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Post by busybee on Mar 6, 2024 15:44:19 GMT
Loanpad seems to be increasing their investor base again and the average amount in cash per investor. All good news to me. However what do others consider when in the latest terms and conditions which have just been published state that certain investors will be placed preferentially above the majority of investors in the case of a wind down. I take this to mean the 16 investment partners but I may be incorrect with this
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firedog
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Post by firedog on Mar 6, 2024 15:58:47 GMT
Loanpad seems to be increasing their investor base again and the average amount in cash per investor. All good news to me. Average investment is almost the same as at this time last year (6 March 2023: 16,533; 6 March 2024: 16,643). Over the same period the number of investors has risen 13%: (6 March 2023: 4,709; 6 March 2024: 5,301)
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Post by Ace on Mar 6, 2024 16:39:45 GMT
Loanpad seems to be increasing their investor base again and the average amount in cash per investor. All good news to me. However what do others consider when in the latest terms and conditions which have just been published state that certain investors will be placed preferentially above the majority of investors in the case of a wind down. I take this to mean the 16 investment partners but I may be incorrect with this The text in the email was: We have also included the ability for affiliated companies (i.e. group companies) to invest on the platform on the same terms as investors. The only difference would be in the event of a Wind Down, where the affiliated companies would have the option to withdraw, ahead of investors, any group funds that are required for the management of the Wind Down.
So, it's not the lending partners, but affiliate companies. I.e. companies within the Loanpad group. Reading between the lines, I took this to mean that they wanted to invest (some of) the funds that are required to be set aside for a winddown in Loanpad loans. These are the funds that would be used to maintain the platform during a winddown, so they needed to take priority from the initial repayments during a winddown to pay for its management. Importantly, they could only take priority if needed to fund the winddown.
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Post by paul123 on Mar 6, 2024 16:43:23 GMT
Loanpad seems to be increasing their investor base again and the average amount in cash per investor. All good news to me. However what do others consider when in the latest terms and conditions which have just been published state that certain investors will be placed preferentially above the majority of investors in the case of a wind down. I take this to mean the 16 investment partners but I may be incorrect with this I think it means that a subsidiary or a branch of loanpad will be permitted to invest and will have priority during a wind down of the platform but that priority (to get repayments first) is only so that certain bills/expenses, to aid the wind down,can be paid. While that sounds fine and reasonable, it is a significant deviation from loanpad's USP of the little people being paid first. But then again, if the platform *is* in wind down, or any other kind of discontinuation, bitter experience tells me all promises and plans will go out the window and we will be screwed. We should focus on the viability and legal security/protections of the platform and ignore all mentions of wind down. I don't think the change in itself makes much difference but it would be good to know *why* the change was made.
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Post by garreh on Mar 6, 2024 17:41:57 GMT
The latest terms did kinda come across to me as they are maneuvering themselves for wind-down, which gave me cold feet initially, but have calmed down a bit after contacting them - sounds like these affilate account for only 1% of the loanbook and isn't expected to change much. And conversely, it does show confidence in the platform, as they want to invest their own money, but without compromising a wind-down.
Though I do think it adds a layer of obscurity e.g. if liquidity problems were to arise, the affiliates could step in to patch up the holes temporarily, and paint a false picture everything is well until it's not - then Loanpad get their chunk out essentially risk free at the expense of all other Investors and Lending Partners. On the other hand, it would work in favour for investors as it'll be used to smooth a wind-down (e.g. covering of operational costs)
Loanpad really reminds me of Growth Street, which although did eventually go into wind-down, it was handled with exceptional care and everyone got back 100% within a year. No shady changing of terms like AC/constant fees/long wind-down plan.
I've been impressed with Loanpad, so not overly concerned, but something to ponder I guess
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toffeeboy
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Post by toffeeboy on Mar 7, 2024 10:05:54 GMT
Loanpad seems to be increasing their investor base again and the average amount in cash per investor. All good news to me. However what do others consider when in the latest terms and conditions which have just been published state that certain investors will be placed preferentially above the majority of investors in the case of a wind down. I take this to mean the 16 investment partners but I may be incorrect with this The text in the email was: We have also included the ability for affiliated companies (i.e. group companies) to invest on the platform on the same terms as investors. The only difference would be in the event of a Wind Down, where the affiliated companies would have the option to withdraw, ahead of investors, any group funds that are required for the management of the Wind Down.
So, it's not the lending partners, but affiliate companies. I.e. companies within the Loanpad group. Reading between the lines, I took this to mean that they wanted to invest (some of) the funds that are required to be set aside for a winddown in Loanpad loans. These are the funds that would be used to maintain the platform during a winddown, so they needed to take priority from the initial repayments during a winddown to pay for its management. Importantly, they could only take priority if needed to fund the winddown. Surely this goes against having money set aside to wind down a company. It's great they have confidence on their product and I do too but the wind down money is now no longer set aside it is invested. If everyone stops paying then there is no money to pay the company costs to chase them. I know worst case scenario but that is the point of setting money aside, if loans are still paying then loan pad still has fees coming in and doesn't need money set aside.
