Darchie, Funds already BACK in ACCOUNT!
Mine already Reinvested - Go check your account!! :)
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Yes, mine back in account too.
The original loan never got drawndown so goes back into your account straight away
Just getting into P2P, deciding between Harmoney and LC. Prefer LC's set up but concerned about lack of investment opportunities. Do you find this an issue?
Agreed with saamee. Only took 1-2 weeks to invest my initial $500 at $50 per loan.
Very low arrears on LC as well, so their collections team must be very good.
No system glitches on LC that I know of, unlike Harmoney
Good to know, thanks. Think I'll go with LC. Does anyone have a current strategy that is working well for them? 50% A grade, 50% B for example?
Hi H,
My current strategy @ LC is to only invest in the B1 grades ( 13% to 15% ) returns.
That's only because I have invested fro 10 months with them across all grades, but now Cherry Pick to augment my existing investments with LC.
I figure 14% is a fair return ( not too stupidly high or dangerous )
Like ALL P2P investments - the greater the % rate paid > The greater the risk....
Good luck investing :)
Heaps of loans on LC last week which is good
crikey
Today's B2 36 month went very fast
Email went out at 3.11pm , Provance text at 3.21pm
I logged in after text and it had all gone.
Is the interest returns that you guys have been quoting per annum or for the entire length of the loan?
For example if I invest $1000 over a number of 3 year loans at an average interest rate of 12% will I end up with $1120, $1360 (pa, not compounded) or $1400 (pa, compounded)?
Heavy night of Loans with 3 being Repaid....
Maybe start of month, LC gobe quiet so cannot Reinvest straight away.
Chart below:
Attachment 8439
Pity they dont have some sort of feature so when we get pay backs we can do something:
-An email to say loan paid back and funds are back in account
-Some sort of auto invest feature so the funds can be invested back in to a loan
At present you need to keep logging in to see funds and available loans
Interesting comment Whitt, as I'm actively using 3 x P2P Lenders ( LC, SM & HM ) probably with around 1,000 loans total - the admin created by early loan repayments is increasing - as you say 1) One identifying repayment 2) Reinvesting the funds.
It's not an issue just a realization of a part of P2P investing.
The last 2 weeks I had funds repaid to reinvest but 'stood still' with my invested capital as there was more repayments made and less loans around!
I signed up and joined Lending Crowd on the 1st day they opened in December 2015.
These days the majority of my P2P investments are in 'LC' = That's 67% in 'LC' and the rest over Squirrel & Harmoney.
In December 'LC" have been operating for a full 12 months, so wanted to give a little wrap up of things so far.
'LC' just seems to work ( for me! )...
~ Easy to understand Website Interface
~ A growing number of new Loans to invest in ( I average investing in 36 new loans per month )
~ Loan early repayments are at 16.5% of all invested loans
~ # of currently invested in loans = 205
~ NO Writes offs To Date.
~ Arrears - There have been a few, but always repaid within 20 days or so ( currently have my 1st, which has grown now to 33 days overdue )
~ 'LC' Contact Support - The main players are Aedi and Wayne and the responsiveness and support is same day Email or Phone call response = Very Acceptable
~ Since Email \ Text alerts came out ( 1st from Third Party Aaron ) and then 'LC' - Much easier to get into loans = a Great Positive Move
What would I appreciate more from 'LC'??
1) More openness \ willingness to provide ( a little more information about borrower \ loan arrear status ) on the Status of any Loan in Arrears
2) Am happy ( for my needs ) on Current Loan reporting but would like the ability to find and view Online all the Original Loan Details
( Currently I take a Screen shot and store - on 'LC' advice.
3) A daily early morning Email to advise on Account Funds Credit status ( ie New overnight Credits \ Available Balance \ Any Closed Loans)
'LC' works and well. Trust has been built ( both ways ) over the last 12 months.
Thank you for the wrap up. Very interesting read. Also no write offs so far is very impressive. Really improves confidence in LC. Can u tell us your investment strategy, like do you invest in any and all grades and terms that come your way or are u selective? Also do u prefer to invest the minimum amount of $50 per loan or does it vary depending on your strategy. Your reply would be greatly appreciated. Thanks!
Hi AndyKiwi :)
Happy to help - I believe it's important to get the benefits of 'LC" out there for those that have not committed this far!
Initially:
$500 in every loan... ( To build up a basis & profile @ 'LC' )
'LC' rate chart >> https://lendingcrowd.co.nz/howitwork...ees#lc-wrapper
Now:
Typically >>
Grade = B2 > $100
Grade = B1 > $400 - $600 ( my selected 'sweet spot' ) - rate does not seem to excessive or greedy!
