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Post by flobberchops on Mar 29, 2016 19:46:28 GMT
Oh, go on then, I suppose I could spare some investment cash. Thanks for the bonus MT
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ben
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Post by ben on Mar 29, 2016 20:57:49 GMT
I see that the short term effect is to increase (not decrease) the cash value of loans for sale. The amount outstanding on the cashback loans is reducing, but the amount available on other loans is increasing faster. I suspect people are trying to release money to put into the cashback loans. that does not matter to MT as extra money is going into the site as the ones people are selling others need to fund the account to buy, seems to have made a fair dent in it. Would also guess a lot of the loan payed back tommoroow will go into and with it being payday for most people soon will probably clear the rest
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SteveT
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Post by SteveT on Mar 29, 2016 21:18:39 GMT
Those pulling funds out of SS / FC / etc. today won't receive them until tomorrow morning at the earliest. I doubt there will be much (if anything) left by tomorrow night.
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ben
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Post by ben on Mar 29, 2016 21:22:27 GMT
there will be a lot of people trying to sell this loan further down the line although with the long term I am sure quite a few new people will want a bit when they join so as long as MT keeps expanding it should sell
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jonah
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Post by jonah on Mar 29, 2016 21:25:46 GMT
Less than 5k to go till the first loan is full. Ed MoneyThing when is the snapshot for cashback taken? Immediately at full for the first loan or both Bolton or even all three? Also will the SM open for the first loan before the 2nd is full? Depending on how you have planned this, a few people could buy on SM for example expecting cashback but miss it, or sell on SM too soon and miss out that way?
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Post by MoneyThing on Mar 29, 2016 21:39:46 GMT
Less than 5k to go till the first loan is full. Ed MoneyThing when is the snapshot for cashback taken? Immediately at full for the first loan or both Bolton or even all three? Also will the SM open for the first loan before the 2nd is full? Depending on how you have planned this, a few people could buy on SM for example expecting cashback but miss it, or sell on SM too soon and miss out that way? Evening. The CB trigger is locked as soon as the loan fills. When the 1st Bolton Loan fills, the title will automatically rename to (CLOSED for 1% Cash Back Offer). In addition, the sell link will also not be available until such time as the 2nd Bolton Loan fills (to mitigate the risk of lenders immediately selling down the 1st one and allowing unsuspecting new lenders taking it up thinking there is still CB available). Once the 2nd Bolton Loan fills, the CB will be credited to lender's accounts for both Bolton loans. Then when the AE loan has filled, the CB will be credited for this loan and then the sell link will be made available. When this is all complete, the '(CLOSED for 1% Cash Back Offer)' will remain in the title for a few days. Kind regards, Ed
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jonah
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Post by jonah on Mar 29, 2016 21:43:55 GMT
Less than 5k to go till the first loan is full. Ed MoneyThing when is the snapshot for cashback taken? Immediately at full for the first loan or both Bolton or even all three? Also will the SM open for the first loan before the 2nd is full? Depending on how you have planned this, a few people could buy on SM for example expecting cashback but miss it, or sell on SM too soon and miss out that way? Evening. The CB trigger is locked as soon as the loan fills. When the 1st Bolton Loan fills, the title will automatically rename to (CLOSED for 1% Cash Back Offer). In addition, the sell link will also not be available until such time as the 2nd Bolton Loan fills (to mitigate the risk of lenders immediately selling down the 1st one and allowing unsuspecting new lenders taking it up thinking there is still CB available). Once the 2nd Bolton Loan fills, the CB will be credited to lender's accounts for both Bolton loans. Then when the AE loan has filled, the CB will be credited for this loan and then the sell link will be made available. When this is all complete, the '(CLOSED for 1% Cash Back Offer)' will remain in the title for a few days. Kind regards, Ed Sounds like you have thought it all through
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registerme
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Post by registerme on Mar 29, 2016 22:09:21 GMT
Evening. The CB trigger is locked as soon as the loan fills. When the 1st Bolton Loan fills, the title will automatically rename to (CLOSED for 1% Cash Back Offer). In addition, the sell link will also not be available until such time as the 2nd Bolton Loan fills (to mitigate the risk of lenders immediately selling down the 1st one and allowing unsuspecting new lenders taking it up thinking there is still CB available). Once the 2nd Bolton Loan fills, the CB will be credited to lender's accounts for both Bolton loans. Then when the AE loan has filled, the CB will be credited for this loan and then the sell link will be made available. When this is all complete, the '(CLOSED for 1% Cash Back Offer)' will remain in the title for a few days. Kind regards, Ed Sounds like you have thought it all through Agreed, it's good to see it well thought through ahead of time. Equally, examples like this could, and should, serve to be pro forma for the next time such an occasion arises - there's no point asking questions that have already been asked AND answered .
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nick
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Post by nick on Mar 30, 2016 8:58:41 GMT
The 1% cashback has led me to double my bids and I would have bid more if not for concentration risk. As mentioned by someone earlier in the thread, the non-taxing of CB inducements adds significant further value.
On the subject of tax, given the recent reduction in CGT rates, is there an opportunity structure some of these loans as repos or zero coupon debts. For example, an additional rate tax payer who is able to characterise the return as a capital gain versus interest would their net income after tax by more than 45% (a higher rate tax payer by 33% and basic rate payer - neutral, assuming all allowances have been utilised). Food for thought?
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stevio
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Post by stevio on Mar 30, 2016 9:28:43 GMT
Just wondering peoples thoughts on how they feel these loans with CB compares to the AB loan at 13% at the moment?
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SteveT
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Post by SteveT on Mar 30, 2016 9:34:52 GMT
Just wondering peoples thoughts on how they feel these loans with CB compares to the AB loan at 13% at the moment? I view both (Bolton and the Ablrate loan) as amongst the better options around currently. Happy to buy & hold both, but I'll need to reduce my CB-induced overexposure to Bolton in due course
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Investboy
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Trying to recover from P2P revolution
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Post by Investboy on Mar 30, 2016 10:08:34 GMT
I appreciate the cashback and increased my bids in those loans and used up all my available cash. Will probably need to top up for the upcoming loans.
I like MT's approach that everyone gets a bonus/cashabck not only BH-ers like on FS
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nick
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Post by nick on Mar 30, 2016 10:09:05 GMT
Just wondering peoples thoughts on how they feel these loans with CB compares to the AB loan at 13% at the moment? I think the CB provides far more value as (i) it is not taxed, (ii) the effective rate will be much higher if you sell down within a year and (iii) it has superior security in the form of property (ie charges are registered at land registry versus contractual/Companies House disclosed charge in the case of non property assets). However, the best bet is probably to spread money across both to lessen concentration risk both in terms of borrowers and platform.
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spiral
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Post by spiral on Mar 30, 2016 10:14:49 GMT
As mentioned by someone earlier in the thread, the non-taxing of CB inducements adds significant further value. Do we know definitively that this is the case? I know Zopa always used to handle CB as taxable. Not sure if they still do.
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SteveT
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Post by SteveT on Mar 30, 2016 10:20:11 GMT
As mentioned by someone earlier in the thread, the non-taxing of CB inducements adds significant further value. Do we know definitively that this is the case? I know Zopa always used to handle CB as taxable. Not sure if they still do. Funny Computations' commentary on the subject: " Taxation of cashback
In certain circumstances Funding Circle offers cashback to investors. The cashback is considered an inducement to enter into a transaction and is received as a direct consequence of having made the loan. Cashback promotions are not normally treated as income and are not subject to income tax or deductions."
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