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Post by zzr600 on Mar 29, 2015 12:56:41 GMT
One suggestion to Savingstream, and basing it on what some other platforms apparently do, is why not limit the maximum investment per investor in new loans to a certain value, e.g. £500, for the first few hours to give a chance to everyone to invest?
Recent loans have been fully matched within minutes, leaving smaller investors waiting for loans on the secondary market.
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Jaydee
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Post by Jaydee on Mar 29, 2015 13:09:22 GMT
One suggestion to Savingstream, and basing it on what some other platforms apparently do, is why not limit the maximum investment per investor in new loans to a certain value, e.g. £500, for the first few hours to give a chance to everyone to invest? Recent loans have been fully matched within minutes, leaving smaller investors waiting for loans on the secondary market. The way you fund your account on SS allows you to take part in any loan as soon as it is put on the market. You do not have to have money in your account. There are some very large loans that take days (if not weeks) to fill. SS also gives advance notice of loan releases and you can be prepared for that event. I like the system the way it is and would not support a limit.
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jonno
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Post by jonno on Mar 29, 2015 13:10:52 GMT
One suggestion to Savingstream, and basing it on what some other platforms apparently do, is why not limit the maximum investment per investor in new loans to a certain value, e.g. £500, for the first few hours to give a chance to everyone to invest? Recent loans have been fully matched within minutes, leaving smaller investors waiting for loans on the secondary market. It might help if they fulfilled their promise to introduce a notice period, especially re the smaller loans. If they aren't confident that their systems could cope,they shouldn't have made this commitment in the first place.
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ilmoro
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Post by ilmoro on Mar 29, 2015 13:15:46 GMT
One suggestion to Savingstream, and basing it on what some other platforms apparently do, is why not limit the maximum investment per investor in new loans to a certain value, e.g. £500, for the first few hours to give a chance to everyone to invest? Recent loans have been fully matched within minutes, leaving smaller investors waiting for loans on the secondary market. This was something they did when they first launched with the small boaty loans but it dwindled away with the rise of PBLs & ceased even before they stopped offering boats. They also suggested a 24hr advanced warning of loans launching but that never materialised. Dont think current system legislates particularly against small investors per se, more against those otherwise engaged at launch point, & it is these lenders minimum investment levels would help. Cant see it happening though as SS probably view larger loan sizes as providing ample opportunity. The sites with minimums are generally offering loans considerably smaller in magnitude Currently the best chance of getting a look in, is these forums & SMS alerts
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Post by zzr600 on Mar 29, 2015 13:18:47 GMT
Some of the very large loans you refer to might be higher risk, hence longer lending times. New loan alerts are only of use to those glued to email/phones or with access to the SS website within minutes of the loan going live. Most people would be at work and only find out that a new loan has gone live hours after they can respond. I was suggesting the limit only be in place for a few hours, after which any amount would be accepted.
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chrisf
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Post by chrisf on Mar 29, 2015 13:27:01 GMT
One suggestion to Savingstream, and basing it on what some other platforms apparently do, is why not limit the maximum investment per investor in new loans to a certain value, e.g. £500, for the first few hours to give a chance to everyone to invest? Recent loans have been fully matched within minutes, leaving smaller investors waiting for loans on the secondary market. The way you fund your account on SS allows you to take part in any loan as soon as it is put on the market. You do not have to have money in your account. There are some very large loans that take days (if not weeks) to fill. SS also gives advance notice of loan releases and you can be prepared for that event. I like the system the way it is and would not support a limit. I wholeheartedly agree with zzr600, give everyone a chance to invest like most of the other platforms do (particularly the noticeably on-the-up platforms). Not sure what planet jamesduffin lives on, possibly he wasn't around at the time of PBL028 going live. Advance notice isn't much use if it comes after the loan has filled.
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gc
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Post by gc on Mar 29, 2015 13:59:07 GMT
Giving notice would be a good thing and give everyone a chance. Now just playing devils advocate here but why would this matter to SS, or any other loan company for that matter? As long as their requests are being met, be it by £20 per go or £20,000.
