New Loan Glut??

It looks like the 'renewal' of the Golders Green loan has added to the glut.  With other renewals, ISTM that about 80% of investors typically roll their investment forward automatically.  This one isn't officially a renewal because the bonuses for £10+k investments aren't being repeated. 

Four hours after the loan was opened for investment, it's only 40% funded.  Is that because people have to take positive action to reinvest rather than it happening automatically?  Or is it because the BHs who invested enough to get the bonus interest aren't as keen to invest without that bonus?  Considering that the Rishton loan that's available now is offering bonus interest, perhaps the BH money is migrating from GG to R. 

The R loan also is promising interest starting from yesterday, whereas the situation at GG is unclear -- to me, anyway.  Although the original GG investment capital wasn't repaid until today, interest was paid only until last Tuesday, so the original investors have lost four days' worth of interest.  (My interest credit was less than the amount that was shown as accrued interest in my account yesterday evening.)  So who is going to get the interest payable for the period between last Tuesday and the day the replacement loan is activated?  Will it go to the new investors -- four days' worth (£789) effectively being a subsidy from the original investors?  Might it end up in FS's pocket?

That's my understanding for straight renewals, and that's when exiting investors subsidise incoming investors.  I'm not convinced that's the right thing to do, but that's the way FS do it.

As for what's going to happen in this case, unless fundingsecure tell us what they're going to do -- either here or in an update to the loan details -- we won't find out about it until after the loan is activated.  At which point, of course, it will be too late to act upon the info.

So it would be helpful if FS told us what's going on.  Not to mention that it probably would help the GG loan get funded, because it's in competition with two other loans where it's been made clear that interest already is accruing.  The lack of clarity must put the GG loan at a disadvantage.

I imagine the stall of the SM has resulted in the slowdown of the new loans being filled. Personally I can't sell out of some existing loans to reinvest in the new ones. Hopefully fundingsecure will take a look at how the SM could be improved as 26 pages of par SM loans indicates the SM market isn't effective. Imagine if people couldn't sell out of existing SS investments to diversify, growth would stall in the same way.

I think on a fair few of the later loans that have been pretty big people have brought more then they wanted with the intention of selling it on the secondary market but with the way the secondary market works it is not like SS were anything sells, there about 60,000 of the wind turbine on offer already and was only drawn down the other day

Also a lot of the loans avaliable are the ones with not that long to go and people are trying to get rid of them to avoid any risk of default 

pepperpot:  Might there be a typo in your report?  When I look at the loan page, I see...
I suppose another possibility would be FS editing what they wrote at first.

That's good info to have, and ought to help GG funding.  The old loan shows as ending on 23/Feb.  If the new one starts on 24/Feb, that still would appear  to leave a 1-day gap.  But it's a lot better than a gap of unknown duration.

I doubt that FS will shoulder the extra as would eat significantly into their profits that 

no looks like borrower is funding it , as taken from website




As the borrower is now keen to complete this transaction, they have agreed to fund bonuses as follows:



Investments of £25,000 and over 1% i.e. pays 13% pa



Investments of £50,000 and over 2% i.e. pays 14% pa



Investments of £100,000 and over 4% i.e. pays 16% pa