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Post by Ace on Mar 7, 2024 15:36:33 GMT
The text in the email was: We have also included the ability for affiliated companies (i.e. group companies) to invest on the platform on the same terms as investors. The only difference would be in the event of a Wind Down, where the affiliated companies would have the option to withdraw, ahead of investors, any group funds that are required for the management of the Wind Down.
So, it's not the lending partners, but affiliate companies. I.e. companies within the Loanpad group. Reading between the lines, I took this to mean that they wanted to invest (some of) the funds that are required to be set aside for a winddown in Loanpad loans. These are the funds that would be used to maintain the platform during a winddown, so they needed to take priority from the initial repayments during a winddown to pay for its management. Importantly, they could only take priority if needed to fund the winddown. Surely this goes against having money set aside to wind down a company. It's great they have confidence on their product and I do too but the wind down money is now no longer set aside it is invested. If everyone stops paying then there is no money to pay the company costs to chase them. I know worst case scenario but that is the point of setting money aside, if loans are still paying then loan pad still has fees coming in and doesn't need money set aside. Note that my comment was based on "reading between the lines", so was pure speculation. Sorry if that wasn't clear. Regardless, if they were to do this I would further assume that they would only put a proportion of the winddown funds into the loans, leaving sufficient funds to start the winddown. Since they only plan to have around 1% of the platform total, and since they would have priority on repayments, they would only need about 2 of the 200 loans to repay to get their full funds out. With average repayments of around 10 to 20 loans per month, even in a dire situation it shouldn't take long for their funds to be fully returned.
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Post by Loanpad on Mar 8, 2024 10:52:36 GMT
Hi we would just like to clarify a few points if we may: - Affiliate companies are only Loanpad Group companies, not any third parties.
- This is to enable the group to invest profits alongside investors, which we believe is a positive signal.
- It is likely to be less than 1% of the overall portfolio for the considerable future, so not a significant proportion.
- We have separate wind-down funds segregated and ring-fenced that are held as cash at all times, in accordance with FCA rules.
- We have been profitable since mid-2021 and we expect that to continue, so we are certainly not anticipating any wind-down.
- Our revenue is ~ 98% derived from our interest margin which would continue even in a wind-down scenario, so there is no prospect of revenue ceasing in that regard, as would be the case if we were reliant on arrangement fees.
- The terms and conditions were updated for complete transparency and to avoid any contagion/concentration risk in a worst-case scenario.
Thank you and please feel free to contact us at support@loanpad.com if you have any queries
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Post by Ace on Mar 8, 2024 21:23:02 GMT
Another milestone was passed today: over 600 loans created.
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Post by busybee on Mar 9, 2024 14:03:49 GMT
Yes they seem to be doing extremely well at the moment.
I was particularly pleased that Loanpad had posted on here and explained their position regarding their latest terms/conditions. It just proves how solid the company are and how they are quickly on to answer any investor queries/concerns. Both my wife and I have considerable sums invested with Loanpad and together with 4th Way etc. think this is the best investment out there for our particular needs. Yes you can get better interest from other companies but I am looking predominately for safety with our funds. Needless to say this is an investment and not a savings account and hence they are required by FCA rules to warn investors that the first £85,000 of savings are not covered as are most saving accounts.
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Post by willsmithgrrrr on Mar 12, 2024 0:41:00 GMT
Hi we would just like to clarify a few points if we may: - Affiliate companies are only Loanpad Group companies, not any third parties.
- This is to enable the group to invest profits alongside investors, which we believe is a positive signal.
- It is likely to be less than 1% of the overall portfolio for the considerable future, so not a significant proportion.
- We have separate wind-down funds segregated and ring-fenced that are held as cash at all times, in accordance with FCA rules.
- We have been profitable since mid-2021 and we expect that to continue, so we are certainly not anticipating any wind-down.
- Our revenue is ~ 98% derived from our interest margin which would continue even in a wind-down scenario, so there is no prospect of revenue ceasing in that regard, as would be the case if we were reliant on arrangement fees.
- The terms and conditions were updated for complete transparency and to avoid any contagion/concentration risk in a worst-case scenario.
Thank you and please feel free to contact us at support@loanpad.com if you have any queries To be fair nobody at any time ever expects a windown otherwise there be no investors! Always expect and plan by multiple platform /loan diversification is probably best strategy Loanpad one of the better run P2P without a shadow of a doubt
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Post by Ace on Mar 28, 2024 20:43:26 GMT
Loanpad hit 200 extant loans for the first time today. So, on average less that 0.5% of each lenders' capital is invested in each loan (less than 0.5% because a small proportion of funds are not allocated to loans). We'll done LP, that's exceptionally good diversification.
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