number5
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Post by number5 on Sept 30, 2017 13:40:10 GMT
Hi guys, just invested first time in FS...have a couple of questions which I was hoping you all could help me with.
1. How long does it take for Allocated funds to change to Invested funds?
2. How long does it for withdraw funds to hit your bank accout?
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Liz
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Post by Liz on Sept 30, 2017 13:48:05 GMT
Hi guys, just invested first time in FS...have a couple of questions which I was hoping you all could help me with. 1. How long does it take for Allocated funds to change to Invested funds? 2. How long does it for withdraw funds to hit your bank accout? 1. Anything from the same day to a couple of months, which doesnt really matter as you earn interest as soon as you bid. 2. Again depends. Weekdays it could be minutes or hours and at weekends if no staff or working, you will have to wait until Monday morning. Good luck in investing. PS check out my loans on the SM 
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number5
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Post by number5 on Sept 30, 2017 14:31:44 GMT
Hi guys, just invested first time in FS...have a couple of questions which I was hoping you all could help me with. 1. How long does it take for Allocated funds to change to Invested funds? 2. How long does it for withdraw funds to hit your bank accout? 1. Anything from the same day to a couple of months, which doesnt really matter as you earn interest as soon as you bid. 2. Again depends. Weekdays it could be minutes or hours and at weekends if no staff or working, you will have to wait until Monday morning. Good luck in investing. PS check out my loans on the SM Thank you for that Liz. 1. If they are not classed as Invested funds, can I still sell the loan on the SM? When can I put loan parts up for sale? 2. That's quite helpful, so it is relatively quick. I'm not quite sure I am ready for the SM yet :-(
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mikes1531
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Post by mikes1531 on Sept 30, 2017 16:06:47 GMT
If they are not classed as Invested funds, can I still sell the loan on the SM? When can I put loan parts up for sale? No. When the loan is 'activated' (draws down).
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number5
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Post by number5 on Sept 30, 2017 16:11:53 GMT
If they are not classed as Invested funds, can I still sell the loan on the SM? When can I put loan parts up for sale? No. When the loan is 'activated' (draws down). Cheers And how do you know when that has happened? Ideally I would like to sell loans within the first 5 months, how easy is it to shift loans in the SM?
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mikes1531
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Post by mikes1531 on Sept 30, 2017 16:31:07 GMT
No. When the loan is 'activated' (draws down). Cheers And how do you know when that has happened? Ideally I would like to sell loans within the first 5 months, how easy is it to shift loans in the SM? 1. You'll receive an email from FS saying the loan has been activated. (I don't know if those emails are something to have to 'opt in' for. Check your account Profile/Settings.) Also, there are three tabs on the page showing your list of investments -- for loans that are active, those awaiting activation, and closed. 2. It all depends on how big a discount you offer relative to others wanting to sell parts, and how many people want to buy. Sometimes it's easy, and sometimes it isn't. In general, I'd suggest not investing in any loan you wouldn't want to hold until it's repaid.
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number5
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Post by number5 on Sept 30, 2017 16:44:54 GMT
Cheers And how do you know when that has happened? Ideally I would like to sell loans within the first 5 months, how easy is it to shift loans in the SM? 1. You'll receive an email from FS saying the loan has been activated. (I don't know if those emails are something to have to 'opt in' for. Check your account Profile/Settings.) Also, there are three tabs on the page showing your list of investments -- for loans that are active, those awaiting activation, and closed. 2. It all depends on how big a discount you offer relative to others wanting to sell parts, and how many people want to buy. Sometimes it's easy, and sometimes it isn't. In general, I'd suggest not investing in any loan you wouldn't want to hold until it's repaid. Cheers mikes...that's the problem, I am not keen on keeping loans until the end. I generally don't diversify well, so can't really afford defaults. Hence would prefer to flip the loans before the 5th month. But being new to FS from FC, I want to make sure I can sell loan parts before the end.
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SteveT
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Post by SteveT on Sept 30, 2017 17:09:09 GMT
The only way to be “confident” of selling (which still falls some way short of certainty) is to offer a bigger discount than anyone else and do so before exit queues start to form (ie. more sellers adding their parts than buyers picking them up). If you’re in big loans with anything other than exceptional security, you’ll need to keep a close eye on the “best offer” discounts regularly; pricing across the whole SM moves up and down significantly with the flow (and quality) of new PM loans.
There’s a world of difference between FC and FS!
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kermie
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Post by kermie on Sept 30, 2017 17:09:34 GMT
Cheers mikes...that's the problem, I am not keen on keeping loans until the end. I generally don't diversify well, so can't really afford defaults. Hence would prefer to flip the loans before the 5th month. But being new to FS from FC, I want to make sure I can sell loan parts before the end. Loans will default: this is as predictable as the sun rising tomorrow morning. Some will default before you sell them on. You will get caught out holding bad loans. Diversify or be prepared to lose money. The "greater fool" theory, as it is often referred to on this forum, is great until, er, it's not, and then YOU are the fool....then its REALLY bad. As Mike says, I would strongly urge you to scale back and only invest in loans you are prepared to hold to term (even if you think you might try to sell out). TBH, on FS, those loans are few and far between for me!
