richv
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Post by richv on Feb 28, 2020 0:21:31 GMT
Hi everyone, I am new to this and have been using Funding Circle since Feb 2019. I invested £105,500.00 and when I requested to withdraw on 7th July 2019 the amount requested was £98,963.00. Q1. Can someone explain to me why not £105,500.00?Date requested: 07/07/2019 Amount requested (on 07/07/19): £98,963.00 Amount received (as of today 27/02/20): £20,764.22 Interest (as of today 27/02/20): £8,138.10 Loan part sales minus purchases: -£114.59 Fees: -£778.17 Defaults: -£2,508.59 Recoveries: £46.08 Interest so far: £4,782.83 Q.2. Why when I add the amount received as of today 27/02/20: £20,764.22 + what is left in the account £65,107.35 I do not get £98,963.00?Thank you Better start with the basics. You start by being invested into loans that average say 11%. FC take 1%. Then you can expect say 4% to 6% defaults. Therefore you can expect to lose £4 to £6k on your capital. However because recoveries can be up to 40%, the initial loss of capital could be substantially higher. It's very time consuming, but you need to go into 'My Portfolio' & go to the Status drop down box. Ciick on your Bad Depts, Lates & Processing. These you cannot sell. Also any live loans with Risk Band Removed cannot be sold either. Start with that to try to understand & come back if you require further clarification. Hi, and welcome to this site. The answer to both of your questions is probably 'Late' lones, i.e. lones where the borrower has not paid on time, but the lone has not yet been 'defaulted' by FC. Some of theses lones will come up to date and be reclassified as normal,(and sell-able) some will default. if you go to the portfolio page you can order the lones by states, and that will show how many are late. Of the lones that are defaulted, you will probably get 30%-50% of the value back over a period of about 5 years, but evidence is anecdotal and limited so don't treat that as a guarantee. Getting your money out is slow, as you have probably realized and there is not much you can do about it, IMHO will probably have made a small profit by the time you get everything out (including the recovers on the defaulted lones,) but it may not be much more than the you would have in a normal bank savings account, which considered the risk and the time taken to get money out, is a bit frustrating. Some have estimated it could take 2 years (or more) to sell a big portfolio like yours, and then add 5 years for recovers so you may not know how good/bad this investment was till 2027. I hope that's not better news, but I hope it answers you questions. P.S. On approximately 12 April, all of the lones you have for sale will (probably) be 'de-listed' and you will have to log on and relist them for sale. Its planed to happen to all of us who had put lones up for sale before 12 December 2019, and will happen at 120 day intervals going forward.
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Nomad
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Post by Nomad on Feb 28, 2020 0:34:49 GMT
P.S. On approximately 12 April, all of the lones you have for sale will (probably) be 'de-listed' and you will have to log on and relist them for sale. Its planed to happen to all of us who had put lones up for sale before 12 December 2019, and will happen at 120 day intervals going forward. Loans!
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criston
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Post by criston on Feb 28, 2020 8:25:53 GMT
Hi everyone, I am new to this and have been using Funding Circle since Feb 2019. I invested £105,500.00 and when I requested to withdraw on 7th July 2019 the amount requested was £98,963.00. Q1. Can someone explain to me why not £105,500.00?Date requested: 07/07/2019 Amount requested (on 07/07/19): £98,963.00 Amount received (as of today 27/02/20): £20,764.22 Interest (as of today 27/02/20): £8,138.10 Loan part sales minus purchases: -£114.59 Fees: -£778.17 Defaults: -£2,508.59 Recoveries: £46.08 Interest so far: £4,782.83 Q.2. Why when I add the amount received as of today 27/02/20: £20,764.22 + what is left in the account £65,107.35 I do not get £98,963.00?Thank you Reading your question again, it appears you thought defaults are deducted from interest payments. You actually continue to receive full interest on all good loans, but defaults are deducted from your capital.
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blender
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Post by blender on Feb 28, 2020 9:22:29 GMT
P.S. On approximately 12 April, all of the lones you have for sale will (probably) be 'de-listed' and you will have to log on and relist them for sale. Its planed to happen to all of us who had put lones up for sale before 12 December 2019, and will happen at 120 day intervals going forward. Loans! The Lone Arranger. The platform with the White Hat and silver bullets.
