Business loans

[hoggy1]

How do I get to see LCs small business loans?

[Fred93]

https://forum.lendacademy.com/index.php?topic=2907.msg26395#msg88888888Quote"> from: hoggy1 on December 20, 2014, 01:16:51 PM

[TravelingPennies]

I have looked at them before but I can't find anywhere on their site for investors to log in, sign up, or do anything?

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=2907.msg26406#msg88888888Quote"> from: hoggy1 on December 21, 2014, 07:26:12 AM

[AnilG]

Fred,

What other business loan platforms have you tried? Any pros-and-cons? I am looking to diversify into business loan so researching business loan platforms.

Thanks.

https://forum.lendacademy.com/index.php?topic=2907.msg26408#msg88888888Quote"> from: Fred93 on December 21, 2014, 09:18:10 AM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=2907.msg26417#msg88888888Quote"> from: AnilG on December 21, 2014, 08:04:47 PM

[TravelingPennies]

Thanks for the detailed explanation on Dealstruck and Funding Circle. I have a few clients who are lending on Funding Circle. Personally, I am approved on StreetShares but I haven't lent for business loans yet. Without the data, I am not that comfortable lending out money just on words of the platforms. Platforms have been reluctant to provide data and details on their underwriting process. They all give the reason that they don't have enough volume and history which is true but they don't event want to share data on the applicants that they declined. I will reach out to Dealstruck to see how much they are willing to share data and underwriting process.


https://forum.lendacademy.com/index.php?topic=2907.msg26418#msg88888888Quote"> from: Fred93 on December 21, 2014, 11:21:03 PM

[RazzleDazzle]

First time poster, but I found Fred's post to be comprehensive and wanted to chime in.

I have had the pleasure personally knowing folks in the industry that work with them (for example, I know point person of their software integration with Yodlee etc). Really like the staff working at DS. I personally haven't had the chance to invest via DS though - reason is below.

Issue with business loans is the domain knowledge required depending on the type of business. LC and Prosper have refined their models on consumer debt refi. Business lending underwriting requires specialized knowledge of business risk, their cashflow and their history. It's more difficult to nail a good lending model and it is different for disparate businesses (imagine a few businesses that boom in christmas time but have off months in January etc - their cashflows and thus ability to pay is different).

I do not want this to sound like advertisement, but I have been part of lending group that is now venturing into marketplace model. We are very close to launch out of beta. I will not post website here but folks can PM me and I can go into details. Been busy private lending as it is in the comfort zone and haven't had real need to venture out, though I think I will invest in DS soon. I do not consider them our competitors.

Great to see people diversifying. Can't go wrong with DS. Another good one would be Brendan Ross at Direct Lending, though I believe its a fund with minimal requirement of 100K to get in (and I think there is a waiting line).

Any of you guys planning on attending Lendit 2015?

P.S. Anil, you can call me and I can go into our underwriting process. Though the other platforms aren't incorrect - simply not enough volume to make statistical models. Still, we have 7+ year history so I can give you a certain sense. I have a feeling though that I will see PeerCube @ Lendit so see you there!

[core]

https://forum.lendacademy.com/index.php?topic=2907.msg26420#msg88888888Quote"> from: RazzleDazzle on December 21, 2014, 11:58:57 PM

[rawraw]

I would be hard pressed to invest in any business loan based on statistical models for some issues mentioned in Razzle's post.  Underwriting isn't rocket science, but it isn't easy to standardize either.  Like I've said before, business loans are completely different and I personally don't trust any of the business lenders I've researched so far (haven't done many, since I'm not accredited).  Often there is a reason why banks don't do the loans they claim the banks are just callously rejecting.  Like OnDeck lending 90% on inventory?  Give me a break.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=2907.msg26423#msg88888888Quote"> from: core on December 22, 2014, 04:42:22 AM

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=2907.msg26428#msg88888888Quote"> from: RazzleDazzle on December 22, 2014, 09:49:35 AM

[TravelingPennies]

Ha! LTV of 90% - that's an automatic rejection at our platform.

Think diligent investors can still avail business loans. The "lingo" is a bit different but not so much from real-estate crowdfunding platforms. They have debt based offerings. Its a similar.

Agree though, experienced investors only, preferably one's that have a bit of domain knowledge in the type of business getting funded. Fred has had (good?) success per his post above.

[TravelingPennies]

https://forum.lendacademy.com/index.php?topic=2907.msg26431#msg88888888Quote"> from: RazzleDazzle on December 22, 2014, 03:06:43 PM

[TravelingPennies]

True but the same can be said for LC and Prosper consumer debt financing.

Agree with more nuanced and granular effort needed in business loans.