benaj
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Post by benaj on Nov 29, 2018 11:51:47 GMT
...I had loans completed after 1 day and I couldn't earn interest because the capital was not large enough to generate 1p interest. Now I have 382 active loans but I still do not have a clue why some of my money is not being lent and stuck in the lending queue for ages (almost 4 weeks) even I have a few new loans matched today from the other "investments". The money in (stuck) "investment" queue just won't get matched no matter what IIRC borrowers can pay back the loan within a day and pay no interest, so I believe no lender would get any interest on those loans.
I've noticed that re-lent existing investments get matched quicker than new investments, is your "stuck" money new money? I imagine that there is likely a monthly peak on borrower demand set a period before / after the nations typical payday. Perhaps the money went in just after said peak?
I have loans completed 1 day with 1p interest, for example earning 1p for lending out £18, but some did not get interest due to loan part size. zlb loaded £100 recently and matched on the same day, some of my new money was stuck for weeks in one "investment, but other new money added later in other "investment" lent out pretty quickly.
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zlb
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Post by zlb on Nov 29, 2018 13:13:42 GMT
IIRC borrowers can pay back the loan within a day and pay no interest, so I believe no lender would get any interest on those loans.
I've noticed that re-lent existing investments get matched quicker than new investments, is your "stuck" money new money? I imagine that there is likely a monthly peak on borrower demand set a period before / after the nations typical payday. Perhaps the money went in just after said peak?
I have loans completed 1 day with 1p interest, for example earning 1p for lending out £18, but some did not get interest due to loan part size. zlb loaded £100 recently and matched on the same day, some of my new money was stuck for weeks in one "investment, but other new money added later in other "investment" lent out pretty quickly. I've still only got 1p earnings, after a few days of the £100 being loaned. So it's 1p queued... Presume if something repaid early it is represented immediately and not longer looks like it is loaned out. 1p interest immediately, and then nothing. Does that indicate immediate default?
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benaj
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Post by benaj on Nov 29, 2018 13:18:48 GMT
Borrowers can repay loans early. It can happen often because they need cash quickly but not willing having these loans for too long.
I am still learning about Welendus even I have been lending for almost 6 months.
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Post by sharpe on Nov 30, 2018 11:03:58 GMT
...I had loans completed after 1 day and I couldn't earn interest because the capital was not large enough to generate 1p interest. Now I have 382 active loans but I still do not have a clue why some of my money is not being lent and stuck in the lending queue for ages (almost 4 weeks) even I have a few new loans matched today from the other "investments". The money in (stuck) "investment" queue just won't get matched no matter what IIRC borrowers can pay back the loan within a day and pay no interest, so I believe no lender would get any interest on those loans.
I've noticed that re-lent existing investments get matched quicker than new investments, is your "stuck" money new money? I imagine that there is likely a monthly peak on borrower demand set a period before / after the nations typical payday. Perhaps the money went in just after said peak?
I think the only way to get the money that seems to be stuck in perpetuity lent, is to withdraw it and reinvest it. Was the only way it would work for me. I tend to break down a lump sum investment into £200-£100 chunks and it gets lent out fairly swiftly. Although I suspect some of these that match quickly are loans being sold onthe secondary I do have a number of concerns though. By breaking up my investments into so many chunks with the current admin area it makes it pretty difficult to analyse what loans I'm in. The excel downloand button only downloads the investment summary, rather than the full loan details. So next to useless. I have my PF set to 14 days but I'm picking up a number of aquistions by the PF. Without the bonus it would make this platform untennable. Alone last night I was hit with 3 that dwarfs any interest I've earnt since my 3 months on the platform.
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benaj
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Post by benaj on Nov 30, 2018 11:20:52 GMT
The PF and the bonus help. The bonus is 25% of my interest earned.
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Ukmikk
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Post by Ukmikk on Nov 30, 2018 11:57:03 GMT
After 3 months 30% of my returns are from PF bonus.
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zlb
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Post by zlb on Nov 30, 2018 17:07:30 GMT
Hi benaj or Ukmikk what's the bonus? something I missed out on? I thought the PF only repaid capital not potential interest...?