I admit that I might be missing the point here but at the end of the day, they are a business and just want the loans filled asap. Granted, by giving notice they stand a chance of getting more people to see them and get them filled a little quicker.
Other places do place a restriction limit for a short time which gives everybody a chance to jump onboard and I admit that I personally do prefer that method.
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Post by zzr600 on Mar 29, 2015 14:40:37 GMT
Giving notice would be a good thing and give everyone a chance. Now just playing devils advocate here but why would this matter to SS, or any other loan company for that matter? As long as their requests are being met, be it by £20 per go or £20,000. Because it will help attract lenders to grow their business, and not have them rely on a few big hitters
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am
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Post by am on Mar 29, 2015 14:48:13 GMT
Giving notice would be a good thing and give everyone a chance. Now just playing devils advocate here but why would this matter to SS, or any other loan company for that matter? As long as their requests are being met, be it by £20 per go or £20,000. I admit that I might be missing the point here but at the end of the day, they are a business and just want the loans filled asap. Granted, by giving notice they stand a chance of getting more people to see them and get them filled a little quicker. Other places do place a restriction limit for a short time which gives everybody a chance to jump onboard and I admit that I personally do prefer that method. To be viable a P2P platform requires sufficient volume for the gross profit to exceed the overheads. Therefore it needs to build volume in both lenders and borrowers. In principle it is better off spreading it's loan book over more borrowers because when it manages to build loan volume there's a greater number of engaged loan investors available to provide more capital. (High net worth individuals with millions at hand muddy the waters - they might be better off keeping 1 of these happy rather than a hundred small investors.) At the moment SavingStream's problem is not having sufficient loans to meet the demand from investors, but if that changes having discouraged people from using the platform because the only way to invest is to hover over the web site waiting for loans to become available on the primary or secondary market could prove to have been an self-inflicted injury.
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Jaydee
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Post by Jaydee on Mar 29, 2015 20:29:57 GMT
zzr600 The way you fund your account on SS allows you to take part in any loan as soon as it is put on the market. You do not have to have money in your account. There are some very large loans that take days (if not weeks) to fill. SS also gives advance notice of loan releases and you can be prepared for that event. I like the system the way it is and would not support a limit. I wholeheartedly agree with zzr600, give everyone a chance to invest like most of the other platforms do (particularly the noticeably on-the-up platforms). Not sure what planet jamesduffin lives on, possibly he wasn't around at the time of PBL028 going live. Advance notice isn't much use if it comes after the loan has filled. I got both the sms and email notification sufficiently in advance to enable me to get into the loan. As noted elsewhere in this thread, ss has grown rapidly since moving into PBLs and I was amongst the first to lend against property with ss. Like many others on this platform I have seen the number of lenders on the ss platform grow rapidly and this results in many lenders missing out on the lower value loans. That doesn't mean their system is wrong. The rate of return on offer attracts lenders both large and small and lately there has been enough in both the main and secondary markets to satisfy all lenders. Many of us choose carefully which PBLs to lend to. Some PBLs just don't appeal to particular people. The cry that not all people can get to their computers because they are working applies 24 hours a day seven days a week or do people on your planet working differently to those of us on Earth. Satisfying one group of people normally prejudices another group. IMO ss have a system that works, satisfies the majority and doesn't need changed.
