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Post by wiseclerk on Feb 7, 2015 23:04:10 GMT
Newbie question:
I earned interest on PBL022 today.
On the loan part detail page it says
Loan Part Detail Loan part value £100.00 Loan part rate of return 12% / year Loan part start date 16/01/2015 Loan part age 22 days Interest earned £0.72
That seems right.
However on my 'Transactions to date' page it says
31/1/2015 Interest 18215 Property Bridging Loan 022 (£100.00) 16/1/2015 £0.49 £0.49
Am I right to assume that the discrepancy of £0.23 is caused because this part of the interest is for the time from Feb 01st till Feb 6th and will be paid with the interest in the end of February?
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Post by wiseclerk on Feb 6, 2015 20:21:14 GMT
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Post by wiseclerk on Feb 4, 2015 13:58:25 GMT
In general there are the following risks for lenders investing on peer to peer lending sites:
+ borrower fails to repay the loan + (identity) fraud by borrowers + p2p lending company fails and ceases to service loans (there are several international examples Boober, Fairrates, Monetto) + unreliable forecasts of ROI and default rates; this did apply to Prosper lenders in the past. If you did lend in 2006/2007 and believed the forecasts you might be hard hit; actual default rates for loans were as high as >30% + on some services: open/undefined tax and legal issues + on some services: currency exchange risks Not exactly a risk, but a lender's money might be tied up for the loan term. While somedo have secondary markets there is no guarantee that lenders can sell loans early. If interest rates rise overall, than older loans might not be able to sell (at least not without a discount).
In my 8 year experience the biggest risk that can lead to failure of p2p platforms is that the default levels rise much higher than predicted/anticipated by the platform. This will lead to investor churn and eventually the new loan volume goes to zero. This happened at Boober (Netherlands). I think in terms of loan volume and lenders affected Boober (Netherlands) was the biggest platform that failed so far.
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Post by wiseclerk on Feb 4, 2015 10:33:22 GMT
Having been called out for 'teasing' in the past, I thought I will deliberately live up to my reputation:
I'll have an article on my blog in the next days that I think is very interesting for the larger Bondora investors. It is the personal experience of an Austrian investor who...
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Post by wiseclerk on Jan 30, 2015 11:53:25 GMT
I thought withholding tax was due to come only later (was it 2016/2017 (?)) for interest paid on UK p2p lending platforms to non-residents for interest on loans to businesses for longer than 12 months term? Probably FK interpreted existing rules different. Certainly one needs to keep an eye on whats happening. And I prefer those UK platforms with liquid secondary markets so I can get out when major changes loom. As many expats are looking where to go about p2p lending I did set up this list www.wiseclerk.com/group-news/p2p-lending-services-open-to-international-non-resident-investors/
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Post by wiseclerk on Jan 29, 2015 20:35:56 GMT
According to stats the avg Saving Stream investor has invested £8,225
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Post by wiseclerk on Jan 22, 2015 14:55:31 GMT
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Post by wiseclerk on Jan 19, 2015 22:38:59 GMT
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Post by wiseclerk on Jan 17, 2015 21:48:40 GMT
I don't think it would change much.
Actually the comapny itself kind of is the provision fund. Since investors lend to the company, and the company lends to the borrowers at a higher interest rate, it would be able to 'absorb' losses from a default and still pay investors - of course only to a certain amount of shortfalls. So a 2% provision fund would not really change much, as - if they wish - the company probably could cover shortfalls of that degree already.
The above is based on my assumptions, not on analysis of their accounts, which would allow an more accurate assessment.
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Post by wiseclerk on Jan 17, 2015 8:36:15 GMT
Thank you, 4thway, for an interesting and useful article. In it, you observed... This suggests that some other funds are not discretionary. Can you say which those are? One reason I ask is that I was under the impression that these funds had to be discretionary for legal/tax reasons And possibly becoming subject to alternative regulation schemes if they weren't discretionary because they would look too much like insurance. Can you comment on that? To my understanding all the UK provisionary funds are discretionary for legal reasons in order not to fall under offering 'Insurance'. The only expection should be Lending Works which openly calls it Insurance.
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Post by wiseclerk on Jan 16, 2015 8:30:28 GMT
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Post by wiseclerk on Jan 9, 2015 19:21:13 GMT
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Post by wiseclerk on Jan 4, 2015 15:50:35 GMT
I have been reviewing my spread of investments across 13 (!) platforms and annotating each as having security/insurance/provision fund, cost of the SM, 1 yr, 3yr, 5yr rates etc. I have got to the point where I am not sure that I can remember exactly what it was that I liked about FK or why I am still invested here. Can anyone remind me what I have forgotten? P2P Lending on 13 platforms is an impressive vault of first-hand experience. Is there any chance I can get you to write it down for a guest post on my blog to share it with others?
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Post by wiseclerk on Jan 2, 2015 10:30:37 GMT
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Post by wiseclerk on Dec 30, 2014 10:51:18 GMT
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