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Post by The Money Platform on Nov 10, 2016 16:55:23 GMT
Hi Everyone,
My name is George Huntley and I am a team member at The Money Platform (themoneyplatform.com/lender) - the UK's first P2P platform for short-term unsecured personal loans. We launched a few weeks ago and are now open for new lender registration.
Our story began in 2015 when we joined the FCA's Project Innovate incubator programme with a mandate to disrupt the short-term lending market through the P2P model. We launched in late September 2016 and are continuing to grow at some pace - we hope some of you can be part of our growth and enjoy some of the great interest rates on offer at The Money Platform.
A few of our key features include: - Direct P2P: lenders directly fund individual borrowers for loans of £250-£1000 - Returns on investment: funds lent out at 0.3-0.7% per day (our fee is taken from this return - see our website for more details) - Sophisticated credit decision engine: we have worked hard to create a platform which aims to lend to creditworthy customers with short term cash needs
We are really keen to listen to, interact with and learn from our new lenders - please do get in contact if you have any questions at all.
We would love it if members from this forum became lenders with The Money Platform and help us to ethically disrupt the short term loan market - we hope to attract savvy, risk aware lenders.
Our website can be found here: themoneyplatform.com/lender
Thanks,
The Money Platform teamFCA Regulated Short term personal loans (£250-£1000) Competitive interest rates Find out more at: themoneyplatform.com/lender
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djpix99
Member of DD Central
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Post by djpix99 on Nov 10, 2016 17:35:44 GMT
Having signed up to take a look, I can see that you have to supply the full £250-1000 to a borrower, so diversifying your funds across 10 loans would mean you need to invest a minimum of £2500. Not sure if I fancy that.
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Post by The Money Platform on Nov 10, 2016 17:36:46 GMT
That is an annualized rate of 255.5%. Though lenders would be highly unlikely to receive such a high return due to void periods and the potential for delayed payment/defaults.
Our loan lengths are between 3 and 12 weeks (so no borrower could ever repay anywhere near 255.5%), interest is paid on the principal and does not compound, the principal and the interest is paid at the end of the loan.
Worth pointing out also that so far lenders have been selecting to lend at interest rates at our lower end in order to ensure their loan offers are filled.
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Post by The Money Platform on Nov 10, 2016 17:42:13 GMT
Hi djpix99 - that is correct, at the moment we are a direct P2P model and so lenders would be wise to diversify their risk to individual borrowers
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nush
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Post by nush on Nov 10, 2016 17:43:30 GMT
wont let me register without a house number, the house name section fills in ok but wont let me move to the next page.
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nush
Member of DD Central
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Post by nush on Nov 10, 2016 17:45:13 GMT
Having signed up to take a look, I can see that you have to supply the full £250-1000 to a borrower, so diversifying your funds across 10 loans would mean you need to invest a minimum of £2500. Not sure if I fancy that. doesnt matter, without diversifying this site wouldnt be for me
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
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Post by Neil_P2PBlog on Nov 10, 2016 17:55:09 GMT
I had a look, am I right in thinking that the platform fees are 35% of interest?
Are there any stats on default rates? How many loans have been funded so far, in £?
Update: Have seen elsewhere on the site that the fees are indeed 35%.
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Post by webbski9 on Nov 10, 2016 18:25:33 GMT
Verification email doesn't work ... Only fault messages ?
