ashtondav
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Post by ashtondav on Dec 11, 2017 9:10:53 GMT
Here it talks of 0.5% diversification www.fundingcircle.com/blog/2017/09/new-lending-experience-questions-answered/But it I seem to be autobidding in chunks of 1%. So, if I have £10,000 invested and I deposit £5,000. Do I get loan sizes of £50, £150, £25, or £75 when the £5k is assigned to individual loan parts? Despite what is stated in the link above, is there no way to get 0.5% diversification? |
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blender
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Post by blender on Dec 11, 2017 9:15:43 GMT
It should be £75.
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ashtondav
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Post by ashtondav on Dec 11, 2017 9:38:22 GMT
But my "exposure to any one business is 0.7%". Surely it should be 0.5%, or is it because the same business can take out multiple loans and the 0.5% refers to loans not businesses? I'm new to FC.
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Post by skint4achange on Dec 11, 2017 9:55:57 GMT
Do not forget though that if you had £10,000 in loans and then suddenly put another £5,000 into the account, the first time a loan part is allocated at £75, your exposure would be increased
£75 loan part with £10,075 on loan = £75/£10,075 *100= 0.745%
This will remain "Unbalanced" until the remainder of the £5000 in put into loans. Then, with your maximum loan part being £75, your 0.5% diversification will return.
£75 loan part with £15,000 on loan = £75/£15,000 * 100=0.5%
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benaj
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Post by benaj on Dec 11, 2017 10:05:30 GMT
Here it talks of 0.5% diversification... Despite what is stated in the link above, is there no way to get 0.5% diversification? The 'improved' FC invests money 0.5% of the whole portfolio per business. Say a portfolio of £23k, the algorithm will match the £115 per new business loans. My earliest loan with 0.5% diversification on the 'improved FC' is 44521 The algorithm will not allow bidding in smaller chunks than 0.5% diversification, like 0.1% or 0.25% if you have a portfolio larger than £4k. A portfolio between £1-4k still bidding in £20 chunks.
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Post by GSV3MIaC on Dec 11, 2017 10:20:21 GMT
I don't believe it will bid less than £20 either, or has that changed? Not sure how the rounding/whatever works at higher amounts, but I'm sure it's not exact.
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benaj
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Post by benaj on Dec 11, 2017 10:22:02 GMT
I don't believe it will bid less than £20 either, or has that changed? Not sure how the rounding/whatever works at higher amounts, but I'm sure it's not exact. True, minimum bid is £20.
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blender
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Post by blender on Dec 11, 2017 15:19:16 GMT
I don't believe it will bid less than £20 either, or has that changed? Not sure how the rounding/whatever works at higher amounts, but I'm sure it's not exact. That only applies to the PM. There are many parts on the SM for less than £20, after amortising from £20, and there will continue to be. So these will have to be bought, or you can never sell up.
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