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Post by kristjan on Mar 3, 2017 13:11:57 GMT
The ratings and default probabilities are calculated and issued by credit agencies based mostly on publicly available information. Our minimum rate takes into account more information than is publicly available - data that we've gathered from the seller's bank account statement, the relationship with the debtor and public information found elsewhere etc.
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Post by kristjan on Feb 22, 2017 9:29:40 GMT
The autobidder rate is the lowest rate at which an investors is willing to participate in an auction. If the minimum rate for an auction is 10%, the bid will be made at 10%. However, if you did not manage to get invested in one particular invoice, it is because the demand for that invoice outstripped supply (more investors making bids means not everyone will get in). If I understand you correctly, anybody who had their autobid rate set at, or below, 17% had the chance to bid. Because this was a tiny invoice, only a few of those people who had a chance to bid were actually chosen (at random) to bid. Those that were chosen to bid had their bids adjusted so that the rate was the minimum of their set autobid rate and 11%. If that's a correct understanding, then that makes a lot of sense. It might help to reduce confusion to add a line to the invoice just above the bid table saying something like "12 investor bids selected at random from the 104 investors who made an automatic bid. For brevity, unselected bids are not shown below." Yes, that is correct. The bids are in fact chosen based on a queue. The queue is based on when an investor last made a successful bid using the autobidder. We will start work on a new version of the autobidder next month and I will be making a how-to-use guide for all investors so that everyone understand what's going on and how to set up their autobidder.
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Post by kristjan on Feb 22, 2017 8:31:29 GMT
This feature is now live. But seems to work in a very odd way. Invoice #INV-0006 went for 11%, fair enough. But it would appear that the autobidder only placed bids for people who were not prepared to lend at below 11%, which seems very wrong. Instead people who have autobid set below 11% should have been treated as if it was set to 11%. The autobidder rate is the lowest rate at which an investors is willing to participate in an auction. If the minimum rate for an auction is 10%, the bid will be made at 10%. However, if you did not manage to get invested in one particular invoice, it is because the demand for that invoice outstripped supply (more investors making bids means not everyone will get in).
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Post by kristjan on Feb 21, 2017 12:02:17 GMT
I should also note that we are changing the minimum interest rate for invoices in a few weeks from now. Riskier companies will have a higher minimum rate. This is to compensate investors for higher risks that they are taking. This feature is now live.
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Post by kristjan on Feb 21, 2017 11:38:08 GMT
Hi, One of my investment has gone to overdue, what is the average period to payment will be paid ? Eventually have you faced situation that the payment was not payed ? Thanks for your comments. Hi, 95% of the invoices get paid early, on time or within 14 days of the due date. The rate is 97% if weighted by the advance (in euros or pounds). In cases where the payment is made later than two weeks, there is always circumstances that are unique - sometimes a project gets delayed, sometimes there are liquidity issues etc. In all of the cases, we are in communication with the seller and the debtor. If we don't receive payment within 30 days, we ask the seller to repurchase the invoice. We've done this on a number of cases (less than 10 to date, though). One invoice did default, but it was recovered soon after. So far investors have not suffered losses, but to be on the safe side, I encourage investors to diversify. This means not putting a significantly higher amount of funds into any one single invoice. I should also note that we are changing the minimum interest rate for invoices in a few weeks from now. Riskier companies will have a higher minimum rate. This is to compensate investors for higher risks that they are taking.
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Post by kristjan on Feb 15, 2017 8:22:24 GMT
Thank you. I've reported this to out technical team.
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Post by kristjan on Feb 14, 2017 10:33:32 GMT
Thanks for implementing this, however I don't seem to be able to access or download the report. The link is there but when I click it nothing happens. Nothing is downloaded or opened. Please try with a different browser. If that doesn't work, please let me know which operating system and browser (+browser version) you are using. This feature was launched in its current form because in Estonia tax residents have to report income based on the calendar year. Once the UK tax reporting date comes closer, I will talk to our developers about improving this feature by adding in the option to change the periodicity of the report to make it usable for UK tax residents.
