debeast
(o)(o)
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Post by debeast on Feb 14, 2014 8:46:56 GMT
Didn't notice that but now i've looked. A small amount i placed in at the end of last week on and 18 month one is showing 0%. Presumably i'm not receiving interest on this money until it is loaned out? debeast You earn interest as soon as your money is committed to a term regardless of whether or not it has been assigned to a loan yet. Therefore you are currently earning interest!! Thats great news. No drawdown period = a double thumbs up from me /beastie
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mikes1531
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Post by mikes1531 on Feb 15, 2014 21:00:22 GMT
"Anyway, my toe-dipping funds are still 0% loaned so presumably they are waiting for borrowers"
How do we find that out? My little toe went in last week, and all I can see is the fact that the money is there for 18 months and matures on 29.1.2015 . The rest of my left foot might be getting wet later this week.
Am I the only one who thinks the above is inconsistent? If oldgrumpy's investment was made last week in the 18-month term, I'd expect it to mature around end-Jul/beg-Aug of 2015, not next January. Either the maturity date has been mis-stated, or the investment term was 12 months instead of 18, or investing in the 18-month term is an 'up to' situation and in this case the money was assigned to a loan maturing in about a year. Or...?
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Post by pepperpot on Feb 15, 2014 22:30:41 GMT
"Anyway, my toe-dipping funds are still 0% loaned so presumably they are waiting for borrowers"
How do we find that out? My little toe went in last week, and all I can see is the fact that the money is there for 18 months and matures on 29.1.2015 . The rest of my left foot might be getting wet later this week.
Am I the only one who thinks the above is inconsistent? If oldgrumpy's investment was made last week in the 18-month term, I'd expect it to mature around end-Jul/beg-Aug of 2015, not next January. Either the maturity date has been mis-stated, or the investment term was 12 months instead of 18, or investing in the 18-month term is an 'up to' situation and in this case the money was assigned to a loan maturing in about a year. Or...? ...Or oldgrumpy has been at those fermenting bananas again. I'd guess it was either your 'either' or your first 'or' . AFAIUI, any money in Wellesley is simply lent to Wellesley for the term indicated. Fairly similar model, in many respects, to a bank , just with lower overheads and therefore better rates.
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oldgrumpy
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Post by oldgrumpy on Feb 15, 2014 22:53:59 GMT
...Or oldgrumpy has been at those fermenting bananas again....
Oh, bum!
Maturing date 29.7.15 (hic! Ooops!)
Where's me glass??...
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oldgrumpy
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Post by oldgrumpy on Feb 19, 2014 14:27:38 GMT
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oldgrumpy
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Post by oldgrumpy on Feb 21, 2014 12:04:11 GMT
To mrclondon and bugs4me Re posts Feb 5 11 Feb newsletter from Wellesley: "Wellesley & Co Launches Monthly Access term – 2.25% AER
We are delighted to announce that in response to customer interest and in our interest to offer the most competitive terms and rates that we can, we are launching our new Monthly Access term. The 30 day fixed rate will allow more investors to participate in peer-to-peer lending."
Well that didn't last long!!
Down to 1.5% today on the website! Better keep an eye on all the other rates.
Hey, Wellesley - are you still delighted?
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Post by wellesleyco on Feb 21, 2014 12:48:47 GMT
Good Afternoon Everybody, oldgrumpy. Yes we are still delighted, not only because its Friday but the one month product has received a great response. The reason for the change in rate is simply to try and manage the inflows of cash into the short term commitment. MONEY yes it is liquidity management, We have a pipeline of £25m which should draw down in the next 4 weeks and of which some are today and next week. Money held in the segregated client account does still earn interest from the day that it is committed to a lending term.
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oldgrumpy
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Post by oldgrumpy on Feb 21, 2014 13:02:15 GMT
Good Afternoon Everybody, oldgrumpy. Yes we are still delighted, not only because its Friday but the one month product has received a great response. The reason for the change in rate is simply to try and manage the inflows of cash into the short term commitment. MONEY yes it is liquidity management, We have a pipeline of £25m which should draw down in the next 4 weeks and of which some are today and next week. Money held in the segregated client account does still earn interest from the day that it is committed to a lending term. Hi! That you, MA? You'll be thinking about Monday before you can unzip a banana!! So we can expect the monthly rate to vary a lot then; you got too much cash £25m is a lot! Plenty of business coming in then?
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Post by wellesleyco on Feb 21, 2014 13:32:33 GMT
Yes, the flow of new loans coming through is significant and we are still being highly selective. We are offering fairly competitive rates on bridging loans which attracts a healthy number of high quality loan applications. We do however notice that there can be delays in the drawdown process for agreed loans which usually are as a result of the legal process when ensuring that our charge over the security is unencumbered. Therefore whilst these periods where money is not matched for a week or so may seem quite alien when compared to a traditional P2P, it is something that is factored into our business model.
It is also worth noting that when your funds are not matched to loans, they sit in our segregated trust account which is held completely ring-fenced from our balance sheet. We offer interest regardless of whether the funds are matched or not and we pay this interest from our own capital and retained earnings. When you receive an interest payment (or when we accrue interest), it is also held in the segregated account alongside your capital, as such you money is safe.
