dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Jan 10, 2022 17:26:18 GMT
#B S£ r £r@ding. Projected net return: 7.7% per year Term: 36 months Target: £150,000 Min target: £125,000
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Post by df on Jan 10, 2022 18:01:41 GMT
#B S£ r £r@ding. Projected net return: 7.7% per year Term: 36 months Target: £150,000 Min target: £125,000 I've put my bit in, but I think it will struggle to fill. The furniture one is still far from the minimum target. It looks like these loans are too large for this platform.
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Post by Ace on Jan 10, 2022 18:11:41 GMT
Also, this is the first loan for quite a while where no bonuses apply. I'll be contributing as I've done very well with Q so far, but I'm not in a rush given the rate. I'm a little disappointed that I'm going to suffer a 2 month cash drag on the previous loan.
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Post by Badly Drawn Stickman on Jan 10, 2022 18:21:50 GMT
The existing loan raises one fairly obvious question.
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littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Jan 10, 2022 18:52:58 GMT
The existing loan raises one fairly obvious question. Not so obvious that you can't tell us what it is? Strange how Q have flipped from it being almost impossible to invest if you were not a QFirst/QBoost investor, to being unable to fill the last two loans. One problem with their funding model is perhaps that people who intend to invest want to minimise their cash drag so hold off until the loan is filling well. If everybody adopts this tactic the loans never fill. Another platform had to introduce "instant returns" to persuade us to part with our dosh promptly. Maybe Q have to do something along those lines, but I don't know where the funding could come from.
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Post by df on Jan 10, 2022 20:51:18 GMT
The existing loan raises one fairly obvious question. Not so obvious that you can't tell us what it is? Strange how Q have flipped from it being almost impossible to invest if you were not a QFirst/QBoost investor, to being unable to fill the last two loans. One problem with their funding model is perhaps that people who intend to invest want to minimise their cash drag so hold off until the loan is filling well. If everybody adopts this tactic the loans never fill. Another platform had to introduce "instant returns" to persuade us to part with our dosh promptly. Maybe Q have to do something along those lines, but I don't know where the funding could come from. I think it is simply the lack of investors, not enough to fill the loans of that size. Small loans fill very quickly (at least on my watch). Historically, most unsecured SME loans tend to at around 50k or less - the 100k+ are normally subject to security.
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Post by birdie on Jan 11, 2022 10:18:29 GMT
I'm in the last three now, every little bit helps, that's five altogether.
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huxs
Member of DD Central
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Post by huxs on Jan 27, 2022 18:24:13 GMT
Will increasing the rate to 9.72% help this fill ?
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Post by df on Jan 27, 2022 18:51:53 GMT
Will increasing the rate to 9.72% help this fill ? Hard to say, only 9.93% of the target is met so far and another loan is 51.6%. I think the rate increase can attract a bit more funds, but I suspect most investors have already pledged the sum they are prepared to lend to a single loan. These last two loans are too large for the current Q "investorship".
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Post by Ace on Jan 27, 2022 19:31:06 GMT
Will increasing the rate to 9.72% help this fill ? Hard to say, only 9.93% of the target is met so far and another loan is 51.6%. I think the rate increase can attract a bit more funds, but I suspect most investors have already pledged the sum they are prepared to lend to a single loan. These last two loans are too large for the current Q "investorship". I'll be adding some due to the increase. I originally put less than my usual amount in this one because of the lower rate. I felt that the rate was marginal for an unsecured loan, but wanted to support Qardus since their loans have run very smoothly so far, and have been my best performing platform for over a year now. The XIRR on this will now be 19.5%, which is more in line with the risk in my view. I do think Q could have reduced their cut a bit to push the simple rate over 10% and the XIRR over 20%, which just looks better.
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Post by df on Jan 27, 2022 22:39:10 GMT
Hard to say, only 9.93% of the target is met so far and another loan is 51.6%. I think the rate increase can attract a bit more funds, but I suspect most investors have already pledged the sum they are prepared to lend to a single loan. These last two loans are too large for the current Q "investorship". I'll be adding some due to the increase. I originally put less than my usual amount in this one because of the lower rate. I felt that the rate was marginal for an unsecured loan, but wanted to support Qardus since their loans have run very smoothly so far, and have been my best performing platform for over a year now. The XIRR on this will now be 19.5%, which is more in line with the risk in my view. I do think Q could have reduced their cut a bit to push the simple rate over 10% and the XIRR over 20%, which just looks better. Less than usual for a lower rate - I've always had that strategy on AC, on average my 7%+ have more than 6%ers. I don't how if it's a good strategy, but good to know somebody else has a similar approach I share the sentiment. My feeling so far is that Q is worth supporting. If my p2p budget was higher I would've definitely made an extra pledge. I agree, anything below 10% to lenders for unsecured loans is too low to attract investments, particularly in case of a tiny loan book. I'm not sure if XIRR can be advertised as a headline rate.
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Post by Ace on Jan 27, 2022 22:51:14 GMT
I'll be adding some due to the increase. I originally put less than my usual amount in this one because of the lower rate. I felt that the rate was marginal for an unsecured loan, but wanted to support Qardus since their loans have run very smoothly so far, and have been my best performing platform for over a year now. The XIRR on this will now be 19.5%, which is more in line with the risk in my view. I do think Q could have reduced their cut a bit to push the simple rate over 10% and the XIRR over 20%, which just looks better. Less than usual for a lower rate - I've always had that strategy on AC, on average my 7%+ have more than 6%ers. I don't how if it's a good strategy, but good to know somebody else has a similar approach I share the sentiment. My feeling so far is that Q is worth supporting. If my p2p budget was higher I would've definitely made an extra pledge. I agree, anything below 10% to lenders for unsecured loans is too low to attract investments, particularly in case of a tiny loan book. I'm not sure if XIRR can be advertised as a headline rate. I have suggested it to them, but I've no idea whether they could or why they don't. Perhaps related to sharia, but I wouldn't know. They really are missing a trick though, as their repayment mechanics mean that the profits are much higher than their advertised rates suggest. I think that all platforms should be forced to quote returns on the same basis, so that rates can be directly compared between platforms, much like AER is used for savings comparisons. If only there was a strong regulator to require and police such a thing.
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littleoldlady
Member of DD Central
Running down all platforms due to age
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Post by littleoldlady on Jan 28, 2022 9:24:40 GMT
XIRR or some sort of APR might scare off the borrowers, and they are in short supply already.
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dave4
Member of DD Central
Cynical is a hobby not a lifestyle
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Post by dave4 on Feb 10, 2022 15:12:20 GMT
XIRR or some sort of APR might scare off the borrowers, and they are in short supply already. Update... So from now (10/2/2022) until the 17th of February 2022, if you invest over £1,000 as your first Investment, you are entitled to up to 1.5% Q Boost. And don't worry, this will also apply to investments made in this offer retroactively!
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Post by Ace on Feb 10, 2022 18:47:11 GMT
XIRR or some sort of APR might scare off the borrowers, and they are in short supply already. Update... So from now (10/2/2022) until the 17th of February 2022, if you invest over £1,000 as your first Investment, you are entitled to up to 1.5% Q Boost. And don't worry, this will also apply to investments made in this offer retroactively! Don't forget that the bonus is rounded up to the next multiple of £100, so that's a 10% boost for a new investor. I make that an XIRR of 27.37%. I'm sure that would attract more funding, if only they would promote the real returns.
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