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Post by Harland Kearney on Nov 17, 2020 23:09:20 GMT
They pay interest daily into your cash account/automatic investment selection? For some reason, I didn't find this in my DD. I guess my DD was terrible  |
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Post by Ace on Nov 17, 2020 23:18:27 GMT
They pay interest daily into your cash account/automatic investment selection? For some reason, I didn't find this in my DD. I guess my DD was terrible Ah, OK, yes, interest is paid daily. You can auto invest it, but only in £10 chunks, So it would take 92 days for your first reinvestment if you only invested £1k in the Premium Account.
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Post by Harland Kearney on Nov 17, 2020 23:25:14 GMT
Ah thanks. I should take that into account for my minumum rota. Yes the initial investment was to get a foot in the door, see how support is should I need it, and actually have a right to post on this board as somebody with a actual investment stake. I'm gussing people might have already discussed the danger of instant access acounts bring, AC being the great example. I wounder how Loanpad avoided a crunch on withdrawals? Maybe the investor base just isn't large enough yet to have the sheepish normals piled into the platform yet. I can already feel my trigger finger wanting to dump a large chunk of my cash into it for that sweet daily payout Now now Harland, have you learnt nothing from AC! |
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Post by Ace on Nov 18, 2020 1:07:18 GMT
They did have a run of withdrawals during the crisis. The amount of free cash on the platform did reduce to zero at at least one point. They do have liquidity providers (essentially underwriters) that they can call on if necessary, though obviously not for the full amount of the loan book, so no guarantees of liquidity. I'm not sure if they needed to call on them. I expect that the vast majority of platform funds are invested in the Premium Account, so they can use the 60 day notice period to predict ahead as to how much liquidity they are going to need and stop issuing new loans for periods as necessarily. I'm fairly sure that they did do this for a while during the crisis. The loans are also of relatively short duration, so they can also use upcoming repayments to aid liquidity. For instance, there are 5 loans due to repay in December, and another 5 in January, so they would be able use any actual repayments from these to help satisfy a run that started today.
In case you weren't aware, there is also an amount of unlent cash on the platform that is used as the primary liquidity source. The level fluctuates over time. You can see your portion of this unlent cash at the bottom of your My Loanbook -> Live Loans page. It's listed as "Cash awaiting investment". You do still receive interest on this uninvested cash. You can also calculate the total free cash on the platform that is currently available for withdrawal by going to the My Loanbook -> Live Data Feed page and calculating:
(Total Lenders * Average Lender) - Total Loanpad Loans; which is currently over £1.7m.
I watched this very closely during the crisis and used my rolling withdrawals to test liquidity when it was getting low. I tested withdrawls of 5 figure sums multiple times and none of them failed. This has given me great confidence to increase my investment here.
Obviously, none of this can guarantee liquidity if everyone wants their money back at the same time, but I feel that they are in a much better place than the AC Access Accounts in this regard, not least because their longest dated loan right now is under 18 months. With a total of 37 loans on the platform that are due to mature over 18 months, and over 10% of unallocated cash on the platform, they would be in a good position to return funds if needed. E.g. they could return 10% of everyone's investment immediately then an average of around 5% more per month over 18 months (though there would be bound to be a few defaults / late-payers that would drag some of this out further). Also, they don't have the future tranche commitments that are so problematic on AC when liquidity is low.
In summary, in answer to your question "I wounder how Loanpad avoided a crunch on withdrawals?". I don't think it's because "the investor base just isn't large enough yet to have the sheepish normals piled into the platform yet". I think it's simply because the mechanics of the platform make it easier to cope with liquidity requests on multiple levels. It's almost as if it's been designed that way! 😉 At least that's how I see it.
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Post by Harland Kearney on Nov 18, 2020 19:15:16 GMT
Thank you for the indepth response Ace. Yes that makes perfect sence to me and is a welcome new take on the liquidity of these "access" style accounts. I will likely use Loanpad to park a certain maximum amount of cash, I used to use AC for this but of course now days (and even if AA's ever returned to a normal standing) that would be most stupid.
I genuinely try to hedge my cash in a way that my P2P income simply outweighs the inflation erosion I see on my dry powder for my equitity investment strategy.
Reguardless, thanks for the info. I hope Loanpad gets more discussion/members in the future, I think after AC fiscical is over if any investors who exit still have a niche for P2P loanpad would make a great addition in their investment style.
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Post by Harland Kearney on Nov 19, 2020 14:37:11 GMT
I have done yes, although you must invested 5k now to get the 1% bonus (£50). I may end up doing that within the 4 week time frame, but not without some more research. I'm not sure where you got the 4 week time frame from, but here are the relevant terms: 6. A referral will become a Qualifying Referral if they: a. Register via your unique link; and b. Have never previously had a Loanpad account; and c. Make their first investment of at least £5,000 into their Premium account within 14 days of opening their account. So looks like you may have already missed out on the bonus due to point 6c. I reached out to Loanpad help desk about this question and got a response for anybody else woundering the same thing. We can see that you have signed up with bonus code ***** - you can see the full terms of the promotion here: www.loanpad.com/promotions. You have 4 weeks post-registration to meet the minimum threshold (either £5,000 or £10,000). This can be in multiple payments. Once you meet the threshold, the bonus would become eligible after 365 days and will be automatically credited to your cash account.So the confusing wording is cleared up here! I am likely to top up to £10,000 whilst keeping a eye on the free cash amount on the platform for safe measure. I just cannot ignore a 1% bonus for a year, its a pretty good deal in todays envioment.
