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Post by oldnick on Aug 12, 2016 18:24:54 GMT
But not to be construed as providing financial advice of course!
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agent69
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Post by agent69 on Aug 13, 2016 7:28:18 GMT
No doubt lots of stars and padlocks will equate to lower rates?
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Post by mrclondon on Aug 13, 2016 9:21:34 GMT
No doubt lots of stars and padlocks will equate to lower rates? Its a novel approach to risk grading, and one that will be fascinating to observe in action. A loan that qualified as a good credit risk and has good security would indeed be expected to be fullfilled at a lower rate but by a mainstream or challenger bank. There woould be no reason for such a borrower to use p2p for the loan.
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Post by tybalt on Aug 13, 2016 11:52:29 GMT
No doubt lots of stars and padlocks will equate to lower rates? Its a novel approach to risk grading, and one that will be fascinating to observe in action. A loan that qualified as a good credit risk and has good security would indeed be expected to be fullfilled at a lower rate but by a mainstream or challenger bank. There woould be no reason for such a borrower to use p2p for the loan.
I think loans that are offered on ThinCats mostly have a problem such as no proven FIT on wind turbine which have still to be built or not trading record for licensed premises. Given ThinCats default record I think we are close to a self fulfilling prophecy. High rates are demanded because of perceived high risk.
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Greenwood2
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Post by Greenwood2 on Aug 13, 2016 12:05:58 GMT
The number of stars and padlocks are for comparative purposes for TC p2p loans, how many would be needed for a bank loan is another matter.
Although some borrowers have said they use TC in preference to a bank because of the comparative speed in getting a loan, and I believe one 'good' repeat borrower said the reduction in rate he could get from using a bank was not that great.
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agent69
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Post by agent69 on Aug 16, 2016 17:31:10 GMT
3 stars + 3 padlocks = 10%
3 stars + 5 padlocks = 14%
How does that work?
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Post by tybalt on Aug 17, 2016 5:59:57 GMT
3 stars + 3 padlocks = 10% 3 stars + 5 padlocks = 14% How does that work? 14% is to complete building works on a luxury Hotel / Wedding Venue which has never traded.
10% is for buying an existing and profitable business, which is already been underwritten.
I know which one I would favour.
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Liz
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Post by Liz on Aug 17, 2016 9:25:41 GMT
3 stars + 3 padlocks = 10% 3 stars + 5 padlocks = 14% How does that work? 14% is to complete building works on a luxury Hotel / Wedding Venue which has never traded.
10% is for buying an existing and profitable business, which is already been underwritten.
I know which one I would favour.
If they need to price the loan at 14%, then it is shouldn't be awarded such high stars and padlocks. How do they both get 3 stars, if like you said, 1 has never traded and the other is profitable?
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Greenwood2
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Post by Greenwood2 on Aug 17, 2016 13:03:06 GMT
The five padlocks has tangible property security, but failed to fill previously so re-listed at increased rate. The 3 padlocks has good trading but not tangible security. I guess both come out about equal in creditworthiness for the three stars. But the whole packages are not just defined by the stars and padlocks. I'm a bit off hotels in general and I like to back good businesses, so I'm also likely to go with the business. But I might just be tempted for a small bit of the 14%.  |
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Liz
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Post by Liz on Aug 17, 2016 21:16:08 GMT
I'm a rate slut - I went for the slightly safer 13% version of the 14% - I'm not sure if I even saw the stars & padlocks stuff. No brainer IMO. The extra 1% is not worth the extra risk, 3-4% would be more like it.
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Post by bracknellboy on Aug 17, 2016 22:06:22 GMT
TC is launching ( link) a two-tiered grading system for all new loans listed on the primary market consisting of: .... Why is it that every company feels obliged to say that they are " delighted to announce..." regardless of what it is they are 'announcing'. Why can't they just 'announce', or even be just a teeny weeny bit less un-delighted than before to inform us that...
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