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

Sea_Shell

Aceace said:

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.

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.

Just for anyone else interested in the data, it would appear that this is currently running at about 5.2% (c.£2,200,000)

This also corresponds with my own account, which states that of the £250 invested, £12.82 is currently unassigned.

I don't know if this is an intended "target" figure (or above or below target), or just an "it is what it is" figure.

Am I right in thinking that this is the most important figure on the dashboard, and the one that the closest eye should be kept on...as in, if it starts to dwindle...there may be trouble ahead?!?


ETA - actually thinking about this...is there not a sweet spot for unallocated cash?

To little and you may struggle to cover any withdrawal requests (normal turnover, not a mad rush to the exits).  Too much and they are still having to pay out interest on money not earning any interest.

Aceace

Sea_Shell said:

Aceace said:

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.

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.

Just for anyone else interested in the data, it would appear that this is currently running at about 5.2% (c.£2,200,000)

This also corresponds with my own account, which states that of the £250 invested, £12.82 is currently unassigned.

I don't know if this is an intended "target" figure (or above or below target), or just an "it is what it is" figure.

Am I right in thinking that this is the most important figure on the dashboard, and the one that the closest eye should be kept on...as in, if it starts to dwindle...there may be trouble ahead?!?


ETA - actually thinking about this...is there not a sweet spot for unallocated cash?

To little and you may struggle to cover any withdrawal requests (normal turnover, not a mad rush to the exits).  Too much and they are still having to pay out interest on money not earning any interest.

I don't consider the size or percentage of available funds to be the most important metric. I'd agree with your last paragraph. I've seen this percentage range from close to zero to over 10% during the past 2 years. Instant liquidity is a great feature on this platform, but it would be a mistake to assume it will always be there. Whilst I'm happy to make good use of it's liquidity, it wouldn't bother me if it were to dry up at times. With 119 current loans and an average loan length of around 12 months (gut feel as I've not calculated it) you can expect around 10 loans to repay each month. With an average loan size of £351k, that produces natural extra liquidity of around £3.5m per month.

I would say that the percentage of loans in default is more important. Though even that is too crude in itself. There is currently 1 of 119 loans in default, so just under 1% of loans, but it only represents less than 0.4% of funds on the platform. So, if this loan was to become a total loss it would take roughly a month to regain that loss in platform interest. If you look further into the details of that loan you would see that there was virtually no chance of it resulting in a loss, as it's a completed development of 4 units with sales agreed on 3 of them and the LTV is under 20%.

I think the Average LTV figure is fairly important, currently 41%. If this figure were to creep up to the maximum possible of 50%, I would have to ask myself whether the rate I'm getting is sufficient compensation for the risk. Much higher rates can be achieved on platforms with around 60% LTV, though there are other factors that need to be considered.

Another key stat, which isn't shown, is the largest single loan. This is currently £2.25m, so a little over 5% of funds on the platform. This figure is still to high for comfort for me, but it is slowly reducing over time. I recall a time not so long ago when the largest 3 loans on the platform represented 26% of total funds. We're a long way from that now. 

jimjames

Technoholic said:

Malkytheheed said:

I've used Kufflink for a few years with absolutely no problems at all. That said, I still think I'm going to chuck it next year. The reason being the returns just aren't worth it for me. Most loans get 6-7% returns. Factor in there is quite a high element of risk, your money is locked away for at least a year, and inflation running at say 4% means your actual returns are 2-3%. Just not worth it fdor me anymore. Would rather put my capital elsewhere. 

Where would you put it to get a better return but better risk profile? Would like to know as I'm trying to work out where to invest currently, mainly for income but ideally some capital growth

Investment trusts with long term records would be a good option

Sea_Shell

@Aceace

I wonder if the currently only defaulted (9922376) loan will get repaid (due yesterday?), or if further extensions will be granted?

I'm exposed to this loan for the grand sum of £1.65!!

There's another loan due to repay today too.

I'm finding their website very informative, but it would be good to be able to put specific loans on "bookmarks".  I'm assuming there isn't an option I'm missing, other than saving the PDF of the loan information sheet.

Albermarle

I wonder if the currently only defaulted (9922376) loan will get repaid (due yesterday?), or if further extensions will be granted?

I have no idea about this specific loan but property development loans are often extended due to the almost inevitable delays that come with any building project ,  It is not necessarily a bad sign and means more interest to be paid .

Sea_Shell

Albermarle said:

I wonder if the currently only defaulted (9922376) loan will get repaid (due yesterday?), or if further extensions will be granted?

I have no idea about this specific loan but property development loans are often extended due to the almost inevitable delays that come with any building project ,  It is not necessarily a bad sign and means more interest to be paid .

I'm not worried, just curious.   It'll be good (?) for them to get this one paid off, being the only "blemish" at the moment.

I've read the loan report.

Aceace

Sea_Shell said:

@Aceace

I wonder if the currently only defaulted (9922376) loan will get repaid (due yesterday?), or if further extensions will be granted?

I'm exposed to this loan for the grand sum of £1.65!!

There's another loan due to repay today too.

I'm finding their website very informative, but it would be good to be able to put specific loans on "bookmarks".  I'm assuming there isn't an option I'm missing, other than saving the PDF of the loan information sheet.

Hi @Sea_Shell, I'm a little miffed that they haven't given us an update on this loan. I have absolutely no concerns that we will eventually get repaid as all 4 properties are showing as "sold subject to contract" and the loan is at an extremely low LTV, but it's rather bad form not to post an update. I guessing that completion is being held up by some technical difficulty as at last 3 have been "sale agreed" for a very long time.  Any one completing should be sufficient to repay the loan. 

The loan has been rather troublesome to say the least. Now 26 months late having been extended 15 times so far, but there are some extenuating circumstances as you can see from the loan updates. As you say, the amount lent on this is extremely small, so even a total loss, which won't happen, would only amount to 1 months interest. You can see the properties for sale on Chancellors.co.uk if you want to track the sales. 

I'm guessing that you could save the loan pdf download link as a bookmark, but you may need to be logged in for it to work. Can't test it at the moment as the daily redistribution algorithm is running. 

IvanOpinion

Sea_Shell said:

I'm exposed to this loan for the grand sum of £1.65!!

I guess that is your Xmas written off 

Aceace

Today's update states that the loan has been extended again for 4 more month to allow the sales to complete. 

Sea_Shell

The defaulted loan, 9922376, has now been paid back in full