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Post by nightmare on Oct 15, 2015 16:16:12 GMT
New loan 16498 states 2% cash back on loan request screen but nothing on the individual loan screen.
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Post by accumul8 on Oct 15, 2015 16:25:18 GMT
New loan 16498 states 2% cash back on loan request screen but nothing on the individual loan screen. I'm taking Fairly Calamitous at their word. I make it a 14.7% return with the CB.
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Post by nightmare on Oct 15, 2015 16:28:32 GMT
I'm tempted, if I jump in I'll be taking a screen print first though.
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fasty
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Post by fasty on Oct 15, 2015 16:30:39 GMT
New loan 16498 states 2% cash back on loan request screen but nothing on the individual loan screen. I'm taking Fairly Calamitous at their word. I make it a 14.7% return with the CB. I don't understand where you get 14.7% from?
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SteveT
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Post by SteveT on Oct 15, 2015 16:31:44 GMT
They'll have to honour it now it's up there. I've bought some (to enjoy the fun) and then taken a screen shot of the bid icon next to 2%CB flag.
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Post by betterthanworking on Oct 15, 2015 16:32:00 GMT
Graphic for 2% CB just added.
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blender
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Post by blender on Oct 15, 2015 16:32:04 GMT
New loan 16498 states 2% cash back on loan request screen but nothing on the individual loan screen. I'm taking Fairly Calamitous at their word. I make it a 14.7% return with the CB. How 14.7% accumul8? I got to 8% before fees and tax ok. Then I struggled.
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Post by accumul8 on Oct 15, 2015 16:36:57 GMT
I'm taking Fairly Calamitous at their word. I make it a 14.7% return with the CB. How 14.7% accumul8? I got to 8% before fees and tax ok. Then I struggled. I tried to sell a 6% loan with 6 months to run at a 2% discount and it gave a return of 14.7%. Alternatively, in ballpark terms you could say that the average term of a 6 month reducing loan is 3 months and 2% cash back is worth 2.5% to a basic rate taxpayer. 2.5% over 3 months is worth 10% pa - so add 6% basic interest less 1% taken by FC and you get roughly 15% net of fees. Just hope it isn't a bad debt!!!
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SteveT
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Post by SteveT on Oct 15, 2015 16:37:06 GMT
Now on Q&A:
"Q. 15 Oct 2015 17:21 - FC - please confirm 2% cashback. This looks like an error to me.
A. 15 Oct 2015 17:35 - FC Comment: This loan has 2% cashback added."
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blender
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Post by blender on Oct 15, 2015 16:44:23 GMT
How 14.7% accumul8? I got to 8% before fees and tax ok. Then I struggled. I tried to sell a 6% loan with 6 months to run at a 2% discount and it gave a return of 14.7%. Alternatively, in ballpark terms you could say that the average term of a 6 month reducing loan is 3 months and 2% cash back is worth 2.5% to a basic rate taxpayer. 2.5% over 3 months is worth 10% pa - so add 6% basic interest less 1% taken by FC and you get roughly 15% net of fees. Just hope it isn't a bad debt!!! Thanks, it is a long time since I bought an amortising loan and I was thinking interest only. But its term is 12 months, not 6.
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Post by accumul8 on Oct 15, 2015 16:50:41 GMT
I tried to sell a 6% loan with 6 months to run at a 2% discount and it gave a return of 14.7%. Alternatively, in ballpark terms you could say that the average term of a 6 month reducing loan is 3 months and 2% cash back is worth 2.5% to a basic rate taxpayer. 2.5% over 3 months is worth 10% pa - so add 6% basic interest less 1% taken by FC and you get roughly 15% net of fees. Just hope it isn't a bad debt!!! Thanks, it is a long time since I bought an amortising loan and I was thinking interest only. But its term is 12 months, not 6. Oops - I stand corrected! Make that 10% in ballpark terms!
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acky
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Post by acky on Oct 15, 2015 16:55:39 GMT
And what an extraordinary business case. The last published accounts (March 2014) show £213k cash in the bank and £326k owed to the two directors (£150k increase on the year). Very profitable company, mgmt. accounts suggest profit even higher to 3/15. 3/14 accounts show virtually no current assets OTHER than amounts owed by directors and cash, so presumably the £702k current assets at 3/15 are of similar ilk. With all this cash and director's loans around, why can't they manage their cash flow well enough to pay the taxman? The loan will probably flip at par, which makes it a potential for short term profit, but otherwise I wouldn't touch it with a bargepole. On balance, pass!
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SteveT
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Post by SteveT on Oct 15, 2015 16:56:34 GMT
My thinking is to flip at a small discount (shortened term magnifying the Buyer Rate) after 4-5 months. Or sooner at par if there are any takers at 6%
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acky
Posts: 481
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Post by acky on Oct 15, 2015 17:03:54 GMT
My thinking is to flip at a small discount (shortened term magnifying the Buyer Rate) after 4-5 months. Or sooner at par if there are any takers at 6% ... and that strategy will almost certainly work. I smell too many rats here, but good luck to you anyway!
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SteveT
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Post by SteveT on Oct 15, 2015 17:09:40 GMT
My thinking is to flip at a small discount (shortened term magnifying the Buyer Rate) after 4-5 months. Or sooner at par if there are any takers at 6% ... and that strategy will almost certainly work. I smell too many rats here, but good luck to you anyway! How can it possibly go wrong? Follicly Challenged assure us that A+ 12 month loans never default 
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