Major Loan Player Cash Flow Problems?

[john-pp]

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Although everyone's aware of the downturn in the secured loan market we have seen a boom in the unsecured market, however in light of one of the major unsecured loan players experiencing cash flow problems is this a sign of this "boom" about to go "bust" too?

Don't ask who the company is, I don't have all the facts so I won't name them here - although worryingly I know they buy leads from some of the major networks including the Affiliate Marketing School (TCH), Lead Point and Webgains etc.. so I'm not sure how this will affect their affiliates if they don't pay up?

[Finance_Secrets]

Matrix or The Personal Loan Company

[AmberLoans]

The Personal Loan Company has been removed from WebGains due to issues regarding paying invoices.

Not too sure what happens to leads that have been delivered to them though (I.e. Re payment of them).

[tuna-fish]

It's the Personal Loan Shop that is on Webgains, not the Personal Loan Company, I wouldn't say they were a major player either.

Also, 'boom' about to 'bust'? Maybe, maybe not but if it is who I think it is, then it will be down to the massive overheads they have to cover each month more than anything else.

[john-pp]

As I said, I'm not getting into naming the company concerned but just to clarify what I meant by "major player"... I was specifically talking about the unsecured loan market and I consider a merchant buying thousands of leads per day to be pretty major.

[AmberLoans]

Slightly worrying if you are on about YesLoans??

[Andrew Copeland]

Hi folks,

Just thought I'd jump on here as I manage both the Yes Loans and Personal Loan Shop programs on Webgains.

First off...Yes Loans are fine and are going strong so no problems there :tup

Unfortunately, the Personal Loan Shop account has been suspended as the merchant is facing some difficulties outside of their program with us but there is a substantial amount outstanding on the account which we thought it prudent to address before carrying on with the program.

Rest assured we expect this to be a temporary setback and we're working our little fingers to the bone to get it sorted asap so we can get things back on track.

If anyone has any questions, feel free to either post them up here or give me a shout directly.

Cheers

Andy

[Michael_Anthony]

Just to clear up a few things here...

In the event that we don't get paid by a merchant, we always make up the shortfall from our own resources, as we have to the tune of around £32k so far this year.

In this instance, however, the merchant concerned has always been on the button with payments and even makes weekly payments to us even though our terms don't demand them.

My understanding of the issue is that it is isolated to Webgains who were delivering leads from two affiliates who the merchant had specifically requested be removed from the program.

Our own affiliates can rest easy - as always, we pay you in full and on time. Always have, always will.

[Steve Jennings]

I've absolutely no intention of airing my dirty laundry in public especially when I've been waiting for any meaningful response from the network in question, (who to be fair I believe have been on skeleton staff because of holidays) but given the level of speculation I think it’s only fair to clarify:

1. The statement "facing some difficulties outside of their program with us" is inaccurate as any problems that have lead to the suspension of the program are entirely and directly related to the Webgains program.

2. The Webgains program was suspended at our direct insistence (and the networks resistance) as we have been exposed to a relatively large amount of at best questionable activity, and were not satisfied that this was being sufficiently addressed.

3. As a gesture on our part that we want to resolve the situation in a positive manner we have continued to make weekly payments that are far greater than the value of any current activity through the account.

4. We do indeed continue to handle thousands of fresh unsecured loan leads per day, despite the fact that given the current market other areas of business in particular claims management (both personal injury and financial services claims) are increasingly the core focus of our business as they have been for the past 12-18 months, and to be absolutely honest whether anyone feels that makes us a major player in the market is of little concern to me.

The sooner we can resolve the current issues the better for all involved, as I’m sure everyone will agree. I more than anyone do not wish to make genuine affiliates lives any more difficult especially in the current market.

Unfortunately as is often the case, it’s likely that any future non direct activity we carry out will need to take account of the increasing tendency for those call centres and data brokers that masquerade under the title of “affiliate marketers”.

I’ve no issue with call centres or data brokers and indeed we do deal with them, but in my opinion they are and should remain distinct from affiliate marketers.

[Andrew Copeland]

Hi Steve,

Thanks for responding to this thread. I agree that discussing issues on the forum rather than between us is not in everyone's best interest.

In response to your post:

...especially when I've been waiting for any meaningful response from the network in question...

please could you let me know if you received the emails I have been sending you as I'm very keen to get this issue resolved as soon as possible?

If you could contact me, or post up here with a suitable time when you will be available for a call, I believe that any issues can be resolved quite quickly.

Many thanks

[Andrew Copeland]

Hi all,

Just a quick one to let everyone know that I've been in contact with Steve and we're working on a resolution to the problems.

There also appears to be some misunderstanding with regards to the suspension email I distributed to affiliates joined to the program.

In my email, I mentioned:

The merchant is facing some difficulties with settling their outstanding invoices for leads generated from 1 July onwards.

While we are experiencing difficulties in resolving issues and receiving payment for recent invoices, this was in no way meant to imply that PLS or Marketrix are experiencing cashflow problems. Please accept my apologies for any confusion.

I hope to have some further news on the situation shortly and will keep everyone updated.

Many thanks