dj
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Post by dj on Jul 29, 2016 9:59:20 GMT
My latest 3 loans have been allocated at 3% (£30.00). This is not a problem at the moment as my initial 1K investment is taking ages to get invested, I am getting nearly as many loans repaying as I am getting new investments.
I would possibly be looking at investing much larger amounts (at 1% allocation) in the future when an additional 1% would be a doubling of my tolerance. It doesn’t fill me with confidence that the investment % can be changed with no communication when my settings are at 2%.
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Post by henders on Jul 29, 2016 12:53:57 GMT
I am also at 2% but my second tranche of £1K (making a total of £2K) is going out in £50 chunks; which is 2.5% of my total investment.
Can't work it out.
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shuff27
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Post by shuff27 on Jul 30, 2016 5:28:34 GMT
Mine too - £1k investment followed by another £1k, latest loan parts are 4 at £50. Someone from BM needs to explain why.
I assume that the 2% limit is meant to apply to your total investment amount, not to your latest tranche?
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Post by stevefindlay on Jul 30, 2016 7:11:54 GMT
This is all to do with working in £10 units, and as soon as you've started to earn a return, your unit size ticks up £10.
So if you start at £1,000 invested at 2%, your first loan investments will be at £20. Then, once you earn interest the £20 becomes £30.
The same approach applies if you make multiple investments. For example if you make two investments of £1,000 and then earn interest, your unit size will be £50 (£20 + £20 + £10)
This is all in the T&Cs, but hopefully this explanation helps here.
Obviously the £10 unit size has the biggest impact on the smallest investors.
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Greenwood2
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Post by Greenwood2 on Jul 30, 2016 11:10:09 GMT
Seems like an overriding maximum per loan that investors can set is essential.
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pauls
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Post by pauls on Jul 30, 2016 13:14:39 GMT
I too would like to be able to set a limit to loan size. Either in £ value or absolute % terms.
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shuff27
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Post by shuff27 on Aug 1, 2016 7:44:39 GMT
Same here. The main reason I chose BM is to have a large number of very small loans without any effort. I use other platforms to buy larger loans but only after doing my own DD & taking advantage of DD/informed opinions of others on this excellent forum.
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dj
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Post by dj on Aug 1, 2016 9:26:37 GMT
I too would like to see an upper limit option. In my case a £0.02 interest payment from and early repayment of a loan means that £720.00of my original 1K deposit will be invested at 3%, I am glad I did not invest 10K as an initial investment.
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Post by stevefindlay on Aug 1, 2016 18:56:54 GMT
I too would like to see an upper limit option. In my case a £0.02 interest payment from and early repayment of a loan means that £720.00of my original 1K deposit will be invested at 3%, I am glad I did not invest 10K as an initial investment. I understand your concern, but the issue (and maths) doesn't scale in that way: If you've invested £10,000 at a 2% concentration, say, then your loan investments are £200 to begin with. After starting to earn some interest, your loan investments then become £210. And stay at £210 until you have £10,500 invested. So your concentration would be 2.1%, not 3%. Also, you can always move your setting from 2% to 1%. So the issue at £1,000 would be having loan sizes of £20 (i.e. back to your original preference) instead of £10. Our average client invests c.£20,000; but we understand that many want to "dip their toe" first - which is why we try to keep the entry level relatively low - i.e. £1,000 minimum. So people can try it, ask questions, get comfortable etc, before investing further. Fair enough. But at £1,000 we do have issues with 2.0% going to 3.0% (in practice: £20 going to £30) and people trying to generalise from pennies of interest. Which isn't ideal - but we'd prefer to try to stick to £1,000 minimums rather than move to £5,000 minimum or £10,000 minimum.
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Neil_P2PBlog
P2P Blogger
Use @p2pblog to tag me :-)
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Post by Neil_P2PBlog on Aug 1, 2016 19:14:56 GMT
I too would like to see an upper limit option. In my case a £0.02 interest payment from and early repayment of a loan means that £720.00of my original 1K deposit will be invested at 3%, I am glad I did not invest 10K as an initial investment. I understand your concern, but the issue (and maths) doesn't scale in that way: If you've invested £10,000 at a 2% concentration, say, then your loan investments are £200 to begin with. After starting to earn some interest, your loan investments then become £210. And stay at £210 until you have £10,500 invested. So your concentration would be 2.1%, not 3%. Also, you can always move your setting from 2% to 1%. So the issue at £1,000 would be having loan sizes of £20 (i.e. back to your original preference) instead of £10. Our average client invests c.£20,000; but we understand that many want to "dip their toe" first - which is why we try to keep the entry level relatively low - i.e. £1,000 minimum. So people can try it, ask questions, get comfortable etc, before investing further. Fair enough. But at £1,000 we do have issues with 2.0% going to 3.0% (in practice: £20 going to £30) and people trying to generalise from pennies of interest. Which isn't ideal - but we'd prefer to try to stick to £1,000 minimums rather than move to £5,000 minimum or £10,000 minimum. Why not keep it at £10 increments but have it round down rather than up? e.g. 2001/100 = 20.01 -> 20 rather than 30?
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Post by stevefindlay on Aug 1, 2016 19:23:03 GMT
dj I understand your concern, but the issue (and maths) doesn't scale in that way: If you've invested £10,000 at a 2% concentration, say, then your loan investments are £200 to begin with. After starting to earn some interest, your loan investments then become £210. And stay at £210 until you have £10,500 invested. So your concentration would be 2.1%, not 3%. [Steve said some stuff here...] Why not keep it at £10 increments but have it round down rather than up? e.g. 2001/100 = 20.01 -> 20 rather than 30? Completely fair point! No good reason, it was just how we coded it when we started out. We can add it to the list (and by the way, we do keep a list).
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shuff27
Member of DD Central
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Post by shuff27 on Aug 2, 2016 7:17:04 GMT
I'd forgotten there's an option to change the default 2% concentration to 1%. stevefindlay would that slow down the pace of investment allocation even more? |
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dermot
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Post by dermot on Aug 2, 2016 15:45:44 GMT
I'm mostly getting £90 chunks now, though yesterday I was allocated a £10 and a £20 at 5.5% and 6.0% respectively.
I push in another £1K whenever I'm almost fully invested, but wonder if this is the best strategy; i.e., will I get invested faster if I switched to £5K chunks?
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Post by stevefindlay on Aug 2, 2016 17:14:06 GMT
It feels this conversation is increasingly becoming about speed of investment, than the concentration thresholds. So... On speed of investment: we are getting closer to releasing our long-discussed upgrade, which will have a big impact of the speed of investment (in trials it has reduced allocation periods for smaller investors, less than £5-10K, from 4 weeks to c.2-3 days). Please can we defer this discussion until after the end of next weekend (it's intended release date)? - i.e. c. 15 August - as I'm confident everyone with accounts of less than £10,000 will be very pleased with the improvement. Until then: - 2% will get you allocated faster than 1% - size doesn't impact speed of investment, unless you are at c.£25K + (in which case it will be slower to get fully invested, not faster) Concentration: again, I think most of the discussions relating to concentration here (aside from not wanting to be over-concentrated) are really a function of the speed of investment - see above. I think everyone would be happier with 200 investments in their portfolio instead of 100 etc; as long as the speed of allocation is fast enough (happy to hear alternative perspectives though - samford71? ). Thanks |
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Greenwood2
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Post by Greenwood2 on Aug 2, 2016 19:33:42 GMT
I think user defined a maximum amount per loan (for people wanting smaller loans and larger loans) , as an alternative to the % would be excellent.,
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