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adrianc
Member of DD Central
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Post by adrianc on Nov 10, 2016 18:28:28 GMT
Our loan lengths are between 3 and 12 weeks (so no borrower could ever repay anywhere near 255.5%) Woah up. That's not quite true, is it? Even if they only borrow it for one day, that IS 255.5% annualised. Sure, it's not 255.5% of the principal, but... So let's look at some rough numbers. Let's say I lend somebody a grand through your platform for 60 days at 0.6%/day. They pay £6/day interest, of which you take £2 as your fee. They repay £1,360, I receive £1,240. 7% predicted default rate. So in very rough numbers, if I make 14 £1000 loans for 60 days, one is expected to go south (7.14% default rate - it'll do for the illustration), I'd lend £14,000 and receive back (13x£1,240)=£16,120 - or 132.5% XIRR over the period lent, or 44% if the default rate is twice the expected. Yet you give an estimate of 12%. Assuming you're assuming 40% tax, that's 20% before tax. OK, the 6% is towards the higher end of the interest. Let's halve it, and go for the bottom end - 0.3%/day. So I receive £1,120 after 60 days. One of 14 goes south. £14,560 return = 26.45%. Much nearer your estimate, but still above it. Is your estimated return including periods of unlent money? What if/when a borrower doesn't repay? Obviously, there's no PF, but does your £120 fee include full debtor management, right up to enforcing a CCJ or bankruptcy? Can borrowers roll their loans over? I'm presuming all borrower and lender IDs are anonymised to the other party, but how much pre-loan information is available on borrowers? BTW - the example on your lender front page is rather glaringly wrong. If I lend £1,000 for three weeks, I don't earn £1095.55. £1,000 of that was mine to start with - I've actually earnt £95.55.
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Post by mrclondon on Nov 10, 2016 18:49:48 GMT
The Money Platform its good to see another attempt to crack the p2p payday loan model, with the previous attempts by "The Lending Well" and more recently "Invest & Borrow" (the Wonga subsidiary) both concluding fairly rapidly that it wasn't an easy segment of p2p in which to generate a workable model. Admittedly since the demise of these two platforms, the introduction of capital loss relief against interest makes a high interest / high capital loss model slightly more palatable. I'm intrigued that your pre-launch market research on the lender side of the equation led you to a model that requires a high £££ per loan, given the loans are unsecured, and high default rates are to be expected in this market segment. I.e. you appear to be targetting HNWI rather than retail lenders. EDIT: The published expected default rate of 7% is MUCH lower than that assumed by the payday industry, this analysis of the failure of The Lending Well suggests 10 to 20% is a more typical range.
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adrianc
Member of DD Central
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Post by adrianc on Nov 10, 2016 19:02:51 GMT
EDIT: The published expected default rate of 7% is MUCH lower than that assumed by the payday industry, this analysis of the failure of The Living Well suggests 10 to 20% is a more typical range. If we go with that 0.6% interest rate, then... 7% = 1 in 14 loans = 132.5% return 14% = 2 in 14 loans = 26.45% 21% = 3 in 14 loans = -21.67% Ouch...
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
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Post by Neil_P2PBlog on Nov 10, 2016 19:17:31 GMT
If I go to make an offer it says "The offer will be not active due to insufficient funds in your wallet".
So, does that mean if I have just £250 to invest, I can only make an offer on one loan term? Or could I put 5 offers at 0.3% on loan terms from 3 weeks to 12 weeks, and once one matches my other 4 loan offers will disappear?
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Post by kamstra on Nov 10, 2016 21:58:48 GMT
New to this forum, and generally new to the world of p2p lending, but just wanted to share my (n=1, I know) experience with this lender. Early days for these guys, but I tried them out with their smallest loan of £250 and had a good experience. I lent out: £250 For 3 weeks At 0.4% interest per day Three weeks later, my borrower repaid the loan. After The Money Platform took their £7.35 fee, I received back £263.65. So I made 5.5% on my money in 3 weeks, not bad It’s clearly higher risk than some other options, but at these returns I will probably continue to invest a small amount of my overall peer to peer portfolio with these guys.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
Posts: 355
Likes: 209
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Post by Neil_P2PBlog on Nov 10, 2016 22:04:02 GMT
Great to hear from a lender kamstra. How did you decide to lend at 0.4% as opposed to 0.3-0.7? Did you just choose one at random? How long were you waiting between making a lending offer and having the money lent out?
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Post by kamstra on Nov 10, 2016 23:14:37 GMT
Great to hear from a lender kamstra . How did you decide to lend at 0.4% as opposed to 0.3-0.7? Did you just choose one at random? How long were you waiting between making a lending offer and having the money lent out? So the cool thing is that you can see, when making an offer, how many offers are currently outstanding at what %. On that basis I decided to lend at 0.4% for 3 weeks, hoping to optimise my chances to match with a borrower. I think I waited about 4-5 days after I made cash available in my account before I matched with a borrower. Not bad
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