Berwicklaw wrote:Funding circle. Had c £50000 invested . Very well spread and the vast majority in A graded loans. Suffered c 4-5 % of bad debts or poorly recoverable loans. I expect to probably claw back c 1% in recoveries leaving 3 % as bad debt level (And that's devan le deluge to come after Brexit) Net return after tax zero. Company has poor risk assessment. I don't recommend.
Sorry to hear. I fear the situation is the same for many investors yet we do not hear about it as investors don't tend to post when things aren't going great.
I'm interested in what happens from here. I assume Berwicklaw that altough you can sell the loans on to another customer it is more likely you will run them to completion as demand from other customers I understand to be low. I'm wondering two things.
1. Where the investors money will flow to as their capital gets paid back? Traditional building socities? equities? 3-5 year fixed rate building society bonds?
2. Many of the companies who have borrowed from funding circle will want to roll the borrrowing at the end of the expiry period but with some investors withdrawing capital are there enough new ones to provide new finance and at what rates? So, will the borrowers have to borrow from more traditional routes which are not P2P at higher rates having an impact on the economy overall?