pip
Posts: 542
Likes: 725
|
Post by pip on May 5, 2020 8:04:02 GMT
Hi. Quick straw pole. Did you make a loss or a profit on you 19/20 FC tax return. Just so everybody is clear a profit/loss is defined for this purpose as (interest earned-FC fees-bad debt+principle recovered).
|
|
corto
Member of DD Central
one-syllabistic
Posts: 851
Likes: 356
|
Post by corto on May 5, 2020 8:33:17 GMT
+2.6%
|
|
cb25
Posts: 3,522
Likes: 2,666
|
Post by cb25 on May 5, 2020 8:35:27 GMT
For each £1 of (interest less fees) I had £2.30 of bad debt, but £5.00 of recoveries from previous years. Account has been in run-down since Dec 2018 when I sold everything I could due to poor returns, still get small amounts of recoveries occurring which I also withdraw.
|
|
|
Post by shanghaiscouse on May 5, 2020 9:42:59 GMT
Big fat loss for me. I had an investment of around £250k. I made £20k net interest but had £32k defaults, with a massive £680 of recoveries.
|
|
|
Post by shanghaiscouse on May 5, 2020 9:57:24 GMT
Also, from memory you can only offset your losses against other "innovative finance" gains. So I hedged by having a similar amount in Ratesetter. As RS has a provision fund its losses have been deferred into the future, hopefully I will be out by the time they crystallise, and in meantime offset all this loss against RS interest.
|
|
ceejay
Posts: 971
Likes: 1,149
|
Post by ceejay on May 5, 2020 10:34:10 GMT
I won't pollute your survey with meaningless data, but I will just note that I definitely made a profit - but only because my entire portfolio was in default at the start of the year so all I've had is a few dribbles of recoveries! (Roughly 2% of the default amount outstanding, BTW).
|
|
pip
Posts: 542
Likes: 725
|
Post by pip on May 5, 2020 11:12:24 GMT
Hmm not great for the year before the crisis struck.
|
|
coogaruk
Hello everyone! Anyone remember me?
Posts: 703
Likes: 463
|
Post by coogaruk on May 5, 2020 11:19:19 GMT
Small profit this year. No new lending though, been winding down since September '17.
|
|
keitha
Member of DD Central
2024, hopefully the year I get out of P2P
Posts: 3,867
Likes: 2,308
|
Post by keitha on May 6, 2020 8:35:56 GMT
Started to wind down, so impossible to calculate totally accurately, works out at 4.5% of amount invested at start of year so I'd guess overall 5%, that's allowing for 4% defaults and 2.66% of that recovered ( which becomes a pitiful 1.3% if I remove the one full recovery )
but given I have over 20% of the "live loans" cancel DD or marked as "may be unable to make next payment"
|
|
easylender
Member of DD Central
Posts: 248
Likes: 222
|
Post by easylender on May 8, 2020 21:33:22 GMT
I have made small losses on all three of my FC accounts. However I've been running one down and actively selling out the others so the result is to be expected.
|
|
|
Post by robbo879 on May 11, 2020 16:54:05 GMT
For 19/20 tax year I made a net loss of £23.
FC used to be my main P2P investment site but after they made various changes to their model, I decided to run down my investment. The reason for the loss is that I currently have a long tail of 'late' or 'bad debt' loans and very few good ones left.
One thing many people forget about P2P investment is that, despite the attractive headline interest rate, if you decide to wind down your investment, it can take a very long time to get all your money out!
|
|
beagle
Investor in ratesetter, funding circle, lendy (lesson learnt) and AC
Posts: 670
Likes: 322
|
Post by beagle on May 11, 2020 17:41:36 GMT
Does anyone know the average exit time (not counting the current crisis)
|
|
|
Post by robbo879 on May 11, 2020 23:26:09 GMT
Does anyone know the average exit time (not counting the current crisis) It depends what you mean by "average exit time"? If you have unallocated funds in your account, you can withdraw them straight away - it takes 1-3 days to get to your bank account. If you have invested in a loan, you have to wait until that loan is repaid before you can withdraw your money. FC used to run a secondary sales market where they would sell your loans to other investors but this was stopped as part of the COVID changes. Prior to this, the secondary sales market had become desperately slow taking, typically, 100+ days. [NB in early 2019, you could typically sell loans in a few days.] If a loan becomes "bad debt", you have to wait for the debt recovery process - which, in my experience, can take up to 2 years. Even then you may get only some, or none, of your money back.
|
|
rogerthat
Member of DD Central
Posts: 2,048
Likes: 1,994
|
Post by rogerthat on May 12, 2020 9:11:05 GMT
2 years ! good luck with that..im still getting drips from loans already in their 8th year ..on some with a return of 1p a month I suspect the outstanding loan will outlast me
|
|
|
Post by robbo879 on May 13, 2020 12:05:56 GMT
2 years ! good luck with that..im still getting drips from loans already in their 8th year ..on some with a return of 1p a month I suspect the outstanding loan will outlast me Thanks for managing my expectations! Hopefully, my children will benefit from some belated returns.
I'm just glad I got off the FC merry-go-round when I did. I dread the impact that the current crisis will have on existing loans.
|
|