Thought I should just upload a post on the status of my P2P loan and Invoice financing portfolio.
It wasn’t all smooth sailing as you can see. There are a number of loans in arrears.
However, for some of these loans in arrears, the platforms have sent emails clarifying the reasons for the delay in payment.
- Item 12 in Funding Societies portfolio (P2P loan / Unsecure loan): Clarification from platform on Aug 11, 2016
- The company has been very cooperative. Unlike other delinquent borrowers that just go missing, the construction company has proactively updated the platform which is a positive sign.
- Their late repayments are not out of industry norms. The company is waiting for payments from the Land Transport Authority (LTA) for their completed projects. Since LTA is a government agency, the counter-party risk of LTA defaulting on their payments to the company is not high.
- Based on submitted statements, the construction company does not have significant liability relative to assets, hence LTA’s repayment should enable them to repay the loans. They expect LTA to release the payment this month. No promise but they’re trying (hard to chase government agency to move fast).
- Item 9 in Capital Match portfolio (P2P loan / Unsecured loan): Email from platform dated 9 Sept 2016
- The platform has received a cheque from the borrower for the remaining of July installment. They will deposit it next week.In the meantime, the borrower applied to two banks for property refinancing of his property. The process with banks takes longer but once successful, the borrower should get additional cash of S$200,000-300,000 that would be sufficient to settle the debt.
- Item 11 in Capital Match portfolio (Invoice financing): Email from platform dated 9 Sept 2016
- The debtor (China Construction) made a payment to the seller this week of only S$30,000 (on some small invoice). The debtor still owes the seller around S$1.1m. A large payment is expected on September 15th (next week). The platform will collect the payment then.
- That leaves just item 1 in the Funding Societies portfolio (P2P loan / Unsecured loan). The last I heard is that one of the banks is commencing bankruptcy proceeding against the company.