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archie
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Post by archie on Sept 30, 2017 17:09:43 GMT
On FS there is no actual interest until the loan repays.
If you sell, the price includes an amount for the accumulated interest. Whoever buys it assumes the income tax liability for both the accumulated interest and any further interest earned while they hold the loan.
This makes buying on the sm less attractive for tax payers (unless bought within an ISA).
Bling is probably easier to sell but there are no guarantees.
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rogerthat
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Post by rogerthat on Sept 30, 2017 17:55:55 GMT
You again...gotta give you marks for perseverance ...FLIPPER ALERT... Flipping is more complicated on here as there are different rules of engagement,,in both terms not only of selling but buying too on the SM...especially with regards to interest/tax liabilities...YOU need to read carefully what those potential liabilities are and what effect they may have. Capital gains tax may also be applicable if you buy on the SM and then sell (at a profit and I'm presuming therefore a loss also). I have done my best to try and understand these legalities myself in the relatively short time ive been on FS and have to admit, that at the moment, it seems that unless you're intending to spend your entire life on here, or investing seriously big bucks (and there are some ) then the effort required for the average punter is arguably not worth the effort. Bear in mind that :- 1. Every loan (that runs to maturity) only lasts for 6 months before either its renewed as a new loan or completes (you will be given the chance to 'roll over' should you wish if your existing loan is to be renewed, so in effect, you get first dibs though you can adjust your settings to auto renew..though I havent ) All upcoming loans are notified to you in advance by e.mail. Notice can vary from a couple of hours to a day so check your inbox regularly 2. Whereas interest was charged upfront from where you've absconded from...interest on FS is due at the end of each 6 monthly period and if its not paid the loan isn't renewed (none of us want that scenario but the beast that is P2P...need I say more) ? However, if the brown stuff hits the fan at least only 6 months has elapsed. So the 60month max loan where the last (and biggest) payment fails to materialise, doesn't occur. 3. Whereas the ability to service a loan appeared to be based 'elsewhere' primarily by a credit score and a financial summary (the borrowers own I hasten to add) and reputed historical evidence, on FS its based on "proven assets " that could/should/ought to cover any default at any stage throughout the 6 month term but of course, as elsewhere, that relies on 'professional valuations' (I will not tempt fate by saying anything further than that) 4. Of that I'm aware, there are no fees on FS for buying or selling Just realised I haven't answered either of your questions so the jobs a goodun  |
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number5
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Post by number5 on Sept 30, 2017 18:54:42 GMT
Wow so much advice....thank you all for taking your time out to give me a better understanding of how it all works on FS.
Although, I think I understand the t&c's with regards to selling, tax and capital gains etc etc. It seem like the whole flipping strategy from FC won't work well on FS.
Seems like the SM is not a liquid as it is on FC due to all the above reasons.
Think its time for me to pull the plug on this idea, before it gets bad!
May just have to settle to going back to FC for a diversified portfolio or maybe try AC 30 DAY. But the risk is similar to FC, but you get higher rate at FC?
So many decisions :-(
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Post by scrooge on Oct 2, 2017 13:50:37 GMT
Wow so much advice....thank you all for taking your time out to give me a better understanding of how it all works on FS. Although, I think I understand the t&c's with regards to selling, tax and capital gains etc etc. It seem like the whole flipping strategy from FC won't work well on FS. Seems like the SM is not a liquid as it is on FC due to all the above reasons. Think its time for me to pull the plug on this idea, before it gets bad! May just have to settle to going back to FC for a diversified portfolio or maybe try AC 30 DAY. But the risk is similar to FC, but you get higher rate at FC? So many decisions :-( My personal advice would be grab your money out of FS and run. You will regret it if you put in more than you can lose, given FS inability to keep track of delinquent loans.
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nick
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Post by nick on Oct 2, 2017 14:22:29 GMT
Hi guys, just invested first time in FS...have a couple of questions which I was hoping you all could help me with. 1. How long does it take for Allocated funds to change to Invested funds? 2. How long does it for withdraw funds to hit your bank accout? 2. FS generally process at least 2 withdrawal runs each business day, one in the morning (9-11am), one early afternoon (12-2pm) and a final one at the end of business (5-5:30pm). In my experience, only the final payment run can be relied on. Unlike deposits, it seems that there are only 1-2 signatories that can sign-off on withdrawals. Once processed, withdrawals are made by Faster Payment and should land in your bank instantly. However, there have been a number of ocassions where there has been up to a 2 hour delay from receiving email notification that the withdrawal has been processed and actually receiving funds at bank - I can only assume that the emails are generated as the batch is run and payments are only actually made when the payment batch has been uploaded to their bank. They claim to process withdrawals everyday including weekends, but in my experience weekend withdrawals are a bit hit and miss and half the time the withdrawal is only confirmed and paid Monday morning.
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btc
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Post by btc on Oct 2, 2017 14:28:00 GMT
Good luck in trying to get your money back after 6 months
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