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Post by jackpease on Sept 20, 2016 6:40:26 GMT
Well I (through my tiny Ltd company) have dipped my toe into Growth Street.
Why (in reply to the 'is it worth it' comment)? Well it is based on SME lending for a start. I am maxed out with what i'm prepared to have in property based P2P loans - and FC in the last couple of months (along with Zopa/RS/Wellesley and others) are seeing rate drops/availability shortages and I need a new home for the money I can't reinvest at sensible rates with the above.
An application via the website prompts a detailed phone call and they are saying all the right things. The application process is a little clunky but then again instant online sign up would lead to questions whether money laundering safeguards etc were being taken seriously.
I shall report back and would be interested to hear from anyone else that's jumped in!
Jack P
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kaya
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Post by kaya on Dec 24, 2016 10:54:07 GMT
I would be interested to hear of anyone's experience investing here. It sounds a bit similar to the Ratesetter 30 day marketplace, but then again quite different, for it seems like a 30 day rolling overdraft facility for businesses. So, JamesGrowthStreet - if I invest 1K here, will it all go to the same business? Does it matter to be diversified, since there is a provision fund? How long will it currently take to lend out 1k at 'market rate'? How is the 'market rate' determined? How many business/individual members do you have so far? Are borrowers offered a set rate, with your profit in between? The website is a bit short on detail so far. Any further update jackpease on your experience here so far?
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Post by jackpease on Dec 27, 2016 7:59:09 GMT
>>>>further update?
Not really - I plonked a chunk on there - and another - and it sits there doing its thing, so far as 'invest and forget' as Landbay and Wellesley. Boring is good (I get my fix of excitement over at SS).
Maybe best not talked about anyway lest everyone pile in and it ends up likely Wellesley (discouraging deposits with derisory rates) or Zopa (stalling deposits altogether).
Jack P
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kaya
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Post by kaya on Dec 29, 2016 10:28:47 GMT
I see now that the 'provision fund' is intended to negate the need for diversification. Even though we can have no input into who we lend to, it would have been of interest to know the companies we are lending to. Gives it a more personal touch. But I guess it is just a 'lend & forget' investment. jackpease said '' lest everyone pile in and it ends up likely Wellesley'' It is interesting to note that the way it is set up will actually encourage the rate to fall. If enough lenders bid at 0.1% below the 'market rate' (the previous months' average) to ensure fast investment, then that slightly lower rate will become the new 'average' - and the rate for quick investment will likewise fall. Thus the rate could potentially drop 1% or more in one year.
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Neil_P2PBlog
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Post by Neil_P2PBlog on Dec 29, 2016 12:05:11 GMT
I see now that the 'provision fund' is intended to negate the need for diversification. Even though we can have no input into who we lend to, it would have been of interest to know the companies we are lending to. Gives it a more personal touch. But I guess it is just a 'lend & forget' investment. jackpease said '' lest everyone pile in and it ends up likely Wellesley'' It is interesting to note that the way it is set up will actually encourage the rate to fall. If enough lenders bid at 0.1% below the 'market rate' (the previous months' average) to ensure fast investment, then that slightly lower rate will become the new 'average' - and the rate for quick investment will likewise fall. Thus the rate could potentially drop 1% or more in one year. I've seen elsewhere: Source: www.p2pfinancenews.co.uk/2016/10/28/growth-street/
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sildenafil
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Post by sildenafil on Jan 15, 2017 9:27:45 GMT
I would be interested to hear of anyone's experience investing here. It sounds a bit similar to the Ratesetter 30 day marketplace, but then again quite different, for it seems like a 30 day rolling overdraft facility for businesses. So, JamesGrowthStreet - if I invest 1K here, will it all go to the same business? Does it matter to be diversified, since there is a provision fund? How long will it currently take to lend out 1k at 'market rate'? How is the 'market rate' determined? How many business/individual members do you have so far? Are borrowers offered a set rate, with your profit in between? The website is a bit short on detail so far. Any further update jackpease on your experience here so far? I'd be interested to find out a bit more about Growth Street, specifically with regards to these questions that kaya asked last month. Their referral offer ends today so I would take advantage of that with someone if suitably recommended.
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r00lish67
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Post by r00lish67 on Jan 15, 2017 9:54:56 GMT
I would be interested to hear of anyone's experience investing here. It sounds a bit similar to the Ratesetter 30 day marketplace, but then again quite different, for it seems like a 30 day rolling overdraft facility for businesses. So, JamesGrowthStreet - if I invest 1K here, will it all go to the same business? Does it matter to be diversified, since there is a provision fund? How long will it currently take to lend out 1k at 'market rate'? How is the 'market rate' determined? How many business/individual members do you have so far? Are borrowers offered a set rate, with your profit in between? The website is a bit short on detail so far. Any further update jackpease on your experience here so far? I'd be interested to find out a bit more about Growth Street, specifically with regards to these questions that kaya asked last month. Their referral offer ends today so I would take advantage of that with someone if suitably recommended. Just PM'd you..
