LinkedFinance - new website

FinanceDublin

Last loan book report on their website is Q2 2019? A bit farcical.

jams100

My LF portfolio to date

Loans = 106
On Time = 69
Late Repaying = 2
Repayment Break = 6
Finished = 20
Early Settled = 9

There communication on some loans is very inadequate. One loan in particular was due a monthly repayment on the 20/6/20 but still hasn't been paid. LF said they hope to work something out with the borrower on the 4th July. 8 weeks later still no update.
I agree with peoples point about the autobids, that should be removed to improve peoples ability to actually look and see what companies you want to invest in

at9qu5vp0wcix7

I've had loans in arrears/default go 9 months without an update...

whampiri

At this stage I'm pulling all my money out because of lack of communication on late repayments. If I break even I'll be happy at this stage.

Cute Hoor

whampiri wrote: »

At this stage I'm pulling all my money out because of lack of communication on late repayments. If I break even I'll be happy at this stage.

I've made over 25% (pre-tax) but haven't lent in ages and won't be lending any more, their debt management and communication is appalling imo. I expect to get very little more from my 50ish remaining loans. It's a pity, as I think it had scope.

FinanceDublin

Cute Hoor wrote: »

I've made over 25% (pre-tax) but haven't lent in ages and won't be lending any more, their debt management and communication is appalling imo. I expect to get very little more from my 50ish remaining loans. It's a pity, as I think it had scope.

It has been mystifying how they’ve let it fall apart completely. They must at this stage just be entirely funded by institutional investors and don’t care about the individual aspect. I have no idea for sure but it’s the only thing that makes even a modicum of sense Re how little care is being displayed for individual investors.

Jim2007

FinanceDublin wrote: »

It has been mystifying how they’ve let it fall apart completely. They must at this stage just be entirely funded by institutional investors and don’t care about the individual aspect. I have no idea for sure but it’s the only thing that makes even a modicum of sense Re how little care is being displayed for individual investors.

You’re not an investor, you’re the fall guy. The lender gets your money, the platform gets their commission and when it goes pear shaped you get to take the fall.

Institutional lenders have plenty of opportunities to do subprime lending on better terms that this P2P nonsense. They also have a need to be able to securitize it, which would be a non starter if the were to do as you suggest.

FinanceDublin

Jim2007 wrote: »

You’re not an investor, you’re the fall guy. The lender gets your money, the platform gets their commission and when it goes pear shaped you get to take the fall.

Institutional lenders have plenty of opportunities to do subprime lending on better terms that this P2P nonsense. They also have a need to be able to securitize it, which would be a non starter if the were to do as you suggest.

Some financing outside of individuals. Unsurprising. https://fora.ie/linked-finance-funding-4083091-Jun2018/

P2P financing could work, can work and has worked. But not the way LF are doing it now. This is doomed: better finance elsewhere for those who need loans, better terms, security and yields elsewhere for individuals.

Also another failure on the horizon alas - https://www.independent.ie/business/irish/hundreds-of-peer-to-peer-lenders-on-the-hook-if-viking-splash-goes-down-39750467.html

Wheety

Logged on for the first time in nearly a year and find I have €25 in my account. Only logged in because they sent an email to say they'll start charging a fee on your cash that's not invested.

From 1st January 2021, any investor who:

a) has not invested in any loans in the past 3 months, or
b) has an available cash balance in excess of €5,000 on the Linked Finance platform (regardless of bidding activity levels),

will be charged a monthly fee, equivalent to 1.25% per annum, of your available cash balance on the Linked Finance platform. Eligibility for the fee will be assessed on the 1st of each month, after which the fee will be calculated daily and then deducted from your account on the last calendar day of each month.

Of course, you can't withdraw just €25. Has to be minimum of €50. So I'll do my old trick of topping up by €50 and then withdrawing €75. Pain in the a*se.

They also say this

To avoid this charge, or significantly reduce the charge deducted, you should:

Reduce the amount of cash deposits you have on the platform by making a withdrawal. You may make withdrawals free of charge until 31 December 2020. After that date, you can make 1 free withdrawal over €250 per month.
Actively monitor the amount of available cash you have on the platform on a regular basis to ensure you don't keep more money on the platform than you need to.
Review your autobid strategy to make sure that you don't miss out in opportunities to bid on new loans on the platform.

Will have to check this but are they going to charge for withdrawing less than €250?

Holy sh1t. Just read they will charge €5 per withdrawal under €250. This is news to me. Has this been notified clearly to everyone?

garrettod

Wheety wrote: »

....

Holy sh1t. Just read they will charge €5 per withdrawal under €250. This is news to me.

Has this been notified clearly to everyone?

Eh no,

There's an email out today, but I think you need to go digging to find clarity on the fees...

