Loanpad P2P - Reviews, experiences, info or updates, post them here. I'm having a dabble.

redpete

Aceace said:

Hi @redpete, I like your Loanpad summary, but I think you may have some minor misunderstandings about the stats.

...

Sorry for being a pedant 

Thanks for the clarifications.  I knew about the multi-tranche loans but missed it in my summary.  Must admit I did some rounding on the other figures (although as you've pointed out I reported the number of tranches rather than the number of loans)

And I'm the last person to criticise anyone for being a pedant :-)

justme111

If you understand their offering and trust them - go ahead. Just keep in mind there are NO laws protecting you and if something goes wrong and company y goes into administration you may get nothing back. 0. 

Sea_Shell

Aceace said:

Sea_Shell said:

Just to add, for others looking at this as a potential investment...

Money (£250) transferred at about 9am
E-mail received confirming receipt of money 10.30am
I logged on and asked for it to be allocated to the Premium Account.
Money allocated to loans in 2pm run.
Day 2, Grand sum of 2p daily interest added to my cash account!!


So money on the way in, is very slick!    Lets hope it's as slick on the way out!!! 

It probably won't interest you while you have your small test investment, but it's possible to effectively half the average 60 day notice time on the Premium account by setting up a set of rolling transfers and cancelling them if you don't need the cash. I do this. Each Sunday I set up a transfer for a 10th of my balance for 9 weeks and 1 day ahead, so the transfer will happen on a Monday if not cancelled. Before doing this I cancel the transfer that is due to happen the next day if I don't need the cash that week. Its a bit of a faf, but I have a weekly alarm I my phone to remind me to do it, and only takes a minute to do when your used to it. I know of others that do this on a daily basis with a 60th of their balance, but that's too much hassle for me,.

@Aceace

I've done something similar with notice accounts I've had in the past.   So I am familiar with the concept.

Are you not worried that constantly requesting transfers out (to cash) and then cancelling them will get flagged as not being in the "spirit" of the platform?    

How does a transfer out request affect platform liquidity, and at what point is liquidity made available (held back) for a transfer? 

Are funds "set aside" by the platform at the time of request, or are they not made "available" until the date of the actual transfer.

e.g.   If notice is requested on £X, due for transfer out to cash in 60 days time, does this take precedence over someone with an instant access account also requesting £X on the same day as the former is due to pay-out?  If the platform were down to its last £X?

(sorry if I'm not using the correct terminology, but hope you understand what I mean)


ETA - is there a way of seeing on the platform website, how much liquidity is currently available for withdrawal, in total across the platform.    I think you've mentioned it on other forums, but I couldn't see it on the dashboard.   Thanks.

masonic

FWIW I used to do the above when I was using the 90 day access account at Assetz Capital. It wouldn't have any impact on liquidity because nothing happens to a withdrawal request until the notice period expires and withdrawals are always subject to availability at the point of execution (something many did not realise over there, apparently). New cash is not set aside each time notice of a withdrawal is given, and presumably it is the same story at LoanPad.

Aceace

Sea_Shell said:

Aceace said:

Sea_Shell said:

Just to add, for others looking at this as a potential investment...

Money (£250) transferred at about 9am
E-mail received confirming receipt of money 10.30am
I logged on and asked for it to be allocated to the Premium Account.
Money allocated to loans in 2pm run.
Day 2, Grand sum of 2p daily interest added to my cash account!!


So money on the way in, is very slick!    Lets hope it's as slick on the way out!!! 

It probably won't interest you while you have your small test investment, but it's possible to effectively half the average 60 day notice time on the Premium account by setting up a set of rolling transfers and cancelling them if you don't need the cash. I do this. Each Sunday I set up a transfer for a 10th of my balance for 9 weeks and 1 day ahead, so the transfer will happen on a Monday if not cancelled. Before doing this I cancel the transfer that is due to happen the next day if I don't need the cash that week. Its a bit of a faf, but I have a weekly alarm I my phone to remind me to do it, and only takes a minute to do when your used to it. I know of others that do this on a daily basis with a 60th of their balance, but that's too much hassle for me,.

@Aceace

I've done something similar with notice accounts I've had in the past.   So I am familiar with the concept.

