bigfoot12
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Post by bigfoot12 on Sept 28, 2015 19:20:02 GMT
Having been very sceptical of SS for a while I heard that it is in the process of restructuring to something much more akin to P2P, and so I decided to give it a try. I am still struggling to understand the pipeline, I have read a few of the posts on this forum but if I have missed something could some kind person point me to the correct post.
a) Once I have selected a pipeline loan, am I committed? Can I increase or reduce this commitment?
b) At which point do I have to pay for the loan, and how much notice do I get?
c) From which point do I earn interest?
d) What happens if I don't have enough money in my account when the payment is due?
Thanks.
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SteveT
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Post by SteveT on Sept 28, 2015 19:26:32 GMT
Having been very sceptical of SS for a while I heard that it is in the process of restructuring to something much more akin to P2P, and so I decided to give it a try. I am still struggling to understand the pipeline, I have read a few of the posts on this forum but if I have missed something could some kind person point me to the correct post. a) Once I have selected a pipeline loan, am I committed? Can I increase or reduce this commitment? b) At which point do I have to pay for the loan, and how much notice do I get? c) From which point do I earn interest? d) What happens if I don't have enough money in my account when the payment is due? Thanks. a) You can change your pre-funding choice at any point (up until the loan launches) b) the request is that you transfer funds into your account within 24 hours after the loan launches c) The day the loan launches d) You receive an email request from SS to deposit the balance (see b)
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bigfoot12
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Post by bigfoot12 on Sept 28, 2015 19:29:21 GMT
Thanks, very helpful and I can see from these answers why SS has proved to have a number of fans. On the Live Loans pages, is there a difference between those loans marked as drawndown from those market not?
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Post by Butch Cassidy on Sept 28, 2015 19:30:13 GMT
a. Yes but you can alter & cancel until drawdown, often predicted a few days before but timing not set in stone
b. Usually get drawdown e-mail & 24 hrs grace to either transfer in funds or sell existing holdings to cover funding - you can also sell some of your allocation providing there is demand
c. Straightaway
d. transfer in more or sell on SM if both these fail I assume SS will cancel some or all but I have never been in that position
Until recently demand exceeded supply so nearly everything sold very quickly but due to an impressive couple of drawdown weeks (AC take note!) there is currently plenty of supply so probably best to only apply for an amount you can fund
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SteveT
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Post by SteveT on Sept 28, 2015 19:31:50 GMT
Thanks, very helpful and I can see from these answers why SS has proved to have a number of fans. On the Live Loans pages, is there a difference between those loans marked as drawndown from those market not? The Yes/No denotes whether SS have legally completed the loan with the borrower yet or not (and released the funds to them). It used to be that accrued interest was rolled up and only paid out once a loan had drawn down, however the last few months SS have paid accrued interest at month end on all loans, whether drawn down or not.
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mikes1531
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Post by mikes1531 on Sept 28, 2015 20:58:15 GMT
On the Live Loans pages, is there a difference between those loans marked as drawndown from those market not? Before the loan draws down, the money is still with SS rather than the borrower. Until drawdown, something could go wrong and mean the loan gets cancelled, at which point your money is returned to your SS account. This has happened only rarely, and SS have always paid interest for the period between your investment and your money being returned.
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bigfoot12
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Post by bigfoot12 on Sept 28, 2015 21:02:35 GMT
b) the request is that you transfer funds into your account within 24 hours after the loan launches Before the loan draws down, the money is still with SS rather than the borrower. Until drawdown, something could go wrong and mean the loan gets cancelled, at which point your money is returned to your SS account. This has happened only rarely, and SS have always paid interest for the period between your investment and your money being returned. Thanks for the help so far. Do you think that these features will survive the change to a P2P platform? In the first the loan is being drawn with someone else's money, and in the second the P2P platform is paying out money when it isn't receiving anything; might the FCA argue that this is unsustainable? Has there been any discussion of 'knock-on' effects of the change?
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SteveT
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Post by SteveT on Sept 28, 2015 21:08:05 GMT
I don't see any problem, it's just about timing. SS launch a new loan on the platform when they think they're just a few days from completing a new bridging loan with a borrower. There is then 24 -48 hours for you to get your money into your account, still well before the loan legally completes. Other platforms offer "instant returns" on loans that are still open for bidding, which is essentially the same thing.
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star dust
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Post by star dust on Sept 28, 2015 21:18:35 GMT
With regard to interest accruing before draw-down, it's future continuation was very recently re-affirmed by SS here |
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