Lending Works

Hi baz657

Just to note that you'll always receive your expected repayments as they fall due, whether directly from the borrower or via the Shield making a payment on their behalf, so you shouldn't need to worry about individual arrears on your specific loan parts (only our overall arrears and default management). We think this is the fairest way to do it since lenders cannot choose their individual loan parts. On that note, our arrears and default rates have been 0.00% since we launched in January, so this has not yet been necessary in practice.

Regarding reinvested capital, there is a de minimis loan chunk size of £1.00. We previously had no de minimis but this meant lenders could end up with chunk sizes on which interest would have simply been a rounding difference, so we felt £1.00 should be acceptable. We've no intention of changing this.

Have a great weekend.

Well, tempted by 4thway's favourable comments I thought I'd give it a go. 
And at 4.3% 3yr 6.1% 5yr it beats RS

Um

I transferred in 100, invested some in 3yr and some in 5yr leaving £50.
I put in a withdrawal request for the £50 (always good to know that's working well), and got an acknowledgement
I set up auto-invest (to recycle repayments); 25% 3yr, 25% 5yr and 50% left in cash (didn't really undrstand how it was meant to work but it seemed sensible not to try invest the cash I wanted to withdraw.


so far so good.  but

They phoned me the next day to say, sorry but 50% of your cash has now been invested as per your auto invest!  Well fine, it's an experiment really so OK.
Just so they knew and could improve I sent them a support request, and I got the reply today (so prompt), but they are telling me that it's all working correctly.  I just disagree

problem 1
I think the next day the autoinvest invested 50% of the remaining £50 cash; would it then have gone on to invest £12-50 the next day and £6-25 the next? – Yes it would have continued to follow this same methodology until all funds lent out.
I can't see any point to this


problem 2
When I make a cash withdrawal request I would hope the system would block the money from going elsewhere, but of course it didn't – this is because auto lend wasn’t switched off. Even though you have requested funds to be transferred out auto lend doesn’t switch off automatically. In the future when you wish to transfer funds out, switch off auto lend then once funds have been received back, turn auto lend back on again.
Well I really think the system should do that for me

problem 3 -
it's perhaps me but I can't see where on the site to look at my investments and cash etc - statements is blank? – it is at the moment until you receive repayments back from borrowers then statements will begin to be produced.
Rather un-nerving "we've got your money but it's our secret for the time being"  Actually this is a CS failure, figures are available just not under statements

I'll leave the £75 and let's see what happens.  The whole thing doesn't seem to have been tested by many innocent untrained punters. 

Does anyone have any knowledge about their capitalisation, how long can they keep going while they build up the business?

Hi shimself

Thanks for highlighting this and please accept my apologies for any inconvenience caused. 

I've personally looked into your account and I can acknowledge your confusion. We are currently working on a number of significant lender centre improvements and will ensure this is also given a high priority. The Auto Lend function runs overnight on any balance left in your Wallet - clearly this shouldn't happen for any funds pending transfer out or any funds which have been requested not to be auto-lent.

I can see from your account that you still have some funds on offer, so feel free to cancel pending offers and we can transfer these out if you'd like. If any amounts have been lent out which you wished to withdraw we will happily top up your account to ensure you are not out of pocket.

We'd be interested to hear your preferences around lender functionality updates, for example would you rather Auto Lend is switched off when you try to transfer out, or just that these funds are 'set aside'? We welcome feedback from lenders as these updates are to improve your experience of using the platform.

Regarding your third point - you can see your active loans under My Loans and your repayment profile under My Repayments, which I think you've now found - apologies for any confusion there. Statements are produced at the end of each month and are downloadable pdfs which you'll find under the Statements tab.

Regarding capitalisation, we're well capitalised and have no intention of going anywhere. We've got a lot of exciting things in the pipeline and will continue to innovate as you'll hopefully see going forward, whilst still providing an extremely safe and simple proposition.

I, too, have now dipped a toe.  Let's see if it leads to bigger (& better) things.

Just as Zopa ditch their "Rate Promise", Lending Works launch their "Rate Lock";

www.lendingworks.co.uk/lend-money?utm_content=buffer42128&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

I guess Zopa can't complain about plagiarism....

I've found the 5 year deals tend to take a while to fill whereas the 3 year ones are pretty quick.