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beh
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Post by beh on Jan 15, 2017 10:22:46 GMT
Not had money with them for long but the speed of lending at market rate (6.5%) seems fine so far. For my 3 deposits the money has been lent out on the same day. "Invest and forget" is right as there's not much to look at in the way of information, no way of knowing the size of the queue for example. www.growthstreet.co.uk/investing/protection - seems that chances are each loan is only to a single borrower but covered by a provision fund made up of contributions from every borrower. I would also be interested to know how many borrowers and lenders they have signed up so far and weekly lending volumes. Must only be relatively small currently.
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Post by JamesGrowthStreet on Jan 17, 2017 17:37:46 GMT
Hi all Thank you all for your questions, and sorry for the delay (I will update my notification preferences!). Taking these in turn: Lend orders are matched with borrow orders via our exchange, which prioritises first by price, then by time. So, the cheapest funds are matched first, and then if there are lend orders at the same price, the earliest order is matched first. If you are at the front of the lender queue, and there is a borrow order from a single business for £1K or more, it is possible you will be matched with one business only, otherwise funds may be split between a number of businesses. No, it doesn't matter if you're not diversified as the provision fund performs this function. We provision for bad debt, both expected losses and unexpected losses. If the borrower you are matched with defaults, the provision fund is obliged to repay you the principal and interest owed as of that date, provided there are sufficient funds available in the provision fund (there is currently over 300% loan loss provision coverage). Therefore, lenders benefit from the diversification across the whole Growth Street portfolio, not their individual holdings. The vast majority of lenders placing 1K orders at market rate are 100% matched within 24 hours, based on our internal statistics (accurate as of 16 January 2017). The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days and was historically pegged at 6.5% AER. We have over 200 customers. The founding lenders were either companies or high net wealth / sophisticated investors familiar with P2P lending. Growth Street began accepting individual lenders in November 2016. Please see the about page for portfolio stats including lending volumes - we update these every month, but are working on increasing the detail, frequency and overall transparency based on investor feedback, so please let us know what else would be helpful. www.growthstreet.co.uk/investing/about Please note that Growth Street is an investment product and not a savings account. Your capital is at risk if you lend to businesses and lending is not covered by the Financial Services Compensation Scheme. Growth Street Exchange Limited is an Appointed Representative of Resolution Compliance Limited, which is authorised and regulated by the Financial Conduct Authority (no. 574048). Thank you for your interest in Growth Street. Best regards, James
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beh
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Post by beh on Jan 21, 2017 18:56:34 GMT
Ta, hadn't spotted that bit initially, interesting to know.
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Post by bobthebuilder on Feb 3, 2017 8:43:21 GMT
JamesGrowthStreet Is lending on Growth Street secured, and if so, on what types of asset typically? We've all seen the effects on Ratesetter's provision fund coverage ratio following its ill advised foray into unsecured lending to SMEs, and as a result I'd be wary of lending purely on the basis of a provision fund safety net when I have no say in whom I'm lending to. Also, is the claimed 300% loss coverage ratio in respect of both interest and capital, or only capital?
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Steerpike
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Post by Steerpike on Feb 3, 2017 20:57:25 GMT
Is it fair to say that one has no idea what interest rate will be used for any given (re)investment?
Clearly, choosing to invest at the market rate, currently 6.5%, does not mean that your money will be lent at that rate, simply that that is the average for loans in the previous month.
So one wonders how the individual loan rates are determined and is there anything to stop a "market rate loan" being matched at 1% or 2% or more less than the indicative rate?
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kaya
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Post by kaya on Feb 4, 2017 11:14:07 GMT
Good point SteerpikeI would not like to see my reinvestments being lent out at ever-lower rates without any control. Perhaps a tweak needed here.
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Post by nesako on Feb 6, 2017 11:37:49 GMT
Well, in my experience, the only troublesome experience was registering for the account. Once you are in, all is pretty smooth.
To date, lowest APR I got was 6.22%. All loans repay every month, so if you are ever not happy, nothing is stopping you to change re-investment option to Holding ACC and withdrawing a month later.
Details from the site re:security:
Regarding the coverage, it does sound like it does cover the interest as well:
I would very much like representative to confirm these points as well, cause it could be that I am interpreting this the way I HOPE things to be, as opposed to the way they actually are.
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Greenwood2
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Post by Greenwood2 on Feb 6, 2017 11:47:31 GMT
What was the problem with registering?
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