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Post by khampson on May 26, 2016 20:00:08 GMT
Hello I am looking into investing in the 30 day access account but would like some help first, how quick does it take for funds to show up in your account from transferring from your bank account, also how long does it take when you withdraw money back to your bank account?
How often is the interest paid, is it on a set day each month or is it 30 days after you lend the money out?
Thanks
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Post by chris on May 26, 2016 21:28:07 GMT
Hello I am looking into investing in the 30 day access account but would like some help first, how quick does it take for funds to show up in your account from transferring from your bank account, also how long does it take when you withdraw money back to your bank account? How often is the interest paid, is it on a set day each month or is it 30 days after you lend the money out? Thanks Usually deposits should arrive by around 5 minutes past the next hour. So transfer funds at 1:37pm and they'll arrive between 2pm and 2:05pm. But that's entirely dependent on the banking system so technically it could be anything up to around 24 hours and considered normal. That's rare though, I'd guess 95+% of payments go through fine within their hourly window. When you withdraw if it's the first time you've withdrawn to a particular account then there are some additional manual checks that are done to try and prevent money laundering. Usually that adds no more than a day to the typical 24-48 working hour processing window for withdrawals. With the 30 day account and the QAA interest is paid on the 1st of each month. For the other accounts interest is paid as and when the borrower makes repayments which will happen throughout the month depending on the loans you are invested in.
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Post by khampson on May 27, 2016 5:19:19 GMT
Thank you chris, one other question. If I went for a longer term say 3 years plus but wanted to get at my money, can I sell the loans on, is there much demand for secondary loans so would they sell and what are the fees and penalties for doing so?
Thank you
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Post by chris on May 27, 2016 7:20:04 GMT
Thank you chris, one other question. If I went for a longer term say 3 years plus but wanted to get at my money, can I sell the loans on, is there much demand for secondary loans so would they sell and what are the fees and penalties for doing so? Thank you The 30 day account is our only time locked account. All the others you are free to trade as you see fit and as the market allows with no fees. The QAA is optimised around rapid access to your cash but maintaining a cash float. The other accounts require someone to buy loan units off of you in order to exit, which in times where demand exceeds supply (like is currently the case) is not a problem, but when supply exceeds demand that can lead to longer access times.
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Post by khampson on May 27, 2016 8:16:35 GMT
So when selling on the secondary market are loans sold with a mark up/mark down premium? How many new loans come on to the market each week? This will give me an idea how much to invest each week. Where can I find information on loan grading and bad debt?
Thank you for your assistance Chris.
Keith
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Post by chris on May 27, 2016 8:32:49 GMT
So when selling on the secondary market are loans sold with a mark up/mark down premium? How many new loans come on to the market each week? This will give me an idea how much to invest each week. Where can I find information on loan grading and bad debt? Thank you for your assistance Chris. Keith Selling on the market can be done at a discount but not (currently) with a premium. New loans still varies quite considerably, with May having been a particularly slow month with around £1m per week averaged out and including the loans expected to draw by the month end. Typically we are currently funding around £6-7m per month but our origination team has been scaled and we're working hard on the efficiency of the team as a whole to bring that up to a consistent £10m per month as a minimum. Some in the team are predicting that from next month however I expect it to be July based on the current pipeline and the progress of new loans through it. There is a considerable lead time (3 - 6 months on average) from first seeing a loan to it drawing down, so whilst our week by week predictions can be a little fickle due to the final stages of the legal process we need to go through our month by month predictions are more accurate. On a week by week basis there are large fluctuations though. Being able to sweep idle funds into the QAA and have the system automatically retrieve them when loan units become available is a big help with that though. On top of those new loans you will see a very active aftermarket. Loans across the board will come available, and you can set investment targets in each of them regardless of current availability. The system will then buy units up to your targets as funds and availability allow. We don't grade loans, at least with public visibility as we believe this breaches our FCA permission and constitutes advice. So basically loans either pass our credit criteria or they do not, and the rate is roughly proportional to our assessment of risk. The rate is also affected by other factors such as liquidity, so larger loans tend to offer slightly higher rates, but there is a rate floor based on risk that loan pricing will not fall below. Our default and losses page gives information on bad debt.
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