Loss of interest on the SM with Lendy

I can't believe you think poking them with a poll, as opposed to a pole will work. I did however commit to involvement and have voted accordingly.

Has to be more likely that somebody (as they are quite entitled to) feels it is justified. I mean just imagine the embarrassment if an administrator was to check and see that a Lendy representative had voted in a poll about itself, and then make it public. The shame would be.............. well shameful.

I will see if one of the moderators can adjust this one rather than starting again!

Can you do what has been highlighted star dust ? Add 2 more options, "Scrap SM altogether" and "Pay interest but at a 1% charge"

Also, please replace any and all references of "Incest" to "Invest"!

Well covered here & Coll.

Offers a mix, if you sell in demand loans you can have a free sale (as I have today).

Other platforms offer a fixed price ie 1% cap on TC, 1/2% on PL etc so you know where you stand and may win on some/lose on others.

Of course, MT lets you list and earn interest so everyone joins the queue for a fee free position.

I like a mix of options and execute accordingly - abl is curently my smallest, main platform despite being a favourite simply by offering a liquid market.

IIRC interest from loans on the SM goes in to the provision fund - not to Lendy

Personally I'm of the "better the devil you know..." opinion.

I've got several loan parts that I would have put in the sales queue if there were no penalty for doing so, and I imagine that many of the other people who are voting for no loss of interest would also do so.

The overall result would be queues that are many times longer than we can currently see - millions of pounds of loan parts for sale would not seem unlikely for the large multi-tranche DFLs that already have 6 figure sums for sale despite the loss of interest for doing so... and anyone who was not already in the sale queue might as well forget ever being able to sell their loan part.


Such long queues would likely lead to even stronger demands for being able to sell at a discount, which similarly would end up meaning "can't sell unless you offer a very large discount", leading to losses far greater than the lost interest we currently see when waiting for a loan part to sell... only difference being that the discount gets transferred to the buyer rather than to Lendy.


As I've suggested before, however, there is a smart solution that could work to improve the speed at which the longest queues move - either pass the withheld interest onto the buyer of the loan part or create a "cashback" scheme for buyers of secondary loan parts, funded by the withheld interest (but possibly at a lower rate, e.g. 0.02% per day, with lendy retaining the rest). Such cashback would need to be obviously visible (e.g. "up to x.xx% cashback" on main listing, "estimated cashback eligibility" on the loan buying page, and "confirmed cashback eligibility" on the confirmation screen). This retains the current penalty for sellers (avoiding the likely problem of queues becoming even longer) whilst also providing a positive incentive for buyers to help clear queues that have become "too slow".

It also provides a mechanism that can be built onto to provide the equivalent effect of variable pricing, but without so much of the potential for exploitation... but that's a different subject.