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Post by happyhippydad on May 23, 2016 2:33:12 GMT
Hello.
I am thinking about putting substantially more of my savings into funding circle due to such poor interest rates with ISA's, however I am yet to sell any loan parts and I was hoping someone would be able to give me an indication of how easy it is to actually do this please?
Specifically my question is: When I put the loans up for sale do I receive the money back immediately from Funding Circle or do I have to wait until someone purchases them? If the latter is this a fairly quick process or can it take some time (lets assume I'm selling at the same % rate that is offered automatically)?
Many thanks in advance.
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Post by jackpease on May 23, 2016 5:18:27 GMT
You definitely need to sell them before you get the cash - and you can hold out for a premium and it might be days/weeks or have a fire sale and sell at a discount and sell in hours provided the underlying rate is reasonable.
It is pretty liquid at the moment but as with all the platforms just because it is liquid now doesn't mean it'll be liquid if there is a shock.
Cash comes a working day or two after you ask for withdrawal
JP
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Post by happyhippydad on May 23, 2016 6:05:44 GMT
Thanks a lot Jack,
I appreciate the early morning response :-)
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archie
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Post by archie on May 23, 2016 6:33:01 GMT
Just to add a few points.
FC charge 0.25% on any sale so you might want to use a premium to cover that cost. Loans listed for sale stay there for up to 14 days, you might need to re-list them if they don't sell. You cannot sell any loan in default.
Was easy to sell while the recent iPad/Kindle offer was on but might take longer now. Percentage rate to buyer will be the key.
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SteveT
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Post by SteveT on May 23, 2016 8:45:48 GMT
If you're happy to sell at par (and take the 0.25% fee hit) then most things will sell in a matter of hours (often minutes) to those using Autobid. As soon as you add any premium then you're only selling to manual bidders since Autobid ignores anything with a premium, therefore you need to price at / very close to "best available" if you are to sell in a reasonable timeframe. There are bots that automatically scan the secondary market for loan parts that appear to be "under-priced" 24 hours a day; for example, there are certainly some that hoover up any remaining low premium (0.3% - 0.5%) E loan parts immediately after they've made their 1st / 2nd / 3rd payment, presumably to resell at a higher premium soon after.
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Post by soozp2p on May 25, 2016 19:00:44 GMT
I notice that my sales have slowed down a lot in the last week. Is that because the ipad offer ended, or it is 'sell in May and go away', like the stock market, or am I just asking too much perhaps? I didn't change the prices, but maybe everyone else cut theirs?
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archie
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Post by archie on May 26, 2016 6:30:46 GMT
I notice that my sales have slowed down a lot in the last week. Is that because the ipad offer ended, or it is 'sell in May and go away', like the stock market, or am I just asking too much perhaps? I didn't change the prices, but maybe everyone else cut theirs? The iPad offer certainly distorted the market, could pretty much sell anything while it was on.  I've sold a few bits since but generally they were bought before the marketplace switched to fixed rates, the percentage returns to buyers were probably favourable compared to newer loans.
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Post by soozp2p on May 26, 2016 7:19:23 GMT
thanks, I sold all of those a long while ago, so it is more recent loans (Es and Ds) for sale at the moment. Maybe I had better just reduce my markup since I don't seem to be offering the top rate in most of them.
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bigfoot12
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Post by bigfoot12 on May 26, 2016 8:51:43 GMT
I think auto bid is still short of things to buy. I sold all of my unwanted cashback property loans at par a few days after the ipad offer closed. They started selling in minutes and I sold out in a couple of hours.
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archie
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Post by archie on May 26, 2016 9:26:22 GMT
I think auto bid is still short of things to buy. I sold all of my unwanted cashback property loans at par a few days after the ipad offer closed. They started selling in minutes and I sold out in a couple of hours. Yes, just tested auto-bid, zero premium property sale sold in 2 seconds.
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registerme
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Post by registerme on May 26, 2016 9:39:22 GMT
I'm still selling property loans at a small(ish) premium with some regularity.
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markr
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Post by markr on May 27, 2016 16:39:07 GMT
Yep, property loans going ok for me at reasonable markup, especially the 9% and 10% ones where you can keep the buyer rate above 8% even with a markup. While listing some 9% ones recently I accidentally left the markup off one of the parts and it was gone in femtoseconds.
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blender
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Post by blender on May 27, 2016 19:00:45 GMT
Yes, a few trickling away at a 1% premium.
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Post by GSV3MIaC on May 27, 2016 20:39:42 GMT
I (and my partner) are all sold out of those, although there must be some around, since the A+ SM rate I track (part #500) is running around 9.2% (reminds me I must be overdue for an update of that table), whereas the same for A rated parts is only 9.4%. Back on 10th May, A+ SM rate bottomed out at 8.5%. I'm still not very tempted by 9% property parts though, even if they might sell at a (small) premium.
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