mack
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Post by mack on Feb 10, 2017 17:29:40 GMT
No change to website for secondary market. Is it still something they are planning to do? Interested to see if worth investing with them.
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Greenwood2
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Post by Greenwood2 on Feb 11, 2017 10:03:28 GMT
The date seems to keep going back, I was initially told Dec' 16 then Jan' 17 now Feb. But the loans are fairly short term so I'm not too bothered.
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goofy115
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Post by goofy115 on Feb 11, 2017 18:55:13 GMT
Just checked my investments and the option to sell is now available.
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Post by wickedxuk on Feb 11, 2017 22:56:33 GMT
Just checked my investments and the option to sell is now available. Yes and seems effortlessly implemented. No major change to the site. Mobile site needs some work though, but that isn't new. If the SM starts becoming fairly active they may need to make some fixes. Good effort bridgecrowd 👍
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Greenwood2
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Post by Greenwood2 on Feb 12, 2017 8:35:03 GMT
I don't have a 'Sell' button on my first and last loans?
What happens if you press the sell? I don't actually want to sell anything, but it would be nice to know what the process is.
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SteveT
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Post by SteveT on Feb 12, 2017 8:37:48 GMT
Some interesting explanatory notes appear if you click "Sell", which sound fairly well thought through to me. Minimum to sell is still £5000, but partial sales are possible above that level.
However "Principle 2" ("Secondary market requires a discount for loans that are over term...") seems at odds with the rule that loans can only be sold "...up to one month before the expiry of the loan". I have one loan where "The loan term has ended" and there's no Sell button against that one, so it look likes the rule prevails.
Rules
You can sell your investment in part or in whole and your investment may be bought in part or in whole.
Loans can only be sold after one month of the loan has elapsed and up to one month before the expiry of the loan.
Loans can be sold at face value or at a discount in whole or in part.
Interest will stop accruing from the date you put the loan up for sale until the date that it is sold, redeeemed or cancelled.
Loans can be sold at or above the platform minimum of £5,000.00 or your loan allocation (whichever is smaller).
Why these rules? Principle 1: Secondary market will become available after the first month of a new loan. Reason: We want to deter investors from just grabbing loans without doing due diligence and are attempting to “hog” an allocation and then immediately selling them on if they do not like them thereby creating unnecessary admin.
Principle 2: Secondary market requires a discount for loans that are over term, or where interest is rolled. Reason: We do not feel it fair or transparent that investors sell loans to other investors (who maybe new) where the loans are over term or in default and therefore carry more risk that they may not be aware of.
Principle 3: Should you wish to sell your investment you will stop earning interest from the date the loan is up for sale. You can also sell your loan at a discount. Reason: We are trying to find the balance between allowing a secondary market to function for those that require capital back urgently vs those investors that are merely trying to manipulate or game the system.
We want investors to have some security that the secondary market can be used to retrieve their capital back should they need cash quickly. In trying to strike the right balance we have also had to pay attention to the following factors. (i) The imposition of a secondary market (without a deterrent of lost interest) will immediately increase liquidity in the platform as canny investors would seek to sell loans prior to the loan term end. This would mean that there is less liquidity for new loans. It follows that the platform will require a substantial amount of new investors and this would increase marketing and admin costs for us, which will inevitably lead to lower returns for investors. (ii) the loan terms are relatively small (6 months to 1 year) and are not long term investments, therefore investors that require a secondary market in order to retrieve capital after such short period are probably not suitable investors in the platform.
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Greenwood2
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Post by Greenwood2 on Feb 12, 2017 8:43:30 GMT
So my first and last probably fall into the too new and too close to redemption categories.
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SteveT
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Post by SteveT on Feb 12, 2017 9:10:29 GMT
Can anyone see if the selling options for a £10k part (say) are just £10k and £5k, or whether sums in between are possible?
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Post by eascogo on Feb 12, 2017 21:26:12 GMT
... Loans can be sold at or above the platform minimum of £5,000.00 or your loan allocation (whichever is smaller). ... Last July I bought a loan part of £1k. This was allowed as the last remaining portion to complete a loan. I have now put that for sale. Perhaps this is an exceptional case where the £5k minimum rule doesn't apply or else the sale option shouldn't have been available. One of my other loans had less than 30 days to run and the sale option was removed. Will report on what happens.
