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Post by nickthefool on Jul 22, 2015 8:57:26 GMT
I'm new to Funding Circle, just trying to get a feel for the platform. I invested £100 last week in a loan (can't remember the exact number, think it was a 6 month A loan), which then spent a week with the status "Ended" and now seems to have disappeared completely.
I assume that this is the borrower rejecting the loan, does this happen a lot?
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min
Member of DD Central
Posts: 615 
Likes: 182
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Post by min on Jul 22, 2015 9:43:02 GMT
I'm new to Funding Circle, just trying to get a feel for the platform. I invested £100 last week in a loan (can't remember the exact number, think it was a 6 month A loan), which then spent a week with the status "Ended" and now seems to have disappeared completely. I assume that this is the borrower rejecting the loan, does this happen a lot? Somebody on here no doubt has statistics of numbers of loans that are rejected by borrower. Wouldn't say it happens a lot but is not uncommon. Borrowers have a week to get the paperwork in so money can be tied up for that time. If they accept then you do get the interest from the time the auction ended. The trick is to add to your watchlist everything you bid on. Then if it disappears you can find it in your watchlist and look at the repayments tab. If rejected by borrower that will usually have a comment along the lines of: "The borrower has decided not to accept the loan" or "The borrower has found the funds required elsewhere." One advantage of property loans is that they are normally taken as soon as they are filled. One advantage of FK is if loan reaches reserve price it is accepted instantly.
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Post by GSV3MIaC on Jul 22, 2015 9:55:40 GMT
You should still be able to find the loan in the 'more details' section of 'my bids' on the summary page .. May have to adjust the drop down box though. As someone said, 'my watchlist' is why you should be using.
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min
Member of DD Central
Posts: 615
Likes: 182
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Post by min on Jul 22, 2015 10:54:49 GMT
You should still be able to find the loan in the 'more details' section of 'my bids' on the summary page .. May have to adjust the drop down box though. As someone said, 'my watchlist' is why you should be using. You need to change the drop down menu on the right to 'Rejected'.
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Post by nickthefool on Jul 22, 2015 11:03:39 GMT
Thanks guys, I've found it. It was 14075, and as of yesterday evening has the comment "Please note the borrower no longer requires funding. Thanks, FC."
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Post by Deleted on Jul 27, 2015 13:06:47 GMT
I would split that £100 into 5 loans at £20, if I were you.
Spread the risk. You can spread the risk even more by getting loans smaller than £20 in the secondard market to spread the risk even further.
If you don't have time to look through the loans then maybe FC isn't for you.
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Post by nickthefool on Jul 27, 2015 14:01:38 GMT
I would split that £100 into 5 loans at £20, if I were you. Spread the risk. You can spread the risk even more by getting loans smaller than £20 in the secondard market to spread the risk even further. If you don't have time to look through the loans then maybe FC isn't for you. Thanks for the advice. However, I have invested it in a different loan which has now been drawn down. Is it possible to sell part of that on the secondary market or can you only sell the whole £100?
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mv
Member of DD Central
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Post by mv on Jul 27, 2015 14:13:15 GMT
Only the whole
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Post by nickthefool on Jul 27, 2015 14:36:29 GMT
Thanks to both of you. I'll see if I can sell it and reinvest in 5 different loans.
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Post by goldservice on Jul 27, 2015 14:53:25 GMT
Selling it is not necessary if you are, say, planning to build up your investment to around £10,000. The £100 would then be 1% of the total. Diversification with a max of 1% or 0.5% in each loan is a good idea and you would be within that (tho' outside it for a bit while you build up your loan collection - almost unavoidable.) I'd still prefer to bid in £20s though - smaller parts seem to sell faster and sometimes get a higher premium on the secondary market.
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