While I understand them seeking to cover the costs of negative interest rates (and I don't have a problem with that), those charges for withdrawing your own money, in amounts below €250, are extortionate.

When I logged into my account, I was greeted with a hell of a lot of text, too much to read properly in one sitting, in front of a screen.

... We'll need to see exactly what else they are trying to change...

I really don't like people trying to push through changes to terms, in this manner.

Wheety

The only place I've seen it is in the FAQs. I was just checking something about withdrawals.

I guess if I ever see the €99 owed to me I'll be topping up by €151 and then immediately withdrawing €250. Probably won't see more than a fiver from them now though.

Such an amateur company.

at9qu5vp0wcix7

This is the first I've heard about it! I'm surprised this thread is still standing, one look and anybody with sense would run a mile

ganmo

Wheety wrote: »

Logged on for the first time in nearly a year and find I have €25 in my account. Only logged in because they sent an email to say they'll start charging a fee on your cash that's not invested.



Of course, you can't withdraw just €25. Has to be minimum of €50. So I'll do my old trick of topping up by €50 and then withdrawing €75. Pain in the a*se.

They also say this



Will have to check this but are they going to charge for withdrawing less than €250?

Holy sh1t. Just read they will charge €5 per withdrawal under €250. This is news to me. Has this been notified clearly to everyone?

tried to find the info on their site and found this which might be useful to some

2.6. The minimum amount you can deposit or withdraw (other than to withdraw all funds from your Linked Finance Account) is €50.

Cute Hoor

If Linked Finance had honoured their end of things, and did proper debt management, all of my loans would now be finished. So now, thanks to their own incompetence, they are going to start charging me interest on any dribble that comes in over the next year or two (or 10), and then pretty much won't let me withdraw my money, you really couldn't make it up.

cronos

Cute Hoor wrote: »

If Linked Finance had honoured their end of things, and did proper debt management, all of my loans would now be finished. So now, thanks to their own incompetence, they are going to start charging me interest on any dribble that comes in over the next year or two (or 10), and then pretty much won't let me withdraw my money, you really couldn't make it up.

They would be lucky to survive 10 years.

Jim2007

Cute Hoor wrote: »

If Linked Finance had honoured their end of things, and did proper debt management, all of my loans would now be finished. So now, thanks to their own incompetence, they are going to start charging me interest on any dribble that comes in over the next year or two (or 10), and then pretty much won't let me withdraw my money, you really couldn't make it up.

You are dealing with subprime borrowers, that is why the rate is high... Every time you play this game you take on the risk, not the borrower and not the lending agent.

You are lending to the people the professionals won't lend to... learn the lesson.

Cute Hoor

Jim2007 wrote: »

You are dealing with subprime borrowers, that is why the rate is high... Every time you play this game you take on the risk, not the borrower and not the lending agent.

You are lending to the people the professionals won't lend to... learn the lesson.

Ah yea I know that Jim, and I and I presume most others were aware of the risk when they signed up with Linked Finance. However it did have potential, a significant (over 90%) % of the businesses who borrowed have repaid their loans in full (my experience) and of the other 10% most have repaid most of their borrowings. I have only come across 3 I think that I would consider fraudulent, ones that LF shouldn't have touched with a bargepole from the off. My real issue with them though is their brutal (imo) debt management, it is so bad (imo) that it probably encourages would-be good payers to adopt a laissez faire attitude to repayments. There is no excuse for poor debt management.

I would slightly disagree with your 'You are lending to the people the professionals won't lend to' statement. True in some cases obviously, but many businesses who would have no problem borrowing from the professionals borrowed instead from LF, probably for a variety of reasons.

Darc19

Cute Hoor wrote: »

If Linked Finance had honoured their end of things, and did proper debt management, all of my loans would now be finished. So now, thanks to their own incompetence, they are going to start charging me interest on any dribble that comes in over the next year or two (or 10), and then pretty much won't let me withdraw my money, you really couldn't make it up.

Your bank will most likely be charging you interest on any credit balance in the next year.

Already banks are charging interest on deposits for large and medium businesses. So lf are probably being charged and are simply passing it on.


I don't agree with the "loans for business that banks won't touch" - banks are circa 6%-7% interest. LF on A rated loans are similar without the hassle.

But would be good to see the previous system of bidding back

garrettod

Jim2007 wrote: »

... You are lending to the people the professionals won't lend to... learn the lesson.

For some borrowers, that's factually incorrect.

Do some research on this one...

Jim2007

garrettod wrote: »

For some borrowers, that's factually incorrect.

Do some research on this one...