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p2pstephan
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Post by p2pstephan on Feb 28, 2020 11:39:00 GMT
Sale today 28/2/2020 Date requested: 04/10/2019
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 28, 2020 17:06:53 GMT
P.S. On approximately 12 April, all of the lones you have for sale will (probably) be 'de-listed' and you will have to log on and relist them for sale. Its planed to happen to all of us who had put lones up for sale before 12 December 2019, and will happen at 120 day intervals going forward. Loans! and Planned
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lewis
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Post by lewis on Feb 28, 2020 21:54:11 GMT
Another sale round today. Quicker this time.
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upperdeane
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Post by upperdeane on Feb 29, 2020 12:58:40 GMT
10th round sale for me 27/02/20.
1.01% of the original £amt requested on 26/09/19.
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Post by natasha1 on Feb 29, 2020 13:31:17 GMT
Hi everyone, I am new to this and have been using Funding Circle since Feb 2019. I invested £105,500.00 and when I requested to withdraw on 7th July 2019 the amount requested was £98,963.00. Q1. Can someone explain to me why not £105,500.00?Date requested: 07/07/2019 Amount requested (on 07/07/19): £98,963.00 Amount received (as of today 27/02/20): £20,764.22 Interest (as of today 27/02/20): £8,138.10 Loan part sales minus purchases: -£114.59 Fees: -£778.17 Defaults: -£2,508.59 Recoveries: £46.08 Interest so far: £4,782.83 Q.2. Why when I add the amount received as of today 27/02/20: £20,764.22 + what is left in the account £65,107.35 I do not get £98,963.00?Thank you Thanks for all of you who have answered my questions... it's starting to make a little more sense. But hand on... are you telling me that I put in £100,500 in Feb 2019 and in Feb 2020 I have received £20,764.22 with £65,107.35 left. Forgetting the defaults and bad loans for a sec, 12 months on, I have 'lost' £100,500-(£65,107.35+£20,764.22) = £14,628.43 with potentially a loss of approximately £14,628.43 x 2 = £29,256.86 in Feb 2021. Q.3. does the £20,764.22 include the £4,782.83 of interest?richv you mentioned that I might make a small profit by 2027. I mean, if I recover theoretically '40%' of defaulted loans how can I make a profit from an initial investment of £100,500 ? You live an learn from your mistakes I guess!
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Post by jagman on Feb 29, 2020 14:56:13 GMT
Loan requested 14/7 sold 26/2 in 10th round Loan requested 23/9 sold 19/2 in 9th and 27/2 in 10th rounds Loan requested June 19 and relisted 14/1/20 sold 24/2 in 9th and 29/2 in 10th rounds overall. Relisted again today 29/2. Re-listing does not seem to have increased sale frequency and has reduced the amount sold each time. Maybe my timing is wrong? It will be interesting to see if I get an extra sale this time as I have relisted on the same day as the last sale?
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criston
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Post by criston on Feb 29, 2020 15:15:16 GMT
Thanks for all of you who have answered my questions... it's starting to make a little more sense. But hand on... are you telling me that I put in £100,500 in Feb 2019 and in Feb 2020 I have received £20,764.22 with £65,107.35 left. Forgetting the defaults and bad loans for a sec, 12 months on, I have 'lost' £100,500-(£65,107.35+£20,764.22) = £14,628.43 with potentially a loss of approximately £14,628.43 x 2 = £29,256.86 in Feb 2021. Q.3. does the £20,764.22 include the £4,782.83 of interest?richv you mentioned that I might make a small profit by 2027. I mean, if I recover theoretically '40%' of defaulted loans how can I make a profit from an initial investment of £100,500 ? You live an learn from your mistakes I guess! Have you refreshed your sell order. The total you can sell changes all the time, especially so with large sums. If not, go to Access Funds to make sure you still have a sell order in place You can cancel any existing sell order, then come out of it by going to say Summary. Go back to access funds where a new figure for available funds will appear & start the sell process again. Then come back here with new figures & see if we can help. Big losses have never been reported here, mostly small gains as you run the account down.
