paulgul
Member of DD Central
Posts: 401
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Post by paulgul on Mar 10, 2015 9:12:41 GMT
I'm not sure how RS loans the money an investor puts in, I'm only a small investor, if I put in £500 does that get lent to one borrower or spread across several.
The question I'm really asking - should I deposit £500 in one go or is it better to make 10 deposits of £50 from a safety point of view
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Post by duncandive on Mar 10, 2015 9:23:05 GMT
Hi paulgul with RS having it's Provision Fund, in theory it does not matter that your £500.00 goes to just one borrower. However if you really want to be sure of splitting it up, you would need to space your investments out. Again how far apart you space them is a judgement call due the the size of each loan going out being up to £25k and sometimes More now. If you were to drip feed your money into a market once a day over 10 days, that would split it up for sure. Welcome to RS by the way.. |
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Post by bracknellboy on Mar 10, 2015 9:38:18 GMT
it makes absolutely no difference from a safety perspective. Zip. There is a thread on this somewhere on here. But in summary, the nature of the Ts and Cs means there is no advantage to slicing and dicing other than to reduce risk of early redemption. In the event that the provision fund was deemed by RS to not be adequate to cover current outstanding loans etc. then in effect all loan repayments get pulled and all loan exposures are treated the same, whether the loan you hold is performing or otherewise.
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paulgul
Member of DD Central
Posts: 401
Likes: 92
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Post by paulgul on Mar 10, 2015 10:11:51 GMT
Ok, thanks for the replies. I understand a bit more now  |
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Post by davee39 on Mar 10, 2015 10:21:24 GMT
In recent interviews Zopa have claimed superiority for their method of splitting loans in £10 chunks. A translation of this is " we are stuck with an inadequate lending system which was fine at the time, but is now obsolete so we will just have to claim its a really cool safety feature".
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jonbvn
Member of DD Central
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Post by jonbvn on Mar 10, 2015 10:49:35 GMT
In recent interviews Zopa have claimed superiority for their method of splitting loans in £10 chunks. A translation of this is " we are stuck with an inadequate lending system which was fine at the time, but is now obsolete so we will just have to claim its a really cool safety feature". Could not agree more. Lending a decent amount on that platform was like pulling teeth. The RS PF diversifies on your behalf IYKWIM. In fact all us lenders literally are in this together.
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c88dnf
Member of DD Central
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Post by c88dnf on Mar 10, 2015 11:21:16 GMT
In recent interviews Zopa have claimed superiority for their method of splitting loans in £10 chunks. A translation of this is " we are stuck with an inadequate lending system which was fine at the time, but is now obsolete so we will just have to claim its a really cool safety feature". Spot on davee39. It is a constant source of amazement to me how many of the experienced people posting on Zopa's own forum don't understand how the platforms work in the age of the Provision/ Safeguard Fund, delude themselves that small chunks are safer and leave their money earning nothing at all for weeks in the pursuit of that illusory "safety".
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