P2P lending is huge in the US - Lending club is about to IPO I think.
I think the operator in Australia got investment from Westpac.
Good investment. No indication of what they spent though??
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Just had a quick look through Harmoneys website and I must say the interest rates charges, even for low risk borrowers are higher than expected. With the max being nearly 40% for high risk individuals.
The "Platform Fee" of 2-6% of the initial loan balance seems excessive though.
https://www.harmoney.com/how-it-work...est-rates-fees
The level of default and delinquency amongst certain borrower types is astonishing and the amount of administration and costs involved in managing their difficult loans well and truly justifies those higher rates.
I hope under this new platform borrowers are forced to put down decent deposits on the asset they're acquiring. One thing that became readily apparent from the finance companies and GFC, if young people don't have much skin in the game they're more than happy to walk away if that old XYZ asset doesn't perform.
I thought they looked high as well. I would think the most common would be debt consolidation but for that to be worthwhile, it needs to be less than the ~20% that the credit card companies charge.
My application when in today (lender, not borrower) so will be able to get a better look on the inside soon.
Do let us know. I did just fill out the application however it doesn't give me the option t use my webcam for a photo and I don't have a scanner on hand to copy my license. It does look rather interesting though. The main thing I'm curious about is the volume of loans available in the marketplace at present. The mention that they're intending to create a secondary market for the notes bodes well too.
All in all I'd say a good move from Heartland.
I made an account for Harmoney after I saw it in on Stuff a couple of weeks ago. Since then I can see there have only been between 2-7 loans that have been available to invest in. Hopefully as word gets out about it, this will become more popular and I will consider getting involved. Problem is you cannot currently sell your investments, so once you are invested in a loan which can be up to 60 months, you can't out if you need it. I think they are developing something on this though. Website is really cool. Hoping it takes off!
Market seems to like it .....whoopee
Keep the announcements coming ......excitement boosts the shareprice, good
Maybe the FMA man has a point. from todays paper - "....the boss of New Zealand's market watchdog reckons it is time to "turn down the music" in case bullish investor confidence spills over into recklessness."
Confidence is good for HNZ ....but not reckless in pumping up the share price.
Ironically a better market response to this announcement than the Seniors one. One make a bit of money, one will make heaps. Strange world eh
Over a buck by weeks end
Yes they are keen for further acquisitions.
They have proven with merging three companies to form Heartland,the takeover of PGW Finance, and Sentinel REL they have the expertise in this field.
Motor Trade Finance would make an excellent fit with Marac,so long as "the MTF fish hooks" with the commerce commission are sorted satisfactorily.
All the time they are looking to be "the best" rather than "the biggest" bank which is most important for us shareholders.
At 1.54pm today $1.00 :)
If farmers using short term finance from the likes of Heartland , instead of ramping up the mortgage, is true then I am sorry to say it is not Heartland that is getting the business. Heartland acquired PGG Wrightson Finance in August 2011. Since then Heartland's 'agriculture' loans and 'forestry and fishing' loans (FY2014, table 37) have 'grown' like this:
Jun 2012 Jun 2013 Jun 2014 Agriculture $520.4m $499.9m $469.0m Forestry/Fishing $35.7m $29.7m $22.3m
All this remember in what has been widely reported as the best environment for farming in many years. So if this is what has happened to Heartland's exposure in 'good times', what on earth is going to happen if things start to get tough?
Heartland is getting a reputation for acquiring niche businesses. I wonder what would happen if Heartland paid more attention to the niches they are already operating in?
SNOOPY
Looks like there is a lot of buy pressure as well. Definitely one of my favourite shares.