blender
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Post by blender on Feb 9, 2018 11:51:54 GMT
Thanks. So it is as Marka says, like an SM purchase. The interest payable on 8th March is based on the whole amount of principal lent at that date, but is reduced by the purchase of notional accrued interest by the lenders through the month. At the end of the month, the lender is credited the full month's interest in real cash, which cancels the bought notional accrued interest and restores the account balance to where it should be for the time the loan has been held. I will leave someone else to ask about the tax treatment if not in an IFISA.
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hantsowl
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Post by hantsowl on Feb 9, 2018 12:22:38 GMT
I can confirm that interest has been accruing since loan launch. I invested £500 yesterday and today tried to withdraw £300 (just to get a feel for how things work). Despite there being £122000+ available, my withdrawal is gradually progressing as more people buy the loan. This confirms that my withdrawals have precedence over the as yet unallocated funds. My proceeds so far have been £90.02, £1.00 and £100.02. So, £191 withdrawn from the loan with £0.04 interest.
Edit: Remaining £109 processed with another £0.03 interest. The whole process seemed easy and straightforward. These portfolio loans are a useful addition.
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marka
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Post by marka on Feb 9, 2018 13:31:21 GMT
Thanks. So it is as Marka says, like an SM purchase. The interest payable on 8th March is based on the whole amount of principal lent at that date, but is reduced by the purchase of notional accrued interest by the lenders through the month. At the end of the month, the lender is credited the full month's interest in real cash, which cancels the bought notional accrued interest and restores the account balance to where it should be for the time the loan has been held. I will leave someone else to ask about the tax treatment if not in an IFISA. Yes, its just been confirmed in an email.
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treeman
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Post by treeman on Feb 9, 2018 14:07:25 GMT
Yes, I thought whole pounds on new loans for some time now. The pennies are probably in an account 'backosofa', with the roundings. Not on this - I invested all my spare interest £xx.xx (pounds and pennies) in this yesterday.
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blender
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Post by blender on Feb 9, 2018 14:40:48 GMT
Yes, I thought whole pounds on new loans for some time now. The pennies are probably in an account 'backosofa', with the roundings. Not on this - I invested all my spare interest £xx.xx (pounds and pennies) in this yesterday. Yes that is right for this loan and the reason is now clear. That whatever you deposit, after day one of the listing, is split between principal and accrued interest, and your principal is unlikely to be an integer number. So there is no point in insisting you deposit integer pounds. Presumably whole pounds is still true for normal loans.
My flippant comment turned out to be unjustified. Apologies offered.
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Post by dan1 on Feb 9, 2018 15:15:45 GMT
Thanks. So it is as Marka says, like an SM purchase. The interest payable on 8th March is based on the whole amount of principal lent at that date, but is reduced by the purchase of notional accrued interest by the lenders through the month. At the end of the month, the lender is credited the full month's interest in real cash, which cancels the bought notional accrued interest and restores the account balance to where it should be for the time the loan has been held. I will leave someone else to ask about the tax treatment if not in an IFISA. It is listed in the old Account History as an investment on the secondary market: Buy £xxx.xx for £xxx.xx on loan Business Transaction Funding Facility in secondary market.
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blender
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Post by blender on Feb 9, 2018 15:37:59 GMT
Thanks. So it is as Marka says, like an SM purchase. The interest payable on 8th March is based on the whole amount of principal lent at that date, but is reduced by the purchase of notional accrued interest by the lenders through the month. At the end of the month, the lender is credited the full month's interest in real cash, which cancels the bought notional accrued interest and restores the account balance to where it should be for the time the loan has been held. I will leave someone else to ask about the tax treatment if not in an IFISA. It is listed in the old Account History as an investment on the secondary market: Buy £xxx.xx for £xxx.xx on loan Business Transaction Funding Facility in secondary market.Curious because the seller must surely be the borrower. Probably wise for someone not in an IFISA wrapper, and using the tax report, to lend any large sum now, and not on 7th March.
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ding
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Post by ding on Feb 9, 2018 17:07:42 GMT
Thought I would stick my spare change £49.73 on the site into this. Site said - I couldn't invest £49.73 as that was more then I had. So I did £49.00. Checking account history shows I have £49 of capital but £49.01 was taken.
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garfield
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Post by garfield on Feb 9, 2018 17:31:07 GMT
Thought I would stick my spare change £49.73 on the site into this. Site said - I couldn't invest £49.73 as that was more then I had. So I did £49.00. Checking account history shows I have £49 of capital but £49.01 was taken. So you have paid for 1p accrued interest! It might be better if they paid for the interest out of your investment, methinks... Edit: or they could tell you how much the accrued interest is so you don't have to play around.
