Squirrel Money P2P

**icyfire** · 02-09-2017, 12:13 AM

There is now 93k for 5 years awaiting funding if anyone is interested.

**Saamee** · 20-10-2017, 09:27 AM

360K currently waiting for investing in 5 Year loans....

5 Year lending appears to have slowed right down since the end of the last quarter at SM

Has anybody been getting serious funding into 5 Year loans recently apart from rats and mice single figures?

My Interest and Capital payments from SM are now going into Finance Direct ( Lending Crowd's parent )

**beacon** · 20-10-2017, 09:40 AM

Interesting that Squirrel issues loan to borrowers at fixed listed rates (average 12.56% according to the site currently), takes its 2% cut, deducts its 2% shield buffer, but then also keeps the Investor rate difference (loan bought first by squirrel at 9%, then onsold to investor at 8.5%, due to lack of sufficient loans causing investors to undercut each other). Isn't this a hidden unadvertised fees on loan, or have I misunderstood this model?

**Saamee** · 20-10-2017, 09:52 AM

Originally Posted by beacon

Interesting that Squirrel issues loan to borrowers at fixed listed rates (average 12.56% according to the site currently), takes its 2% cut, deducts its 2% shield buffer, but then also keeps the Investor rate difference (loan bought first by squirrel at 9%, then onsold to investor at 8.5%, due to lack of sufficient loans causing investors to undercut each other). Isn't this a hidden unadvertised fees on loan, or have I misunderstood this model?

Or just Free market principles at work?

**beacon** · 20-10-2017, 10:33 AM

Originally Posted by Saamee

Or just Free market principles at work?

Free market in the ability investors have to undercut each other and jump the Q. But if you are Squirrel, and you buy a $100,000 loan at 9% for 5 years and sell it a microsecond later to 10 investors at 8.5%, you are reaping 0.5% on the life of the loan with no money down. In my understanding it is called Fee, not Free Market... but maybe that's not what Squirrel is doing... Or is it?

**Entrep** · 20-10-2017, 03:13 PM

Wow, you're saying Squirrel is bidding for loans on its own platform? That would be highly unethical...

And yes I am having trouble putting money to work now.

**Saamee** · 20-10-2017, 03:26 PM

Originally Posted by Entrep

Wow, you're saying Squirrel is bidding for loans on its own platform? That would be highly unethical...

And yes I am having trouble putting money to work now.

Yes, I was not quite sure what Beacon was trying to say.

I know I have bought Squirrel loans before ( @ 9% ) - Sounds like somehow Beacon knew they were SM issued loans and then the free market of Investors had a Dutch Auction lowering the rate obtained!

**icyfire** · 21-10-2017, 06:03 PM

@beacon SM has got to make money somehow. SM is a business with employees, rent, etc to pay as well as a platform to maintain and marketing expenses and the list goes on. I'm personally very happy with the returns, much better than the 3% I would get from bank term deposits.