ben
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Post by ben on Jan 8, 2016 20:13:38 GMT
On the website it stated interest would be paid from 7th Jan but is still showing on my page as to be activated, so now it funded do we have to wait longer?
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kermie
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Post by kermie on Jan 8, 2016 21:25:43 GMT
I had assumed that activation (i.e. the deal is signed and cash transferred) is different to when interest starts to accrue (normally these are the same date on FS).
In this case FS decided to take a small risk and start to accrue interest from 7th to encourage lenders to fill their boots and get this loan out the door.
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mikes1531
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Post by mikes1531 on Jan 9, 2016 3:36:17 GMT
I know the note on the loan only refers to interest being paid from the 7th, but I thought FS said -- possibly in an email announcing the 7/Jan date -- that the loan would complete/drawdown on the 7th.
It probably doesn't matter to us, though. On numerous occasions in the past a loan has been activated after interest started. In those cases, when the loan appears in our lists of current loans it won't start at 0 days elapsed. For instance, if this one is activated on Monday, I'd expect it to make its appearance on my list showing four days active.
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ben
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Post by ben on Jan 9, 2016 8:12:33 GMT
thanks for that was just wondering
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tomtom
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Post by tomtom on Jan 9, 2016 11:50:03 GMT
Just as matter of interest when will interest on this loan start being paid into my account , is monthly or at the end of the loan period?
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jonno
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nil satis nisi optimum
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Post by jonno on Jan 9, 2016 11:59:26 GMT
Just as matter of interest when will interest on this loan start being paid into my account , is monthly or at the end of the loan period? All interest on FS loans is paid at the end of the term whether repaid or renewed.
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mikes1531
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Post by mikes1531 on Jan 9, 2016 15:40:11 GMT
Just as matter of interest when will interest on this loan start being paid into my account , is monthly or at the end of the loan period? All interest on FS loans is paid at the end of the term whether repaid or renewed. I suppose I'm being pedantic here, but the interest is paid when FS receive the money. - If the borrower repays early, then it's paid early. And if it's paid very early -- as happened with a loan last week -- a minimum of 30 days' worth of interest is paid.
- If the borrower renews the loan, then it's usually paid on the morning of the day the renewal loan is opened for investment. That could be as early as the end of the initial term -- or possibly even earlier if the borrower wants to change the amount of the loan -- but more often than not it's at least a week after the end of the term because borrowers tend to wait until FS chase them for their intentions and then FS have to wait for the renewing borrower to send the necessary money.
- If the borrower does not repay or renew, then it can be a while before interest is paid -- presuming, of course, that the security can be sold for enough to repay lenders' capital, FS's fees, and have enough left over to pay the accrued interest. It's uncommon for borrowers to let FS know in advance that they won't be repaying. They're more likely to to say they intend repaying/renewing and leave FS -- and us -- waiting for them to send the money. (Maybe they're hoping they'll win a lottery prize while we're waiting that will allow them to repay?) When FS decide a security sale is necessary, it can be relatively quick -- for items that are reasonably common and easy to sell -- or it can take months -- for unusual items that have to be sold via specialist sellers. Examples of the latter include artwork, antiques, and musical instruments. If the Italian books were to need selling, it could take some considerable time. (One of those loans currently is nearly a month overdue while the "borrower is awaiting a transaction to clear which will allow them to repay this loan".)
HTH
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jonno
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Post by jonno on Jan 9, 2016 15:57:06 GMT
All interest on FS loans is paid at the end of the term whether repaid or renewed. I suppose I'm being pedantic here, but the interest is paid when FS receive the money. - If the borrower repays early, then it's paid early. And if it's paid very early -- as happened with a loan last week -- a minimum of 30 days' worth of interest is paid.
- If the borrower renews the loan, then it's usually paid on the morning of the day the renewal loan is opened for investment. That could be as early as the end of the initial term -- or possibly even earlier if the borrower wants to change the amount of the loan -- but more often than not it's at least a week after the end of the term because borrowers tend to wait until FS chase them for their intentions and then FS have to wait for the renewing borrower to send the necessary money.
- If the borrower does not repay or renew, then it can be a while before interest is paid -- presuming, of course, that the security can be sold for enough to repay lenders' capital, FS's fees, and have enough left over to pay the accrued interest. It's uncommon for borrowers to let FS know in advance that they won't be repaying. They're more likely to to say they intend repaying/renewing and leave FS -- and us -- waiting for them to send the money. (Maybe they're hoping they'll win a lottery prize while we're waiting that will allow them to repay?) When FS decide a security sale is necessary, it can be relatively quick -- for items that are reasonably common and easy to sell -- or it can take months -- for unusual items that have to be sold via specialist sellers. Examples of the latter include artwork, antiques, and musical instruments. If the Italian books were to need selling, it could take some considerable time. (One of those loans currently is nearly a month overdue while the "borrower is awaiting a transaction to clear which will allow them to repay this loan".)
HTH I assumed the question was put in general terms setting out the difference between FS and the likes of SS and MT. But you've certainly covered all bases! 
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