mullet
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Post by mullet on Sept 6, 2017 10:52:48 GMT
Just discovered my priority rate order had been sat unmatched for 15 days after reading this thread. I can't believe someone has actually designed such a system. For the sake of 0.1% just have a single queue and stop P**sing off all your customers. I think my Growth Street has hit a dead end GS have confirmed that the since I have now cancelled my 15 day order and resubmitted at a lower rate, the 15 days will never make it into their statistics ..very convenient
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Post by j2o on Sept 7, 2017 8:04:36 GMT
Lowest rate is now 5.7% so you may want to cancel higher orders and relist. By my observations it has taken ~2 weeks for the market rate to drop 0.1%. That would suggest to me that nearly all filled orders are at the priority rate. Looking at www.growthstreet.co.uk/lend-order-statistics the queue is currently (as of 7am today): - £615K at 5.7% <--- new priority rate - £600K at 5.8% <--- last priority rate, assume orphaned as new priority rate orders undercut - £1.266M at 5.84% <--- assume current market rate? - £144K at 5.9% <--- older priority rate orders out of the money, will never be lent unless cancelled - £15K at 6.0% - £97K at 6.1% The current loan book they give as £8.2M vs £2.7M waiting (so £10.9M total currently in/on market) - or about 33% oversupply / 10 days wait every 30 days - if rate wasn't taken into account, and loan book doesn't grow. The priority rate (if actively managed by cancelling and replacing orders when necessary) allows people to jump the queue by placing orders below market rate. That could be new money joining the platform, or money being reinvested when loans are repaid, which either lands in 5.7% (priority), 5.84% (market) or in holding accounts if not set to be reinvested. I think at this stage we have to assume the market rate money is never/rarely used. We know this because some money at previous priority rates gets orphaned (i.e. the 5.8%, 5.9%, 6.0% & 6.1% buckets). But if loan growth exceeds investor supply, the market rate money would get used. However the market rate money is only about 11% so would do little to slow the decrease in the market rate.
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Post by synchrony on Sept 7, 2017 9:32:12 GMT
I've been watching this thread with interest.
I've now had enough of Growth Street and withdrawn 80% of my money. I can't be bothered with such a poorly designed system. With the cash drag and need to keep checking to see if the Priority rate has changed or not, I can do better elsewhere with less effort.
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littleoldlady
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Post by littleoldlady on Sept 7, 2017 10:10:43 GMT
I've been watching this thread with interest. I've now had enough of Growth Street and withdrawn 80% of my money. I can't be bothered with such a poorly designed system. With the cash drag and need to keep checking to see if the Priority rate has changed or not, I can do better elsewhere with less effort. Where are you going?
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carolus
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Post by carolus on Sept 7, 2017 11:52:46 GMT
I've been watching this thread with interest. Lucky you. It seems as if most of the rest of us have been watching it *without* much interest!
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Post by synchrony on Sept 10, 2017 10:38:53 GMT
I've been watching this thread with interest. I've now had enough of Growth Street and withdrawn 80% of my money. I can't be bothered with such a poorly designed system. With the cash drag and need to keep checking to see if the Priority rate has changed or not, I can do better elsewhere with less effort. Where are you going? I've bought some individual shares (only a small amount - I've only just started doing this, so for me it's certainly high risk but more fun), and also put some in Collateral. I am only small fry on any platform though. I may well have another look at FC in the future.
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ding
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Post by ding on Sept 15, 2017 10:53:06 GMT
On market 9th, invest 15th (5.7 current priority rate).
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k6
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Post by k6 on Sept 15, 2017 13:29:28 GMT
It is a 2 weeks for me at priority rate. Still waiting. What's the point.
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r00lish67
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Post by r00lish67 on Sept 15, 2017 13:35:58 GMT
It is a 2 weeks for me at priority rate. Still waiting. What's the point. You'll be waiting an awful long time due to the orphaning problem that j2o highlights above. You need to cancel your orders and re-place them (or just use the chance to wdraw from GS). I am really surprised that they've decided to continue to ignore the problem. Really not on to allow investors who have selected to have their funds invested as a priority to be totally hung out to dry.
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Post by nesako on Sept 22, 2017 9:13:47 GMT
Priority rate, took 5 days to invest (£50 repayment)
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shimself
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Post by shimself on Sept 22, 2017 9:27:29 GMT
email 19 Sep
Dear all,
Since opening our doors to individual investors at the end of last year, over 1,400 investors have opened a Growth Street lending account. More than £10 million is currently being lent through our platform. It’s been fantastic to see the popularity of our offering to investors, but this has had some negative consequences for the lender experience in recent weeks.
An overwhelming volume of people looking to invest in growing businesses has led to an imbalance in lender supply and borrower demand. Substantial growth in our portfolio of borrowing businesses has still been outpaced by new investment from lenders, resulting in falling Market / Priority Rates. This has led to increases in the time it takes for lenders’ money to be matched with borrowers.
Below are a few steps that we have taken - and are taking - to rectify these issues.
Actions we’ve taken
Limited flow of new lenders
We’ve stopped marketing our product and offering bonuses to new lenders. We’ll only begin encouraging new lenders to join the platform when lender supply is balanced with borrower demand again.
Increased visibility on time to match (and other statistics)
Last month, we released our new Lend Order Statistics page, which shows how much money is currently placed at each rate. It also details average historical times to match, broken down by month. You can find that page here.
Actions we are taking
Introducing rate change notifications
We plan to set up rate change notifications in the coming weeks. This means that when our platform rates change, lenders will automatically be notified via email. This should make it easier for you to manage your money on Growth Street.
Increasing portfolio of borrowers
Our commercial team is busily expanding the number of businesses that borrow through Growth Street. We have always vetted potential business customers extremely carefully, and this will not change. To date, the majority of our borrower growth has been generated organically through word of mouth and referrals. To complement this and to accelerate growth, we have recently launched new business development channels, which should help reduce times to match for lenders.
What this means for you
While there is an excess of liquidity on the platform, lenders will continue to see longer wait times for money to be matched. You may wish to wait until borrower demand has picked up before increasing the amount you lend on the platform. Rest assured that we will notify all lenders of any future changes to the situation as soon as they occur. In the meantime, please continue to check your dashboard and monthly statements to make sure you’re up to date with the performance of your investment.
Please get in touch if you have any questions, suggestions or feedback. We’re confident that the measures we’re putting into place should help give lenders a better service and experience.
Kind regards,
- the Growth Street team
Have you noticed that when you get apology letters from big companies (eg talktalk) they are signed personally be head honcho, when you get the same from micro businesses they are signed by the entire team (of 1?)
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ben
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Post by ben on Sept 22, 2017 9:42:46 GMT
At least they have accepted that they have issues, for a company it is a good issue to have but they still need to manage it so not to lose all there investors.
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shimself
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Post by shimself on Sept 22, 2017 9:46:43 GMT
At least they have accepted that they have issues, for a company it is a good issue to have but they still need to manage it so not to lose all there investors. An issue raised in May.
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m2btj
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Post by m2btj on Sept 22, 2017 12:05:45 GMT
I've been pulling cash out after delays reinvesting at Priority Rate. I'm better off moving the money into instant investment with AC 30 days notice account.
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littleoldlady
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Post by littleoldlady on Sept 22, 2017 17:22:25 GMT
I've been pulling cash out after delays reinvesting at Priority Rate. I'm better off moving the money into instant investment with AC 30 days notice account. A number of us have, which seems to have suited GS in their re-balancing up to now, but the email may suggest that they are near completing that objective.
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