sl75
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Post by sl75 on Mar 10, 2017 13:01:11 GMT
Expect full allocation of a 7M+ loan and the SM to fill up to pay for it. This happened some months back for J**. I read the backdated threads so was ready for J** after the Notorious London 9 (+Brexit). - according to last weeks update, several loans were due to repay .......................hmmm you would have thought SS would have done everything they could to generate funds for DFL017, but hey what is to expect? At least if they cancel the loan we will have got a few pennies interest (smiley face). If a few more loans repay within the next few days before DFL017 draws down, chances are a lot of the money will now be immediately re-invested, generating funds for DFL017 (either directly investing in that loan, or buying loan parts from people who will invest in it, or buying from people who have invested in it, and need to settle the resulting negative balance). It still seems to me that the new system of requiring payment up-front is better at generating ACTUAL funds, rather than the illusion of funds (supported by ever-shifting negative balances).
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Post by GSV3MIaC on Mar 10, 2017 14:13:13 GMT
Yes, when you sell something to someone today, you get paid with actual cleared funds .. last month you were 'paid' with a promissory note issued by someone who may not have had the funds (in which case Lendy picked up the tab). Hopefully lenders will wise up to the need to have some actual funds deposited, if they want to strike at the SM while the good stuff is there. Alternatively SS might start to insist that PM sales are also pre-funded with actual positive cash (we can't be a million miles away from that now) .. problem I have with that is the 'go live' date/time is not guaranteed - you could move your funds in for a caravan site at Xmas and discover it didn't appear until 4-5-6 weeks later.
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sl75
Posts: 2,092
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Post by sl75 on Mar 10, 2017 15:15:32 GMT
Alternatively SS might start to insist that PM sales are also pre-funded with actual positive cash (we can't be a million miles away from that now) .. problem I have with that is the 'go live' date/time is not guaranteed - you could move your funds in for a caravan site at Xmas and discover it didn't appear until 4-5-6 weeks later. ... which is why the mechanism is far better suited to a loan that has not yet been drawn down. If unfunded loan parts are cancelled BEFORE the loan draws down, nobody needs to make up the difference. The one change that I think they should make, though, is to only pay interest on FUNDED parts. Having removed the ability to have unfunded SM purchases, it's now trivial for SS to determine which parts are funded and which are not, or indeed to retrospectively change the start date on future loan parts to the date that funds arrived rather than the date that the loan went live. However, I'd think that this should be based on the date that funds arrived in SS's client account, and not the (possibly later) date that SS finally got round to bothering to process the credit. Otherwise it gives SS a perverse incentive to delay processing credits.
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ablender
Member of DD Central
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Post by ablender on Mar 11, 2017 20:07:12 GMT
Yes, when you sell something to someone today, you get paid with actual cleared funds .. last month you were 'paid' with a promissory note issued by someone who may not have had the funds (in which case Lendy picked up the tab). Hopefully lenders will wise up to the need to have some actual funds deposited, if they want to strike at the SM while the good stuff is there. Alternatively SS might start to insist that PM sales are also pre-funded with actual positive cash (we can't be a million miles away from that now) .. problem I have with that is the 'go live' date/time is not guaranteed - you could move your funds in for a caravan site at Xmas and discover it didn't appear until 4-5-6 weeks later. Perhaps a model like ABL, where you start earning interest as soon as you commit your money is needed in such a case. We put our money (real) in a loan, start earning the interest and SS takes its own sweet time to release the loan.
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