|
Post by nsiam on Dec 9, 2017 19:32:07 GMT
Thus could be a winning concept, but why should investors hand over cash at this stage? What is the incentive, taking into account the risk of investing in/through an untested company? We are opening the lending activities on first come first served basis. So mainly to get ahead on the lending queue. Also, if no one invested early there will be no lending capital to lend out. But I am very pleased to see there is much more interest that we initially anticipated.
|
|
|
Post by nsiam on Dec 9, 2017 19:41:46 GMT
Quite - the soft launch is all a bit too "soft" for me. I understand that Welendus have some some "off-line" trials to prove their model - I'd have liked to have seen these visible on the site before lenders are asked to cough up. For that reason, I have only dipped the smallest possible toe. Call me old fashioned, but I much prefer to actually see some loans to lend in before stumping up some money! I am hopeful, however, that once Welendus get over their initial cautiousness and get some "real" loans under their belt, this could prove interesting. Thanks for your comments Kermie. At this stage, it is better to be cautious than sorry. We are following well planned steps for the best management of the lending and borrowing activities as we open the doors publicly. This will not be for long and the soft launch will be over soon. With regards to the "off-line" trials. We have done a huge amount of trials. But presenting the results may confuse some lenders and therefore may mislead some people. But good point, We will look into alternative way to present some of the results we have.
|
|
|
Post by df on Dec 9, 2017 22:06:21 GMT
Hi Nadeem, I like the offering and would be interested to give it a try. What will be the typical terms, 1 month to 1 year?. If it is more than 1 month, will the interest be paid monthly? Will investors have a choice of term? Is there any type of secondary market or will investors have to stick to each loan until the end of term? What will be the typical terms, 1 month to 1 year? - Loans are from 3 weeks to 3 months with the option to extend to up to 12 monthsIf it is more than 1 month, will the interest be paid monthly? - Interest paid on repaymentWill investors have a choice of term? - NoIs there any type of secondary market or will investors have to stick to each loan until the end of term? - Yes, you can sell out in the secondary market but no interest will be earned.Thank you for clarification. Does it mean that (assuming PF mechanism is working well) the main risk is the loss of interest, not capital? Could you explain about extensions please. If a borrower decides to extend, will he/she have to pay interest acquired over the original term in order to extend the term?
|
|
|
Post by nsiam on Dec 9, 2017 23:02:21 GMT
What will be the typical terms, 1 month to 1 year? - Loans are from 3 weeks to 3 months with the option to extend to up to 12 monthsIf it is more than 1 month, will the interest be paid monthly? - Interest paid on repaymentWill investors have a choice of term? - NoIs there any type of secondary market or will investors have to stick to each loan until the end of term? - Yes, you can sell out in the secondary market but no interest will be earned.Thank you for clarification. Does it mean that (assuming PF mechanism is working well) the main risk is the loss of interest, not capital? Could you explain about extensions please. If a borrower decides to extend, will he/she have to pay interest acquired over the original term in order to extend the term? Thank you for clarification. Does it mean that (assuming PF mechanism is working well) the main risk is the loss of interest, not capital? - the provision fund aim is to automatically reimburse the lender for the principal so the loss will be a loss of interest for the given loan. Capital at risk & no FSCS cover.Could you explain about extensions please. If a borrower decides to extend, will he/she have to pay interest acquired over the original term in order to extend the term? - Correct, In the event of a loan extension, the borrower will have to pay the interest for the original term as well as the interest incurred for the extended term.
|
|
kermie
Member of DD Central
Posts: 689
Likes: 462
|
Post by kermie on Dec 10, 2017 11:23:02 GMT
Just a thought wouldn't a high profile awareness among Borrowers that Welendus operates a capital provision fund not potentially contribute to a higher rate of default? Temptation to be tardy, temptation to chance a runner? Could it be a prudent move to restrict knowledge of this precious resource to the logged in lender only area? Not sure it's the kind of information you can really hide, particularly - although I would suggest that the "public facing" part of a P2P platform's website should really be clearly separated into lenders' and borrowers' focussed areas. That said, direct acquisition of borrowers via the website is likely to be rare - more likely to be via referal, brokers and other channels. In any case, borrowers who think that a provision fund is a bonus for them will be disappointed - in fact a capital-protecting provision fund means that capital losses are much more directly felt by the platform and hence the platform is much more likely to instruct debt collectors than simple write the debt off. (If FS had a provision fund I wonder if we'd still have Whitehaven....I can only dream!)
