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Hello to....is there anyone there....?!
OK, I'll just start.
I'm a relatively unexperienced investor, in the grand scheme of things. I started P2P lending about 4 years ago and have no other experience in investments. I've got all my capital in an IFISA in Funding Secure, but took the 4th Ways advice long long ago and spread it all far and wide across the platform (if not across multiple platforms as is probably even better), logging everything in my own spreadsheet to keep track and try to spot any trends.
One thing I've noticed of late is a number of loans not being fully funded. There are some loans that are available for investing which have been open for maybe a couple of months, possibly all renewals. This is a marked contrast to 6 or 12 months ago when pretty much everything sold out within a few minutes. Maybe it's these specific loans that investors are not interested in any more but what are other investors thoughts on this? There are new loans still being funded, it's just this 10 or 12 that seem to be in limbo and even though I've not invested in any of them myself, it gives me the willies a bit.
Another great trend, which doesn't take a genius to track, is that the number of loans that are completing (or being renewed) seems to be falling dramatically. None of the 16 loans I'm invested in that were due to complete this month have come to any fruition. I'm more than aware that you can't expect every single loan to come in exactly bang on time but some do, many have not but completed within a week or two - and now we're at none. It would appear that the majority of loans due to complete this month have not done so, so it's not like I've just picked the worst of the bunch, it's almost across the board.
I've also been logging their official statistics over the last 12 months (because they only have the last 3 months immediately available) and they're now sitting at over twice the number of loans deemed 'overdue' as there were 12 months ago, just short of twice the percentage amount of all loans taken out. Personally, I'm sitting at over half of my investments now locked up in late/overdue loans, some of which date back to a year since their expected completion date. Is there anyone else in a similar position?
Now, I'm aware that Funding Secure loans are probably classed as higher risk investments - most coming in around the 12, 13, 14% mark - but it seems to be a worrying downward trend in such a short period of time. I know 4th Way doesn't give Funding Secure a full and proper rating review because they do not get enough information from Funding Secure, how do other investors feel about this?
Let's not forget that Funding Secure were also in the mainstream press recently with regards to the paintings being sold that were supposed to be security for about £2mil of loans. Probably a one-off case, has anyone heard of this sort of thing happening before?
Whenever I speak to Funding Secure through their chat agents, I tend to get the same generic responses to queries. Should I just be sitting and waiting (preying) these loans come in or should we all as a community be badgering them to push ahead with defaults, to claim the securities and get our money back? It feels in many cases that the security means nothing and they have the interests of the borrowers more in mind than that of the investors. Am I just being paranoid in that thought?
Many thanks to anyone who comments, I very much look forward to reading any and all replies.