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Post by jonathan on Aug 13, 2018 8:29:56 GMT
I have a few loans "processing" what is this? 1 in the first payment and 5 in 3rd payment
Thanks
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bg
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Post by bg on Aug 13, 2018 10:19:25 GMT
I have a few loans "processing" what is this? 1 in the first payment and 5 in 3rd payment
Thanks
It means the borrower has missed the payment. If they don't pay within a week or two they will then become "Late" and then several months after that if still not paid FC will default the loan (which means your loan balance will reduce and you will take a capital loss).
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Post by jonathan on Aug 13, 2018 10:51:20 GMT
brilliant
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blender
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Post by blender on Aug 13, 2018 11:08:23 GMT
More precisely, it means that a payment which was due on your account has not yet been made to you. That may be because of payment problems with the borrower, but there are all sorts of reasons for these delays and the great majority get sorted. After four working days of processing the loan goes late. This is automatic, and signals when you might worry more. When a late loan is paid, a note is added to record the fact.
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markr
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Post by markr on Aug 14, 2018 21:09:15 GMT
Or, alternatively, since you posted on a Monday morning, it could be that the loan payments fell due over the weekend and are still in the banking system. Essentially, the status of every loan changes to processing at the start of the day that payment is due, and reverts to live when that payment is credited to lenders. The due date as seen by lenders is a couple of days after that seen by the borrower, so normally the payment is sat waiting in FC's system and so the processing status is very brief. Sometimes though, there are delays in the system and the payment isn't distributed in a timely manner. Often these delays are in FC's own system, so nothing to do with the borrower at all (if you're of a nervous disposition, never look at your loan book on the Tuesday after Easter Monday). To be honest, if your view is that any loan that shows "processing" is inevitably going to become bad debt and result in a loss, then FC, and P2P in general, is probably not for you!
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blender
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Post by blender on Aug 14, 2018 21:54:16 GMT
Or, alternatively, since you posted on a Monday morning, it could be that the loan payments fell due over the weekend and are still in the banking system. Essentially, the status of every loan changes to processing at the start of the day that payment is due, and reverts to live when that payment is credited to lenders. The due date as seen by lenders is a couple of days after that seen by the borrower, so normally the payment is sat waiting in FC's system and so the processing status is very brief. Sometimes though, there are delays in the system and the payment isn't distributed in a timely manner. Often these delays are in FC's own system, so nothing to do with the borrower at all (if you're of a nervous disposition, never look at your loan book on the Tuesday after Easter Monday). To be honest, if your view is that any loan that shows "processing" is inevitably going to become bad debt and result in a loss, then FC, and P2P in general, is probably not for you! My recollection is five days, which gets over weekends and the odd bank holiday. But I may well be out of date.
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Post by jonathan on Sept 11, 2018 8:29:21 GMT
Is constantly having 2-3% of your loans "processing" just part of Funding Circle?
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SteveT
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Post by SteveT on Sept 11, 2018 8:32:53 GMT
Is constantly having 2-3% of your loans "processing" just part of Funding Circle? Yes (on the basis that there are 30/31 days per month and each loan is "processing" at least for the day it pays)
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Stonk
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Post by Stonk on Sept 12, 2018 8:53:06 GMT
Is constantly having 2-3% of your loans "processing" just part of Funding Circle? If you look in the early hours of the morning when all sorts of processes are running at FC, it might look a mess. Don't pay any attention to that.
Usually by 9am (occasionally later) everything has settled down.
I have 300-ish loans. It is absolutely normal for some of them to be processing. In fact, it is extremely unusual for there to be none processing! The number which are processing is typically 3 or 4 (i.e., about 1% of the total). In my experience, 2% processing would be rather higher than average; and 3% processing would be abnormally high and a cause for concern. But occasionally there are good reasons why a lot go processing all at once -- any time in the week after a bank holiday weekend, for instance -- in which case I might see as many as 3%, but would expect it to clear up by the Friday.
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