|
|
|
Post by nsiam on Dec 10, 2017 12:26:47 GMT
Just a thought wouldn't a high profile awareness among Borrowers that Welendus operates a capital provision fund not potentially contribute to a higher rate of default? Temptation to be tardy, temptation to chance a runner? Could it be a prudent move to restrict knowledge of this precious resource to the logged in lender only area? Not sure it's the kind of information you can really hide, particularly - although I would suggest that the "public facing" part of a P2P platform's website should really be clearly separated into lenders' and borrowers' focussed areas. That said, direct acquisition of borrowers via the website is likely to be rare - more likely to be via referal, brokers and other channels. In any case, borrowers who think that a provision fund is a bonus for them will be disappointed - in fact a capital-protecting provision fund means that capital losses are much more directly felt by the platform and hence the platform is much more likely to instruct debt collectors than simple write the debt off. (If FS had a provision fund I wonder if we'd still have Whitehaven....I can only dream!) The provisional fund protects the lender in the event of default but does not release the borrowers from their obligation. After a default, the provisional fund will take over the loan from the lender and will reimburse for the principle then it will continue chasing the collections in the same way as any other lender does. So for the borrower, it will make no difference. But for the lender, this will release the principal investment to reduce the risk and get the investment working again as quickly as possible.
|
|
kaya
Member of DD Central
Posts: 1,150
Likes: 718
|
Post by kaya on Dec 10, 2017 16:02:37 GMT
Like munchydave here p2pindependentforum.com/post/233707 and here p2pindependentforum.com/post/233711 ..... .... I find the sign-up procedure somewhat confusing, and was nervous about handing out card details and pressing an 'invest' button, or inputting an investment amount, when there was no indication if my card would be charged. No mention of 'tokens' anywhere except here, or clear indication of when your account will be debited. I don't like queues anyway, and can't see anything to get too excited about. Will wait and see.
|
|
|
Post by munchydave on Dec 10, 2017 16:20:05 GMT
Like munchydave here p2pindependentforum.com/post/233707 and here p2pindependentforum.com/post/233711 ..... .... I find the sign-up procedure somewhat confusing, and was nervous about handing out card details and pressing an 'invest' button, or inputting an investment amount, when there was no indication if my card would be charged. No mention of 'tokens' anywhere except here, or clear indication of when your account will be debited. I don't like queues anyway, and can't see anything to get too excited about. Will wait and see. It may be that it's just me, but I don't understand what the hell they are talking about. Just got an access code to stop me going on about it. What do I do with the access code? and anyway cannot get back onto my account now as I cancelled it in some panic after I put in card details and could not be sure if they had taken money or not. Removed all reference of this site from my computer and will keep a close eye on my bank to see if any money has been taken. Sorry Welendus but please remove all reference of my application and card details from your datebase.
|
|
|
Post by nsiam on Dec 10, 2017 16:40:56 GMT
Like munchydave here p2pindependentforum.com/post/233707 and here p2pindependentforum.com/post/233711 ..... .... I find the sign-up procedure somewhat confusing, and was nervous about handing out card details and pressing an 'invest' button, or inputting an investment amount, when there was no indication if my card would be charged. No mention of 'tokens' anywhere except here, or clear indication of when your account will be debited. I don't like queues anyway, and can't see anything to get too excited about. Will wait and see. Thanks for your feedback Kaya, we will add more description to additional clarity.
|
|
|
Post by nsiam on Dec 10, 2017 16:47:17 GMT
Like munchydave here p2pindependentforum.com/post/233707 and here p2pindependentforum.com/post/233711 ..... .... I find the sign-up procedure somewhat confusing, and was nervous about handing out card details and pressing an 'invest' button, or inputting an investment amount, when there was no indication if my card would be charged. No mention of 'tokens' anywhere except here, or clear indication of when your account will be debited. I don't like queues anyway, and can't see anything to get too excited about. Will wait and see. It may be that it's just me, but I don't understand what the hell they are talking about. Just got an access code to stop me going on about it. What do I do with the access code? and anyway cannot get back onto my account now as I cancelled it in some panic after I put in card details and could not be sure if they had taken money or not. Removed all reference of this site from my computer and will keep a close eye on my bank to see if any money has been taken. Sorry Welendus but please remove all reference of my application and card details from your datebase. munchydave, I can assure you that you have not been charged for anything since you cannot proceed without a token any way. But of course feel free to keep and eye on your statement to confirm. We also do not store any card details on our database. So no need to worry here as well. As mentioned earlier, one of the reasons for the soft launch is to get your feedback. We will take all your comments on-board.
