Liz
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Post by Liz on Aug 20, 2015 19:18:50 GMT
OK, day I have £2000 in the bank and want it invested, do I:
A. Set my limit to £2000, but risk having this put in to get 3+ loans that's I can't find.
B. Wait for the loan to go live, but risk missing out.
Please SS put a limit in the options, like Max loans to fund per day, so I can take the limit off after I get in the loan.
Or at least don't list loans together, give people an hour to take off the prefunding b4 listing another loan.
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Liz
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Post by Liz on Aug 20, 2015 19:21:37 GMT
Please saving stream give us a bit of slack in case we end up with more invested in loans that we wanted, a day or so to sell the unwanted loan parts on the SM.
I don't want to abuse the system but may by mistake end up with too many loans.
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Liz
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Post by Liz on Aug 20, 2015 19:32:18 GMT
p2pindependentforum.com/user/143Savingstream, can I set the prefunding up, then sell part of an existing loan(pbl51) to fund the deficit when I know how much of the new loan I got? I need to diversify.
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webwiz
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Post by webwiz on Aug 20, 2015 20:11:51 GMT
OK, day I have £2000 in the bank and want it invested, do I: A. Set my limit to £2000, but risk having this put in to get 3+ loans that's I can't find. B. Wait for the loan to go live, but risk missing out. Please SS put a limit in the options, like Max loans to fund per day, so I can take the limit off after I get in the loan. Or at least don't list loans together, give people an hour to take off the prefunding b4 listing another loan. Your options seem to me to be 1) Set your limit to £2000. if you get more than one loan only send £2000 by BACS and leave your account in deficit until SS reverse the unwanted transactions. If you do this regularly SS will get upset. 2) Set your limit to £2000. if you get more than one loan put the unwanted ones on the SM and hope they sell before your deficit period of grace expires. 3) Set a limit of £666. This is really the only "correct" option. None are ideal.
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Liz
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Post by Liz on Aug 20, 2015 21:54:10 GMT
OK, day I have £2000 in the bank and want it invested, do I: A. Set my limit to £2000, but risk having this put in to get 3+ loans that's I can't find. B. Wait for the loan to go live, but risk missing out. Please SS put a limit in the options, like Max loans to fund per day, so I can take the limit off after I get in the loan. Or at least don't list loans together, give people an hour to take off the prefunding b4 listing another loan. Your options seem to me to be 1) Set your limit to £2000. if you get more than one loan only send £2000 by BACS and leave your account in deficit until SS reverse the unwanted transactions. If you do this regularly SS will get upset. 2) Set your limit to £2000. if you get more than one loan put the unwanted ones on the SM and hope they sell before your deficit period of grace expires. 3) Set a limit of £666. This is really the only "correct" option. None are ideal. Option 3, but if only 1 loan is listed I won't be fully invested, tpre I will need to drop my limit to 1334/3 and may never get fully invested. On balance the risk of having too much invested will lead me not to prefund! So I am going to be worse off. There really needs to be a loan limit, ie i have £2000, and can set my limit @ £1000 for 2 loans Max, or £2000 with a 1 loan Max. Etc etc Or warn us if multi loans are to be listed, so we can adjust our level.
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Post by nickthefool on Aug 20, 2015 22:33:48 GMT
Option 2 should work, at least currently with the high demand. You might even get some notice too.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 20, 2015 22:37:18 GMT
Your options seem to me to be 1) Set your limit to £2000. if you get more than one loan only send £2000 by BACS and leave your account in deficit until SS reverse the unwanted transactions. If you do this regularly SS will get upset. 2) Set your limit to £2000. if you get more than one loan put the unwanted ones on the SM and hope they sell before your deficit period of grace expires. 3) Set a limit of £666. This is really the only "correct" option. None are ideal. Option 3, but if only 1 loan is listed I won't be fully invested, tpre I will need to drop my limit to 1334/3 and may never get fully invested. On balance the risk of having too much invested will lead me not to prefund! So I am going to be worse off. There really needs to be a loan limit, ie i have £2000, and can set my limit @ £1000 for 2 loans Max, or £2000 with a 1 loan Max. Etc etc Or warn us if multi loans are to be listed, so we can adjust our level. Guess the key is keeping pending loans up to date then we can see whats coming. Maybe some form of indicator which loans are linked. Somehow 24hrs notice seems by far the simplest option 
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Post by Financial Thing on Aug 20, 2015 23:14:47 GMT
Liz Option 4. Give the money to me and let me trade options. You may or may not make money, same as P2P
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madpierre
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Post by madpierre on Aug 21, 2015 9:31:34 GMT
I am broadly in agreement with sam i am and thank him for saving me having to type out all that he did  Just to clarify my feelings: I. I would like advance notice of a loan to choose whether invest in it. 2. I do not wish to automatically fund loans I may not wish to invest in and have to then sell them on the Secondary Market. That is a waste of my time. 3. I do not mind prefunding any loan I have an interest in, or complying with a maximum bid for a limited time to ensure I get a slice. Then, if I require a further cut, I will wade in when the big boys enter the scrum after an initial maximum bid, which seems fair to all. And that comes from someone who invests in SS both on a personal and a business level. Other P2P providers already offer this service, which is why I currently favour them. But I like Saving Stream and would be happy to invest more. |
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Post by yorkshireman on Aug 21, 2015 11:57:47 GMT
Apologies if someone has already raised this and it has been answered. Let’s say you sell £1k worth of loans and leave the proceeds in your SS account as available funds (not good practice I know) and you set your prefunding limit at £1k. When a new loan is launched would these existing funds be used to cover the investment in the new loan or would you still have to do a bank transfer? Yes the available balance is used first, if there's not enough in your account, an automatic 'step 1' of the 2 stage deposit process is triggered for the remainder giving you a bacs deficit which needs a transfer (step 2) to satisfy it. You can now use the proceeds of a sale (without bothering SS) to clear the deficit linkThat’s fine, thanks for your help Pepperpot.
