Investor
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Post by Investor on Nov 12, 2015 12:19:39 GMT
And there was me thinking it was the slow pipeline.
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Post by ablrateandy on Nov 12, 2015 12:31:20 GMT
Well there's probably over 100k on the secondary market that people are happily buying too! Two sides to a coin...
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duck
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Post by duck on Nov 22, 2015 7:35:18 GMT
arbster I shall as usual state that I cannot give tax advice but, as stated, the seller receives the interest up to the point of sale. I have to admit that I need to look into how we report interest earned for the buyer as it hadn't been raised before. My initial thought is "Hmmmm there are a lot of things up for interpretation here!" so it needs some exploration. ...... any progress on this ablrateandy ?
I note you also posted a sale statement
Thinking laterally, could the be added to the purchase statement so it would for instance read Buy £x.xx for £x.xx on loan Basket of British SME secured loans in secondary market and pay £x.xx in accrued interest.
That way those of us that run spreadsheets to produce information for HMRC would be able to make adjustments as required (our responsibility to get it right!). I appreciate that the sums involved would generally be small - my total premium and accrued interest payments so far total £38.62 - but with 3 accounts (personal, business and partner - tax planning) to quote a well known advert 'every little helps'.
Sometimes I hate my perfectionist streak
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SteveT
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Post by SteveT on Dec 3, 2015 11:00:53 GMT
ablrateandy, I'm probably being a bit slow-witted this morning but is the SM displaying the correct AER yields for Offers in the amortising SEAB Energy loan? The loan pays 11% interest to Oct 2018 and there's currently best part of £5k available at a 1% discount (as generous as the original 1% cashback), yet the yield is given as 9.201% ??
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Post by ablrateandy on Dec 3, 2015 11:05:07 GMT
It is showing the correct AER based on how much you pay. At the moment, it is not taking into account the amortisation amount, so assuming there is say 98.20p in the pound of capital left, it is still charging you 99% of 100 instead of what it should be doing (99% of 98.2 remaining). Therefore you are effectively over-paying at the front end. I have a meeting with developers on this today....
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alanp
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Post by alanp on Dec 3, 2015 11:59:44 GMT
Does that mean those of us who have bought in to the discounted sale will be due a (small) refund?
I could be totally wrong as the whole Term / Rate / Discount or Premium & Time calculation still baffles me a bit.
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stevio
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Post by stevio on Dec 3, 2015 14:17:01 GMT
It is showing the correct AER based on how much you pay. At the moment, it is not taking into account the amortisation amount, so assuming there is say 98.20p in the pound of capital left, it is still charging you 99% of 100 instead of what it should be doing (99% of 98.2 remaining). Therefore you are effectively over-paying at the front end. I have a meeting with developers on this today.... If your system is not working correctly, there should be a balancing payment to compensate once it's been sorted I have noted this and I am expecting you to come back to us shortly with this balancing payment
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Post by ablrateandy on Dec 3, 2015 18:44:14 GMT
It is showing the correct amount that you are paying for the remaining cashflows and showing the correct AER based upon your payment for loan parts. At trade confirmation it re-iterates the amount that you are paying before you Execute.
At no point is anyone having too much or too little money taken from their account and the AER is being correctly displayed. The issue is that we could probably show the information in a clearer way.
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mikeh
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Post by mikeh on Dec 3, 2015 20:30:49 GMT
There is a similar problem with this loan on the dashboard display. The FUNDS CURRENTLY LENT figure includes the original loan part value despite the fact that capital repayments have taken place. There is no easy way that I can see to work out the current amount invested on the platform.
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Post by ablrateandy on Dec 3, 2015 20:35:16 GMT
Hi mikeh . It is an inter-related problem and I spent all afternoon with developers on it. The correct information is in the system but it is not being pulled through correctly. It is the number one priority to fix at the moment.
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james
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Post by james on Dec 3, 2015 20:48:54 GMT
There is a similar problem with this loan on the dashboard display. The FUNDS CURRENTLY LENT figure includes the original loan part value despite the fact that capital repayments have taken place. There is no easy way that I can see to work out the current amount invested on the platform. I have my spreadsheet set up with three cells: 1. Amount Ablrate says I have invested 2. Total of capital repayments on the loan, taken from the transaction details when they are paid, which splits out the capital and interest parts. 3. Actual amount invested which is 1 - 2 A little fiddly but it gets the job done while the development work to fix it is pending and gives me correct XIRR and other values.
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ablender
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Post by ablender on Dec 4, 2015 15:32:46 GMT
Can someone please help me with this one.
I am looking at a loan having an interest of 11% with a maturity date in October 2018 (S**E** E2W Equip). There are parts selling on SM at 99%. I was expecting these to have a yield of not less than 11% but they are showing a yield of 9.134%.
Why?
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SteveT
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Post by SteveT on Dec 4, 2015 15:43:50 GMT
Can someone please help me with this one. I am looking at a loan having an interest of 11% with a maturity date in October 2018 (S**E** E2W Equip). There are parts selling on SM at 99%. I was expecting these to have a yield of not less than 11% but they are showing a yield of 9.134%. Why? It's a known problem. The AER is correct because the "discount" is relative to the original capital value of the loan, not the reduced current capital value (it's an amortising loan)
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alanp
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Post by alanp on Dec 4, 2015 15:51:57 GMT
Thanks for that, I've been wondering about this as well.
Does that mean the correct AER is higher than shown as the capital value is less?
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SteveT
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Post by SteveT on Dec 4, 2015 15:58:09 GMT
Thanks for that, I've been wondering about this as well. Does that mean the correct AER is higher than shown as the capital value is less? No, apparently the AER is correct versus the amount you actually pay for the outstanding capital.
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