toffeeboy
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Post by toffeeboy on Jul 27, 2021 14:25:54 GMT
If the loan needs filling quickly then the limit doesn't even have to be in place for an hour, it just takes away the FFF aspect for the majority and removes the need to ensure you are logged in hitting refresh bang on the launch time. I like the idea suggested by trium , and again that could have a relatively short time on it. In this case maybe set to a couple of hours at which point the loan would have been fully funded and lenders getting a fair portion of the loan. I do as well, it allows for prefunding from whenever the loan is announced. You can still have your short urgent loans which have a short deadline as well as ones with 24/48 hours notice. I think the whole system is fairer to all, the only thing I didn't like about Lendy when they used it was the lack of the need to already have the money in your account, I think that FCA have outlawed this now anyway. I was basing my comment on the fact that CL is being run the same way that FS was and I believe (never invested in FS) that this was the way that FS worked so I doubt they will be planning to change their whole model just tweak it to make it fairer.
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Post by overthehill on Jul 27, 2021 14:59:07 GMT
Given it could have been taken up by just 5 investors I would suggest not. A sensible bid limit needs to allow the chance for all registered lenders to invest or is fairly pointless. I got what I wanted (a lot less than the bid limit) but suspect there are a good few annoyed people about now. The limit would only need to be applied for a few hours before allowing a free for all. Dear Lenders, We apologise for anyone who missed out on today’s loan. The £3,000 limit was set due to the borrower requiring the funds early today. We made a judgement based on the number of lenders it would require to fill this loan while also trying to ensure a sufficient percentage was left in the loan for those looking to place smaller bids. Having read the comments, I agree a suitable solution is required to ensure fairness to all investors who take their time out of their day to invest with us. We are looking into the solution as mention in your comments of a limited time restriction before opening the funding and we hope to have this in place very shortly. Many thanks Noman. Remove the restriction 5 mins after funding starts. That's what Crowdproperty does but I doubt the code has been used yet !
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jcb208
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Post by jcb208 on Jul 27, 2021 15:03:52 GMT
Just got home from work and went to invest ,all gone.Oh well this may be the norm now with the high bid limits and the company getting more popular
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trium
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Post by trium on Jul 27, 2021 20:35:47 GMT
And yet another tomorrow! Small loan, high LTVs but fairly easy to value.
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Post by Ace on Jul 27, 2021 21:00:18 GMT
And yet another tomorrow! Small loan, high LTVs but fairly easy to value. The LTVs on this one look a bit high. Certainly higher than stated in CL's Ts&Cs. 5.2(b) states: By the time the fees are added to the amount lent it's almost at 100% LTV. Surely that means that any fall in the price of gold would leave Tranche C holders losing interest, and not much of a fall before they would lose capital.
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Post by connectivelending on Jul 28, 2021 9:15:18 GMT
And yet another tomorrow! Small loan, high LTVs but fairly easy to value. The LTVs on this one look a bit high. Certainly higher than stated in CL's Ts&Cs. 5.2(b) states: By the time the fees are added to the amount lent it's almost at 100% LTV. Surely that means that any fall in the price of gold would leave Tranche C holders losing interest, and not much of a fall before they would lose capital. Dear trium and all other forum users, We wanted to clarify the LTV facts based on your comment so you can calculate yourselves, more accurately, going forward. So using the gold coin loan recently launched with an LTV of 81.38% as the example to show that with an easily disposable asset there is enough equity for you, the investors. The average interest rate paid across the 3 tranches is 12%/annum. Over 6 months this equates to 6% total. For ease of visualization let us say the gold value is £10000 and we have agreed a loan of £8138 (81.38%). £8138 + 6% investor interest would mean a total owed to you guys including capital of £8626.28 after 6 months. Let us the presume that the asset is disposed of in month 7, after default, so actually you would be owed 7% or 7 months interest. This equals £8707.66. You guys have the absolute priority over monies owed so using the above equation the gold price would need to drop from £10000 to below £8707.66 before tranche C, for example, started having their yield diluted. If the gold price dropped to £9000 then it is the platform who absorbs the lower value and makes a lower yield because the £8707.66 owed to investors is still covered. When we decide to offer a slightly higher LTV it tends to be done based on a risk based approach mainly on what yield the platform can make or absorb and the likelihood of that happening. So to summarise, the value of gold in this case would need to drop by over 13% in 6 months for any investor yield to risk dilution and infact over 18% before any capital loss was at risk. We hope this makes sense and will check back for any questions. Kind regards Danny Grimes Connective Lending
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squid
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Post by squid on Jul 28, 2021 10:10:35 GMT
The only question I have please is when will the secondary market be enabled?
