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Post by indexfund on Jul 31, 2021 9:51:36 GMT
I guess we never really talk about actual amounts, but I'm interested in the level of confidence others have in LoanPad? Obviously a large risk to some may be trivial to others, but it is still interesting. I have around £20k with LP and looking to invest quite a lot more, hence the thread.
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Nomad
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Post by Nomad on Jul 31, 2021 10:21:49 GMT
I guess we never really talk about actual amounts, but I'm interested in the level of confidence others have in LoanPad? Obviously a large risk to some may be trivial to others, but it is still interesting. I have around £20k with LP and looking to invest quite a lot more, hence the thread. I have "quite a lot more" than £20K with them.
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Post by Ace on Jul 31, 2021 10:47:32 GMT
My total with Loanpad has varied greatly as I sometimes use it as a shortish term store. Currently have mid 5 figures in there, but has crept into 6 figures in the past. I try to limit it to 20% of my P2P pot, but broke this rule at its peak.
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Post by indexfund on Jul 31, 2021 10:56:44 GMT
My total with Loanpad has varied greatly as I sometimes use it as a shortish term store. Currently have mid 5 figures in there, but has crept into 6 figures in the past. I try to limit it to 20% of my P2P pot, but broke this rule at its peak. Interesting replies everyone. I am pretty relaxed with LP at the moment, the model is impressive and LV's so low @ under 50%. I was thinking of increasing my LP investment also to mid 5 figures in the coming weeks with funds draining from other P2P platforms. It is to LP's credit that we have this level of confidence, but no doubt we will all keep a close eye on them!
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trium
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Post by trium on Jul 31, 2021 15:02:25 GMT
I've had my account less than 4 weeks, starting with £500 while I found my way around, now increased to £5k. I'd like to see how things pan out with regard to the approximately 20% of extended loans but on the other hand this is essentially a black-box account so what do I care about individual loans so long as I continue to get 4% with reliable access to funds in accordance with relevant notice periods.
I may not invest a lot more, other than transiently, while the rate is so low, but that wasn't what the OP asked about. I'm impressed by the platform and I would feel confident investing considerably more.
One concern I have, perversely, is that there is a significant and growing amount of positive comment about this platform around these forums. Too much new cash and the loan flow won't keep up, putting pressure on LP's ability to maintain interest payments.
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Post by Harland Kearney on Jul 31, 2021 16:41:26 GMT
I won't say my specfic holding, but I will say Loan Pad is now my only holding in P2P. It is in the higher 5 digits currently, I'll leave it at that.
Very happy with them so far.
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Post by Ace on Jul 31, 2021 16:49:10 GMT
I make it 11% of loans by number, 16.3% of lent funds by value, or 16% of total funds on platform, are either in default or extended. I'm comfortable with that. I've been watching the platform for around 3 years and have seen a great many loans be extended and eventually repay.
Loanpad are being paid between 5.5% and 7% on the loans that they've arranged recently. That should be enough fat to be able to keep paying us 4%. I don't see any sign that they are finding any difficulty in getting funds lent out at those rates. The number of lending partners keeps growing. Now up to 6, I think.
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trium
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Post by trium on Jul 31, 2021 18:34:06 GMT
I make it 11% of loans by number, 16.3% of lent funds by value, or 16% of total funds on platform, are either in default or extended. Yes, 26 extended plus 1 default. For some reason I thought there were about 100 loans. It's actually 139, so 18.7% extended. I think! Edit - I think I'm counting tranches as separate loans. I'm sure Ace is right.
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Post by Ace on Jul 31, 2021 21:07:23 GMT
I make it 11% of loans by number, 16.3% of lent funds by value, or 16% of total funds on platform, are either in default or extended. Yes, 26 extended plus 1 default. For some reason I thought there were about 100 loans. It's actually 139, so 18.7% extended. I think! Edit - I think I'm counting tranches as separate loans. I'm sure Ace is right. Yes, 101 seperate live loans, of which 1 is defaulted and 10 are extended, so 10.9% by number. It's easy to count and ignore the extra tranches as they all have a letter after the loan ID. The number of live loans is displayed on the Live Data Feed page.
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Post by nooneere on Jul 31, 2021 22:08:09 GMT
I won't say my specfic holding, but I will say Loan Pad is now my only holding in P2P. It is in the higher 5 digits currently, I'll leave it at that. Very happy with them so far. I am drifting towards the same concentration on this platform (with P2P being a minor portion of my liquid assets). I think the business model is in a class of its own, and would not be surprised to see competitors replicate it in due course.
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dead-money
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Post by dead-money on Aug 1, 2021 19:30:48 GMT
Well I used to have £120K with AC and that did represent less than 10% of investable assets. I've now got less than £10K in AC and it wouldn't be there still if it were by choice !
Loanpad has benefited to the tune of £40K and their model feels like how AC used to be / should be. But I guess AC has their eyes on horizons beyond P2P nowadays.
No current plans to increase P2P exposure beyond current levels; looking at EIS investment funds, or just continuing to top up commodities, equities and bonds.
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Post by birdie on Aug 2, 2021 7:34:55 GMT
I feel quite comfortable with Loanpad but I have a limit in the mid 5 figures that I will invest with any single company, although I am tempted to put more into Loanpad I will stick to what has worked for me for the time being.
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sussexpeer
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If you don't make a plan, you'll end up where you're headed.
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Post by sussexpeer on Aug 2, 2021 12:26:11 GMT
Mid 5-figure number for me, mostly in the Premium a/c. I kind of use it like an easy-access bank account to fund other investments and move profits/ sales back into. Obviously, I'm very aware that it's money that could be at risk if LP goes tits-up. But quite relaxed about LP atm.
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zlb
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Post by zlb on Aug 4, 2021 9:21:38 GMT
The main risks of a platform are the people, whether they are doing what they said they are doing, the model - can it keep going, and how long for? How will we know when that starts to not be a long term model? It's a good model as long as it properly legally binding, eg if a large investor or the junior part wanted out? Could that happen? Having been involved in Ly, and seeing discussion around other platforms, realising the lag in how losses accumulate on Z for example, I've reduced my investments, incl in LP but I'm grad moving back into LP. What makes me wary is when a platform becomes popular on here, things start to go wrong with the platform expansion.
The main reason I've seen for that in the past is that there are a limited number of borrowers who present risk but not too much. The borrower doesn't know what they are doing and flats end up not meeting regs and can't be sold. Is that changing?
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Post by indexfund on Aug 4, 2021 12:01:48 GMT
The main risks of a platform are the people, whether they are doing what they said they are doing, the model - can it keep going, and how long for? How will we know when that starts to not be a long term model? It's a good model as long as it properly legally binding, eg if a large investor or the junior part wanted out? Could that happen? Having been involved in Ly, and seeing discussion around other platforms, realising the lag in how losses accumulate on Z for example, I've reduced my investments, incl in LP but I'm grad moving back into LP. What makes me wary is when a platform becomes popular on here, things start to go wrong with the platform expansion. The main reason I've seen for that in the past is that there are a limited number of borrowers who present risk but not too much. The borrower doesn't know what they are doing and flats end up not meeting regs and can't be sold. Is that changing? It's these risks that made me start this thread. I know from Growth stocks and funds, that when things get abit frothy, it is time to ask some questions. I am a fan of LP but as you say, when the masses pile in will there be enough availability of quality borrowers? I guess time will tell, but the vigilance being shown here and elsewhere can only help. Currently, I am reasonably relaxed at mid five figures. There have been a few questions asked re: loan security and the legality therein, and would appreciate any updates on this as they become available.
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