Tbh quality if the leads will be pretty straight forward I would guess.. Banks say no.. They need money... Refer to a p2p.. Tbf funding circle and the like.. That money isn't cheap, nor does it come in easy. There's always a catch. Granted not as down right ridiculous as wongas rates.. But for much larger amounts snd for the kind of money places like wonga can't lend. The p2p rates aren't exactly customer friendly when compared to a bank. Also bearing in mind when looking at the info graphic on the rates page of FC ... 99% of customers refered bybRBS will probably NOT be in the A+ to B+ ... So you're looking at what .. 10% or more APR..I think thats where the issue is going to be. But again this is just a single possible scenario. https://www.fundingcircle.com/investors/rates-and-fees But yeh I agree.. If conversion rates don't start off with a bang.. It's going to be very difficult to be taken seriously as finance providers. I'm off. Its a relaxing wait for me here now, till we're at around 380+ ish.. Let's see what happens. Good luck.
Not sure companies like Ratesetters or Funding Circle would be too pleased at being compared to Wonga but I'd agree the lending criteria won't be as strict as the bank's and the likelyhood is that it will be lead based commission paid as a percentage of the agreed loan ? Like all these schemes how successful it will be will depend on the quality of the lead and how many are finally approved. There's a cost involved in servicing each lead , if conversion rates are too low it may not be a viable proposition .
Snow in Maidens ? Almost unheard of , hope you've got the roof on . ATB
Also - yes it will be very interesting. But Whats going to be even more interesting.. is how P2P lenders will deal with the higher level of defaults. Clearly banks are stricter because they can in many a case tell whether that money could be paid back in reality or not.. credit rating and all needing to be much higher. Whereas p2p lenders will be looking at a much lower credit ratings.. and hence creating that market volume. Here's the thing.. it almost feels like these are just companies like Wonga.com.. not charging so much interest but at the same time lending to higher risk clients.. meaning more defaults and late payments. I'm not sure the model has been proven yet. What I am sure of - is that the banks will be treating this like a kind of bond/mortgage... as in interest paid first for the business lead being passed i.e RBS's commission covered probably in most cases before people start running into trouble paying off their loans. I'd imagine t some level someone would have to underwrite the debt... aside from the lenders.. not sure about this point though. I feel it's a touch risky.. as in lenders being seriously exposed to a risk level higher than that of of which the reward may be worth. Still need to research a bit more. Not so sure about years.. I think we're looking as early as 6 months or so from now.
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