In very, very few instances. And at different stages, I have been involved in insolvency practice and the Securitization of subprime loans. Believe what you want it's your money.

garrettod

Jim2007 wrote: »

In very, very few instances. And at different stages, I have been involved in insolvency practice and the Securitization of subprime loans. Believe what you want it's your money.

You've referenced your historic experience in insolvency more than once on the site, and I appreciate the experience gained from your previous work, but that doesn't mean that everything is always negative, doom and gloom.

I can tell you for a fact, that some of the Borrowers who borrow on LF, had Bank options available to them.

And btw, I'm not a great fan of LF and you'll see that from my previous posts - so there's no agenda here, I just don't think it's appropriate for you to be saying something that isn't entirely accurate.

frankeee

Reminder that anyone with a balance of over €50 in available cash will be charged interest from tomorrow. I had been keeping an eye on it for the last week and hadn't recieved any payments for 8 days. Lo and behold there was a slew of payments in the last hour - could of course be coincidence :rolleyes:. From tomorrow there will be one free withdrawal per month of €250 or more (€5fee for <€250) so I will leave €49 in my account to hopefully reach €250 by the end of January.

jams100

frankeee wrote: »

Reminder that anyone with a balance of over €50 in available cash will be charged interest from tomorrow. I had been keeping an eye on it for the last week and hadn't recieved any payments for 8 days. Lo and behold there was a slew of payments in the last hour - could of course be coincidence :rolleyes:. From tomorrow there will be one free withdrawal per month of €250 or more (€5fee for <€250) so I will leave €49 in my account to hopefully reach €250 by the end of January.

Are you sure about that? Where are you getting this €50 from?

This is what it said in the email they sent on the 27th November:

From 1st January 2021, any investor who:

a) has not invested in any loans in the past 3 months, or
b) has an available cash balance in excess of €5,000 on the Linked Finance platform (regardless of bidding activity levels),

will be charged a monthly fee, equivalent to 1.25% per annum, of your available cash balance on the Linked Finance platform. Eligibility for the fee will be assessed on the 1st of each month, after which the fee will be calculated daily and then deducted from your account on the last calendar day of each month.

frankeee

jams100 wrote: »

Are you sure about that? Where are you getting this €50 from?

This is what it said in the email they sent on the 27th November:

From 1st January 2021, any investor who:

a) has not invested in any loans in the past 3 months, or
b) has an available cash balance in excess of €5,000 on the Linked Finance platform (regardless of bidding activity levels),

will be charged a monthly fee, equivalent to 1.25% per annum, of your available cash balance on the Linked Finance platform. Eligibility for the fee will be assessed on the 1st of each month, after which the fee will be calculated daily and then deducted from your account on the last calendar day of each month.

Yes - this is directly from their website (FAQ section):

"2. Who does the Balance Fee apply to?
All lenders with over €50 available cash on the platform on the 1st day of each month will be eligible for this charge. If you have an available balance of less than €50, this charge will not be applied.

If you have successfully bid on a loan within the previous 3 months, the charge will not be applied.

If you have more than €5000 available cash on the platform, you will be eligible for the charge regardless of your bidding activity.

As of January 1st 2021, the Balance Fee charge will be the equivalent of 1.25% p.a. of your available cash balance. It is calculated daily from the 1st day of the month and it is deducted from your account on the last calendar day of the month.

The charge does not apply to any amounts you have invested in loans."

jams100

frankeee wrote: »

Yes - this is directly from their website (FAQ section):

All lenders with over €50 available cash on the platform on the 1st day of each month will be eligible for this charge. If you have an available balance of less than €50, this charge will not be applied.

I see it now, they should have put that into the email they sent out so...they conveniently left that out!

whampiri

They sure did and i believe they are now changing the terms and conditions. I believe that based on that they are in breach of contract and therefore I can withdraw all funds from them without punishment.

They're actually milking it both ways.

If you have less than 250 for a withdrawal, they're catching you with a €5 fee and if you've more than that, they're catching you with interest charges unless you withdraw it. I'm running a mile from these cowboys and while they'll catch me for a few quid, they won't see me invest another cent with them.

Timmaay

.

Wheety

I don't have much left in LF but what I'll do if I have money to withdraw, I'll top up to bring my balance to €250 so I can withdraw fee free. I've done it a few times lately to meet their previous minimum €50 withdrawal.

€5 per withdrawal is ridiculous. They've already made enough from you (and the borrowers) by that stage.

Seems to me the final throes of the business.

adam88

What happens to existing loans if linked finance collapses. I’m pretty sure some staff are eyeballing a move from the company already

FinanceDublin

adam88 wrote: »

What happens to existing loans if linked finance collapses. I’m pretty sure some staff are eyeballing a move from the company already

They must be. Unless it has a completely parallel model in another vertical I just can not see how this company can be doing anything but spiralling into a decline.