Squirrel Money P2P

[Saamee]

The 2% / Year fee is confusing.. As from the Website one place suggests Borrower pays however the Investors T & C's says the Investor pays!
SQ 1.JPGAttachment 7706

[humvee]

The 2% / Year fee is confusing.. As from the Website one place suggests Borrower pays however the Investors T & C's says the Investor pays!
SQ 1.JPGAttachment 7706

I asked Squirrel to clarify - after a couple of emails - here it a reply I think clarifys it

"To clarify, there is only one service platform fee of 2%. If you are investing say 6% - you will get 6% or, slightly under as we need to pay RWT on your behalf. It does not mean you are getting 6% - 2%.


So yes the borrower is paying the additional as we add it to the investment rate prior to presenting the offer to the borrower.


Kind regards,






Charles Chen
Operations Manager"

[Mickey]

Even with the explanation in an earlier post from the Ops Manager - I'm still finding the 2% fee rather ambiguous. I've just checked the Terms and Conditions on the site and it states the following:

"Service Fee means the fee payable by the Investor and deducted from interest payments made by the Borrower under the Loan Agreement equal to 2% of the outstanding Loan balance per annum as amended from time to time;"

This clearly states that the Investor is responsible for paying a fee. If this is not the case (as per above) - then the T's and C's need to be amended as I'm not prepared to sign up to Squirrel while it is worded this way.

I see that JB is a visitor to this site and so perhaps an authoritative statement from Squirrel could be provided here regarding this.

[JB@Squirrel]

Hi Mickey

I know this is a bit of a pain on the wording and something we've debated and continue to debate with our lawyers.

As for Authoritative statement here goes ...

The Borrower interest rate is determined by taking the investor rate plus a risk premium (specific to the riskiness of the loan that is paid into the reserve fund) and our platform margin of 2.00% per annum.

The 2.00% margin along with a risk levy are deducted from the gross borrower repayment each month and the balance paid to the investor. Both are a % of the loan outstanding and deducted prior to paying the investor.

The rate an investor signs up for when they invest is the interest rate they receive. There are no deductions from this. Currently this is sitting between 8.00% and 9.00%.

We have a number of improvements we're putting around this over the next month to simplify our bidding processes and I'll look to further tidy this disclosure up at the same time.

Hope this clarifies.

Cheers, JB

[Mickey]

Hi Mickey

I know this is a bit of a pain on the wording and something we've debated and continue to debate with our lawyers.

As for Authoritative statement here goes ...

The Borrower interest rate is determined by taking the investor rate plus a risk premium (specific to the riskiness of the loan that is paid into the reserve fund) and our platform margin of 2.00% per annum.

The 2.00% margin along with a risk levy are deducted from the gross borrower repayment each month and the balance paid to the investor. Both are a % of the loan outstanding and deducted prior to paying the investor.

The rate an investor signs up for when they invest is the interest rate they receive. There are no deductions from this. Currently this is sitting between 8.00% and 9.00%.

We have a number of improvements we're putting around this over the next month to simplify our bidding processes and I'll look to further tidy this disclosure up at the same time.

Hope this clarifies.

Cheers, JB

Thanks JB - appreciate you taking the time to respond

[Snow Leopard]

I have an email from Snowball effect that Squirrel Group is looking for $5m in expansion capital:

"The capital will be used to grow the mortgage broking business and develop the peer to peer lending business. This is likely to be the last capital that Squirrel raises prior to an anticipated listing"

Best Wishes
Paper Tiger

[RGR367]

I have an email from Snowball effect that Squirrel Group is looking for $5m in expansion capital:

"The capital will be used to grow the mortgage broking business and develop the peer to peer lending business. This is likely to be the last capital that Squirrel raises prior to an anticipated listing"

Yup. They already have the Investor presentation last Tuesday. Those who missed it and interested can watch a video here https://www.youtube.com/watch?v=yc-e...ature=youtu.be The document though for interested investor is still being readied.