How To Fund A Dog Wash!
The Times today has an article about peer-to-peer lending by Alexandra Frean.
In it she describes how a guy called John Good from Davison, Michigan got the money to expand his car wash into the clean dog business by using a loan from Lending Club.
It’s all good stuff and just shows how the banks are missing the peer-to-peer lending market, which I think will be one of successes of the next ten years or so and probably much longer.
In the United States the systems are different to the UK, but it doesn’t totally stop them having successes. I myself use the peer-to-peer lending site, Zopa, as my deposit account as even if I run it conservatively, it gives me upwards of six percent before tax. There is risk and I have had 3 contracts out of 2359 go bad, which have cost me £322.60 or 0.6 percent of my total investment. Alexandra’s article quotes returns of 9 percent net of defaults and charges in the United States.
I could probably make a higher return, if I upped my rates, but then I’d get a higher rate of default, as I’d probably attract more risky borrowers.
I also think I’m benefiting because I’ve been lending money for some years now and have a strong feeling about how you arrange the rates to get the best value.
Why Businesses Have a Cash Flow Problem
When I moved in here, I had a small problem and a local builder came round and fixed it. They did a good job and got me out of a hole.
Yesterday, six months later, I got a bill for the work. The only surprise was that it was probably about twenty pounds less than I had expected.
As I usualy do with bills that aren’t worth disputing, I decided to pay it immediately. I have given up on cheques and always pay bills by direct transfer. But there were no bank account details on the bill or even an e-mail address. So I had to ring them up to get the information I needed. And the phone was engaged.
I do think this is typical of many small businesses and is it any wonder they have a cash-flow problem!
Sir Fred’s Lover to be Named Soon
This is a story in The Sunday Times today. After all the Giggs story seems to have bottomed out, so the tabloids need a new victim.
As I’ve said before, the truth always comes to the surface.
An Alternative Approach To Stopping Spam
This article based on research done by three eminent Universities; University of California-San Diego, the University of California-Berkeley, and the Budapest University of Technology and Economics, shows that the best way to stop spam might be to go for the banks who process the money for the spammers.
It would appear that just a few banks are involved. Here’s what the article says.
However, when it comes to banking, the bottlenecks are far more severe, and switching is far more difficult. One bank alone was used to settle more than 60 percent of all transactions, and the top three banks—Azerigazbank in Azerbaijan, St Kitts & Nevis Anguilla National Bank in St Kitts &Nevis, and Danish-owned DnB Nord in Latvia—together accounted for more than 95 percent of all money paid to spam vendors. The implication is that many banks simply won’t deal with spam outfits. Even when switching does occur, it’s disruptive, with payment processors typically introducing delays of days or weeks for due diligence to be performed.
Surely, no honest person would trust these banks with their money.
So we shouldn’t give up on our spam filters, but constantly chase the routes that the money takes to get to the criminals. After all the researchers used just 100 purchases to obtain their findings. So shouldn’t Western and other governments pool some researchers and money to find more rogue banks and then eliminate them from payments systems worldwide.
Am I About to Pay for my Olympic Tickets?
When I log in to my Visa account, transactions don’t appear immediately. I do find this a bit strange, but it is the way it happens. After all if I draw money out of a cashpoint and then look at my account on-line, you can see the transaction virtually immediately.
So this morning, it would appear that there are some transactions to be processed on my Visa account for about £800. I did order about £3,300 of Olympic tickets, which may seem a lot, but I’ll never see another one and I knew I’d only get a percentage. So it looks like I may get about a quarter!
Strauss-Kahn is a Disgrace
The Times today carries an article under the title of Love bomb that failed to go off, which describes in detail how he pursued a French reporter working in London. I’m not quoting from the article, as it is copyright and although it is in a respectable newspaper, it might not be 100% true. I’m no lawyer, but I would feel that Strauss Kahn did enough to fall foul of The Harassment Act.
If I or any other person, behaved like the article alleges, I would certainly have had the police at my door.
If he is that desperate for women, then he can always phone up and get one delivered on a plate wrapped to whatever taste he prefers.
Type “Strauss Kahn escort” into Google and you find this.
On a positive side perhaps Strauss Kahn and Fred Goodwin should form themselves a bank called the Wunch Bank. They deserve each other.
Credit Where It is Due!
It is difficult these days to find what you need and when you do I think it should be rewarded by a small plug.
When I needed some pictures framed, an old friend of nearly forty years recommended that I try A + B Glass in Stoke Newington High Street, who do windows, mirrors, tabletops and picture framing. I’ve had quite a few reframed and they have certainly done as good a job as I’ve found and at a price that is very competitive to what I used to pay in Newmarket or Cambridge.
I would point to their web site, but they don’t have one. If you need A + B Glass, they are at 124, Stoke Newington High Street, N16 7NY with a phone number of 020-7254-4541. Here’s a picture.
A + B Glass and Framing, Stoke Newington
Since they have replaced three of my double-glazed panels in my windows, that had been broken when I bought the house. Again, friends said the price was very reasonable. They also came and measured one week, giving me an estimate at the time and then delivered and installed the new panes late the next. It was completely hassle free.
One thing that they do is give you a bill immediately, so you can do a transfer immediately over the Internet. I often think that one of the causes of bad cash flow in small businesses is their tardiness in sending out bills. So if it takes three months to arrive, you feel entitled to wait another three.
As I said in this post, if it’s a direct transfer and it fails, it usually isn’t your fault. Cheques have this amazing habit of getting lost in the post. Thatb is if you can find your cheque-book. But it seems that bank transfers are very difficult to lose on the Internet, unless someone makes a typo and then the system hopefully flags it up.
Greece Melts
I like the Greeks, but it would appear that the rest of Europe will soon lose patience with them.
They had yet another General Strike yesterday and it wasn’t peaceful and quiet.
The Times today says that a Greek default could provoke another banking crisis. Certainly, the amount we’ve lent to Greece borders on the suicidal.
There was also another report last night, where it was said that Greeks were drawing out their money in cash and sending it abroad to safer countries.
I think we should all beware of giving gifts to Greeks.
Zopa’s Credit Checking
I’ve just received my financial statement for the tax year ended on the 5th April 2011 from Zopa.
The interesting line says that the capital written off this year due to bad debts was nothing. Incidentally, I’ve only had three contracts go bad in 2,500, that have been written and they have cost me just over £300 out of over £50,000 invested.
So on those figures, I think I can say that Zopa checks on who they accept for loans are very good.
Perhaps if some banks had been as careful we wouldn’t have had a banking crisis!
Royal Bank of UK Taxpayers Is Still a Money Pit
Reports this morning show that we are still propping up this memorial to the stupidity of the so-called banker, Fred Goodwin.
There will come a time, when we sell or even give it to the highest bidder, as that will be the best financial course for the country as a whole.
The Anonymous Widower 