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criston
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Post by criston on Feb 29, 2020 15:26:44 GMT
Loan requested 14/7 sold 26/2 in 10th round Loan requested 23/9 sold 19/2 in 9th and 27/2 in 10th rounds Loan requested June 19 and relisted 14/1/20 sold 24/2 in 9th and 29/2 in 10th rounds overall. Relisted again today 29/2. Re-listing does not seem to have increased sale frequency and has reduced the amount sold each time. Maybe my timing is wrong? It will be interesting to see if I get an extra sale this time as I have relisted on the same day as the last sale? You should get the other one in; I have a 27/2/20 listing still awaiting a sale.
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keitha
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2024, hopefully the year I get out of P2P
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Post by keitha on Feb 29, 2020 15:31:56 GMT
another 1.25% and a relist
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criston
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Post by criston on Feb 29, 2020 15:43:30 GMT
Thanks for all of you who have answered my questions... it's starting to make a little more sense. But hand on... are you telling me that I put in £100,500 in Feb 2019 and in Feb 2020 I have received £20,764.22 with £65,107.35 left. Forgetting the defaults and bad loans for a sec, 12 months on, I have 'lost' £100,500-(£65,107.35+£20,764.22) = £14,628.43 with potentially a loss of approximately £14,628.43 x 2 = £29,256.86 in Feb 2021. Q.3. does the £20,764.22 include the £4,782.83 of interest?richv you mentioned that I might make a small profit by 2027. I mean, if I recover theoretically '40%' of defaulted loans how can I make a profit from an initial investment of £100,500 ? You live an learn from your mistakes I guess! The following is a post I submitted in May last year & is very similar to your situation FC current projected rate for balanced portfolio 4.5% to 6.5%. Say 5.5% average.
Current projected bad debt 2.1% to 4.0%. Say 3.05% average
Bad debt recovery 45%.
Now here’s the rub. The bad debt figure above, is after recovery, so could be 5.5% (less 45% recovery) to give the 3.05% recovery figure. The recoveries could take up to 5 years.
So you start with say £100,000 portfolio at say 9.5%, less 1% fees, leaves 8.5%.
After a year you have £108,500 less £5500 bad debt = £103,000, but you will gradually get back £2500 recoveries over 5 years.
Now click on sell & you will find you can only sell a total of about 92.5% or £95000 because of late payments, bad debts & processing. This is the hidden bit I don’t like.
This is why I decided to move elsewhere. This of course makes your account look very bad as you sell out, but of course you need to take account of what you gain in interest with that money in another account.
You never really know with this type of model, how your account is really faring.
This is not knocking Funding Circle, just the model.
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Post by Ace on Feb 29, 2020 16:08:12 GMT
Thanks for all of you who have answered my questions... it's starting to make a little more sense. But hand on... are you telling me that I put in £100,500 in Feb 2019 and in Feb 2020 I have received £20,764.22 with £65,107.35 left. Forgetting the defaults and bad loans for a sec, 12 months on, I have 'lost' £100,500-(£65,107.35+£20,764.22) = £14,628.43 with potentially a loss of approximately £14,628.43 x 2 = £29,256.86 in Feb 2021. Q.3. does the £20,764.22 include the £4,782.83 of interest?richv you mentioned that I might make a small profit by 2027. I mean, if I recover theoretically '40%' of defaulted loans how can I make a profit from an initial investment of £100,500 ? You live an learn from your mistakes I guess! Hi natasha1, I sent you a PM in response to your first post as some of your figures didn't quite make sense to me. I notice that you are new to the forum, so you may have missed it. If so, you can find it by clicking on "Messages" near the top of the page. If you found it but choose to ignore it because you didn't find it helpful, that's fine. However, I think there is something not quite right with your figures (or perhaps my understanding of them). They are far worse than I've seen reported by anyone else, which leads me to suspect that there is a misunderstanding somewhere. Also, it seems that your initial investment was reported as £105,500 in your first post, but £100,500 in your second post. I assume that one of them is a typo, but it's important to know which is correct. My best guess at this stage is that there is confusion over what you mean by "what is left in the account £65,107.35". Can you explain exactly where you are deriving this figure from, or exactly where you are seeing it displayed?
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