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Greenwood2
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Post by Greenwood2 on Jul 28, 2021 10:28:45 GMT
The LTVs on this one look a bit high. Certainly higher than stated in CL's Ts&Cs. 5.2(b) states: By the time the fees are added to the amount lent it's almost at 100% LTV. Surely that means that any fall in the price of gold would leave Tranche C holders losing interest, and not much of a fall before they would lose capital. Dear trium and all other forum users, We wanted to clarify the LTV facts based on your comment so you can calculate yourselves, more accurately, going forward. So using the gold coin loan recently launched with an LTV of 81.38% as the example to show that with an easily disposable asset there is enough equity for you, the investors. The average interest rate paid across the 3 tranches is 12%/annum. Over 6 months this equates to 6% total. For ease of visualization let us say the gold value is £10000 and we have agreed a loan of £8138 (81.38%). £8138 + 6% investor interest would mean a total owed to you guys including capital of £8626.28 after 6 months. Let us the presume that the asset is disposed of in month 7, after default, so actually you would be owed 7% or 7 months interest. This equals £8707.66. You guys have the absolute priority over monies owed so using the above equation the gold price would need to drop from £10000 to below £8707.66 before tranche C, for example, started having their yield diluted. If the gold price dropped to £9000 then it is the platform who absorbs the lower value and makes a lower yield because the £8707.66 owed to investors is still covered. When we decide to offer a slightly higher LTV it tends to be done based on a risk based approach mainly on what yield the platform can make or absorb and the likelihood of that happening. So to summarise, the value of gold in this case would need to drop by over 13% in 6 months for any investor yield to risk dilution and infact over 18% before any capital loss was at risk. We hope this makes sense and will check back for any questions. Kind regards Danny Grimes Connective Lending I thought Auction costs were paid first, and the balance paid to lenders.
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Post by df on Jul 28, 2021 11:05:15 GMT
Dear trium and all other forum users, We wanted to clarify the LTV facts based on your comment so you can calculate yourselves, more accurately, going forward. So using the gold coin loan recently launched with an LTV of 81.38% as the example to show that with an easily disposable asset there is enough equity for you, the investors. The average interest rate paid across the 3 tranches is 12%/annum. Over 6 months this equates to 6% total. For ease of visualization let us say the gold value is £10000 and we have agreed a loan of £8138 (81.38%). £8138 + 6% investor interest would mean a total owed to you guys including capital of £8626.28 after 6 months. Let us the presume that the asset is disposed of in month 7, after default, so actually you would be owed 7% or 7 months interest. This equals £8707.66. You guys have the absolute priority over monies owed so using the above equation the gold price would need to drop from £10000 to below £8707.66 before tranche C, for example, started having their yield diluted. If the gold price dropped to £9000 then it is the platform who absorbs the lower value and makes a lower yield because the £8707.66 owed to investors is still covered. When we decide to offer a slightly higher LTV it tends to be done based on a risk based approach mainly on what yield the platform can make or absorb and the likelihood of that happening. So to summarise, the value of gold in this case would need to drop by over 13% in 6 months for any investor yield to risk dilution and infact over 18% before any capital loss was at risk. We hope this makes sense and will check back for any questions. Kind regards Danny Grimes Connective Lending I thought Auction costs were paid first, and the balance paid to lenders. I might be wrong, but in my understanding CL will be able to dispose of this asset directly (i.e. without involving an auction). This is probably why auction fees were not included in the given example.