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mv
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Post by mv on Aug 21, 2015 12:19:09 GMT
We have a pipeline of over £7m at the moment, with more each day coming through. As others have said, the pre-funding model will work smoothest when we have as much accurate information as possible. The current pipeline loans on the website (scottish land and Nottingham building) amount to 3 million. I don't know if the 4 million pound difference is one mega loan that I don't want a single £x piece of and is harder to shift on the SM, or 8 1/2 million pound loans that I don't have 8£x available to fund. Keeping the pipeline loans as up to date as possible with a clear estimation of the order in which they will arrive will help us to make the necessary adjustments. The function to tick those pipeline loans that you want to opt-in for pre-funding would be even better... Thanks
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james
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Post by james on Aug 21, 2015 19:36:36 GMT
This will also help us know how much is potentially available to lend out. This has been a continual problem that we just don’t know the exact appetite for our loan products and thus limits the number of loans that we can make. While this is a very good idea, it's clear that it can't possibly tell you how much is available to lend out, either overall or for any individual loan. This is because the range of sensible values for the prefunding amount will only ever be the total investment target of a reckless investor who's willing to invest all of their money into one loan, if only one shows up in a day, and who is willing to accept the risk of being unable to sell twice that amount on the secondary market if three loans happen to be made available on the same day. For less reckless investors the range of sensible values would appear to be: 1. total lending target / ( 52 * 5 * 3). Assumes that there is a sensible desire to diversify over time as well as loans, so the lending limit per loan is set to the tital target divided by the number of weeks in a year and the maximum number of loans per day. 2. As 1 but making a guess at the mean number of loans per day being below the maximum, replacing * 3 with * that estimated average. 3. As 1 or 2 but with 52 replaced by a smaller target time to becoming totally invested, perhaps 13 weeks so its roughly three months. Though only three months doesn't offer much time diversification. Or maybe a few weeks for the even less patient. 4. Instead, ignore the chance of multiple loans per investor and time diversification and set the amount to 1/200th of the target amount to be lent. This is the common 0.5% per loan for loan diversification suggestion. 5. As 4 but one third of the level to avoid going over the 0.5% per loan limit if a loan is split into multiple pieces. In addition someone might well want to lend more on some loans than others and take a risk of setting the target to allow for the maximum amount they would ever want to lend on the best possible loan, taking the risk of being able to sell the excess for most loans that aren't the most desired type. So I think that it's very hard indeed to use the total of all of the individual investor amounts for anything other than indicating the amount that will be immediately funded using prefunding money. That's still useful information, of course. It's just not the total that can be quickly funded for one loan or anything else more broad than that because there's no way to know which funding model an investor is using. It's perhaps also of interest that I'd consider SavingStream to be abusing investors if a loan was split into two or more pieces to get two or more bites at the prefunding cherry. Prefunding part 1 would be fine but for the rest it'd be wrong to do anything other than having prefunding disabled for the loan pieces. Unless say they were offered with advance notice and knowing that on the particular day there won't be any other loans offered, so prefunding would be safely on only for those who want to participate in the second piece.
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tony
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Post by tony on Aug 21, 2015 21:14:16 GMT
Not having much money available permanently to invest, pre-funding will work for me only if I use it like this: If, at the end of each month I have money left in my current account on the day my pension is paid, and I decide to invest it in SS, I will add it to any available credit I already have in my SS account and then set up a pre-fund for that amount to the nearest £100. I can then keep doing this each month without risking pre-funding money which I don't have.
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sam i am
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Post by sam i am on Aug 21, 2015 22:57:58 GMT
Not having much money available permanently to invest, pre-funding will work for me only if I use it like this: If, at the end of each month I have money left in my current account on the day my pension is paid, and I decide to invest it in SS, I will add it to any available credit I already have in my SS account and then set up a pre-fund for that amount to the nearest £100. I can then keep doing this each month without risking pre-funding money which I don't have. Tony, if I understand what you have said correctly, this won't work. The pre-fund is set for every loan. So you will be fine for the first loan in the month but then for the second loan SS will pre-fund again and create a BACS deficit which you will need to clear (which can be done either by BACS payment or by selling loan parts to offset). The above assumes that SS set the funding allocation higher than your pre-fund amount and so were able to invest the full amount. But if the allocated amount was lower then you would have some funds left over for the second loan. What you really need to do after the first loan is then switch off pre-funding until next month. Or set your pre-funding limit lower so that it will spread your funds over several loans. But in any case you will need to monitor your funds to ensure that you don't end up investing more than you want to. This would be difficult to do if SS decide to launch more than one loan at the same time - something that has been commented on several times above.
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registerme
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Post by registerme on Aug 21, 2015 23:05:33 GMT
What you really need to do after the first loan is then switch off pre-funding until next month. Or set your pre-funding limit lower so that it will spread your funds over several loans. But in any case you will need to monitor your funds to ensure that you don't end up investing more than you want to. This would be difficult to do if SS decide to launch more than one loan at the same time - something that has been commented on several times above. Agreed, whilst I am in a different place in life to Tony, even with the new pre-funding approach I am going to be actively managing my SS account.
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