Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 26, 2017 13:49:29 GMT
Rates have gone down by 0.1%. Market rate 6.4%, Priority rate 6.3%.
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Post by nesako on Apr 26, 2017 14:08:28 GMT
Noticed this in the latest newsletter, but it did come unannounced...
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Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
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Post by Greenwood2 on Apr 26, 2017 15:01:19 GMT
I saw a renewal come in at the new rate and then saw the newsletter. Not a big deal, but I hope it's not the start of a slippery slope.
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ben
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Post by ben on Apr 26, 2017 15:11:46 GMT
I saw a renewal come in at the new rate and then saw the newsletter. Not a big deal, but I hope it's not the start of a slippery slope. Unfortuntly it will be once more investors start joining.
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Post by dan1 on Apr 26, 2017 15:18:19 GMT
Rates have gone down by 0.1%. Market rate 6.4%, Priority rate 6.3%. I really wanted to give your post a thumbs down but thanks for letting us know! I'm still a happy client of GS, good for diversification into invoice discounting and also a fire and forget platform. I think it's used by BM too given previous comments by Steve Findlay (use of ID with a provision fund at the same rates offered by GS).
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beh
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Post by beh on Apr 26, 2017 15:44:15 GMT
"The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days", do a lot of people have the priority rate selected in their reinvestment settings which is driving the market rate down?
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 27, 2017 5:56:12 GMT
Since the rates seem to move in steps of 0.1% I would assume that the average rate must have been under 6.45% for the last 30 days, but maybe it only has to be a small amount under 6.5% to move to 6.4%.
There must be enough lenders at the priority rate to trigger a rate drop and if there are that means another reduction in 30 days and again in another 30 days...
And there seems to be no mechanism for rates to ever go up.
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Steerpike
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Post by Steerpike on Apr 27, 2017 12:53:41 GMT
Since the rates seem to move in steps of 0.1% I would assume that the average rate must have been under 6.45% for the last 30 days, but maybe it only has to be a small amount under 6.5% to move to 6.4%. There must be enough lenders at the priority rate to trigger a rate drop and if there are that means another reduction in 30 days and again in another 30 days... And there seems to be no mechanism for rates to ever go up. The mechanism seems to be flawed perhaps JamesGrowthStreet would care to comment.
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Post by nesako on Apr 27, 2017 13:08:07 GMT
I would not assume that people selecting Priority rate are dragging down loan rates offered to Businesses by Growth Street. It could be down to any of these reasons: - Growth Street want to be move competitive, hence recent loan rates offered to Businesses have been reduced, meaning this has been passed to investors as well
- Because of all the new "exciting" hiring, expansion plans etc. etc. they have lifted their margin to cover increase in costs
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 27, 2017 13:51:52 GMT
"The Market Rate is the volume-weighted average rate of the loans matched in the prior 30 days" From this quote it appears that Market Rate is directly linked to average lender rate. Or it's very badly worded.
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Post by nesako on Apr 27, 2017 14:03:46 GMT
It is badly worded, but "volume-weighted" part kind us says that they take all loans of different percentages and sizes given out to SME's in last 30 days, and then calculate the average based on the same common size. So, if I give 1000 loan @ 10% and another 500 loan @ 5%, volume weighted average @ 500 basis would be (10 + 10 + 5) / 3 = 8.33%
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Greenwood2
Member of DD Central
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Post by Greenwood2 on Apr 27, 2017 14:38:10 GMT
It would be nice to get a definitive interpretation from Growth Street.
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beh
Member of DD Central
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Likes: 77
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Post by beh on Apr 27, 2017 16:24:02 GMT
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Greenwood2
Member of DD Central
Posts: 4,376
Likes: 2,780
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Post by Greenwood2 on Apr 28, 2017 7:02:24 GMT
That seems to change the whole concept of Growth Street. It was a 'Fire and Forget' type site, if they allow choice of rates it will require pretty much daily log ins to check for repayments and to decide on the best rate to re-invest. (Or risk having funds sitting uninvested or set silly low rates.)
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Post by nesako on Apr 28, 2017 7:05:34 GMT
I loved current concept... I already have too many other platforms which require maintenance  This sounds like RateSetter II to me... |
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This sounds like RateSetter II to me...