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Post by Ace on Nov 19, 2020 15:23:53 GMT
I'm not sure where you got the 4 week time frame from, but here are the relevant terms: 6. A referral will become a Qualifying Referral if they: a. Register via your unique link; and b. Have never previously had a Loanpad account; and c. Make their first investment of at least £5,000 into their Premium account within 14 days of opening their account. So looks like you may have already missed out on the bonus due to point 6c. I reached out to Loanpad help desk about this question and got a response for anybody else woundering the same thing. We can see that you have signed up with bonus code ***** - you can see the full terms of the promotion here: www.loanpad.com/promotions. You have 4 weeks post-registration to meet the minimum threshold (either £5,000 or £10,000). This can be in multiple payments. Once you meet the threshold, the bonus would become eligible after 365 days and will be automatically credited to your cash account.So the confusing wording is cleared up here! I am likely to top up to £10,000 whilst keeping a eye on the free cash amount on the platform for safe measure. I just cannot ignore a 1% bonus for a year, its a pretty good deal in todays envioment. If you're going to invest £10k and have a trusted partner it would be more profitable to: - Invest £5k in your name
- Refer your partner
- Invest £5k in your partner's name, which you receive an instant £50 for
- You then get a 0.2% interest rate boost on your own whole investment for a year
- In a years time you each get another £50 referred bonus.
So, a total £150 bonus plus an interest rate boost on your own account for a year 😊
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slippery
Member of DD Central
Posts: 83
Likes: 61
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Post by slippery on Nov 19, 2020 18:16:29 GMT
I'm considering Loanpad, and can see online referral codes to get £50 if I decide to do £5,000. But if anyone will get a referral bonus as well as letting me get the £50 I'd be happy to use a link. From looking at the site, I'm not sure if I can join as I have a UK bank account but don't live within the UK.
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Post by Ace on Nov 19, 2020 18:20:55 GMT
I'm considering Loanpad, and can see online referral codes to get £50 if I decide to do £5,000. But if anyone will get a referral bonus as well as letting me get the £50 I'd be happy to use a link. From looking at the site, I'm not sure if I can join as I have a UK bank account but don't live within the UK. PM sent
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Post by Badly Drawn Stickman on Nov 19, 2020 18:41:33 GMT
I'm considering Loanpad, and can see online referral codes to get £50 if I decide to do £5,000. But if anyone will get a referral bonus as well as letting me get the £50 I'd be happy to use a link. From looking at the site, I'm not sure if I can join as I have a UK bank account but don't live within the UK. PM sent I suspect slippery has got a lot of new friends.
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Post by Ace on Nov 19, 2020 20:14:21 GMT
I'm considering Loanpad, and can see online referral codes to get £50 if I decide to do £5,000. But if anyone will get a referral bonus as well as letting me get the £50 I'd be happy to use a link. From looking at the site, I'm not sure if I can join as I have a UK bank account but don't live within the UK. In answer to whether non-UK residents can invest. You can. The relevant terms are: 5. OPENING A PLATFORM ACCOUNT WITH US
5.1 If you are an individual or sole trader you must meet the following eligibility conditions:
5.1.1 be at least 18 years of age;
5.1.2 be a permanent resident of the UK (excluding the Channel Islands and Isle of Man) or the European Economic Area ; and
5.1.3 have a UK bank account in your name or an e-money account in your name issued by an entity authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011.
5.2 If you are a UK citizen residing outside the European Economic Area you must be at least 18 years of age and have a UK bank account in your name. If this applies and you would like to open a Loanpad account, please contact support@loanpad.com.
5.3 If you are not resident in the UK, you should consult HM Revenue & Customs regarding taxation of any income or gains / losses made in the UK or alternatively contact Loanpad and we may have relevant HMRC information to share with you to speed up this process.
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slippery
Member of DD Central
Posts: 83
Likes: 61
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Post by slippery on Nov 20, 2020 11:47:09 GMT
Many thanks folks, I've sent an e-mail to LP support to check my position. Ace's link arrived first  |
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Post by Ace on Nov 20, 2020 14:04:00 GMT
Many thanks folks, I've sent an e-mail to LP support to check my position. Ace's link arrived first Thanks slippery, I see that you're a Kiva supporter. If you do invest I'd be happy to pass my referral bonus their way. I did try to donate to them a while ago but got confused over some aspect, so never completed. Can't remember what it was now, but might require some hand-holding.
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Post by Harland Kearney on Nov 22, 2020 21:16:18 GMT
Are deposits only credited on working days? Made a deposit on saturday afternoon to top myself upto 10k for the bonus. It hasn't been credited as of yet, assuming because they only do it on working days.
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Post by Ace on Nov 22, 2020 21:47:34 GMT
Are deposits only credited on working days? Made a deposit on saturday afternoon to top myself upto 10k for the bonus. It hasn't been credited as of yet, assuming because they only do it on working days. Yes, my last Saturday deposit was credited at 09:41 on the Monday morning.
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