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Post by westonkevRS on Jul 19, 2016 17:38:19 GMT
I think you'll find that if other lenders are available at similar or lower rates than you obtained originally, the cost to you is very small in percentage terms. If current rates are higher then its only fair you've you've got stump the difference. The interest reduction is to dissuade "gamers" who leave quickly after investing in longer term loans.
I'm not sure the exact admin fee, but it is small. It is not a revenue generator, and tger is no cycnical "skimming"...
You've also got to recognise that having these fair costs and processes reduces the risk of a "run on the bank", which could be started through nothing worse than a rumour or a badly informed journalist article. These stop- checks provide greater platform security protecting all lenders.
Personally if it was up to me, I'd make it harder and more expensive to withdraw funds, although I would introduce forbearance for provable non-forecastable events such as death or redundancy.
You should be glad I'm not the boss if these things!
Kevin.
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Post by westonkevRS on Jul 19, 2016 17:44:51 GMT
How long does it typically take to liquidate funds in the rolling market? Hhow much liquidity is there on a daily basis? Is the prevailing rolling rate relevant? Does the amount make a significant difference? e.g. £50k [I need to use funds for a property transaction and am planning timing of liquidation/withdrawl. e.g. Mon - request 'Sellout' Tue - receive funds, request 'Withdrawl'? Wed - receive funds? Thanks. The FAQs state " Selling loans – what we call “Sell Out” – should happen in a matter of minutes and then funds can be in your bank account on the same or next working day." The rolling market is usually vey liquid, and has had more than £5m waiting to be lent (at the right AER for the customer) I think for all of 2016. That said these are not guarantees, they depend on liquidity. Which although has never been an issue in over 5 years of trading, cannot be 100% promised. P2P brings risks of capital loss and retention. Kevin.
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Post by richa on Jul 20, 2016 5:09:57 GMT
How long does it typically take to liquidate funds in the rolling market? Hhow much liquidity is there on a daily basis? Is the prevailing rolling rate relevant? Does the amount make a significant difference? e.g. £50k The FAQs state " Selling loans – what we call “Sell Out” – should happen in a matter of minutes and then funds can be in your bank account on the same or next working day." The rolling market is usually vey liquid, and has had more than £5m waiting to be lent (at the right AER for the customer) I think for all of 2016. That said these are not guarantees, they depend on liquidity. Which although has never been an issue in over 5 years of trading, cannot be 100% promised. P2P brings risks of capital loss and retention. Kevin. Kevin - thanks.
Does that mean a reasonable / likely time line (subject to liquidity) is, say, as follows: Mon - request 'Sellout', funds credited, request 'Withdrawl' (by close of business)? Tue - receive funds in bank a/c?
Thks.
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Post by westonkevRS on Jul 20, 2016 5:32:10 GMT
Yes, that's the theory and stated FAQs (subject to liquidity and fee agreement, on longer dated markets). But I've never done it myself.
Kevin.
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Post by closetotheedge on Jul 20, 2016 8:34:35 GMT
I used this to withdraw a chunky sum to pay for a ridiculous car my wife wanted earlier this year. I put in the request and in less than 5 mins the funds were in my holding account. I put in a transfer to bank request and they were in and cleared the next day. Very easy.
Ironically, I also wanted some money out of HSBC which ended up taking two visits to the branch with various forms of id and it took 4 days in total before I could get hold of the money.
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Post by jackpease on Jul 20, 2016 9:16:20 GMT
You've also got to recognise that having these fair costs and processes reduces the risk of a "run on the bank", which could be started through nothing worse than a rumour or a badly informed journalist article. These stop- checks provide greater platform security protecting all lenders. Platforms that don't make sure they are making a sensible profit and not foreseeing possible runs are the ones where our funds are most risky. I do high risk on other p2p platforms and it is comforting to see that ratesetter keeps delivering for me as my 'lower risk lower return' choice Jack P
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