This page was last updated on 17 March, 2019
Here is a ThinCats review from one of 4thWay's experts:
ThinCats Quick Expert Review
High rates and high bad debts – could do with more information
ThinCats is large and established, with lending in the hundreds of millions since 2011. Its organised loan-approval processes start from a network of sponsors to find and vet deals initially. Then an experienced specialist at ThinCats' deep-pocketed parent company, ESF Capital, checks the deals before approval. An external specialist does appropriate risk modelling. Still, we would much like to see all ThinCats' sponsors use alternative, higher-cost, credit-reference agencies to check borrowers.
ThinCats has been mostly transparent with us in the past. However, it leaves important blanks; for example, the value of security on loans compared to the loan amount is not available in a readily measurable format.
ESF Capital became ThinCats' majority shareholder in late 2015. Loans prior to that show high numbers of loans that are late, gone bad or which have been restructured. Since ESF came in and updated ThinCats' management and processes, the record appears to have improved somewhat, although more time or contact with ThinCats is needed to clarify the situation.
Data shows that ThinCats again went through another major change in 2018, when its average loan size shot up to over £1.1 million each, which is three times larger than in its earlier years. This big change suggests it is approving loans that might now have different risks, making its prior history a lot less relevant.
4thWay has not discussed ThinCats with any of its key decision makers for a couple of years now, leaving us all somewhat in the dark at present.
ThinCats has opportunities for active, interested lenders to pick individual, high-quality loans and for making even larger profits in clever deals on its secondary market (like the stock market, but for loan parts).
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