled asset finance, but haven't belonged to the asset finance asset class (i.e. FC haven't retained title to the assets on our behalf.). Do you know the loan IDs?
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markr
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Post by markr on Jul 8, 2015 12:08:52 GMT
A cranes example is 1757, this and others for the same company are listed as "Specific asset security - asset owned" and there is a valuation for the asset in the financial information.
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am
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Post by am on Jul 8, 2015 17:15:31 GMT
A cranes example is 1757, this and others for the same company are listed as "Specific asset security - asset owned" and there is a valuation for the asset in the financial information. 1757 precedes the announcement of asset finance loans by a long time. I was aware that there had been secured loans, though they have been thin on the ground recently, but if I understand correctly they're different from asset finance. If I understand correctly, a secured loan is like pawning the asset (except that you keep the use of the asset) while asset finance is like hire purchase. No doubt there are accountants around who understand all the ins and outs, but I suspect that from out point of view the differences are unimportant - if the loan goes bad we get whatever value can be extracted from the asset (up to the outstanding value of the loan) in both cases.
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blender
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Post by blender on Jul 8, 2015 18:37:32 GMT
The recent asset finance was a fixed rate, while cranes etc were reverse auction.
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jimbo
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Post by jimbo on Jul 14, 2015 23:50:32 GMT
Is Funding Circle shifting away from small lenders? KT I'm of the opinion that Funding Circle shifted away from small lenders a long time ago...
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