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benaj
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Post by benaj on Nov 30, 2018 17:30:39 GMT
Welendus charges enough from borrowers for their fees and PF. Once the loan is bought by PF, a bonus will be paid later.
I say you probably need at least 3 months to familiar with interest and bonus payment. I haven't earned much in my first 30 days with 10 loans. Now I see my investments on Welendus earning good annualised rates, thanks to PF.
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nyneil
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Post by nyneil on Nov 30, 2018 17:56:16 GMT
Hi benaj or Ukmikk what's the bonus? something I missed out on? I thought the PF only repaid capital not potential interest...? zlb I don't know how long it will last, but Welendus currently buy your capital AND interest, when a loan is taken over by the PF. The capital is reimbursed immediately, while the interest is paid as a 'bonus' at the end of the month.
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zlb
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Post by zlb on Dec 1, 2018 18:08:53 GMT
Hi benaj or Ukmikk what's the bonus? something I missed out on? I thought the PF only repaid capital not potential interest...? zlb I don't know how long it will last, but Welendus currently buy your capital AND interest, when a loan is taken over by the PF. The capital is reimbursed immediately, while the interest is paid as a 'bonus' at the end of the month. fab. Thanks.
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Godanubis
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Anubis is known as the god of death and is the oldest and most popular of ancient Egyptian deities.
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Post by Godanubis on Dec 2, 2018 22:30:00 GMT
Yes folks The Welendus formula is a winner even if only capital is returned which is the default as bonuses are discretionary EVERY P2P should have a provision fund as a % taken from their cut to cover their mistakes when asset backed loans are given.
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elliotn
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Post by elliotn on Dec 3, 2018 2:29:24 GMT
Yes folks The Welendus formula is a winner even if only capital is returned which is the default as bonuses are discretionary EVERY P2P should have a provision fund as a % taken from their cut to cover their mistakes when asset backed loans are given. This was always quite a hot topic in Ly's heyday. Some downsides to PF were considered to be false confidence in retail investors and discretionary use by platform. Of course, the funding fee will probably come from the lenders' rather than the platform's cut . Given the recent haircuts, perhaps self-select ninjas may have given way to a consensus among the remaining retail investors for the need of a comfort blanket. The fees would need to be commensurate with remaining competitive against other of lenders though. For the relative small amounts and higher risk of short term consumer lending I think PF suits We model, although it will need to be continuously stress tested. It's absence from TMP made me hesitate in the same market although iirc they offered half the borrowers' apr, so potentially a far higher rate to compensate lenders.
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zlb
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Post by zlb on Dec 7, 2018 13:01:09 GMT
Based on two weeks of 100 invested, earning so far 10.4% aer - know there's no real value in using a fortnight as a measure.(at 10-15% setting)
As it's a new platform, wonder how one will know how realistic it is, whether it's about to topple and need to change model.
Wonder how much modelling was done before launch, what stress tests placed on this model, for what simulated duration.
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nyneil
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Post by nyneil on Dec 7, 2018 18:52:10 GMT
Based on two weeks of 100 invested, earning so far 10.4% aer - know there's no real value in using a fortnight as a measure.(at 10-15% setting) As it's a new platform, wonder how one will know how realistic it is, whether it's about to topple and need to change model. Wonder how much modelling was done before launch, what stress tests placed on this model, for what simulated duration. nsiam Could you please give us an overview of the stress testing you have carried out and how well the model performed? Thanks.
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Post by nsiam on Dec 9, 2018 6:10:30 GMT
Based on two weeks of 100 invested, earning so far 10.4% aer - know there's no real value in using a fortnight as a measure.(at 10-15% setting) As it's a new platform, wonder how one will know how realistic it is, whether it's about to topple and need to change model. Wonder how much modelling was done before launch, what stress tests placed on this model, for what simulated duration. nsiam Could you please give us an overview of the stress testing you have carried out and how well the model performed? Thanks. We have conducted some heavy stress testing to cover sustainability and market changes (including recessions). Our stress testing was reviewed few time during our authorisation process and as part of our early stage capital raise. We are also continually monitoring and observing our loan book performance. Hope this answers your question. Best, Nadeem
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