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Darby Ram

Funding Circle to stop property development loans

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Funding Circle’s long term goal is to become the first choice for small businesses here in the UK and across the world. By attracting thousands more businesses to the platform, we can offer you many more lending opportunities, allowing you to continue to earn an attractive, stable return. To meet this goal, we have taken the decision to focus on our core small business lending product in the UK and our other markets and will scale down new property development lending, expecting to stop all lending by mid-2018.

More at the announcement blog. Not sure what to make of this. They say that it's not due to credit quality or loan performance (which has been good), but my sense is that this could well be them pulling their horns in before the cycle turns, precisely to avoid loan performance turning bad in a downturn and stinking up the rest of their portfolio.

A very small part of the market, obviously, but an interesting marker nonetheless. 

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19 minutes ago, Darby Ram said:

More at the announcement blog. Not sure what to make of this. They say that it's not due to credit quality or loan performance (which has been good), but my sense is that this could well be them pulling their horns in before the cycle turns, precisely to avoid loan performance turning bad in a downturn and stinking up the rest of their portfolio.

A very small part of the market, obviously, but an interesting marker nonetheless. 

f course its been done n loan performance.

They are not being honest.

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Funding Circle recently e-mailed out this report/puff piece by Oxford Economics:

https://www.oxfordeconomics.com/publication/open/299928

Page 20 has a pie chart that shows 17% by outstanding value of loans under management by Funding Circle are to property and construction as of the end of December 2017.

Page 21 has a bar chart that shows 2.2% projected annual GDP growth of real estate from 2015 to 2025.

Quite an interesting picture of high-risk credit activity in the UK.

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On 10/04/2017 at 17:45, spyguy said:

f course its been done n loan performance.

They are not being honest.

Indeed. That's a sign in itself.

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On 10/04/2017 at 17:25, Darby Ram said:

More at the announcement blog. Not sure what to make of this. They say that it's not due to credit quality or loan performance (which has been good), but my sense is that this could well be them pulling their horns in before the cycle turns, precisely to avoid loan performance turning bad in a downturn and stinking up the rest of their portfolio.

A very small part of the market, obviously, but an interesting marker nonetheless. 

I found that their property loans started to default a lot more regularly in the past year or so. Before that they were pretty good. 

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1 hour ago, fru-gal said:

I found that their property loans started to default a lot more regularly in the past year or so. Before that they were pretty good. 

A villain from the noughties boom, Yorkshire's Kevin Linfoot (who went very publically bust) got back into the game very recently with private non bank funding. If he's back at it then I'm not surprised it's getting shaky, imho - https://www.yorkshirepost.co.uk/news/interview-kevin-linfoot-back-in-the-property-game-1-9215223

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39 minutes ago, Si1 said:

A villain from the noughties boom, Yorkshire's Kevin Linfoot (who went very publically bust) got back into the game very recently with private non bank funding. If he's back at it then I'm not surprised it's getting shaky, imho - https://www.yorkshirepost.co.uk/news/interview-kevin-linfoot-back-in-the-property-game-1-9215223

Ive been asking around to see how much hes back in the game.

I think hes not entirely free of the fallout from last time.

Less developer, more glass collector.

Ive nit met - ive flagged him on here a couple of times. I think hes more thick than corupt.

Blundell and Hattersly were will into the dodgy zone.

 

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8 hours ago, spyguy said:

Ive been asking around to see how much hes back in the game.

I think hes not entirely free of the fallout from last time.

Less developer, more glass collector.

Ive nit met - ive flagged him on here a couple of times. I think hes more thick than corupt.

Blundell and Hattersly were will into the dodgy zone.

 

The fact the banks won't back him is telling enough. The civil engineering works paid for from local taxes to cope with the wind fields from his Bridgwater development, are a local scandal, and rather impossible to miss. If he's not a party animal anymore it may well be for his personal safety.

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1 hour ago, Si1 said:

The fact the banks won't back him is telling enough. The civil engineering works paid for from local taxes to cope with the wind fields from his Bridgwater development, are a local scandal, and rather impossible to miss. If he's not a party animal anymore it may well be for his personal safety.

Less the cost, more the poor sod who was killed by the lorry that the wind lifted and dropped on him.

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18 minutes ago, spyguy said:

Less the cost, more the poor sod who was killed by the lorry that the wind lifted and dropped on him.

Oh my.

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1 minute ago, Si1 said:

Oh my.

You not remember this?

I think the place had only been finished a few years.

The wind problem was evident as soon as people started walking by iy.

I could not believe it whn I heard it - wind lifted a builders lorry up and dropped it on a poor sod walking nearyby.

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1 minute ago, spyguy said:

You not remember this?

I think the place had only been finished a few years.

The wind problem was evident as soon as people started walking by iy.

I could not believe it whn I heard it - wind lifted a builders lorry up and dropped it on a poor sod walking nearyby.

I remember the general gossip about what a flucking catastrophe that building was. But this was pub speak at the time so I didn't note the details.

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17 hours ago, spyguy said:

Ive been asking around to see how much hes back in the game.

I think hes not entirely free of the fallout from last time.

Less developer, more glass collector.

Ive nit met - ive flagged him on here a couple of times. I think hes more thick than corupt.

Blundell and Hattersly were will into the dodgy zone.

 

Being a macho man man i think he would prefer to be corrupt rather than thick

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