Funding Circle slow selling

pruey

https://support.fundingcircle.com/hc/en-us/articles/360022441712-How-long-does-it-take-to-sell-loan-parts-


current average is 54 days

behenjamin

Current selling average is 66 days!!! acording to FC. I can't remember when I selected to sell loans. Does anyone know how to find out. It's not a massive sum, but I'd like to change my car next month and need it out.

Goudy

Now 70 days.
But this does tend to smell a bit funny.

According to their pop up "loan parts sold between 10/07/19 and 16/07/19 took on average 70 days to sell"

The 10/7 to the 16/7 wasn't even a week ago, how can they state loans sold between these dates took on average 70 days?

Surely it should state "will take" or should read "loan parts sold between 02/05/19 and 06/05/19 took on average 70 days to sell"

It's either bad English or iffy practice.
I'm glad I'm only trying to rattle free my last few pounds!

criston

The answer is that they rely on an updated thread on P2P, as they have no idea what's going on.
I can't post links here so close the gaps on the followiing;

http:// p2pindependentforum.com/thread/ 14673/selling-loans-frame-updated-daily

It's up to at least 72 days at present & increasing by the day.
Look at the first post on page 1 of the thread

criston

behenjamin. If you ring or message them, they will tell you, as it is impossible to find out on your account. A lot of the answers will be found on the link I mentioned above.

criston

Goudy;

What they are saying is, when the loans actually sold. The 70 days is from the date when they were instructed to be sold until the date that they actually sold. It is misleading I agree

kcrane

@criston - Just a quick thank you for the good work you are doing on FC selling times, much appreciated.:T

bowlhead99

Goudy wrote: »

According to their pop up "loan parts sold between 10/07/19 and 16/07/19 took on average 70 days to sell"

The 10/7 to the 16/7 wasn't even a week ago, how can they state loans sold between these dates took on average 70 days?

Surely it should state "will take" or should read "loan parts sold between 02/05/19 and 06/05/19 took on average 70 days to sell"

It's either bad English or iffy practice.

criston wrote: »

What they are saying is, when the loans actually sold. The 70 days is from the date when they were instructed to be sold until the date that they actually sold. It is misleading I agree

I don't think it is misleading for them to say that loan parts sold a week ago took on average 70 days to sell.

The house I sold in December 2017 took 6+ months to sell. I had started to try to sell it in summer and it took a while. If someone had asked me in January 2018, "Ah, I understand you completed on the sale of your house last month, in December, how long did it take you to sell it?" I might have said "The house I sold in December took 6 months to sell".

I would not expect them to say "surely you mean the house you sold last June took 6 months to sell?!" because they know damn well we are talking about the house I sold last month because they just asked me about it. The house I sold in December is the most recent house sale I had data on and is the one we are talking about. Clearly what I can't do is tell them how long it would take to sell a house in my street that you only started marketing in December 2017 or January 18, because that was (at January 2018), an unknown. All I can do is provide the latest available data as an example.

You are suggesting that the wording is ambiguous or misleading. However, they have said that based on data for things sold in early July, the sales took two months. It is obvious when they say that things sold in July took 70 days, they are not talking about things that someone first put up for sale in July and the sale completed 70 days after July. Because we are still in July. They are talking about sales completing in July and it not 'misleading' or 'iffy'.

If they do as you suggest and say 'loan parts sold in May took 70 days to sell' people would quite rightly comment, "hmm, market conditions change frequently, May is a couple of months ago, can't you give us more recent information, what is the experience of sales that completed last week, how long did they take?"

And then they would have to say "no we are giving you the most recent data, when we say sold in May we do not mean sold in May at all, we mean sold in July, but the customer asked us to start looking for a buyer in May. Of course 'sold in May' was not the right language to use and we only did it because Goudy told us that 'sold in July' smelled funny. This is because he did not comprehend that the 'put up for sale' date was different from the 'final sale date', even though we told him there was 70 days between the two."

The short answer is that this is not a bank account with instant access, it is an investment in a slice of a loan made to a borrower and if you no longer want to own that loan, another investor will need to be found to buy it off you, and it will take time to wait fo the investor to come along with their money, line up that investor with your loan part, prepare the transfer of ownership, and let the sale happen. When the sale has happened, you get your money, and we say the loan part has been sold. This does not currently happen same day or overnight. The loan parts that were sold in early July took 70 days to sell.

criston

Steady on. I was trying to be helpful. I suppose misleading was the wrong word.
Should have said easily misconstrued.
Lets make it easy.
I put loan parts up for sale 9/5/19. After 73 days they are still not sold.
Lets say they sell after 75 days on 23/7/19
FC will say something like 'loan parts sold between 21/07/19 and 28/07/19 took on average 75 days to sell'.
This would probably be stated around 1/8/19, by which time they will probably be out of date by 5 days.
Early July was nearer 60 days to sell.

aroominyork

bowlhead99 wrote: »

The short answer is that this is not a bank account with instant access, it is an investment in a slice of a loan made to a borrower and if you no longer want to own that loan, another investor will need to be found to buy it off you, and it will take time to wait fo the investor to come along with their money, line up that investor with your loan part, prepare the transfer of ownership, and let the sale happen. When the sale has happened, you get your money, and we say the loan part has been sold. This does not currently happen same day or overnight. The loan parts that were sold in early July took 70 days to sell.

Funding Circle does not have fixed term products like Ratesetter's 1 year and 5 year, nor notice accounts like Assetz's 30 day (in normal market conditions) notice account - it is a rolling market. But while Ratesetter typically sells on the same day from the rolling market, Funding Circle takes 60-70 days. I don't see where I am not comparing apples with apples - am I missing something?