|
|
|
Post by munchydave on Dec 10, 2017 17:05:33 GMT
"I cancelled it in some panic." (my bold). Whoa, a tad over-reactive munchydave , here catch_here's one of my well tested chill pills. Every new venture will have a bedding in period hence the 'soft launch' time so peeps like me and you can help Welendus (Nadeem & his Techies) iron out the niggles, the glitches. Best regards, J. True. Have now calmed down after reading the previous reply from Welendus. May well get back to them and try to make some sense of it all
|
|
|
Post by munchydave on Dec 10, 2017 17:14:18 GMT
It may be that it's just me, but I don't understand what the hell they are talking about. Just got an access code to stop me going on about it. What do I do with the access code? and anyway cannot get back onto my account now as I cancelled it in some panic after I put in card details and could not be sure if they had taken money or not. Removed all reference of this site from my computer and will keep a close eye on my bank to see if any money has been taken. Sorry Welendus but please remove all reference of my application and card details from your datebase. munchydave, I can assure you that you have not been charged for anything since you cannot proceed without a token any way. But of course feel free to keep and eye on your statement to confirm. We also do not store any card details on our database. So no need to worry here as well. As mentioned earlier, one of the reasons for the soft launch is to get your feedback. We will take all your comments on-board. Thanks for the reply. Thanks for the swift reply and feel more happy now to invest with you. I did cancel my account so is it best for me to start my application over again or can you get me back online by reactivating my application
|
|
|
Post by df on Dec 10, 2017 17:43:16 GMT
It may be that it's just me, but I don't understand what the hell they are talking about. Just got an access code to stop me going on about it. What do I do with the access code? and anyway cannot get back onto my account now as I cancelled it in some panic after I put in card details and could not be sure if they had taken money or not. Removed all reference of this site from my computer and will keep a close eye on my bank to see if any money has been taken. Sorry Welendus but please remove all reference of my application and card details from your datebase. munchydave, I can assure you that you have not been charged for anything since you cannot proceed without a token any way. But of course feel free to keep and eye on your statement to confirm. We also do not store any card details on our database. So no need to worry here as well. As mentioned earlier, one of the reasons for the soft launch is to get your feedback. We will take all your comments on-board. I've signed up. Put my card and bank account details in, clicked 'invest', selected the amount, but couldn't proceed any further because I don't know what 'token' number is. Could you explain about this token please? Is it something I will receive later? You've also mentioned direct debit, but it appears that the only choice is depositing funds by card. Is DD facility to arrive at later stage?
|
|
|
Post by nsiam on Dec 10, 2017 18:02:53 GMT
Hi df, we will send you a token soon so you can continue the process.
The direct debit was a typo which I corrected just now. We only accept debit card payment (for free) as this stage which is faster and more agile than direct debit.
Later we will also add a feature to pay directly via your bank app. But this will follow later.
|
|
|
Post by df on Dec 10, 2017 20:14:30 GMT
Just a thought wouldn't a high profile awareness among Borrowers that Welendus operates a capital provision fund not potentially contribute to a higher rate of default? Temptation to be tardy, temptation to chance a runner? Could it be a prudent move to restrict knowledge of this precious resource to the logged in lender only area? Not sure it's the kind of information you can really hide, particularly - although I would suggest that the "public facing" part of a P2P platform's website should really be clearly separated into lenders' and borrowers' focussed areas. That said, direct acquisition of borrowers via the website is likely to be rare - more likely to be via referal, brokers and other channels. In any case, borrowers who think that a provision fund is a bonus for them will be disappointed - in fact a capital-protecting provision fund means that capital losses are much more directly felt by the platform and hence the platform is much more likely to instruct debt collectors than simple write the debt off. (If FS had a provision fund I wonder if we'd still have Whitehaven....I can only dream!)If FS or Ly had a capital-protecting PF they wouldn't last long.
|
|