shimself
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Post by shimself on Jul 29, 2014 21:45:59 GMT
Thanks Ben, The alternative finance space offers a lot of variety to investors, but the numbers make clear that invoice finance is low risk compared to other peer-to-peer finance models which suffer from higher default rates. Invoice finance also offers strong returns. At MarketInvoice we obviously take defaults very seriously. We have a robust risk process which has kept delinquencies down to 0.89% and loss rates at 0.02% of invested funds since inception. Of over 3,200 invoices traded on the platform, only 47 have gone delinquent, while we have crystallised losses on only 5. As you say, the annualised net yield for investors at MarketInvoice is between 11-13%. We publish stats on returns, defaults and loss rates openly on our website - you can see them here - and we have committed to do this on an ongoing basis through our membership of the Peer-to-Peer Finance Association. MarketInvoice is growing rapidly - we've traded over £100m of invoices already this year - more than the total amount we traded in our first three years. Businesses in a broad range of markets and sectors use MarketInvoice, and the vast majority of invoices are from sellers with a track record of successful trading with us. I tried to sign up a few months ago but I got a reply to say something like you had enough lenders at the time so thanks but no thanks, is that still the case?
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j
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Penguins are very misunderstood!
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Post by j on Aug 3, 2014 19:56:14 GMT
I tried to sign up a few months ago but I got a reply to say something like you had enough lenders at the time so thanks but no thanks, is that still the case? That is still the case. I sent a tentative email asking if they were accepting new members (I admit I had no intention of joining due to min funding requirements ) but got very polite short shrift! If ths has been the case a number of months ago too then one can safely assume the doors will be shut to any new members for a while to come!
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james
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Post by james on Aug 3, 2014 21:19:22 GMT
Two potentially interesting observations from their FAQ: 1. Not FCA regulated, so presumably they have the flexibility to vary their requirements for participation if they want to. 2. A fee that is from 30% to 20% of the amount earned in the year, based on total amount of money on the platform. If HMRC's view is that this is not deductible from income it could be a substantial problem compared to charging exactly the same amount to the borrower.
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pikestaff
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Post by pikestaff on Aug 4, 2014 6:41:03 GMT
Even without the £50,000 minimum it appears that MarketInvoice is for only those meeting the FCA's high net worth individual category or finance professionals so that would eliminate most potential investors. High net worth requires an annual income in excess of £100,000 a year and £250,000 of assets not including their home or pension pots. Documentary support for such claims would normally be needed. That's unfortunate because such products could provide useful diversification among asset classes to a far broader group of investors. Actually James, only one of these conditions need be satisfied: www.legislation.gov.uk/uksi/2005/1529/images/uksi_20051529_en_001
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james
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Post by james on Aug 4, 2014 18:05:22 GMT
Actually James, only one of these conditions need be satisfied Thanks, you're right, I happened to use a source to check that missed the key word or. I've edited my post to give the correct requirement.
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Post by webbski9 on Sept 29, 2014 2:48:56 GMT
Anyone know any p2p's invoice Trading with a lower monetary value than this one ?
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Post by blueeagle6 on May 27, 2015 10:43:14 GMT
Hi, I have some questions about MarketInvoice and its process which I cannot answer myself via MI's FAQ. Maybe you can help me out. 1.) What is the legal basis for this. Do I sell the invoice to the platform and the platform sells it again or how does it work from a legal side? And what would be the conclusion if someone would not pay the invoice. 2.) How does MI access risk and is there a certain pricing mechanism, i.e. is there the same price for invoice finance or depends it on your specific inovices. I was wondering how they manage it so fast (within 24 hours) and get so low default rates. It would be great if you can support me with some information before I start there.
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bigfoot12
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Post by bigfoot12 on May 29, 2015 8:42:47 GMT
The fees for 100k or less investments are 30% of profits (I assume that is 30% of interest rather than interest minus defaults). Assuming their 2014 ytd gross yield of 15.70% that equates to 10.99% after fees but before losses. That still looks pretty attractive. The problem is dead time. I'm sure on their website they mention the average deployment rate for capital is 75% or so. That could drop returns down to 8.24% pre losses. Still pretty attractive if losses are really that low but it's clear that keeping the deployment rate high while staying diversified is going to be key. Would the gross yield be taxable or would tax be paid on just the net (after fees) yield? If the gross is taxable (as it seems to be) then the rate comes out quite poor for a high rate tax payer. 2014 average gross rate of 14.53% has to have tax of 5.8% removed, and fee of 4.3% and assuming 75% deployment brings the net rate down to 3.27%, or gross equivalent of 5.44%. This ignores defaults and the rate to date for 2015 is much lower. I am not a customer so I don't know, but I presume they will change their charging structure if this is the case, as Zopa and other have. Have you/are you changing your charging structure MarketInvoice?
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Post by westonkevRS on Jul 6, 2015 5:33:19 GMT
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stevio
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Post by stevio on Apr 9, 2016 15:11:16 GMT
50k limit never changed
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bg
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Post by bg on Apr 22, 2016 15:47:15 GMT
They don't need to. They have too much money chasing too few invoices as it is.
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ahowlin
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Post by ahowlin on Apr 29, 2016 11:38:56 GMT
I agree, I have been using the site since February, the fund deployment rate for me is down to 60% from a theoretical 70%. Possibly I could tweak it a little higher using Autobid settings. But in effect excluding bad debt I am netting about 3% which is very poor versus the risk (IMO).
I will be redeploying my funds elsewhere unless the excess liquidity situation improves or they drop their fees.
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nick
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Post by nick on Jun 1, 2016 16:56:24 GMT
Would the gross yield be taxable or would tax be paid on just the net (after fees) yield? Any informed views on this?
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bg
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Post by bg on Jun 5, 2016 13:10:27 GMT
Would the gross yield be taxable or would tax be paid on just the net (after fees) yield? Any informed views on this? Investors only ever receive the net fees so I believe tax should just be paid on that
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bababill
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Post by bababill on Jun 9, 2016 8:49:50 GMT
My accountants have advised for personal accounts it is the gross yield that is taxable.
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