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Greenwood2
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Post by Greenwood2 on Jul 28, 2021 12:06:17 GMT
I thought Auction costs were paid first, and the balance paid to lenders. I might be wrong, but in my understanding CL will be able to dispose of this asset directly (i.e. without involving an auction). This is probably why auction fees were not included in the given example. If that is the case you can't rely on that example in the future if you are looking at LTVs of other loans that might go to auction. It will need spelling out which loans they will redeem themselves (without selling fees) and which will attract selling fees if they default.
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Post by Badly Drawn Stickman on Jul 28, 2021 14:34:23 GMT
I might be wrong, but in my understanding CL will be able to dispose of this asset directly (i.e. without involving an auction). This is probably why auction fees were not included in the given example. If that is the case you can't rely on that example in the future if you are looking at LTVs of other loans that might go to auction. It will need spelling out which loans they will redeem themselves (without selling fees) and which will attract selling fees if they default. I am inclined to work on the assumption that if it is valued by a third party it would probably be sold at auction or similar. Valued 'in house' seems to be things they have a market for already. I'm sure they will enlighten me if I am misunderstanding.
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trium
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Post by trium on Jul 28, 2021 14:49:30 GMT
This afternoon's borrower has two loans on the platform already. Nothing wrong with that, as long as you're aware. I only just noticed.
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toffeeboy
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Post by toffeeboy on Jul 28, 2021 15:02:36 GMT
And yet another tomorrow! Small loan, high LTVs but fairly easy to value. Tranche C lasted about 20 seconds, tranche B has £175 left after two minutes
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Post by connectivelending on Jul 28, 2021 15:47:42 GMT
If that is the case you can't rely on that example in the future if you are looking at LTVs of other loans that might go to auction. It will need spelling out which loans they will redeem themselves (without selling fees) and which will attract selling fees if they default. I am inclined to work on the assumption that if it is valued by a third party it would probably be sold at auction or similar. Valued 'in house' seems to be things they have a market for already. I'm sure they will enlighten me if I am misunderstanding. Dear All, Whilst there may be exceptions many items such as gold and precious metals, most luxury watches, fine jewellery will achieve the quickest disposal via selling to trade buyers for fair trade market value. When we say valued by a third party we may mean a low auction estimate or an underwritten value from a trade buyer. When we say in house we mean that Danny Grimes has valued the luxury watch or jewellery based on his experience or with gold etc. we can simply rely on bullion rates. It would be more accurate to look at the type of asset used to borrow monies. For example, a well known and easily sold Rolex or other brand will achieve a much quicker and better value return selling to a trade buyer so you can safely assume there will be no selling fees other than delivery. A piece of artwork or antique will be best placed and sold at an auction so a more conservative LTV will be used to cover selling fees. We have some auction houses who will charge a much reduced sellers fee and rely on a buyers premium to obtain our consignment. It wouldn't be unrealistic to use a selling fee of 10% when looking at those type of assets. We would not be offering an 85% LTV on an item that will only sell at auction and may also be delayed by the timing of the correct auction. Obviously, we want the borrower to be motivated to repay the loan so we look at LTV's very carefully and have rejected some loans already based on this. We hope this helps somewhat. Kind regards Connective Lending
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Post by mfaxford on Jul 28, 2021 16:33:32 GMT
And yet another tomorrow! Small loan, high LTVs but fairly easy to value. Tranche C lasted about 20 seconds, tranche B has £175 left after two minutes And still some of Trance A left I'd expected everything to have gone by the time I was home to be able to invest so didn't transfer any funds in. Perhaps I should have (although I'm not sure it's worth trying now).
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