number5
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Post by number5 on Nov 8, 2018 10:43:26 GMT
Hi,
Is there anyone who can help me understand the pros and cons of AC's QAA model vs FC's Blackbox model?
Thanks!
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benaj
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Post by benaj on Nov 8, 2018 10:55:34 GMT
The obvious, QAA has provision fund, hence no losses yet, FC doesn't. Another obvious about QAA is almost instant, 100% withdrawal can be done seconds. Withdrawing 100% FC is not always possible when the loans are stuck and unsellable, but you can still withdraw most of the money can be done in less than 24 hours.
Overall return on FC is higher than QAA, however, return is not guaranteed, this goes the same with QAA when things become worse than expected. When you need 100% withdrawal, FC is definitely not the one, but it is good enough IMHO.
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SteveT
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Post by SteveT on Nov 8, 2018 11:00:54 GMT
AC loans are secured. FC loans, in the main, are unsecured (other than a PG)
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number5
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Post by number5 on Nov 8, 2018 11:07:38 GMT
The obvious, QAA has provision fund, hence no losses yet, FC doesn't. Another obvious about QAA is almost instant, 100% withdrawal can be done seconds. Withdrawing 100% FC is not always possible when the loans are stuck and unsellable, but you can still withdraw most of the money can be done in less than 24 hours. Overall return on FC is higher than QAA, however, return is not guaranteed, this goes the same with QAA when things become worse than expected. When you need 100% withdrawal, FC is definitely not the one, but it is good enough IMHO. Thank you How fast can you deposit and withdraw funds to and from your bank account on AC using the QAA model?
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SteveT
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Post by SteveT on Nov 8, 2018 11:12:29 GMT
The obvious, QAA has provision fund, hence no losses yet, FC doesn't. Another obvious about QAA is almost instant, 100% withdrawal can be done seconds. Withdrawing 100% FC is not always possible when the loans are stuck and unsellable, but you can still withdraw most of the money can be done in less than 24 hours. Overall return on FC is higher than QAA, however, return is not guaranteed, this goes the same with QAA when things become worse than expected. When you need 100% withdrawal, FC is definitely not the one, but it is good enough IMHO. Thank you How fast can you deposit and withdraw funds to and from your bank account on AC using the QAA model? Deposit = 1 hour max (24-7) Withdrawal is typically less than 1 second to your Cash account (in normal conditions). Then 1 or 2 working days to your bank account, depending what time you put in the request.
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benaj
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Post by benaj on Nov 8, 2018 11:13:02 GMT
Deposit to AC is usually quick via Faster payment, and starts earning interest immediately after transferring fund to QAA.
Withdrawing money usually takes 1-3 working days after receiving email confirmation from AC. Money arrives late in the account on the evening.
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blender
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Post by blender on Nov 8, 2018 11:19:31 GMT
Deposit to AC is usually quick via Faster payment, and starts earning interest immediately after transferring fund to QAA. Withdrawing money usually takes 1-3 working days after receiving email confirmation from AC. Money arrives late in the account on the evening. I can endorse the deposit using faster payments. I used that on a Sunday and was invested the same day.
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ceejay
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Post by ceejay on Nov 8, 2018 11:20:25 GMT
There is some debate on the FC board about what rate of return you will actually get, after losses. My own experience - I'm essentially out now, apart from a couple of stragglers and a bunch of defaults - was an XIRR of 2%, which is pathetic. Remember that nearly all of FC loans are unsecured, so you are at the mercy of their loan assessment and chasing teams.
Another important difference, IMHO, is that if you were to run a decent amount in each of them for a while (a year or two, lets say) and then try to cash in, you will have two very different outcomes. Unless we are a long way from "normal conditions", your QAA funds will be with you more or less instantly and you can close your account.
With FC, it is a stonewall certainty that your portfolio will include a number of defaults and lates. Sure, you'll get the large majority of your cash back very quickly (making the same assumption about market conditions and available lenders), but the rest will form a rump that will drag on literally for years. You can't close the account. You don't say how old you are, but for anyone later in life who is thinking about the administration of their estate, this will be a mega pain. For me, this zombie account is just a nuisance - returning literally pennies a month, expected to continue doing this for at least five more years.
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number5
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Post by number5 on Nov 8, 2018 11:41:37 GMT
Thanks guys for all your replies!
So would you say that AC's QAA is the best of its type around the p2p market?
RateSetter or Zopa worth considering in the same bracket?
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cb25
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Post by cb25 on Nov 8, 2018 11:50:31 GMT
Thanks guys for all your replies! So would you say that AC's QAA is the best of its type around the p2p market? RateSetter or Zopa worth considering in the same bracket? You might also want to consider AC's 30DAA (30 day account, much like QAA, but obviously at 30 days notice 'under normal conditions', higher rate). I've got a fair amount in this.
I'm running down my Zopa accounts - too many losses this year, reducing the returns. Exit fee to beware of.
Ditto FC. Edit: "ditto" means I'm running it down. NO exit fee
RS - I like their 5 yr market, but wouldn't suggest you go there if you want your money back in a hurry. Exit fee on 5 yr.
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number5
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Post by number5 on Nov 8, 2018 11:56:18 GMT
Thanks guys for all your replies! So would you say that AC's QAA is the best of its type around the p2p market? RateSetter or Zopa worth considering in the same bracket? You might also want to consider AC's 30DAA (30 day account, much like QAA, but obviously at 30 days notice 'under normal conditions', higher rate). I've got a fair amount in this.
I'm running down my Zopa accounts - too many losses this year, reducing the returns. Exit fee to beware of.
Ditto FC. RS - I like their 5 yr market, but wouldn't suggest you go there if you want your money back in a hurry. Exit fee on 5 yr.
I have seen AC's 30DAA, but I am looking for somewhere where I can have access to funds rather quickly. I am currently only in FS but with the amount of decent loans reducing and a slow SM I am stuck with a lot of cash drag. So I am looking for somewhere to park these funds until FS picks up again or new loans to the PM Unless there is anywhere else with a good SM to invest in p2p?
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cb25
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Post by cb25 on Nov 8, 2018 12:00:47 GMT
You might also want to consider AC's 30DAA (30 day account, much like QAA, but obviously at 30 days notice 'under normal conditions', higher rate). I've got a fair amount in this.
I'm running down my Zopa accounts - too many losses this year, reducing the returns. Exit fee to beware of.
Ditto FC. RS - I like their 5 yr market, but wouldn't suggest you go there if you want your money back in a hurry. Exit fee on 5 yr.
I have seen AC's 30DAA, but I am looking for somewhere where I can have access to funds rather quickly. Sorry, can't help there, as I don't view my P2P as quick-access accounts, e.g. the only money I keep in AC's QAA is for funding upcoming loans.
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blender
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Post by blender on Nov 8, 2018 12:06:50 GMT
FC is really excellent for quick sale and access, but for the reasons ceejay gives I continue to use it that way because I am already there, and bound to them forever. If starting now I would not go to FC.
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number5
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Post by number5 on Nov 8, 2018 12:09:10 GMT
FC is really excellent for quick sale and access, but for the reasons ceejay gives I continue to use it that way because I am already there, and bound to them forever. If starting now I would not go to FC. I was only in FC until they changed their model at which point I moved to FS...Now I am looking for options, ideally with a good SM and liquidity.
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SteveT
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Post by SteveT on Nov 8, 2018 12:40:37 GMT
I have seen AC's 30DAA, but I am looking for somewhere where I can have access to funds rather quickly. Repeating a note of caution I posted a while back here
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