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Post by Deleted on Feb 22, 2016 0:52:52 GMT
Thank you for your help cooling dude Sorry for my ignorance. I shoudl exsplain that I'm only young and nieve (16) and happy to be told off when needed! I'm only testing the water with £100, not going headstrong yet! my grandmother died last month and left me a lump sum, and I would like to invest it instead of spending it. I think I understand. So really just wait for prefunding loans; if I want £100 I put £100 in each loan, or do I spread the amount accross all the laons? Do i need to deposit the amount first?. The p2p model requires a bit of research. On the secondary market you will find (now) 6-7 loans ready for investment. savingstream.co.uk/loans/availableAfter you click on one of them you will get to the details. You need to study the evaluation and understand if the investment is ok with you. Spread your investment money over multiple loans for lower chances to get defaults (loans here are anyway secured against properties...)
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gt94sss2
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Post by gt94sss2 on Feb 22, 2016 1:07:18 GMT
Sorry for my ignorance. I shoudl exsplain that I'm only young and nieve (16) and happy to be told off when needed! I'm only testing the water with £100, not going headstrong yet! my grandmother died last month and left me a lump sum, and I would like to invest it instead of spending it. I am also sorry for your loss. I applaud your desire to invest/save the lump sum given to you by your grandmother for the future. It shows wisdom for someone so young but please be aware that while the headline interest rate sounds attractive lending via companies such as Saving Stream is not risk free - unlike putting your money in a bank account.. you could potentially lose it all. Also, as you are only 16 you should be aware that their are certain things you are not yet legally able to do - including entering some types of contracts etc. I raise this as the Saving Stream Terms and Conditions include: You will probably find most other P2P companies have similar rules. A top tip when investing money - which you are never to young to learn(but which may ignore) - is to always read and understand the small print/T&C before doing anything - as well as the other research you are currently (and very wisely!) doing - there is no question too stupid to ask 
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Post by dodgeydave on Feb 22, 2016 1:34:02 GMT
Yep; there is usually a lot of activity after midnight. If Investors want access to their money, they usually wait until after midnight to sell on the SM to get that final bit of interest. Try investing £25 in 4 loans with the longest remaining time, and tell us what you get... Thanks for your help. I have invested in the following (£25 each) and have sent the amount to SS PBL060 PBL035 PBL027 PBL025 Should I read the valunation reports and sell what I think is bad loans; is this due dilligence? What about PBL025, is it a bad loan (only 3 days left). Also, what about loans with minus days? I wouldnt worry to much about due dates . Most loans over run. But hopefully this week we will get an email about a new loan going live. It will be under the pipeline loans section. The minimum bid is 100 pounds. So you might want to rethink what you have bought. As the SM is generally very liquid after the launch of a new loan
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Post by dodgeydave on Feb 22, 2016 1:53:34 GMT
I wouldnt worry to much about due dates . Most loans over run. But hopefully this week we will get an email about a new loan going live. It will be under the pipeline loans section. The minimum bid is 100 pounds. So you might want to rethink what you have bought. As the SM is generally very liquid after the launch of a new loan I have invested £25 in 4 loans and now have sent £100 to resolve the negitive amount. Does my £25 bids in these investments not count; do I have to bid at least £100? yes you bids do count.
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freddy
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Post by freddy on Feb 22, 2016 1:55:29 GMT
Yes your purchases count. You can buy at any amount on the SM ( secondary market). If pre funding then the lower limit is £100.
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freddy
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Post by freddy on Feb 22, 2016 2:04:44 GMT
I wouldnt worry to much about due dates . Most loans over run. But hopefully this week we will get an email about a new loan going live. It will be under the pipeline loans section. The minimum bid is 100 pounds. So you might want to rethink what you have bought. As the SM is generally very liquid after the launch of a new loan I have invested £25 in 4 loans and now have sent £100 to resolve the negitive amount. Does my £25 bids in these investments not count; do I have to bid at least £100? What you have purchased will probably be fine. As quoted above, many loans with only a few days to run will probably go over their due date so you will continue to earn your daily interest. In the event that one of your loans settles then you will get your investment + interest back giving you a positive balance. You will then be able to purchase different loans either from the pipeline or from the secondary market (but remember the £100 lower limit on pre-funding) Currently whilst you are working with £100 in £25 blocks this gives you a good opportunity to learn the site and get your head around things on the SM. Well done for investing, I wish my Son had the same attitude. Take things slow, follow the DD advice and enjoy watching your money grow.
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Post by chrisuk on Feb 22, 2016 10:10:17 GMT
Hi Shanectheman.
I started investing with Savingstream a year ago, and like you I was very unsure and nervous. This forum is fantastic and there are many people on here who will help you. Don't be afraid to ask.
I also started with £100 and have gradually built up my investment over the last 12 months. To date, I have not had any problems and I am very happy with Savingstream and the interest I have received.
The Secondary Market is very 'lively' and it can be very difficult to buy any loan parts that investors put up for sale. The flip side of this is if you decide to sell any of your loans you shouldn't have to wait long to get your money!
