tomp
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Post by tomp on Nov 9, 2017 15:23:16 GMT
Where there any loans before where they didn't manage to fund them in time?
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Post by df on Nov 9, 2017 15:32:25 GMT
I was on the fence with this one but the introduction of cashback means I'll be giving it a miss. As a SH 0.25% doesn't add enough value to compensate for the increased potential loss of liquidity throughout the duration of the loan. I suspect a few who have already invested will be unhappy with this distribution as well, cashback offered in this way has a detrimental effect on smaller investors (in this case smaller being <£10000). I think under the circumstances collateral should offer investors who bid before the alteration the option to withdraw. I would like this option in this case. Isn't it the same distribution as in previous loans that were difficult to fill? It is more fair than FS bonus distribution. Obviously the main purpose of bonus offer is to attract larger investors so that the loan gets funded quicker or in this case have a chance to get funded. I'm not disappointed as I didn't expect any bonus in the first place when invested in this loan.
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Post by Badly Drawn Stickman on Nov 9, 2017 15:37:50 GMT
I suspect a few who have already invested will be unhappy with this distribution as well, cashback offered in this way has a detrimental effect on smaller investors (in this case smaller being <£10000). I think under the circumstances collateral should offer investors who bid before the alteration the option to withdraw. I would like this option in this case. They invested in a 12% loan, and suddenly have an extra 0.25% cash boost - it is more beneficial to larger investors, but that doesn't make it detrimental to the smaller investor While there is clearly an advantage to a diversified investor base, from a cost perspective it's better for COL to have 1 investor putting in 50k than 100 putting in 500 quid, with all the associated account management and banking charges If the cashback offer had been in place when the loan launched investors would have bid accordingly, accepting the terms. My argument here is that people who bid prior to the cashback offer, are now 'disadvantaged in comparison' by no actions of their own (excepting not wishing/being unable to invest £100,000). Collateral has two options to redress this position (more if major changes are made) one they allow anyone who bid before the offer to withdraw or make a 4% cashback payment on amounts invested prior to the offer. I would suggest that is reasonable and fair. I am sure Collateral would be more than happy for one investor to fill the entire loan, so in that respect we agree.
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radar
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Post by radar on Nov 9, 2017 16:11:03 GMT
(If the cashback offer had been in place when the loan launched investors would have bid accordingly)
I have to agree with you, the terms are not the same now, this can affect SM
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elliotn
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Post by elliotn on Nov 9, 2017 16:51:48 GMT
This model has been used for slow filling loans previously so shouldn’t be a massive shock, the CB is retrospective so those who invested based on their initial DD now have the benefit of additional tax free reward too.
Same happened for MT on NuL loan so this is not platform specific and there other industry examples as well.
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Post by pedz14 on Nov 9, 2017 16:53:46 GMT
I was on the fence with this one but the introduction of cashback means I'll be giving it a miss. As a SH 0.25% doesn't add enough value to compensate for the increased potential loss of liquidity throughout the duration of the loan. Though I had thought that this looked okay on the face of it, I opted not to invest as I am pretty much at my platform limit. I wouldn't have been pleased if I had invested and cashback was introduced as I am a firm believer that cashback kills liquidity.
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elliotn
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Post by elliotn on Nov 9, 2017 16:58:08 GMT
I was on the fence with this one but the introduction of cashback means I'll be giving it a miss. As a SH 0.25% doesn't add enough value to compensate for the increased potential loss of liquidity throughout the duration of the loan. Though I had thought that this looked okay on the face of it, I opted not to invest as I am pretty much at my platform limit. I wouldn't have been pleased if I had invested and cashback was introduced as I am a firm believer that cashback kills liquidity. Certainly a lesson to only invest in what you are prepared to hold to term rather than looking to bail out on SM, especially on slow filling loans where CB is a strong possibility as we've seen on different platforms.
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dermot
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Post by dermot on Nov 9, 2017 17:00:52 GMT
I don't really see cashback - prospective *or* retrospective - as a particular problem. At worst, it demonstrates a miscalculation of investor appetite for a specific loan.
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sqh
Member of DD Central
Before P2P, savers put a guinea in a piggy bank, now they smash the banks to become guinea pigs.
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Post by sqh on Nov 9, 2017 17:45:21 GMT
Hi stevio , The conversations we've had with the borrower is that they have been in negotiations with the planners and also the neighbouring land owner over the purchase of a strip of land which will allow an increase in the number of dwellings in the Eco Village, which have all now been agreed and expect to complete prior to drawdown of this loan. They now have the 3 house types (provided by a very reputable developer) for the site and once detailed planning is approved for these, the development will start immediately. Many thanks, Gordon Dear collateral Can you please provide absolute clarity, that issues with adjoining land are legally resolved before drawdown? "expect to complete prior to drawdown of this loan" is not sufficient.
There is a loan on another P2P site which has seen a catastrophic devaluation, due to neighbouring land holding a ransom strip just 1-2 metres wide.
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Post by elephantrosie on Nov 9, 2017 18:15:30 GMT
let this loan be the test to 'cashback is the ultimate cure to all unfavourable loans'.
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Post by Collateral Rep on Nov 9, 2017 19:05:20 GMT
Evening,
To confirm, contracts have been exchanged on the extra land and will complete simultaneously at drawdown.
Many thanks,
Gordon
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elliotn
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Post by elliotn on Nov 9, 2017 19:37:30 GMT
£82 of BL74 available on SM if anyone missed this once it filled after CB.
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hazellend
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Post by hazellend on Nov 9, 2017 19:40:14 GMT
Shame I'm a bit tapped out at the moment. Also, technically at my platform limit, and having broken my diversity rules due to amazing cashback offers on some of the other loans.
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Post by elephantrosie on Nov 10, 2017 2:59:24 GMT
Shame I'm a bit tapped out at the moment. Also, technically at my platform limit, and having broken my diversity rules due to amazing cashback offers on some of the other loans. what other loans with amazing CB that are on offer now?
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Post by elephantrosie on Nov 10, 2017 3:07:56 GMT
Evening, To confirm, contracts have been exchanged on the extra land and will complete simultaneously at drawdown. Many thanks, Gordon what contracts specifically?
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