Lending club denmark

[chol03ac]

Hello

Does anyone have experience with Flex Funding or Lendino ?
I've tried looking at Lending Club and Funding Circle , but they are open only to the people living in the USA or England.
Pleas share you experience on the field!

Regards C

[BRUTE]

brute is no expert, but has heard pretty terrible things from LC (USA) recently. seems the gold rush is over and now it's all defaults.

[Seppia]

I would not touch LC or similar with a 10ft pole either if I were you.
I threw a little money in there two years ago and
1- the returns are ok.
2- I am trying to get out but the notes are basically unsaleable on the secondary market. This is a very bad sign.

I'm currently pulling out the money as I get paid back, but certainly would consider investing in LC a mistake.
I will consider myself lucky if I take no losses on that account.

[chol03ac]

Thanks for info, i Think il will stay away

[FBeyer]

Why?
What makes you think that Lendino/Flex Funding must mirror Lending Club?
You've gotten a few anecdotes in response to a very imprecise question and you're ready to conclude that peer to peer loans are not for you?

[Seppia]

The main issue I see with P2P lending is that, specifically for smaller loans, there is basically no recourse should the borrower decide not to pay, and a lawsuit is not worth it at all.
I feel this added risk is not compensated by extra yield.

[chol03ac]

FBeyer: Pleas feel free to share your knowledge if you have any experience on the area?
I made my research, and what i conclude was that it´s to risky. I did not want to write off the possibility if someone could come up with experience on the subjekt.
I lost around 6000$ on MYC4 (micorcredit loan to entrepreneurs) in knew some of the risk and my loans was from 6-12$. I see Flex Funding, Lendino or Lending Club as the same recipe (my guess is that sometimes the borrowers has been rejected from banks before they use LC etc.,) feel free to comment if you see them different.
If i was to lend a company 100$ to 8 percent per year an it defaulted i would have to have aroud 13 loans that din´t defaulted (1300X0,08=1040) to get back start point.

[jacob]

I see Flex Funding, Lendino or Lending Club as the same recipe (my guess is that sometimes the borrowers has been rejected from banks before they use LC etc.,) feel free to comment if you see them different.

LC et al is uncollateralized consumer [junk(*)] bonds of the most junior grade, but with a twist. Some borrowers are certainly people that banks have rejected, but others are using it because it's "the new thing" and they read about it on some blog and some just hate banks but like the social aspect.

(*) Compared to most governments and corporations.

Being junk bonds, profits tend to follow the credit cycle in terms of spread against safer investments. They do really well in boom periods and really poorly in bust periods with lots more defaults.

I predict a moderation of P2P enthusiasm once the next recession arrives. This will be followed by a new company (maybe on a VR platform ) and a bunch of enthusiasts a few years later. And so on. Just like pretty much any other investment.

It's a source of personal amusement to me that for equity the personal finance space generally favours dollar cost averaged diversified low-fee index funds while being of strong opinion that any other strategy is unpossible. Yet when it comes to investing in debt, they all about picking, timing and analysing and suddenly fees don't matter anymore. The opposite of the typical personal finance enthusiast anno 2016 would be someone who would only hold BND and TIP while otherwise spending all their efforts on picking the next biotech or goldminer microcap stock.

[steelerfan]

Honestly, if you think P2P lending is too risky, it probably is FOR YOU. It is out of your risk tolerance. I have been critical of LC as well. But the longer I hang in there, the more I appreciate it. It is a comparatively small piece of my portfolio. But I find that while LC gets it wrong and a stiff or two get by, overwhelmingly if you do your DD to the extent you can, you can come out OK. I invest in it somewhat for entertainment. You have to go in knowing your 14-15% is going to end up at 7% to 8%. As your portfolio loan #s increase the results seem to stabilize. Most people just pay. Most stiffs reveal themselves quickly. And down the line some people will default and you lose a partially paid down investment. In my case, my returns are slowly increasing. The key is to have many loans at all parts of the payment cycle. Eventually it will be a ladder.

The industry is still maturing but the concept of the independent online platform with institutional investors/small investors is probably here to stay.

[BRUTE]

I predict a moderation of P2P enthusiasm once the next recession arrives. This will be followed by a new company (maybe on a VR platform ) and a bunch of enthusiasts a few years later. And so on. Just like pretty much any other investment.

VR will change everything! lenders could connect to debtors and break their knee caps in VR to scare them into paying up! consequences will never be the same.

anyone willing to invest in brute's VR knee brace startup?

[FBeyer]

Yes, if the economics look sound.

[jacob]

@brute - My virtual mob operation could certainly use a few brutes. Also, if you have an idea of how one can make stupid painful in VR, that'd be great! Maybe a good kickstarter project? I'm sure it would attract zillions in charitable donations.

[BRUTE]

Also, if you have an idea of how one can make stupid painful in VR, that'd be great!

isn't that the whole point of VR? stupid people waste their money -> financial pain.

look sound

sounds is invisible, duh.

[FBeyer]

Also, if you have an idea of how one can make stupid painful in VR, that'd be great!

isn't that the whole point of VR? stupid people waste their money -> financial pain.

look sound

sounds is invisible, duh.

It's 'cause of knowledge like that, that you're the one making the BIG bucks!

[firefoxii]

I would stay away from Flex Funding or Lendino, i made investments in both, and I think their loans size is to big for that type of investment.

[Arpe]

I would stay away from Flex Funding or Lendino, i made investments in both, and I think their loans size is to big for that type of investment.

Agreed!

As you are from Denmark (like myself), I would recommend that you take a look at some of the many European P2P lending platforms out there instead. Most of them have higher returns and better track records than the Danish counterparties. You can see an overview of some of the platforms here: https://p2pplatforms.com/.

It is probably a good idea to use the platforms with a long track record and with a lot of users. I use Mintos and EstateGuru myself.