At the moment I tend to stick to the 'Pre-Funding'. I select which loans I want and wait for them to go live. You do not have to send Savingstream any money at this stage. When the loan goes live you will receive an email and/or text message to let you know how much of the loan you have been allocated. You should then transfer the money to Savingstream who will then email you after approx 24 hours to confirm they have received it.
Like all P2P platforms, you are not protected by the 'Financial Services Compensation Scheme'. So you should be aware that if a borrower 'defaults' you may not get back all of your investment. This is why it is important NOT to put all of your spare cash into one loan. A few years ago I was thinking about investing in Stocks and Shares and was told not to invest more than I could afford to lose. The same rule probably applies here. So far, Savingstream have had one default, but all lenders got their money back 3 months later. It's worth noting that any future defaults may not go as smoothly.
I'm not trying to scare you but I just feel you should be aware that high returns usually involve a certain amount of risk, but with the pathetic interest rates offered by banks and building societies I have decided it's worth the risk.
Good luck.
Chris
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freddy
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Post by freddy on Feb 22, 2016 10:43:10 GMT
Thanks Guys I'm going to do due diligence on each loan tomorow as Cooling Dude sugests and sell and buy again. Any qustiosn I will ask here! Good Night! You may want to consider doing that the other way round. Buy first and then sell. You have 48 hours to clear your negative balance.
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Post by dodgeydave on Feb 22, 2016 11:01:59 GMT
Thanks Guys I'm going to do due diligence on each loan tomorow as Cooling Dude sugests and sell and buy again. Any qustiosn I will ask here! Good Night! You may want to consider doing that the other way round. Buy first and then sell. You have 48 hours to clear your negative balance. Freddy Not sure that is a good idea as he has spent his total investment and is relying on the SM being liquid. Granted at the moment it is
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rogerbu
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Post by rogerbu on Feb 22, 2016 11:38:10 GMT
All the above advice is good.
One extra. As soon as reasonable, diversify across a couple of other platforms. There is always the (very) remote chance of a platform failing.
All UK platforms must be approved by the FCA, although currently due to FCA slowness most only have interim approval. As part of this interim approval they must have a process identified to handle the run out of loans to lenders if the platform went pop'
Moneything (MT), Funding Secure (FS), Ablerate (AR) and Assetzcapital (AC) are generally well regarded on this forum.
Try reading the forums for these and decide on the next platform.
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Post by Deleted on Feb 22, 2016 12:01:16 GMT
A very basic thing to check is what you are lending against.
In some big platforms (say Funding Circle) many loans are towards SMEs which 'promise' to give the money back at monthly intervals (and also add a personal guarantee). In most cases of difficulties those promises and guarantees are worth nothing. My recovery rates on that platforms are pathetic (less than 15%).
So my suggestion is to stick with 'secured' loans, i.e. loans where you get a security to loan against (for example a house or a land, as done in SS).
And if things go bad with the borrower, the platform has the option to sell the security to recover as much as possible (in the case of the only SS default, 100% was recovered).
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Post by dodgeydave on Feb 22, 2016 12:55:31 GMT
Thanks guys I'm going to leave my investment at £100 for 3 months, so that I gte used to the system So I've sold my £25 in PBL025 earlier, as I looked at it and comments on this fourm and I decided about better having loans with longer due date. Im happy with the remaining loans. I've updated the prefunding for the loan, but can only set it at £25. will i be able to sell £75 back on the SM tomorrow? Will SS not get upset.... I think you should state your Mum sold the loan just to be safe. You mean you have set the pre funding on loan PBL081. If so you should be able to sell the other 75 pounds on the SM but there is no guarantee . I think you would be safer buying something on the SM after midnight as i think there will be a lot of selling going on
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Post by dodgeydave on Feb 22, 2016 13:03:33 GMT
I think you should state your Mum sold the loan just to be safe. You mean you have set the pre funding on loan PBL081. If so you should be able to sell the other 75 pounds on the SM but there is no guarantee . I think you would be safer buying something on the SM after midnight as i think there will be a lot of selling going on Do you really think that mum exists; or do you think that this young chap might just be covering his back....  I think he's just getting used to how the platform works, and getting used to the PM & pre-funding is vital to this learning process on SS. Hopefully Mum exists. But maybe not helping. But he has to be careful he does not go over the 100 pound else Mum will be clipping his ear. It is good he is learning and i wish him all the success.
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Liz
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Post by Liz on Feb 22, 2016 13:10:38 GMT
Shane Have you been hacking my SS account again! |
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mikes1531
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Post by mikes1531 on Feb 22, 2016 13:40:31 GMT
Do note that you'll unlikely to get the full £100 (what you have set is the your maximum that you will get), you will instead get a % of that amount; however you should easily get your £25 (your accidentally gaming; but we'll get onto that later!) The above comment applies only to new loans of more than £1M. Loans smaller than that are allocated in a different way, and anyone who pre-funds for £100 will be allocated £100. PBL081 is a 'large' loan, and as long as SS don't change the allocation rules -- which they have done in the past -- everyone will be allocated a percentage of their pre-funding amount. PBL082 is a 'small' loan and all investors pre-funding amounts of about £500 -- or possibly a bit less -- will be allocated all they requested. When setting pre-funding amounts, therefore, it's important to note whether the loan will be for more, or less, than £1M.
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