Are you not worried that constantly requesting transfers out (to cash) and then cancelling them will get flagged as not being in the "spirit" of the platform?    

How does a transfer out request affect platform liquidity, and at what point is liquidity made available (held back) for a transfer? 

Are funds "set aside" by the platform at the time of request, or are they not made "available" until the date of the actual transfer.

e.g.   If notice is requested on £X, due for transfer out to cash in 60 days time, does this take precedence over someone with an instant access account also requesting £X on the same day as the former is due to pay-out?  If the platform were down to its last £X?

(sorry if I'm not using the correct terminology, but hope you understand what I mean)


ETA - is there a way of seeing on the platform website, how much liquidity is currently available for withdrawal, in total across the platform.    I think you've mentioned it on other forums, but I couldn't see it on the dashboard.   Thanks.

Hi @Sea_Shell, 

You needn't worry about your question regarding whether using the rolling withdrawal technique is within the "spirit". I asked the question on the P2PIF a couple of years ago when I started with LP as I had the same concern. The CEO replied to say that it was indeed within the spirit. You can read the details here: https://p2pindependentforum.com/post/349846/thread. 

With regard to how they manage the liquidity issue from rolling notifications, the honest answer is that I don't really know. However, I imagine that they can look at past records and calculate what percentage of notices get cancelled on average, and add a margin for safety. However they do it they've been very successful up until now as liquidity has only once gotten close to drying up, and that was during the depths of Covid19, and even then, it was only close for a few days and all requests were satisfied. 

To calculate current liquidity: go to the Live Data Feed page; multiply the Total Lenders by the Average Lender  to get the total invested funds on the platform,  then subtract the Total Loanpad Loans figure to get the total unassigned funds.

I don't know the answer to how they prioritise withdrawals that are due on the same day when funds are low. I assume that the withdrawals are all timestamped to the nearest second, but you would need to ask them to be sure. Don't forget that there are many loans due for repayment each month, so even if liquidity did dry up there should be repayments coming in soon. E.g. there are roughly £2.5m due to be repaid in the next 30 days across 10 different loans. In addition to all of this they also have liquidity providers that they can call on. 

Sea_Shell

@Aceace

Thanks for your comprehensive answer.

Just read that other thread.  Glad that rolling requests aren't frowned upon.

As they stated "You can select any future date beyond 60 days so you can set up any amortisation profile you wish", you could set up all the initial requests "up front", and then diary from there?

Aceace

If oSea_Shell said:

Sea_Shell said:

@Aceace

Thanks for your comprehensive answer.

Just read that other thread.  Glad that rolling requests aren't frowned upon.

As they stated "You can select any future date beyond 60 days so you can set up any amortisation profile you wish", you could set up all the initial requests "up front", and then diary from there?

If I understand you correctly, you can't do that. The total of all your transfer requests can't be more than your account balance.

Aceace

Aceace said:

If oSea_Shell said:

Sea_Shell said:

@Aceace

Thanks for your comprehensive answer.

Just read that other thread.  Glad that rolling requests aren't frowned upon.

As they stated "You can select any future date beyond 60 days so you can set up any amortisation profile you wish", you could set up all the initial requests "up front", and then diary from there?

If I understand you correctly, you can't do that. The total of all your transfer requests can't be more than your account balance.

EDIT: I think I may have misunderstood your intention. If you had a £9k balance in the Premium on day 1 and wanted to set up weekly rolling transfers, you could set up a 1k transfer for day 61, a £1k transfer for day 68, a £1k transfer for day 75... and a £1k transfer for day 117.

Sea_Shell

Yes, that's it.  I had replied (I thought) but must have pressed "back" rather than post!!!

I was thinking 25% every 30 days.  Set up in advance.

If you forget to cancel, I'm assuming worst case you lose a day or two interest whilst it's not invested (unless you have auto-pay out set)

Aceace

As it's a 60 day notice account you could do 25% every 15 days, or 50% every 30 days. 

If you forget to cancel then cash will be transferred to your specified destination account on day 60.

You will receive an email to remind you that it has happened.

If the destination account was your cash account any auto reinvest setting will be disabled, as they assume your intention was to withdraw the funds. So you need to re-enable it after withdrawing. If the auto reinvest was not disabled the funds would have automatically been reinvested during the daily processing.