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stevio
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Post by stevio on Feb 9, 2018 18:30:23 GMT
So you have paid for 1p accrued interest! It might be better if they paid for the interest out of your investment, methinks... Edit: or they could tell you how much the accrued interest is so you don't have to play around. It looks like this has been implemented using the protocol and code for SM purchases. There you start with purchasing an amount of principal and it calculates the cost and compares with your available funds. It is creaking a bit here, where you really want to specify the end cost. But it works. Personally not in this as I cant see the company has made any profits and 5M debt Interest is not normally paid till draw down, so has this already drawn down without needing to fill? If accrued interest is needed to be paid, then a transactional screen should be displayed showing what accrued interest you are paying. At the very least, ablrate should have explained this PRIOR to people investing Also this should be shown in the tax statement as Accrued Interest Paid - has anyone checked their tax statement to check this - maybe check before and after to see if added? How is the withdrawal process working out?
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hantsowl
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Post by hantsowl on Feb 9, 2018 19:11:37 GMT
It looks like this has been implemented using the protocol and code for SM purchases. There you start with purchasing an amount of principal and it calculates the cost and compares with your available funds. It is creaking a bit here, where you really want to specify the end cost. But it works. How is the withdrawal process working out? As mentioned above, I initiated a £300 withdrawal this morning. This processed as more investors bought into the loan and was fully withdrawn after a couple of hours. Very easy and painless.
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blender
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Post by blender on Feb 9, 2018 19:46:31 GMT
It looks like this has been implemented using the protocol and code for SM purchases. There you start with purchasing an amount of principal and it calculates the cost and compares with your available funds. It is creaking a bit here, where you really want to specify the end cost. But it works. Personally not in this as I cant see the company has made any profits and 5M debt Interest is not normally paid till draw down, so has this already drawn down without needing to fill? If accrued interest is needed to be paid, then a transactional screen should be displayed showing what accrued interest you are paying. At the very least, ablrate should have explained this PRIOR to people investing Also this should be shown in the tax statement as Accrued Interest Paid - has anyone checked their tax statement to check this - maybe check before and after to see if added? How is the withdrawal process working out? If it does not get drawn down for some reason, the accrual will presumably be refunded.
It's not worth checking the accrued interest on the tax statement because
'Please note that the current tax statement does not include Instant Returns, Premiums, Discounts or accrued interest paid. This will be included on the next update of the statement software'
Meanwhile I avoid buying significant accrued interest on a taxable account.
Personally I am not into this because I hold a few £k in the 12% version. But I like to see the refinancing money being collected for when it's needed.
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stevio
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Post by stevio on Feb 9, 2018 19:48:32 GMT
How is the withdrawal process working out? As mentioned above, I initiated a £300 withdrawal this morning. This processed as more investors bought into the loan and was fully withdrawn after a couple of hours. Very easy and painless. And did you get paid accrued interest for your time in the loan?
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stevio
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Post by stevio on Feb 9, 2018 19:51:52 GMT
Personally not in this as I cant see the company has made any profits and 5M debt Interest is not normally paid till draw down, so has this already drawn down without needing to fill? If accrued interest is needed to be paid, then a transactional screen should be displayed showing what accrued interest you are paying. At the very least, ablrate should have explained this PRIOR to people investing Also this should be shown in the tax statement as Accrued Interest Paid - has anyone checked their tax statement to check this - maybe check before and after to see if added? How is the withdrawal process working out? If it does not get drawn down for some reason, the accrual will presumably be refunded.
It's not worth checking the accrued interest on the tax statement because
'Please note that the current tax statement does not include Instant Returns, Premiums, Discounts or accrued interest paid. This will be included on the next update of the statement software'
Meanwhile I avoid buying significant accrued interest on a taxable account.
I believe it is the accrued interest you receive from a sale which is added to your total interest for the year, the accrued interest paid on a purchase is deductible from the interest received (although not yet include on AB tax returns, despite asking for a couple of year now)
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hantsowl
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Post by hantsowl on Feb 9, 2018 19:54:34 GMT
As mentioned above, I initiated a £300 withdrawal this morning. This processed as more investors bought into the loan and was fully withdrawn after a couple of hours. Very easy and painless. And did you get paid accrued interest for your time in the loan? Yes. £300.07 was credited to my holding account.
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