Grade = A2 > $100
Grade = A1 > I do not bother - you may as well put your $$'s in Squirrel @ 9% guaranteed!
As for terms > 36 or 60 months - I'm taking a long term strategy - currently getting $250 \ week Interest from combined P2P investments. So do not mind either Term length.
My long term plan is to keep Investing till I am getting $500 \ week Interest Income every week - then in 9 Years time with NZ Pension have approx $750 \ week income.....
As mentioned above... Currently 16% of all loans @ 'LC' get repaid early.
Currently I spend approx 1.5 to 2 hours a day managing P2P accounts, across 3 x P2P Lenders ( repaid Loans, Reinvesting, Transferring Funds & Requesting Withdrawals etc )
My RAR @ 'LC" = 13.11%
Anything missed or wish to know more... Just Ask!
Wow thanks for all this info. Would be a great help to me and others. A couple more questions. Do you invest in ALL the loans coming your way in your preferred grades or do you ever reject any of them? Also if you don't mind me asking, how much total have u invested in LC so far and how much do you plan to invest eventually? Thanks!
Yes... Just about ALL the loans in my sweet spot coming my way.
If a Borrower takes out Death Cover or the 'LC' security includes a Property > then I invest @ the upper end of the above Limits
You can do the maths easily! > $250 Interest per week ( after RWT ) / 13.11% APR ( annual percentage rate ) = approx 100K invested in P2P currently.
It's been quiet here for 10 days so thought I'd give it a 'Bump'!
So it's the last day of the month and this month I decided to enter into 32 new loans at LC.
So how does this compare with the previous 3 months of new loans at LC?
OCT - 38
SEP - 43
AUG - 32
Note: There were more loans offered of course - the ones I would have not invested in would have been because of the % Rate offered or the Borrowers details...
Hi again 'AK'
Really just the usual poteential warning signs.... such as:
~ Renting not Owning a home
~ Time in stable employment ( less than 2 years I apply caution )
~ # of recent Credit Enquiries
~ Area of the country - ie likely Rural jobs vs big city jobs
~ Time at address
So trying to work out how stable a person may be - of course at the end of the day it's all supossition.
Your mind tells you things like, has this person just got out of prison ( renting less than a year with both job and address ) or is it that they have had a marriage split up and it's a new strart ( we've all been there! )
Having said all of the above, my 1 year track record with LC is NO WRITE OFFS and currently NO ARREARS.
You've got to give it to the LC Team that they pick their customers, which are our Borrowers very well.
No worries..... Right now the P2P community in NZ is SO small... Any information shared that goes towards building confidence with others should be put out there. When I speak to others about the 'Real Benefits' of P2P lending in NZ I find I get this glazed, non interested look and always with the words "Oh I can't afford to loose any of my money".......
LC just updated the montly NAR ( Net Average Returns ).
Currently getting 13.86%
I am still drip feeding into my account, but I have just got my first NAR at 12.1%. I aim to invest along the lines of:
36mth A1: $0
60mth A1: $50
A2: $100
B1: $150
B2: $50/$100 on scrutiny of length and quality of credit history, residence and occupation
I have few B2's as the email/text alerts seem to arrive when I am in meetings or driving - and when I am in a position to act on them, they have often been filled.
I am not clear on a point with credit history: where a borrower has no defaults but still scores only a good (not excellent) rating, does that mean that the borrower may have had defaults older than 2 years?
A credit score of good does not necessarily mean they have had old defaults.
I guess all these p2p type finance companies operate there own algorithms to determine credit scores. It is probably different to each company and kept secret like the KFC recipe.
I would assume that numerous factors are considered and then weighted to give an internal score which represents a overall credit score .
Defaults like what you mention new and old are probably only one factor in the overall score. Maybe you get a higher score if married or owning an own home, being in a job or house long-term etc
Hope that helps.
You sure do have be quick to get into LC loan these days. Email alert of new loan came in today @ 3:40pm. At 3:57pm same loan is 62% funded. Snooze you lose
Anyone had any write offs at LC?
I currently have one in arrears, but is only 2 or 3 days.
I am annoyed with myself for not taking screenprints or photos of the details page of each loan i placed funds into.... in the early few months of my investing into Harmoney i did so, but that just grew too large & then too HM ultimately made their links to viewing that detail so easy.... i was hoping LC was going to move towards offering access to more detail on their site, but nothing as yet!
