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  1. #1081
    Advanced Member
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    Aug 2012
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    Quote Originally Posted by Saamee View Post
    2 x Massive loans hanging around on the LC Loan board.....

    Attachment 10480
    If I understand it it correctly the Lending Crowd investor/lenders take on all the default risk.

    Does a whopping 25% flex charge on an A1 note, with the lender taking all the default risk, make investing in such a loan unappealing.

    With these 25% flex loans, as the Lending Crowd investors take all the risk, What is the incentive for the “partners” to ensure that they organise loans to credit-worthy borrowers?

    If the incentive for the “partners” is their share of the flex...would they be more interested in writing new business as oppposed to ensuring that capital is eventually returned?
    Last edited by Bjauck; 16-04-2019 at 02:42 PM.

  2. #1082
    Member
    Join Date
    Aug 2017
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    176

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    Quote Originally Posted by Bjauck View Post
    If I understand it it correctly the Lending Crowd investor/lenders take on all the default risk.

    Does a whopping 25% flex charge on an A1 note, with the lender taking all the default risk, make investing in such a loan unappealing.

    With these 25% flex loans, as the Lending Crowd investors take all the risk, What is the incentive for the “partners” to ensure that they organise loans to credit-worthy borrowers?

    If the incentive for the “partners” is their share of the flex...would they be more interested in writing new business as oppposed to ensuring that capital is eventually returned?
    Its LC and our job whether to write the risk. The partners to find the business.

    The 25% A1 note was fully written, so appears not unappealing.

  3. #1083
    Senior Member
    Join Date
    Sep 2015
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    Norf Eyelynd
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    Logging in there are two loans up at the moment - seem like relatively good ones and aren't going that quick.

  4. #1084
    Junior Member
    Join Date
    Jul 2017
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    14

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    You don't see this often, 25% flex making it unappealing...

    Capture.JPG

  5. #1085
    Senior Member
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    Sep 2015
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    Norf Eyelynd
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    Quote Originally Posted by Gill View Post
    You don't see this often, 25% flex making it unappealing...

    Capture.JPG
    Still far better than ANY Term Deposit Rate anywhere else offered in NZ!!

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