littleoldlady
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Running down all platforms due to age
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Post by littleoldlady on Dec 19, 2015 9:50:30 GMT
I've read all the above. Very interesting but I still don't have a clue about my question: So what should I pre-fund if I actually want £x? So far I have reduced my request from £10x to £5x but I fear this may be too high. Not that I would worry if I got £5x but because I might get less than I would if I had requested less. What are you guys doing?
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mack
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Post by mack on Dec 19, 2015 10:01:34 GMT
What are you referring to? If your milage is 2m+, I see 11 loans of such size; 10 of which have drawn down (The other one just gone live). The fact that SS can fill these loans and at the same time there is such a liquid SM shows that there is a lot of demand. Do you really want me to believe that big hitters do not want to be part of this? What I really feel is that big hitters are trying to squeeze small lenders out so that they have more of the pie for themselves. Investor's comments are totally sound. I think SS is a great platform but if you have six figures sums to invest and can get only a few hundred or couple of thousand on a loan the money will just get shifted elsewhere as it's not worth the time effort. There are a lot of investments out there which are only open to larger investors. The ease of use of SS was a big draw. MT had the Huddersfield loan which they couldn't fill, which was due to lack of big hitters. I guarantee you the limits MT have will hold back the platform increasing like SS. If you tilt the scale to very small investors, their funds will get depleted quickly with a decent pipeline and larger investors will move to other pastures in the mean time. I have been with SS long enough to know when the larger loans came on they took weeks to fill. But then quite a few investors came on plonking £50K,£100K etc or so down when the activity was easier to see. That's when the platform took off and the demand created today. The smaller investors don't understand this. Be careful what you wish for. And really anyone who complains about not being able to invest with SS needs to look at their portfolio and diversify or get a better day job!
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mack
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Post by mack on Dec 19, 2015 10:08:56 GMT
And quick look at the SM shows enough of pretty much anything for anyone who wants to invest?
So what was wrong with the old system?
I think limiting prefunding makes sense to a degree but the "bottom up" thing will make it pointless for large investors.
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adrianc
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Post by adrianc on Dec 19, 2015 10:11:59 GMT
I've read all the above. Very interesting but I still don't have a clue about my question: So what should I pre-fund if I actually want £x? So far I have reduced my request from £10x to £5x but I fear this may be too high. Not that I would worry if I got £5x but because I might get less than I would if I had requested less. What are you guys doing? It depends on the loan size and - to a lesser extent - the loan detail (some people would bid on a dead dog if SS let it through the pipeline). Look at the table at the start of this thread. As a rough rule of thumb, if it's over £2-2.5m, you're going to get 100% of what you bid for. If it's under, scale it back by however much it's under. At a guess, with this new method of allocating parts, you'll get about £200-250 of 74 (£320k), no matter how much over that you bid.
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Post by spareafewcoppersguv on Dec 19, 2015 10:12:02 GMT
It depends on the size of the loan. It it is under £1M and if it is oversubscribed then everyone who wants in should get the same provided you request at least that amount. ie for a 500k loan with 1200 bidders, everyone will get £416. So it would be quite reasonable to put in a bid for £1000 and you are likely to get approx £400 adjusted up or down in relation to the number of actual bidders vs this estimated 1200. Wouldn't make any difference in this scenario whether you bid £500, £1,000, £10,000, but would make a difference if you only bid £250 as then you will only get £250 (obviously!)
But if the loan is over £1M then the old rules apply. Going on yesterdays experience, if it is a say £5M loan, you are likely to get everything you ask for. In between you might need to adjust accordingly, and at the end of the day it is just a judgement call. Don't over-bid what in extremis you would be willing and able to take, or you are will be faced with the choice if either taking it and hoping you can sell some on in the SM, or defaulting on the payment, which would be likely to get you a black mark on your SS file!
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adrianc
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Post by adrianc on Dec 19, 2015 10:18:24 GMT
And quick look at the SM shows enough of pretty much anything for anyone who wants to invest? Not sure I'd go that far. The SM seems to have a lot of short-life stuff and the usual suspects that I'm up to full strength on. I've got a shopping list of loans I'd like more of, but which I've not seen hide nor hair of. There seems to be about £20k of Hemel or Fleetwood come to the market for every quid or two of Exeter or Somerset or the various parts of Essex or...