So best i do start gathering this detail like you currently do Saamee ...
Hi. So I've taken the leap. I've chosen to start with LC and am starting to build up my diversified loans. Lucky for me there were two loans today.
Do people rely on the LM for a summary of your situation or have people created their spreadsheet. I'm no good with spreadsheets so I'm hoping the LM summary is good enough.
New loan up at 125pm today. @ 142pm today nearly all subscribed. Way to go LC. Be good of you could get more loans to invest in. Way too lean on offerings since your launch.
LATEST EMAIL UPDATE TO INVESTORS::
Of note is the volume of writeoffs and average NAR. 5 out of 32million loans get written too. .That explains why the quality is so high, they must carefully vet each applicant.Quote:
I'm sure, like us, you're finding the year is speeding to a close now. The end of the year will mark Lending Crowd's first year anniversary and we thought we'd share a few statistics with our investors to give you an insight into the platform to date:
Loan applications received: $32,378,150.00
Loans written: $5,020,140.00
Write offs: None
Available for investment (monthly av. last 6 months): $456,792.00
Personal loans: 92%
Business loans: 8%
Loans secured with vehicles: 74%
Loans secured with property: 4%
Loans secured with property and vehicles: 22%
Investors: 482
Average investors per loan: 40
Average return (NAR): 12.65%
Wow!!! An impressive first year.
So I've been in for a couple of days now and have been pleasantly surprised by the number of loans becoming available. Is this rate of new loans about normal?
I've taken a bit of most that have come through as even the A1s are much better than what I am getting in the bank.
The summary stats are impressive. I'm pleased to see that so many loans are declined as that means good quality loans for us and people are not being encouraged to get into debt they cannot afford.
Zero write offs is impressive but I presume there have been defaults where LC has taken the security. Would that be right?
Yes, excellent stats -- much kudos to LC. I too would rather have this sort of quality than a greater quantity. My NAR is a couple of points below the overall NAR, and that's the way I'd like it to stay, being more interested in much better income than the banks without losing my money! Looking forward to another great year.
I've invested in approx 35 out of maybe 50 loans available per month.
About Write Off's - I think they mean NO Write offs ever > Otherwise our Dashboards would show Written Off.
There has been no other postings from anyone else here to suggest a Write Off....... Ever :)
Four loans already today up on LC.......
Yes, the lack of write offs is great. I'm also pleased about the quantity
I've just joined Lending Crowd and have invested in three loans. To my dismay I now find the loan details are no longer viewable on the Lending Crowd website. To my mind it is essential to have this record in order to invest effectively but it seems they have no present plans to change it. I'll start doing screenshots.
So this is a plea at Aedi's suggestion that if anyone invested in the following loans, I would be most grateful if you could email me a copy of the borrower profile:
LN000-023-335, LN000-023-372, LN000-023-529.
I've been investing with Harmoney since December 2015. My RAR there is 17.07%, quite high, although it's spread over A15%, B22%,C38%, DEF25%. I'll be moving to a more conservative strategy acknowledging that some of these loans will probably still be running when the next economic downturn comes, and I see using Lending Crowd as part of that since all loans are secured.
Any help with the loan details above would be much appreciated.
It should be easy for Lending Crowd to enable loan details to continue to be linked and accessible to investors. Have they given any reasons why this won't happen?
As you have been an investor with Harmoney for 12 months, your notes are probably all either within or approaching the most risky part of the Hazard Curve. So maybe still a high chance, recession or not, that your excellent RAR may drop :(
Hi Bryan and welcome on the board....
I keep screen shots, but only of the loans I invest in.
However every investors gets assigned a different LN# ( loan note # ) and then collectively all the individual LN's make up the Loan Contract LC.
To help you I would need the LC# of your loans.
I correlate every LC# to my individual LN#
Thanks, Saamee. I've been talking to Aedi and it seems I can't get the LC#. She says I need to quote the loan details which are:
B1, personal, 60 months, 14.79% opened 2.12.16
A1, personal, 36 months, 7.90%, opened 9.12.16.
So if anyone is able to identify they invested in the same loan (Probably easiest to find by starting with the date it was opened and can send the loan details if they have thenm, I would be very grateful.
Bjauck, No reason other than it's not part of the system and there are no plans currently to add it. I stirred the pot and asked that my displeasure be communicated to management. I'm not saying it makes Lending Crowd undesirable, just that it's not user-friendly. Harmoney are way ahead in this area it seems. But my view is that there will be another recession, it's only a matter of when. The default rate could rise on loans we have already invested in. So I am happy to lend a bit more conservatively and accept a slightly lower return meanwhile. Lending Crowd's lending policy helps with this strategy.
