C***e Street, Glasgow (now £500 min) REPAID

There was follow up e-mail correcting the mistake. They didn't mean 15%.

Personally, I quite like this loan , largely because it's a new loan at a reasonable LTV,  and therefore hopefully stands a high chance of being renewed.

My main issue isn't with the loan at all ...... it's with the platform.  Is it irrational to be concerned about the viability of FS itself  ?  Sometimes I suspect I'm allowing myself to be unduly influenced by the large amount of negative feedback on these boards.  Is there any real chance of FS sinking ?

The punter with 600k on the line is presumably unworried 

My guess is that this will be a short lived trial before being consigned to the scrapheap. I think the number of people who would have invested £300 that now put in £500 will be swamped by the number who would have put in less than £200 that now put in nothing.

Edit: There's ~£27k invested between £25 and £300, and a further ~£7k from £325 to £475. I'd guess that a lot of the £325-£475 investors might have rounded up to £500, bringing in an extra £1875, but you stand to lose £27k from the small investors. unless there's a big admin cost of managing £25 investments (which doesn't sound likely), then i just don't see the purpose of this.

That doesn't make sense at all- the big hitters won't be more "attracted" to this loan simply because there's a restriction on small investments. There's also no mention of what happens with the SM. Will £25 be allowed to be sold? If so, smaller investors are punished in that they will have to pick this up next week at a premium. If it isn't allowed to be sold, then this would reduce the attraction of investing £500 as it makes selling it harder.

I edited my last post to include some figures which clearly shows that the vast majority of the smaller investors are investing less than £300. Are they likely to go up to £500? 

I'm struggling to understand the logic behind this decision. It's very unlikely that excluding small investors will help the process of filling this loan. Perhaps some of those who were thinking of investing £400 will decide to increase to £500??? 385k to go - we'll see what happens.

Exactly, but so far, those going from £400 to £500 would only bring in an extra £1k, while you're putting at risk the £30k that's below £400.
As SteveT mentioned, the only thing that makes sense is if there's a large admin cost of managing £25 investments, but surely the business is designed to automate that process so there should be no/minimal cost of additional investors.