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Post by wellesleyco on Feb 21, 2014 13:46:28 GMT
MONEY there is one further factor I would like to mention. The loans that we make are normally 6-12 months long and therefore you will notice that other than our 30 day term, every lending term is 6 Months or longer. The reason we manage our liquidity flowing into the 30 day term is because we do not wish to become over funded with short term money. We do not borrow short and lend long and therefore our 30 day term is matched against loans that we have that have approximately 30 days left till they mature. As such, our 30 day term interest rate will fluctuate regularly. All of the other terms (6 months and greater) will not fluctuate on a regular basis and we believe our money raising and loan origination efforts are fairly well balanced.
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Post by yorkshireman on Feb 21, 2014 14:30:40 GMT
We offer interest regardless of whether the funds are matched or not and we pay this interest from our own capital and retained earnings. When you receive an interest payment (or when we accrue interest), it is also held in the segregated account alongside your capital, as such you money is safe. One for AC to consider perhaps? I know this is Wellesley’s forum but I don’t know how to transfer this to the AC forum.
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Post by yorkshireman on Feb 21, 2014 17:30:25 GMT
whereas AC offer 10-15% for the same deal, with similar LTV security. And lengthy drawdown times cutting the rate of return.
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Post by bigcynic on May 29, 2014 10:35:42 GMT
I didn't want to start something new as the comments I have cut across a number of topics. Sorry to be a prophet of doom but I continue to have serious concerns about this and other newer P2P companies. They are growing at a fierce rate and the new FCA regime is still in its infancy and our protection as lenders (and I am a lender) remains scant at best.
My specific concerns about Wellesley are as follows:
• Wellesley have always claimed that they had £5 million of their own capital to lend. It was all over their website and in press announcements. Now that seems to have disappeared from their website – no mention that I can find. They have finally (almost 3 weeks late) filed the Annual Return for what I assume is their holding company called Wellesley Group. That Company only has £749,000 of share capital. Wellesley & Co is only a £2 company. So where is the £5 million on their books?
• in connection with the first point I don’t feel the numbers add up. On the Lending Statistics page of their site they state that the total amount of loans currently outstanding is £30,907,179. They state that the current amount of P2P lender funds on loan is £22,417,607. They only have share capital of £749,000. If the first two numbers on their Loan Statistics page are accurate there is a shortfall here of some £8 million – how has this been funded? Am I misunderstanding the way the stats are presented?
• In their FAQs Wellesley claims to be authorised by the FCA, when in fact they would only have Interim Authorisation and are still subject to applying for full Authorisation at some point in the future. This can be misleading to potential Lenders who do not understand the regulatory regime.
• On another issue their web site still refers to an independent security trustee in their FAQs: What would happen to matched funds if Wellesley & Co entered administration? “We have an independent security trustee to ensure that in the event of Wellesley entering administration, our loan book is put into orderly run-off which means that outstanding loans are still processed.”
But I can find no other mention any longer on their site of any trustee arrangements in the event of an insolvency. What’s the status of these arrangements now?
I think this all calls for a lot more caution and further explanations from Wellesley.
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Post by wellesleyco on May 29, 2014 18:16:42 GMT
Dear bigcynic, Thank you for your email, we appreciate you raising these concerns as it gives us a good opportunity to provide a full and detailed response to your concisely written posting. We have recently changed our website and have done so as part of the ongoing evolution of our brand and identity. There was a previous slide on our homepage that mentioned our £5M which has been superseded by some new slides which further explain the positives of Wellesley’s model. The removal of the reference to the £5M is by no means sinister, please allow me to explain. As you have correctly pointed, we have share capital of £749,000 which is the money the shareholders of the business capitalised the firm and is used for paying salaries, office costs, overheads etc. Separately, the same shareholders have made a contractual commitment of £5M of subordinated debt to Wellesley Finance Limited (sister company to Wellesley & Co). At present, £3M of the £5M is actively being lent at present and this will be reflected on the year end for Wellesley Finance Limited. To be clear, this debt is subordinated behind the rights of our P2P lenders and we keep an even amount exposed to our loans. As such, whenever we make a loan, we do so in the knowledge that our funds would be at risk first. Furthermore please note that we also reserve the right to put a greater amount of subordinated debt into the business for lending in the future as and when the board considers it necessary. I would also add that we do not use any of the shareholder subordinated debt for operating costs, it is only used for lending. If we require more share capital to run the business then we have the personal means to accomplish this. With respect to your second point, please note that we have other sources of funds which includes institutional (non-P2P lender funds) as sources of finance to Wellesley Finance Limited. Your penultimate point is accurate however applies to a number of firms within the industry. You should note that we originally quoted in all of our risk warning footers that our authorisation was interim however we were advised by our regulatory consultants that it is unnecessary. Please note that the FCA regulations apply to us in full and whether interim or fully authorised, we must comply. It is also worth noting that no other P2P lender has full authorisation for P2P lending activities at present. Regardless, very happy to update our FAQs to reflect this detail, thank you for the suggestion. Your final point is a fair one to raise and we should be much more descriptive in our FAQs. I do think we covered a lot of this when you previously asked the question (http://p2pindependentforum.com/thread/605/cashback-offer-money-super-market?page=2) however please feel free to come back to us with any additional questions that you may have.
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webwiz
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Post by webwiz on May 29, 2014 20:08:23 GMT
My concern is that I don't know who I have lent my money to. If Wellesley say one day 'Bad news, your particular loan went bad and the asset was sold below the loan amount and the provision fund will not cover it so you have lost money, very bad luck as all our other loans are doing well' I would just have to trust them.
This issue might be addressed when the new system of dynamically reassigning loans is launched, if I understand it correctly. Will the new system cover existing loans?
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