Here's one for you.... I do not invest in 7.9% loan so cannot help you there....
Attachment 8516
Where's the loans LC? Lots of keen investors out here but very few of your great loans available :(
Wow - The following loan went inside 2 min of the notification!!!
Attachment 8530
Saw the email come through, went straight on, and still missed out!
Has anyone had any issues with fund deposits this week? We deposited some money on Tuesday and it hasn't shown up in the account. Usually it shows up on the same day. LendingCrowd isn't replying to our email either.
Thanks guys. I am with ASB and have not had problems before. Might give them a call.
Yeah actually got in, in time for a loan. It is still open. Usually I have been missing out of late.
Has the fact that LC reported no write-offs in their first year influence your investing? I find myself looking an investment opportunity over, having some questions about how good it might be and then saying to myself -"but they had not write-off"
Lending Crowd are only 'Human' too. So one day yes they will surely have to release\ issue a Write Off to the Investors. ( It will be a big shock to us all....... And Them! )
However you got to agree both their Borrower selections criteria and their Arrears collection procedures are working correctly right now :)
The last week or two there seems to have been more listings which is good
I was thinking it would be nice if there was a 'pre approval' limit for lending on loans. Then I wouldn't be rushing to deposit funds like I am today...
It could work on a ratio system, allowing for defaults. So for example if I had $5000 invested I might be allowed a limit up to $100 to lend on loans without having the cash immediately available. LC have my whole loan portfolio as security so if I don't deposit the $100 in 3 working days they simply retrieve the funds from my returns over time. (Yes, this requires a reasonable amount of backend dev work.)
The maximum amount offered to me is a ratio of my portfolio rated against their calculated default rates, with a margin for 'piece of mind' security added. They could even charge penalty interest if they're concerned about their loan to debt ratio being adversely affected.
In this case the $100 might not seem like much, but that's not the point, it's to let you invest in loans without having cash sitting unused.
Sounds good or silly?
Yes, right now not one of the NZ P2P lenders do pay Interest on Investors money awaiting loans.
There is a reason for it that Squirrel explained to me once ( even though JB committed to it happening maybe 12 months ago now, on their thread on this site ) Something like it changes the 'Beast' from a P2P lender to something like that of a Bank status and that is not covered by their Financial Markets Authority Operating License today.
Good idea however as you've pointed out this would require significant setup costs. They would be offering a lending facility themselves if this were the case which usually comes with heavy legal and regulatory constraints. Also I imagine having existing loans as security could be difficult to arrange. Currently peer to peer lenders are acting as the "middle man" in lending. If they began to technically "own" some loans there may be further regulatory debates e.g. around the lending application fees they charge (as we have already seen with Harmoney) and it would generally open a whole new can of worms I imagine they would rather avoid.
I'd say this is extremely unlikely.
Hmm... what if you reframed it... LC aren't providing me with a loan, but they are investing in the loan themselves (this might be dodgy but ignore it for this thought experiment), and when I front with the cash they basically transfer ownership of the loan units to me. They're doing this latter part already.
GUYS
There is 5 listings currently on LC at present available. There have been times a month or so ago when loans were scarce, now is your chance to get in.
Heaps of variety today
I'm wondering whether to put extra money in my account for the long weekend. I know it's hard to predict but do those with more experience of LC have any advice?
Still the same B1 loan there since before Christmas.
A very busy 1st day back for LC >> 6 new loans on the board & 6 loans invested in.... Keep up the good work.
This B1 loan was listed up filled & then reversed 6 jan ... OMG its just been relisted up again now & it's identical ... seems a bit squiffy!!!
I was waiting for what seemed like days for that loan to go through!
Hi all,
Any idea which of these two loans has a loan purpose of "Asset purchase" and the other "personal"? LN000-027-005 & LN000-027-026.
Both of them are very similar, both B1's, both 60 months, both 14.79% interest, both bought on the 11th Jan and opened on the 13th. Just want to ensure that my spreadsheet is correct, many thanks.
Hope the followingAttachment 8603Attachment 8604 may help you...
Great, thank you Saamee.
I have found now that LC is so slow, I just can't persevere with this, so unfortunately will be withdrawing as funds become available.
Have to praise LC for their outstanding website as opposed to another Major P2P lender.