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Investor
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Post by Investor on Dec 19, 2015 10:20:10 GMT
What are you referring to? If your milage is 2m+, I see 11 loans of such size; 10 of which have drawn down (The other one just gone live). The fact that SS can fill these loans and at the same time there is such a liquid SM shows that there is a lot of demand. Do you really want me to believe that big hitters do not want to be part of this? What I really feel is that big hitters are trying to squeeze small lenders out so that they have more of the pie for themselves. Investor's comments are totally sound. I think SS is a great platform but if you have six figures sums to invest and can get only a few hundred or couple of thousand on a loan the money will just get shifted elsewhere as it's not worth the time effort. There are a lot of investments out there which are only open to larger investors. The ease of use of SS was a big draw. MT had the Huddersfield loan which they couldn't fill, which was due to lack of big hitters. I guarantee you the limits MT have will hold back the platform increasing like SS. If you tilt the scale to very small investors, their funds will get depleted quickly with a decent pipeline and larger investors will move to other pastures in the mean time. I have been with SS long enough to know when the larger loans came on they took weeks to fill. But then quite a few investors came on plonking £50K,£100K etc or so down when the activity was easier to see. That's when the platform took off and the demand created today. The smaller investors don't understand this. Be careful what you wish for. And really anyone who complains about not being able to invest with SS needs to look at their portfolio and diversify or get a better day job! Agreed. I think MoneyThing accepted that that loan was a 'bridge too far' and I believe they may have been misled by expressions of interest on a 18% proposal. Their solution...a new partner with loans available at more appropriate level as they start their own platform building process. The way things seem to be maturing for them, and with knowledge of the SS growth from a standing start, I have no difficulty believing that MT will happily be launching 1m+ loans by summer next year.
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ablender
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Post by ablender on Dec 19, 2015 10:29:13 GMT
Investor's comments are totally sound. I think SS is a great platform but if you have six figures sums to invest and can get only a few hundred or couple of thousand on a loan the money will just get shifted elsewhere as it's not worth the time effort. There are a lot of investments out there which are only open to larger investors. The ease of use of SS was a big draw. MT had the Huddersfield loan which they couldn't fill, which was due to lack of big hitters. I guarantee you the limits MT have will hold back the platform increasing like SS. If you tilt the scale to very small investors, their funds will get depleted quickly with a decent pipeline and larger investors will move to other pastures in the mean time. I have been with SS long enough to know when the larger loans came on they took weeks to fill. But then quite a few investors came on plonking £50K,£100K etc or so down when the activity was easier to see. That's when the platform took off and the demand created today. The smaller investors don't understand this. Be careful what you wish for. And really anyone who complains about not being able to invest with SS needs to look at their portfolio and diversify or get a better day job! Agreed. I think MoneyThing accepted that that loan was a 'bridge too far' and I believe they may have been misled by expressions of interest on a 18% proposal. Their solution...a new partner with loans available at more appropriate level as they start their own platform building process. The way things seem to be maturing for them, and with knowledge of the SS growth from a standing start, I have no difficulty believing that MT will happily be launching 1m+ loans by summer next year. I do invest on MT and I was part of the loan you mention. What I cannot understand is why you are changing your yard stick. Before you were talking about 2m+ (for SS) now you are down to 1m+.
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jimbob
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Post by jimbob on Dec 19, 2015 10:56:39 GMT
I've stuck the £100 spare into the Essex storage facility. Why not live a little  |
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Post by xyon100 on Dec 19, 2015 11:11:58 GMT
Just a thought, but is there anything preventing multiple accounts in order to get more if wanted? One for me, one for the wife, one for the kids, one for next doors kids, one for the goldfish? Not that I feel the need, but wondering.
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adrianc
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Post by adrianc on Dec 19, 2015 11:16:00 GMT
I've stuck the £100 spare into the Essex storage facility. Why not live a little I've now got this mental image of a row of caravans - with a gap in the middle, and a small pile of fivers sat there.
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Post by solicitorious on Dec 19, 2015 11:23:51 GMT
I've read all the above. Very interesting but I still don't have a clue about my question: So what should I pre-fund if I actually want £x? So far I have reduced my request from £10x to £5x but I fear this may be too high. Not that I would worry if I got £5x but because I might get less than I would if I had requested less. What are you guys doing? I know the answer, but I'm not telling.  Hint: Think about the 80/20 rule.
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Investor
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Post by Investor on Dec 19, 2015 12:25:39 GMT
Just a thought, but is there anything preventing multiple accounts in order to get more if wanted? One for me, one for the wife, one for the kids, one for next doors kids, one for the goldfish? Not that I feel the need, but wondering. Your goldfish has a NI number? Bet he owns a small castle and a pirates chest as well. At least when it bids on the SM and then forgets to upload the funds it will have a good excuse
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ablender
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Post by ablender on Dec 19, 2015 12:26:13 GMT
Just a thought, but is there anything preventing multiple accounts in order to get more if wanted? One for me, one for the wife, one for the kids, one for next doors kids, one for the goldfish? Not that I feel the need, but wondering. I thought about this some time ago. I was going to open an account for my hamster. Then it suddenly died and undermined my plans.
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ilmoro
Member of DD Central
'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 Dec 19, 2015 12:35:38 GMT
Just a thought, but is there anything preventing multiple accounts in order to get more if wanted? One for me, one for the wife, one for the kids, one for next doors kids, one for the goldfish? Not that I feel the need, but wondering. How do you prove a goldfish is over 18?  Probably the bit in the T&Cs about criteria to lend. I suspect that nefarious activities would be required to pass KYC & AML checks on some of your suggested fronts.
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