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SteveT
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Post by SteveT on Feb 12, 2017 22:13:31 GMT
... Loans can be sold at or above the platform minimum of £5,000.00 or your loan allocation (whichever is smaller). ... Last July I bought a loan part of £1k. This was allowed as the last remaining portion to complete a loan. I have now put that for sale. Perhaps this is an exceptional case where the £5k minimum rule doesn't apply or else the sale option shouldn't have been available. One of my other loans had less than 30 days to run and the sale option was removed. Will report on what happens. That's correct. The minimum is £5,000.00 or your loan allocation (if that is smaller than £5,000)
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Greenwood2
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Post by Greenwood2 on Feb 13, 2017 8:47:28 GMT
One on the SM now has 5% discount. Someone keen to sell!
Edit: That one's gone now, it was quite tempting at that.
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seeingred
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Post by seeingred on Feb 14, 2017 23:39:47 GMT
Is anyone else frustrated by the lack of communication re: buying loans on the BridgeCrowd SM?
I had some cash come in today so I bought a £5k loan on the SM just to try it out. I got an email 'investment pending' and three hours later, still within office hours, I was still waiting for confirmation. It was still showing as 'pending'.
As of late this evening I have no email to say if I bought the loan on the SM or not, the pending email was 1pm, it is now 11pm, I have £5000+ still in my e-wallet on BC and all SM loans are purchased. So I am assuming for some reason that after buying a secondhand £5000 loan on the SM I wasn't for some reason allocated it - or even a part of it. Nothing else there to buy either now.
It really does seem they couldn't care less about customer relations.
Complete lack of proper communication regarding the working of the SM. I buy a secondhand loan, it is listed as a pending purchase, I get a pending email. 10 hours later I still don't know if I have bought it wholly or in part.
It makes Saving Stream look positively efficient.
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Monetus
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Post by Monetus on Feb 14, 2017 23:52:01 GMT
Is anyone else frustrated by the lack of communication re: buying loans on the BridgeCrowd SM? I had some cash come in today so I bought a £5k loan on the SM just to try it out. I got an email 'investment pending' and three hours later, still within office hours, I was still waiting for confirmation. It was still showing as 'pending'. As of late this evening I have no email to say if I bought the loan on the SM or not, the pending email was 1pm, it is now 11pm, I have £5000+ still in my e-wallet on BC and all SM loans are purchased. So I am assuming for some reason that after buying a secondhand £5000 loan on the SM I wasn't for some reason allocated it - or even a part of it. Nothing else there to buy either now. It really does seem they couldn't care less about customer relations. Complete lack of proper communication regarding the working of the SM. I buy a secondhand loan, it is listed as a pending purchase, I get a pending email. 10 hours later I still don't know if I have bought it wholly or in part. It makes Saving Stream look positively efficient.Yes 100% agree. I can understand why new loans are allocated as they are to ensure people get a fair slice but I can't see any logical reason why the secondary market isn't real-time. It should be "fastest finger first" with parts automaticallly allocated to avoid this type of situation.
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Greenwood2
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Post by Greenwood2 on Feb 15, 2017 7:26:26 GMT
There is a pecking order in the bidding on the PM, so bidding must involve manual intervention, probably the SM is fairly manual too, it's not geared up for large numbers of loans like some of the platforms, usually only a few a month on Bridgecrowd.
On the PM in can also be very frustrating to get the 'holding' message and then a message the next day to say you didn't get any of the loan, even though there appeared to be availability when you bid. Small loans on the PM are often not worth trying to bid on and all loans on the SM are going to be small. Will have to wait and see how easy it is to bid successfully.
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pom
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Post by pom on Feb 15, 2017 8:00:22 GMT
My guess is that SM allocations may well be slower as they won't exactly have someone sitting waiting for them to turn up, timings will be a lot more random than PM deals. Maybe you will be allocated...maybe not... there was a loan paid back over the weekend so will be a few people with money sloshing around on the platform waiting for something to appear. BC will always be a bit niche I think, has some really good things about it but the website's probably never going to be all singing/dancing......it is what it is really.
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