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Post by beegee on Sept 9, 2018 16:37:53 GMT
What is the normal level of interest accrued (unpaid)? Until recently I have been running between £60-£80, but in the last week this has increases to £125. Obviously heading in the wrong direction. Interested in what others experience.
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benaj
Member of DD Central
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Post by benaj on Sept 9, 2018 16:43:28 GMT
I only look at real return. lend.growthstreet.co.uk/dashboard/loans/completed/I have 100 completed loans, all paid @ 5.3%. Some loans got repaid early, i.e. less than 30 days. BTW, I only have 3 active loans with the same borrower. It seems fine. borrower ID: 6ccbe13b-e156-4a17-9137-a4bd653bc23b Accrued interest today for lending £811.15 is £2.80, start date 16-august |
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Post by Ace on Sept 9, 2018 17:32:19 GMT
What is the normal level of interest accrued (unpaid)? Until recently I have been running between £60-£80, but in the last week this has increases to £125. Obviously heading in the wrong direction. Interested in what others experience. Hi beegee , it seems to me that you may not have understood the term 'interest accrued (unpaid)'. I'm sorry if I've misunderstood your question, as this will sound very condescending if I have, but, just in case... 'Interest accrued (unpaid)' is simply the amount of interest owed to you that has not yet been paid to you. For each loan, it starts at zero on the first day of the loan and increases each day until day 30. On day 30 the capital and interest accrued is payed to you. Importantly, it does not indicate that there is anything wrong with a loan, and, although it is unpaid, it is not actually due to be paid until the loan ends on day 30. Another way to look at it is it is the amount of interest that the borrower would have to pay you if he were to redeem the loan today. Hope this helps, but sorry if it's a granny sucking eggs scenario.
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Post by beegee on Sept 9, 2018 23:38:58 GMT
Hi Ace
thanks for your reply. Your explanation is what I had thought was the case, until it has suddenly increased. Previously the interest paid increased steadily with the money going into the holding account and being mopped up into the next loan that matured and matched back onto the market. I am fairly knew to GS but the sudden increase in the interest accrued (unpaid) made me think I had misunderstood the rationale. ie why has the unpaid element increased so dramatically.
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Post by Ace on Sept 10, 2018 8:13:13 GMT
Hmm... Not had that happen to me yet, and don't really know what would cause it, but how about this for a potential scenario.
Some capital was due to be repaid over the weekend, but it didn't happen for some reason and this then automatically gets included in the 'accrued interest (unpaid)' total, even though it's not actually interest. Perhaps PF refunds need some manual intervention, and so, will only happen on a working day. If so, it will probably all be sorted out today.
Hopefully, someone with more knowledge/experience will fill us in.
I'm interested to know how it plays out, so please keep us posted.
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Post by dan1 on Sept 10, 2018 8:31:04 GMT
beegee - check the repayment dates on your loans to see if any are past term... lend.growthstreet.co.uk/dashboard/loans/If not then I guess you'll have some repayments coming your way soon. You must have a fair whack on the platform with that level of accrued interest, £30k at least if my calcs are correct.
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Post by beegee on Sept 10, 2018 9:48:54 GMT
beegee - check the repayment dates on your loans to see if any are past term... lend.growthstreet.co.uk/dashboard/loans/If not then I guess you'll have some repayments coming your way soon. You must have a fair whack on the platform with that level of accrued interest, £30k at least if my calcs are correct. No loans overdue. There are 7 due to repay this week so hopefully the unpaid element reduces, but it has increased further today. Firtst two due to mature on 13th.
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Post by beegee on Sept 25, 2018 10:00:04 GMT
Just to complete the circle on this thread, it would appear my fluctuating interest accrued (unpaid) is a feature of my investments being fairly congested in one period of the month. So the unpaid element keeps rising and then falls when the loans are repaid in a short space of time. I hadn't noticed this previously but I did deposit some large sums close together. I'll try and smooth this out.
Thanks for the suggestions
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Post by Ace on Sept 25, 2018 16:50:20 GMT
Thanks for updating. I'm not really sure why you feel the need to smooth them out, but I expect that this would happen anyway over time as some early repayments and interest get reinvested on different dates.
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Post by dan1 on Sept 25, 2018 18:52:38 GMT
Thanks for updating. I'm not really sure why you feel the need to smooth them out, but I expect that this would happen anyway over time as some early repayments and interest get reinvested on different dates. Perhaps they feel uneasy about having the majority of their funds with a single borrower? It doesn't matter if the platform performs as designed and the loan loss provision remains solvent but if it all goes pear shaped then I guess your guess is as good as mine as to how it will play out.
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Post by df on Sept 25, 2018 19:46:11 GMT
Thanks for updating. I'm not really sure why you feel the need to smooth them out, but I expect that this would happen anyway over time as some early repayments and interest get reinvested on different dates. Perhaps they feel uneasy about having the majority of their funds with a single borrower? It doesn't matter if the platform performs as designed and the loan loss provision remains solvent but if it all goes pear shaped then I guess your guess is as good as mine as to how it will play out. Exactly, it is not one of those where you need to diversify within platform. I'm also not sure what is the rationale for monitoring "interest accrued". I never took any notice of this figure, it is good enough for me to see all my loans repaid on time. Should I? Am I missing something?
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ceejay
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Post by ceejay on Sept 25, 2018 20:54:57 GMT
Perhaps they feel uneasy about having the majority of their funds with a single borrower? It doesn't matter if the platform performs as designed and the loan loss provision remains solvent but if it all goes pear shaped then I guess your guess is as good as mine as to how it will play out. Exactly, it is not one of those where you need to diversify within platform. I'm also not sure what is the rationale for monitoring "interest accrued". I never took any notice of this figure, it is good enough for me to see all my loans repaid on time. Should I? Am I missing something? I don't think you are missing very much. I have found that adding it in to my actual funds makes an XIRR calculation come out to something very close to what I'd expect (5.2%), whereas leaving it out obviously drops a few fractions. So just reassurance if you want that.
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