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Post by reeknralf on Apr 2, 2015 7:10:43 GMT
IMO ss have a system that works, satisfies the majority and doesn't need changed. How did you arrive at this opinion? Of the 7 or 8 posters, you are the only one who appears satisfied. I routinely get emails 1-2 hours after launch of the loan, i.e. after it is filled. Perhaps it's like at school, where lists are always alphabetical, so D's, get emails a couple of hours before R's. It would be easy to broaden the investor base by giving 24 hrs notice, as was promised, or limiting bids, the fact that SS do neither suggests they like it the way it is. I can see that filling loans fast is good, but can't see what difference it makes to them whether it takes 6 mins or 6 hours. The only explanation I can think of is they are deliberately fueling feeding frenzies, creating a aurora of desirability yet unattainability around the investments. This is good if you want to attract investors who invest in an excited rush, without thinking too hard about what they are doing. When someone tries pushy sales psychology on me, I question why they feel the need to do this, and assume they want to hide something. I care more about the vibes I get than anything else when choosing a platform, as this whole exercise is based on trust. The desire to maintain a selective investor base, and the ongoing absence of a trust structure to replace direct lending to Lendy worry me more and more. Until things change, I'm running down my investment.
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bloodycat
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Post by bloodycat on Apr 2, 2015 8:58:03 GMT
On the smaller loans even with a £500 limit they would still fill up almost immediately. Any lower limit, given the relatively small number of loans live on the platform would make it unattractive to larger investors, making the larger loans harder to fill. 12% is an attractive rate but on a £500 investment the annual return wouldn't even pay for a night on your own down the local pub.
From SS point of view there is no advantage to having more individual loan parts, far easier to administer 200 £1000 parts than 2000 £100 parts. The relative oversuppply of demand for loan parts also means that at least the secondary market is also quite quick moving rather than potentially having to wait several weeks should you need your cash for something else.
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Post by solicitorious on Apr 2, 2015 9:29:43 GMT
I am against maximum bid limits [unless they were pretty generous, like £5k  ], although I am disappointed that SS have not yet implemented advance notice of loans, as promised. Even 4 hours notice would be better than none. Or how about an understanding that a loan will always be released at an appointed hour, like 4pm, or something? |
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gc
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Post by gc on Apr 2, 2015 9:40:46 GMT
Like has already been mentioned, investors do jump on the feeding frenzy. This kind of creates a "scarcity tactic" in peoples minds as they all just jump in to buy before it's too late (no questions asked).
The good thing about SS is that you can't sell off on the secondary at a profit.
That said, if SS would look at the bigger picture and give people more notice, plus small investments for 12/24 hours, they may actually find that they get more smaller investors as well as the big fish. Companies soon realise how important the smaller ones are because if a big investor pulls out then they can be carried by smaller ones without too much of a hit, but if it's mainly all big investors then a company's strength in the market begins to weakens... (just my take)
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Jaydee
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Post by Jaydee on Apr 2, 2015 11:01:42 GMT
Like has already been mentioned, investors do jump on the feeding frenzy. This kind of creates a "scarcity tactic" in peoples minds as they all just jump in to buy before it's too late (no questions asked). The good thing about SS is that you can't sell off on the secondary at a profit. That said, if SS would look at the bigger picture and give people more notice, plus small investments for 12/24 hours, they may actually find that they get more smaller investors as well as the big fish. Companies soon realise how important the smaller ones are because if a big investor pulls out then they can be carried by smaller ones without too much of a hit, but if it's mainly all big investors then a company's strength in the market begins to weakens... (just my take) Is the feeding frenzy caused by those desperate to get a 12% return without understanding or investigating the risks? IMO many of the SS lenders on this platform are savvy enough to read and digest the valuations and loan reports before putting money into a loan but IMO this does not appear to apply to a number of ss lenders. I have deliberately avoided lending to a few PBLs where I thought the risk was too great, didn't agree with the interpretation of the valuation report or thought the conditions (gut instinct) weren't right. Like solicitorious I too would like to see PBLs posted at a specific time and perhaps a pre-bid posting to enable us to view the valuation and loan report before the bidding period. Not all of us are big investors. We all like to spread the risk on our investments and the feeding frenzy may perhaps be the result of this. ss is run as a small operation and as bloodycat says it is easier to manage 200 loans than 2000. This may be the reason ss has the system it has.
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], although I am disappointed that SS have not yet implemented advance notice of loans, as promised. Even 4 hours notice would be better than none.