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Post by kristjan on Feb 10, 2017 9:35:36 GMT
Thank you for sticking with us! I'm sure the next few months will show that it was well worth it. We are in the middle of some changes to the interest rate logic* and we are focusing more on sales. In particular, we are focused on diversifying the invoice portfolio so that investors can spread their risk between different sectors. *We will be changing the minimum interest rates for invoices based on company risk profiles.
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Post by kristjan on Feb 10, 2017 9:12:52 GMT
This is not likely to be the problem. IME the problem will likely be that the buying company disputes the invoice. They could dispute part or all of it on all sorts of grounds. In an extreme (and unlikely) case an unscrupulous firm could generate entirely bogus invoices and try to factor them, so you need to be on the ball Avoiding dispute risk is important and that's why we ask for confirmation from the debtor company. In addition, our team performs financial and background checks on our customers and the debtor companies.
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Post by kristjan on Jan 24, 2017 11:27:08 GMT
Thank you for your feedback!
Developing the new autobidder is scheduled for March. I have gathered a lot of feedback and we will be introducing new features. During February and the remainder of January we are mostly focused on bringing in new customers. As many have noted, the rates have come down. This is due to investor demand outpacing invoice supply.
We will also be working on setting different minimum rates for different risk categories of sellers/buyers so that the interest rate of an invoice better reflects the risks investors are taking. This is still work in progress, but I though you would like to know.
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Post by kristjan on Jan 5, 2017 10:06:14 GMT
We will soon be launching a paid referral scheme to help bring in new businesses. This means you and your friends can earn a bit of extra income by referring your business contacts to Investly. The scheme should be ready in a week or two, detailed information will follow after that.
Invoice discounting (United Kingdom)
month volume: £94,000 total volume in 2016: £365,000 historical annualised return: 13.0% average duration: 32 days repaid: 59 (out of 76 sold) overdue rate*: 0.00% default rate*: 0.00%
Invoice discounting (Estonia)
month volume: €600,000 total volume in 2016: €3,808,000 historical annualised return: 12.4% average duration: 32 days repaid: 201 (out of 258 sold) overdue rate*: 0.27% default rate*: 0.00%
* When an invoice is fully or partially overdue more than 45 days, the outstanding amount is counted as overdue. If more than 120 days have passed since the payment date, the outstanding amount is counted as defaulted.
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Post by kristjan on Jan 3, 2017 12:07:34 GMT
We are aware that demand from investors has grown faster than the supply of invoices. To increase the supply, we're working on a number of new ideas, which include: - More sales representatives. At the end of last month, we hired new sales representatives to help bring in new companies (one in Estonia, one in the UK). We're also looking to fill another sales rep position in London (jobs: investly.workable.com/).
- In addition, we're working on a referral scheme whereby we pay for leads that end up selling an invoice. This should be ready in a week or two and will help the supply side.
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Post by kristjan on Dec 27, 2016 13:50:30 GMT
I'm not entirely sure it would work that way, since the transfer would have to come from your bank account, but via Paysera. A bank has to make sure you are who you say you are. Paysera and other service providers rely on banks for that. This is why we can only accept bank transfers and transfers from third parties that originate from a bank account.
We also accept deposits and process withdrawals using Transferwise, which should be cheaper than your regular wire transfers (depending on the amount, of course). Of course, that only works if your regular bank account is in a different currency.
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Post by kristjan on Dec 27, 2016 8:36:27 GMT
We can accept payments from Paysera, but also Transferwise and Currencyfair. The key thing here is that we need to receive your bank account details from the third party service provider. This is due to European anti-money laundering regulations. If the payment comes from, say, Paypal, via Paysera, then we cannot accept it. If it comes from the bank account you have on file with Investly, but via a third party service provider, then we can accept it, given that the third party payment data includes your bank account details.
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Post by kristjan on Dec 22, 2016 14:56:17 GMT
A few invoices in Estonia are late. We are in contact with the relevant parties. In case of invoices that are late more than 30 days, we do a recourse against the invoice seller (only one of those late invoices is in recourse status currently). All of the invoices have comments that are visible when clicking on the "collection information" button on the invoice page (click on the invoice number to get to the invoice page). These comments are up to date, please see them for more details.
UK invoices are all on track, for a lot of them we've received early payment (investors still get to keep the interest for the whole term).
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