tony
Posts: 136 
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Post by tony on Jun 26, 2017 15:44:00 GMT
Can't find a thread for this. Other platforms which I use have the option either to renew or not loans so that if a loan fails to repay at the end of its loan period investors can choose to either get their investment returned or reinvest it under a new loan reference number. As far as I can see, Lendy do not have this option so that if they decide to extend a loan the investor has to put up with it or try to sell it on the SM. This seems to render meaningless the completion date specified on a loan at commencement.
With so many loans now in default and so many being extended I am beginning to wonder whether I shall ever get my money back.
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GeorgeT
Member of DD Central
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Post by GeorgeT on Jun 26, 2017 16:11:58 GMT
LY requires a lot more portfolio management for the reasons you mention. Best advice is to make full use of the SM and maintain a youthful loanbook.
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Post by df on Jun 26, 2017 23:19:42 GMT
LY requires a lot more portfolio management for the reasons you mention. Best advice is to make full use of the SM and maintain a youthful loanbook. It could be difficult to maintain a youthful loanbook at 12% without compromising on diversification.
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toffeeboy
Member of DD Central
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Post by toffeeboy on Jun 29, 2017 14:33:21 GMT
Can't find a thread for this. Other platforms which I use have the option either to renew or not loans so that if a loan fails to repay at the end of its loan period investors can choose to either get their investment returned or reinvest it under a new loan reference number. As far as I can see, Lendy do not have this option so that if they decide to extend a loan the investor has to put up with it or try to sell it on the SM. This seems to render meaningless the completion date specified on a loan at commencement.
With so many loans now in default and so many being extended I am beginning to wonder whether I shall ever get my money back. The date that you are calling completion date is generally at estimated date, loans that are made on Lendy are either bridging or development loans both of which are well known for not being very easy to calculate a length of time for. If you are looking to lend for a specific amount of time then Lendy is not for you.
The number of days that is shown on the website is the amount of days that interest has been paid for and then Lendy will pay the interest for the next 90 days.
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Post by mrg on Jun 29, 2017 15:14:31 GMT
I find the LY categories slightly misleading. SBL after day 0 lapses, then IA after 90 days, and DEF after 180 days. Yet I do not believe interest stops being paid by the borrower after the original term lapses. If anything additional interest will be being paid. I've also noticed IA loans that have updates suggesting a further months interest has been paid. So to me this is just a nice way of LY withholding interest from lenders for longer periods (nice work if you can get it).
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Post by mrg on Jun 30, 2017 6:42:35 GMT
Perhaps I didn't explain my point clearly. I'm not suggesting LY are cheating. The rules of the game are after -90 days you don't receive interest so I'm not expecting to. But I do not believe every borrower stops paying LY interest after 0 days. My point is LY have created a IA category which automatically labels any loan after -90 days to IA. But having been on the other end of these loans when I was younger I'm pretty sure some of the borrows (legit business minded ones who are looking to turn a profit and then start again and get a new loan on a new project) will be making regular payments to LY regardless of how many negative days the loan now has. From a borrows point it's simple if you aren't seen to be keeping in good credit you don't have a future business. My point was LY have an amazing business model as they are not obliged to pay lenders after 90 days regardless of whether or not they are still receiving payment from the borrower. Only on completion of repayment does that money have to transfer to the lender.
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Post by mrg on Jun 30, 2017 6:44:30 GMT
"As soon as the borrower sends funds, the term is increased" - is this the case?
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jun 30, 2017 7:00:19 GMT
"As soon as the borrower sends funds, the term is increased" - is this the case? Technically no but thats because Lendy are slow at admin so they will report an extension but then not update the term for a while. Its a chickrn & egg one, do they report an extension before they receive the funds and then update term on receipt or report on receipt but then update late.
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