mary
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Post by mary on Jan 19, 2018 16:53:50 GMT
As usual, this is completely unclear.
Does this mean that an offered loan is divided up by all the lenders with cash offers, and if it fills then pre-finders without cash on account get nothing? Only if it's less popular do I get some if I don't pre-fund?
If so, you have to guess how much cash to hold up to the maximum you are prepared to take, and obviously you may well get much less if they manage to find some new and attractive loan, rather than yet another tranche. (Not very likely based on recent offers).
I much prefer MTs 24 hour bid limit, where I can be certain of getting the bid limit if I want it, and the chance to get more after that if I really like it.
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dovap
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Post by dovap on Jan 19, 2018 16:58:57 GMT
Looking at the sorry state of the loan book I'm surprised
'over-subscription' is an issue.
ho hum
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ingwer
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Post by ingwer on Jan 19, 2018 17:04:32 GMT
I assume they have been inundated with one request to do this...
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SteveT
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Post by SteveT on Jan 19, 2018 17:04:35 GMT
I suspect the rationale is to try to reduce / eliminate the headaches of pre-funded allocations that aren’t paid for. If those with cash on account get their allocations first then, certainly for more popular loans, the issue disappears.
Also, a few may be minded to invest any remaining excess cash in other available loans 😂
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Post by mrclondon on Jan 19, 2018 17:20:42 GMT
I'm trying to see the advantages in this. If I want £500 of a new listing, I used to set pre-funding to £500 and see what I got. Say I got £200, I'd have 48hrs to 'find' and credit my account to the tune of £200. In the new regime, if I want the same £500, I now am being encouraged to fund my account by £500 even though I may still only get £200. [...] An interetsing question is if I request £500 but pre-fund £200 (or happen to have a £200 cash balance, perhaps after the interest run) will I be given priority for that £200 or not ? Lendy Support ?
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SteveT
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Post by SteveT on Jan 19, 2018 18:57:15 GMT
In years of lending through SavingStream / Lendy, I’ve never failed to transfer in cash the same day that loan parts are allocated, so I’m less than impressed that this change will impact me because of the failures of others. Paul64, why not simply remove pre-funding privileges for a period (3 months, say) from anyone who has to have their pre-funded parts cancelled, and leave the system unchanged for the rest of us? Don’t tar all with the same brush! |
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Post by munchydave on Jan 19, 2018 19:11:23 GMT
I am not interested what Lendy do to change the rules on pre-funding for the simple reason that until they sort out the massive back log of late and defaulted loans I for one will not be investing anything.
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Post by df on Jan 19, 2018 20:11:25 GMT
Pre-funding was a very convenient feature. No other platform (at least out of platforms I invest with) offers this. It was one of those little things that attracted me to Saving Stream. I can understand why they are scrapping it and I'm not deeply disappointed with this change, but I fail to see it as a positive move.
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zlb
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Post by zlb on Jan 19, 2018 21:36:58 GMT
Related to the October17 application to offer an ISA?
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Post by skint4achange on Jan 20, 2018 0:23:55 GMT
Pre-funding was a very convenient feature. No other platform (at least out of platforms I invest with) offers this. It was one of those little things that attracted me to Saving Stream. I can understand why they are scrapping it and I'm not deeply disappointed with this change, but I fail to see it as a positive move. The way I understand it is that they are not scrapping the pre-funding but rather giving preference to those who pre-fund and have the funds on account prior to the loan/tranche going live. I understand in one way why they are doing it, but as SteveT said, why punish all for the sake of a few. Would be much better as suggested to give a temporary ban to those who abuse it.
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stub8535
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personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Jan 20, 2018 2:21:16 GMT
Pre-funding was a very convenient feature. No other platform (at least out of platforms I invest with) offers this. It was one of those little things that attracted me to Saving Stream. I can understand why they are scrapping it and I'm not deeply disappointed with this change, but I fail to see it as a positive move. The way I understand it is that they are not scrapping the pre-funding but rather giving preference to those who pre-fund and have the funds on account prior to the loan/tranche going live. I understand in one way why they are doing it, but as SteveT said, why punish all for the sake of a few. Would be much better as suggested to give a temporary ban to those who abuse it. If I fund all my pre fund request and it sits around for weeks on end. If I also get less than requested. I have one heck of a cash drag. Look at comparisons with Bondmadon where the refrain is cash drag! Cash drag..... Is Lendy going to pay 3.75% interest on cash on account to remove this? I think there is more chance of World peace breaking out. Yet more attempts to con investors that they are getting a good deal when they are having advantages taken from them or reduced.
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webwizard
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Post by webwizard on Jan 20, 2018 7:08:27 GMT
With so much on the SM, I cannot remember the last loan to completely sell out through pre-funding. Pity that you have to upload all the funds for the bid and then withdraw if you do not get a full allocation and I agree with the above comment that I would always transfer the required funds in as soon as notified of the allocation. Never mind, the new system seems a reasonable approach in light of too many bids not then being followed by investment. No investment fund would allow that so it is still an advantage.
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jcb208
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Post by jcb208 on Jan 20, 2018 7:43:16 GMT
Another thing to factor in is more often then not the loans do not go live on the date Lendy notify us that they will ,so the investor will have money idle on the platform earning zero interest
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Post by skint4achange on Jan 20, 2018 10:01:22 GMT
With so much on the SM, I cannot remember the last loan to completely sell out through pre-funding. Pity that you have to upload all the funds for the bid and then withdraw if you do not get a full allocation and I agree with the above comment that I would always transfer the required funds in as soon as notified of the allocation. Never mind, the new system seems a reasonable approach in light of too many bids not then being followed by investment. No investment fund would allow that so it is still an advantage. My Bold Underlined: I do not think you HAVE to up[load funds to pre-fund the bid? The way I read that bit too is that you will not be given priority for the loan part funding and as such may not get allocated any.
However, lets look at this in another way. Lendy couldn't currently fully fund a trip to Margate let alone a £200k+ tranche so the chances of you getting allocated nothing are slim to remote. This will continue to be the case until they actually release some money back to investors by ACTUALLY having a DFL pay back (A big DFL and not a £1m DFL!).
People have no money left to invest and no confidence in getting it back. If they took this plan into the Dragon's den, would probably get massive investment, from us mere mortals, not so much now.
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Post by investor1925 on Jan 20, 2018 13:57:58 GMT
Pre-funding was a very convenient feature. No other platform (at least out of platforms I invest with) offers this. It was one of those little things that attracted me to Saving Stream. I can understand why they are scrapping it and I'm not deeply disappointed with this change, but I fail to see it as a positive move. The way I understand it is that they are not scrapping the pre-funding but rather giving preference to those who pre-fund and have the funds on account prior to the loan/tranche going live. I understand in one way why they are doing it, but as SteveT said, why punish all for the sake of a few. Would be much better as suggested to give a temporary ban to those who abuse it. Why can't they just do what FC USED to do & let you bid on a first come first served basis, with real cash on account. That way when you place your bid, you know it's locked in & you get the investment & have no cash sloshing around earning nowt.
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