spyrogyra
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Post by spyrogyra on Nov 16, 2013 20:56:55 GMT
I've written to Isepankur twice pointing out some of the platform's weaknesses and though they said that they will look into these issues, after 3 months there's still no change. Another platform concerned with growth more than facing the current imperfections of the system.
1. Once a loan part is put for sale, it can not be withdrawn for a month. Changes to the sale price can't be made too.
2. Quite often the borrowers outstanding loans present an inaccurate picture - the debt-to-income ratio assumes the new loan will repay outstanding loans. Sometimes, there are blank spaces in the monthly repayments of outstanding loans.
3. One can't trace easily which of his own loan parts have been sold
4. Very often the bidding process is made impossible especially when a good looking loan apears on the platform. The system spews a message in Estonian saying there's a "small problem" which will be resolved quickly. Ususally it is "resolved" after the loan is funded. During this time, the platform responds fine on its other functions.
5. There's no automatic settlement for the fees owed to the platform after each sale on the secondary market during the day. The automatic settlement takes place at midnight, so if someone has sold a part, needs to go to invoices and pay the fee before placing any further bids. That's very annoying especially when feeding into a loan.
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Nov 17, 2013 14:10:49 GMT
I think maybe some of the things you mention have been changed now.
1. You can cancel a resale immediately after placing it if you wish to and resubmit it with different %.
3. In your list of investments you can search for sold investments using the filter, which gives you a list of those showing when they were sold.
4. If that happens it is because the profiles are first to bid and you cannot place a manual bid until they have finished. Frequently popular loans will be fully subscribed by the profiles, so that quick loans are not available. It is necessary to have a very low profile offer, maybe around 10%, to get into a small A1000 quick loan even though it will still pay 28%. If you do that you may well end up with timed loans only paying 12% as well.
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james
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Post by james on Nov 17, 2013 14:53:40 GMT
1. From the day the resale capability was introduced it has been possible to click on the X at the right of your own loans in the list of loans for sale to cancel the listing. You cannot edit the offer, you must cancel and resubmit. You can't do this from your list of investments, there it's just shown as for sale. To find the loan, copy the borrower account ID and use that to search the list of loans for sale by borrower.
2. When the borrower applies, they can indicate that it is their intention to repay certain loans. I think that isePankur may actually do this for them, so they do not get a choice about it, but I am not certain. It is somewhat moot because someone who has credit can probably get it again so it actually provides little extra protection. Yes, sometimes there is no information about the monthly payment, particularly if the plan is to repay the loan. Sometimes you will also find that the country does not match the city of the applicant, so far usually only with a few loans to those who give a Finnish city as their residence but have Estonia as a country. Unfortunately Estonia-only profiles will lend to these Finnish borrowers.
3. In your list of investments use the Resale choice just above the Search button and choose "Sold investments". It was a known bug that the "Purchased investments" choice didn't work but it does now. If you want to go from your account statement to find out which loan was sold, look on the statement for an entry with a blank Description column. Then you can search in your list of sold investments for entries with the same day and month (like 15/11) using your browser search function and you will get matches based on the day the loan was sold, which is one of the two date column entries.
4. A loan is shown as available as soon as it becomes available to lend to. Lending profiles bid first and during the time they are bidding it is not possible for any other bids to work, you will get that error message. Wait for ten minutes from the time the loan is listed and you will almost always avoid the error/ That's about how long it takes for all profile bidding to happen even on a recent 7000 Euro loan (first bid was 09:23, last was 09:24). Smaller loans take less time than this. Expect that at least 90% of all applications and more like 95% of all accepted applications will be fully subscribed using lending profiles. Do not rely on hand bidding to get loans, you must use lending profiles to get a good selection of good loans. The ones that survive the profile bidding process tend to be the worst of the bunch on interest rate or risk.
Do not be over-aggressive with the interest rate or try to get your money lent out very quickly. Loan quality varies with time and it's important to your risk profile to diversify lending over time as well as just individual loans. The interest rate you choose also sets the size of loan you will be participating in, smaller loans require lower interest rates for you to participate in them, larger loans get you a higher assured interest rate when a borrower specifies a lower than normal maximum interest rate or uses timed lending instead of quick lending. I expect it to end up taking at least 18 months to get my money lent out, in part because isePankur has been growing the number of loans over time so it was slower for a while than it is now. A six to twelve month target is sensible for those trying to lend less than about 10,000 Euros.
5. Correct. It's easy enough to do this just before placing some bids, though.
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Nov 17, 2013 15:49:40 GMT
I expect it to end up taking at least 18 months to get my money lent out, in part because isePankur has been growing the number of loans over time so it was slower for a while than it is now. A six to twelve month target is sensible for those trying to lend less than about 10,000 Euros. Because I wanted to lend a similar amount as quickly as possible, I decided to buy loans on resale and pay the premiums, but I only bought top rated and high interest loans. It then took about 2 months of interest payments to get back the costs and reach breakeven point. I think this was worthwhile rather than earning next to nothing in a bank. My profiles are now just about keeping up with the repayments coming in.
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james
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Post by james on Nov 17, 2013 17:31:21 GMT
That's not unreasonable. Really what I meant in part was getting diversification of loan issuance times. If you're buying on the resale market you can get that just by buying older loans as part of the mixture. Not really a big deal to do it very quickly if you don't mind the extra risk you might be getting. It is a good way to get the money lent out quickly. My own lending target is more like £50,000 total and it might increase by the amount of interest received, depending on how my other investments do so that the combination doesn't become too unbalanced.
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spyrogyra
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Post by spyrogyra on Nov 17, 2013 23:39:31 GMT
Thank you very much for the useful information. It looks a bit illogical and I have never thought of looking for my own loan slices in the resales to cancel the sale, amend the premium/discount and put it for sale again. Surely it would be much easier if there's such an x under "investments" next to "in sale" ....(date).
I've always felt uncomfortable with autobidding, but just like with E-money, it seems like profile bidding is the better option for Isepankur.
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