rogerbu
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Post by rogerbu on Nov 15, 2015 19:05:07 GMT
MoneyThing Ed. As this is your first 'pre bidding' loan (I think). A process question. Assuming we dribble amounts into the loan prior to drawdown. Will we get 1 load ID for everything we have invested upto drawdown (my preference) or will we get multiple small Loan IDs and hence each month multiple small interest payments on the same day? (a PITA)
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webwiz
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Post by webwiz on Nov 15, 2015 19:26:09 GMT
You could consider scrapping the CB (except possibly for those already committed) and offering 35% instant returns payable until and only if the loan draws down. This I think would be cost neutral. It seems you need a headline grabber and 35% might do it.
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david42
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Post by david42 on Nov 15, 2015 19:44:18 GMT
Before considering all options, can I just ask with respect to the instant returns option - for those platforms that offer it, what happens if the loan doesn't fill? I have read the description of how it works on another platform but couldn't ascertain whether this is still paid out in the event the loan does not drawdown. Thank you. Saving Stream pays pre-drawdown interest even if the loan does not fill. The benefit is that loans fill quickly. The drawback is that a significant delay to drawdown of a large loan could create a risk to the platform viability, as discussed on the Saving Stream forum herePredrawn interest is Lendy Ltd’s responsibility and is one of our major, but only costs. It is a risk, in that we don’t necessarily know 100% whether the deal will be completed as was evidenced from the recent PBLS 11, 12 & 13. However, we do try to renegotiate with our borrowers as time goes by if the loans are delayed in legals. We have sufficient capital available to cover many monthly interest payments if neccessary and will continue to do so for the foreseeable future.
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david42
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Post by david42 on Nov 15, 2015 20:04:19 GMT
... perhaps I miss-read the £4.5m of EoI on the other deal ... The 'other deal' offered enough interest to persuade me to move significant funds from other platforms, and invest well over my normal limit. On the other hand for MT282 I am already exposed to this borrower on the Saving Stream platform with a proven secondary market and proven ability to manage such loans through good and bad.
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ablender
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Post by ablender on Nov 15, 2015 20:09:49 GMT
The way I see it is that this loan was going to be a baptism for MT but it is proving to be a baptism of fire just because it happens to be a borrower that already have loans from the same people even if through a different platform. Unfortunately this might be putting MT at a disadvantaged position which might not realistically show what MT can achieve if this particular situation did not arise.
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hendragon
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Post by hendragon on Nov 15, 2015 21:10:42 GMT
Baptism of fire or not I have a feeling that Ed and the chickens will be resourceful enough to get this one to fly  |
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agent69
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Post by agent69 on Nov 15, 2015 21:12:37 GMT
Anyone know why the borrower didn't go back to SS for the second tranche?
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ablender
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Post by ablender on Nov 15, 2015 21:23:26 GMT
Baptism of fire or not I have a feeling that Ed and the chickens will be resourceful enough to get this one to fly I hope you are right.
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ablender
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Post by ablender on Nov 15, 2015 21:24:28 GMT
Anyone know why the borrower didn't go back to SS for the second tranche? No idea. No comments from SS.
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Post by pepperpot on Nov 15, 2015 21:37:32 GMT
Anyone know why the borrower didn't go back to SS for the second tranche? Competitive pricing? Borrower wants to access to multiple funding sources? SS thought £7.6m to one borrower might be too weighty for their investor base?
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star dust
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Post by star dust on Nov 16, 2015 8:30:19 GMT
Agreed. One thing that really ticked off the smaller investors on SS was the infinitely stepped cb (0% for £0, up to 3% for £300k) So that even £25k only attracted a 0.25% bonus (iirc). Seem to remember peanuts were discussed quite widely as being unaffordable and jealousy pointed at the £300k investor(s?). It did however work to bring in the large amounts needed at the time but the fact it hasn't been repeated says something. Ah yes, the peanut loan, and it did indeed work for them in terms of attracting some deep pockets to a large slightly unusual loan. Going forward I would love to see some kind of pre-funding, but I'm not convinced much would be gained with it here. The issue I see is a small lender base and a large muddied (platform lop-siding) property loan. The term loss leader springs to mind, and whilst I'm not suggesting MT makes a loss (especially if it fills), I think a bit more incentivising might help. Perhaps instant interest together with the cash-back and paid regardless in a fortnight might get things moving faster but then MT would need to consider the 'risk' of having to pay this if the loan doesn't fill. I would also suggest an increased cash-back for the deep pockets, say over £100k, Ed mentioned underwriters and if it attracted a few large 'retail' lenders it would probably amount to pretty much the same thing, whilst showing a fast filling loan. For the sake of the Platform generally I hope this does take off, and I aim to 'do my bit', but I should admit I haven't done much of it yet
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Post by Deleted on Nov 16, 2015 8:55:52 GMT
Years ago I took over a buying function which had a large team of untrained buyers. We set them new cost saving targets and role-played with each buyer how to make the first win, we go so good that the "young" buyers knew all the arguments and so always won the deal. Ed it might be good to role play each new type of loan in the office before they go live, while using us-the-cloud is ok it may muck up the company results a bit  |
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merlin
Minor shareholder in Assetz and many other companies.
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Post by merlin on Nov 16, 2015 10:23:20 GMT
I have a sneaky feeling that had this loan come up on SS it would nearly be filled by now without any further incentives!
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SteveT
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Post by SteveT on Nov 16, 2015 10:33:41 GMT
I have a sneaky feeling that had this loan come up on SS it would nearly be filled by now without any further incentives! Frankly it wouldn't have received any cashback on SS and would probably have been launched as a single tranche of £3.5m. 60-70% of that would have been taken up instantly via pre-funding and the rest would have been picked up over the following few days (possibly faster, given the current SS loan famine). It's all down to weight of money and the confidence that lenders have (for the time being at least) that not only do they start earning 12% from the moment they click, there will be willing SM buyers for their parts if/when they want to sell them.
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ablender
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Post by ablender on Nov 16, 2015 10:36:39 GMT
I have a sneaky feeling that had this loan come up on SS it would nearly be filled by now without any further incentives! The situation is different.
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