ablender
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Post by ablender on Mar 15, 2016 7:08:20 GMT
lendingcrowd A new loan has not yet paid any capital or interest. Yet your website is showing that the outstanding principal is less than the capital that I have invested in that loan. Can you please explain in detail how you arrive at this amount? Also, what do you mean by "The outstanding principal is the amount you will receive if you sell the loan-part now. It is updated on a daily basis."? Why should it change on a daily basis? My understanding is that the principal changes whenever there is a payment. 
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SteveT
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Post by SteveT on Mar 15, 2016 10:30:18 GMT
ablender, I think you'd be better off emailing LC customer service as they rarely engage on the forum these days. Heather always responds to emails within 24 hours in my experience, often less.
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ablender
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Post by ablender on Mar 15, 2016 16:09:44 GMT
Sorry for nitpicking ablender but the title of the picture kinda reveals the company name, maybe re-attach after editing what the pic is called? I think no one can read through the blurring. - Aah. got you. I'll do it. Done.
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ablender
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Post by ablender on Mar 15, 2016 16:10:57 GMT
ablender , I think you'd be better off emailing LC customer service as they rarely engage on the forum these days. Heather always responds to emails within 24 hours in my experience, often less. I put this one out here because I would like to hear from other lenders if they are noticing similar discrepancies. Currently I am going through all the statements for transactions on LC and I am finding a lot of differences.
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Post by lendingcrowd on Mar 15, 2016 18:21:39 GMT
Hi ablender, Thanks for your question. The outstanding principal is less than what you have invested in the loan as this company is due to make a repayment today. If you list this loan on the Loan Exchange this is the amount another investor would buy your loan part for. Can you please explain in detail how you arrive at this amount?This amount is calculated on an amortisation basis. With each loan repayment that is made, a portion of the payment is applied towards reducing the principal, and another portion of the payment is applied towards paying the interest on the loan.
"The outstanding principal is the amount you will receive if you sell the loan-part now. It is updated on a daily basis.” If you list this part on the Loan Exchange and it sold today this is the amount of principal that would be repaid to you. We recalculate this on a daily basis as the interest outstanding is calculated daily. For instance if you sold this part in 10 days time (10 days after the interest payment) then you are entitled to those 10 days interest in addition to the outstanding principal. I hope this answers your question. If not, please let us know and we’d be delighted to assist further. Many thanks, LendingCrowd |
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ablender
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Post by ablender on Mar 15, 2016 19:58:51 GMT
Hi ablender , Thanks for your question. The outstanding principal is less than what you have invested in the loan as this company is due to make a repayment today. If you list this loan on the Loan Exchange this is the amount another investor would buy your loan part for. Can you please explain in detail how you arrive at this amount?This amount is calculated on an amortisation basis. With each loan repayment that is made, a portion of the payment is applied towards reducing the principal, and another portion of the payment is applied towards paying the interest on the loan.
"The outstanding principal is the amount you will receive if you sell the loan-part now. It is updated on a daily basis.” If you list this part on the Loan Exchange and it sold today this is the amount of principal that would be repaid to you. We recalculate this on a daily basis as the interest outstanding is calculated daily. For instance if you sold this part in 10 days time (10 days after the interest payment) then you are entitled to those 10 days interest in addition to the outstanding principal. I hope this answers your question. If not, please let us know and we’d be delighted to assist further. Many thanks, LendingCrowd Thanks for your reply. So for the month that is going to be paid, on what amount will I earn interest?
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Post by lendingcrowd on Mar 16, 2016 15:01:13 GMT
Hi ablender, For last month the interest will be paid on the £20. Thanks, LendingCrowd |
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ablender
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Post by ablender on Mar 17, 2016 6:57:09 GMT
Hi ablender , For last month the interest will be paid on the £20. Thanks, LendingCrowd Thanks. That is clearer.
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TheDriver
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Post by TheDriver on May 1, 2016 18:01:37 GMT
Hi ablender , Thanks for your question. The outstanding principal is less than what you have invested in the loan as this company is due to make a repayment today. If you list this loan on the Loan Exchange this is the amount another investor would buy your loan part for. Can you please explain in detail how you arrive at this amount?This amount is calculated on an amortisation basis. With each loan repayment that is made, a portion of the payment is applied towards reducing the principal, and another portion of the payment is applied towards paying the interest on the loan.
"The outstanding principal is the amount you will receive if you sell the loan-part now. It is updated on a daily basis.” If you list this part on the Loan Exchange and it sold today this is the amount of principal that would be repaid to you. We recalculate this on a daily basis as the interest outstanding is calculated daily. For instance if you sold this part in 10 days time (10 days after the interest payment) then you are entitled to those 10 days interest in addition to the outstanding principal. I hope this answers your question. If not, please let us know and we’d be delighted to assist further. Many thanks, LendingCrowd Hi lendingcrowd ;
Regarding the above I notice that the amount of Outstanding Principle shown reduces daily, seemingly pro-rata to the monthly repayment due, which I assume was the general point of ablender 's query.
Your explanation of the interest from the repayment after sale/purchase being shared pro-rata between the parties (presumably at the differing rates applying) is quite clear, thank you. However, it doesn't address the issue of the Outstanding Principle reducing daily. I haven't yet made a sale to confirm this either way, but would assume it is likewise shared?
So would the final sentence of the explanation above more accurately be:
"For instance if you sold this part in 10 days time (10 days after the interest repayment) then you are entitled to those 10 days interest in addition to the pro-rata share of the principal repaid from the next repayment, as well as the outstanding principal at the time of sale." ?
It seems to me that's how it is intended to operate, so hopefully you can see the difference and confirm that.
Thanks
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Post by lendingcrowd on May 11, 2016 11:19:12 GMT
Good afternoon TheDriver, Thank you for your question. The principal is handled the same way as the interest when a loan part is sold. The seller will receive the pro-rata share of the principal from the next repayment, as well as the interest. In the example previously given of a sale 10 days after a repayment, the seller would receive 10 days' worth of principal and interest on the next repayment date. We hope this makes the issue clearer, and if you have any questions please let us know. Kind regards, LendingCrowd |
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TheDriver
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Post by TheDriver on May 16, 2016 11:01:17 GMT
Thanks for confirming that - I'm pleased to finally know that the process is contiguous; previous explanations have omitted the treatment of capital, as noted.
I hope to see this in action shortly as I have just done my first LE listing!
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