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Post by waferthin on Dec 11, 2016 12:15:40 GMT
Hi all,
Have recently starting investing with funding circle and looking for some clarification on how interest is repaid. I currently have ~£15 of accrued interest and ~£0 earnings. This makes sense given that its a new investment. However, looking at my transaction statement for this month (and last month) I can see "Interest repayment" entries, with small amounts for individual loan parts. These total ~£10 for this month and ~£5 last month.
My question is, are the repayments in the "transaction statement" actually paid? If so, why are they not reflected in earnings, but rather in "accrued interest"?
I'm sure there's a simple answer, but I'm struggling to find it.
Thanks!
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nick
Member of DD Central
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Post by nick on Dec 12, 2016 10:59:57 GMT
All entries on the transaction statement are cash entries - ie there are actually cash payments/receipts out/into your account. The accrued interest figure shows interest accrued but not yet received. To reconcile your account your net deposits onto the platform plus actual interest received less fees paid plus any net premium (or loss) on loan parts sold/purchased on the SM less losses should equal your "Funding Circle total" on the summary page (this total excludes interest accrued which is shown separately ).
Accrued interest is not included in your "Earnings" figure on the My Summary page.
Historically there have been issues which meant that accounts would often not reconcile, but most of these have been resolved so your account should fully reconcile if you are a fairly new investor.
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Post by waferthin on Dec 12, 2016 19:28:24 GMT
Thanks for the reply Nick  . Sounds to me like somethings gone a bit awry. I can clearly see multiple interest paid events in my transaction statements and these are only reflected in "accrued interest" rather than earnings. I've emailed funding circle, so we'll see if they can resolve it. I can't rule out the fact that I'm being daft, but based on your explanation I'm more certain that I'm not... |
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blender
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Post by blender on Dec 12, 2016 20:16:13 GMT
Nick is right but so may your account be. Have you made purchases on the secondary market? If you have then you will have debits in your transactions for payments made to the sellers for the accrued interest which comes with the loan parts. This will show in the accrued interest as negative interest, but may be more than offset by the positive accrued interest for the loan parts you hold and the time you have held them. So please check to see if those entries in the transactions are debits for your SM purchases, and if so you have your answer. All should come right when you get the next monthly payment for the loan part.
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markr
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Post by markr on Dec 12, 2016 20:18:41 GMT
Have you been buying (and/or selling) on the secondary market (or using Autobid which will do so for you)?
When you buy a part on the secondary market, you pay the seller the accrued interest, which reduces your earnings but increases your accrued interest. When a borrower pays, your accrued interest is reduced and your earnings increased. Maybe it's a coincidence that your (total interest payments received) - (total interest paid to sellers) currently adds up to ~£0.
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Post by waferthin on Dec 13, 2016 19:39:36 GMT
Hi markr. I think you're right on both accounts - yes I've bought from the secondary market and yes it looks like a coincidental cancelling out. I'll keep monitoring, but thanks for the info. I feel more reassured now... |
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kaya
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Post by kaya on Dec 14, 2016 11:43:36 GMT
Darn, just a coincidence, no interesting conspiracy theory here then.
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blender
Member of DD Central
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Post by blender on Dec 14, 2016 12:45:20 GMT
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