LinkedFinance - new website

at9qu5vp0wcix7

charcoal blue wrote: »

Hey - I'm new to LinkedFinance and wondering if somebody could explain why when bidding closes, if your bid it not rejected (and in order to get the total amount which is being looked for your bid would have to be included), that a number of days after the bid is closed it would be listed as "Unsuccessful". Has the loan not gone ahead or is there another possible reason this could happen?

There is a delay in the display of accepted/rejected - which usually jumps a few minutes after the loan closes. If you want to, you could monitor it in real time and use excel to manually add up the numbers, or just take a punt on a 0.1/0.2% lower interest rate.

spudwould

traprunner wrote: »

I'm not going to get into it here in case the mods deleted the other post. I'll leave it at....not a chance of me investing in them.

Wish I had of seen this post earlier :P:eek:

Squall Leonhart

Hoping somebody could help clarify loan repayments to me!

A loan of 50 euro @ 13.5% over 36 months..

Can someone give me a break down on the first few payments due on this loan, and a quick explanation of where the figures are coming from?

I received my first payment and I'm just a little confused at where the numbers arrived from

at9qu5vp0wcix7

Squall Leonhart wrote: »

Hoping somebody could help clarify loan repayments to me!

A loan of 50 euro @ 13.5% over 36 months..

Can someone give me a break down on the first few payments due on this loan, and a quick explanation of where the figures are coming from?

I received my first payment and I'm just a little confused at where the numbers arrived from

Easiest way would be to use a calculator - the link below has a calculator and a breakdown of the maths behind it.

http://www.thecalculatorsite.com/finance/calculators/loancalculator.php

Section 28 of the Lending FAQ on Linked Finance's website also has a breakdown.
https://www.linkedfinance.com/faq

Squall Leonhart

Thanks OTSSTO, I have looked at them, but still I'm confused!

In the LinkedFinance example,

100eur @ 7.5% over 3 years;

Month 1, a payment of 3.11 is made (comprised of 0.63 interest and 2.49 principal).

In my head - wrongly it seems - the monthly payments would be (100*1.075)/36, ~2.99 a month

So, I see the figures, but don't get it.

Squall Leonhart

I see on the bottom of the second page you gave me, the following is used;

Monthly payment = [ r + r / ( (1+r) ^ months -1) ] x principal loan amount

Where: r = decimal rate / 12.

Example:

For repaying a loan of $1000 at 5% interest for 12 months, the equation would be:

Monthly payment = [ (0.05 / 12) + (0.05 / 12) / ( (1+ (0.05 / 12)) ^ 12 -1) ] x principal loan amount
Monthly payment = [ 0.0041666667 + 0.0041666667 / (1.0041666667 ^ 12 - 1)] x 1000.
Monthly payment = [ 0.0041666667 + 0.0041666667 / (1.0511618983 - 1)] x 1000.
Monthly payment = [ 0.0041666667 + 0.0041666667 / 0.0511618983] x 1000.
Monthly payment = [ 0.0041666667 + 0.081440816] x 1000.
Monthly payment = 0.085607483 x 1000.
Monthly payment = 85.607483.

spudwould

Squall Leonhart wrote: »

Hoping somebody could help clarify loan repayments to me!

A loan of 50 euro @ 13.5% over 36 months..

Can someone give me a break down on the first few payments due on this loan, and a quick explanation of where the figures are coming from?

I received my first payment and I'm just a little confused at where the numbers arrived from

Here is a breakdown of one of my payments of 50 euro @ 14%

1st repayment: 1.6589 / Principle repaid: 1.1256 / Interest repaid: 0.5833 / Lenders Fee(LF take): 0.05

Last repayment: 1.7055 / Principle repaid: 1.6697 / Interest repaid: 0.0392 / Lenders Fee(LF take): 0.0034

1st payment date: 10/60/2013
Last payment date: 10/04/2016

As principle is paid the interest goes down accordingly.
Hope this helps.

at9qu5vp0wcix7

Squall Leonhart wrote: »

Thanks OTSSTO, I have looked at them, but still I'm confused!

In the LinkedFinance example,

100eur @ 7.5% over 3 years;

Month 1, a payment of 3.11 is made (comprised of 0.63 interest and 2.49 principal).

In my head - wrongly it seems - the monthly payments would be (100*1.075)/36, ~2.99 a month

So, I see the figures, but don't get it.

7.5% is just the flat annual interest rate, not how much you will receive on your investment. When you factor in compounding intervals etc., your annual effective rate is 7.76%.

traprunner

Omega Pest Control has now been made public. Very poor take up by the VIPs.

at9qu5vp0wcix7

I'm guessing the fixed rate loans will fall outside of the vast majority of auto-bid criteria, meaning inactive/infrequent investors relying on auto-bid will not have money directed into these loans. Aside from Microfinance, only 23 lenders have made offers so far.

Edit: Very surprised to see such a high average interest rate on the Carleton Cake Company. It looks to me like a great company.

manafana

Mila Calm Ax wrote: »

I'm guessing the fixed rate loans will fall outside of the vast majority of auto-bid criteria, meaning inactive/infrequent investors relying on auto-bid will not have money directed into these loans. Aside from Microfinance, only 23 lenders have made offers so far.

Edit: Very surprised to see such a high average interest rate on the Carleton Cake Company. It looks to me like a great company.

looks decent but anything over 30k always struggles a little without the special offer that people fall over themselves for

Wheety

I reckon they won't accept the loan.

at9qu5vp0wcix7

Some serious bidding in the final moments, hopefully it isn't deemed too 'tactical' :pac:

Wheety

I was distracted and didn't keep an eye on it in the last couple of minutes and was outbid. Was a good bit away from the cut off with 5 minutes left too :pac:

traprunner

Interesting to see Bernard Reilly plant hire up again. They rejected the last loan with an average rate of 12.4%. Someone asked about that and I'm looking forward to the reply.

at9qu5vp0wcix7

I managed to get in on a 14.0, took a guess and placed it yesterday. The last few minutes were fun to watch.

Squall Leonhart

I had my last 50eur bid on last night's loan. It seems that LF have allowed 20eur of it go towards the loan, leaving me with 30eur available, which is essentially useless unless I want to pay more money into the account.

This is really irritating! They only allow minimum bids of 50eur yet will take it upon themselves to use a fraction of that towards a loan if it suits.

m320325

traprunner wrote: »

Interesting to see Bernard Reilly plant hire up again. They rejected the last loan with an average rate of 12.4%. Someone asked about that and I'm looking forward to the reply.

They mention the reason for rejecting the previous loan in the profile

"As I mentioned we successfully raised the finance we were looking for to invest in some new machinery earlier this year (which was going to be co-funded with our own resources), but we were unable to draw down as the machine we had earmarked the funds for became unavailable. Basically the deal fell through on us."

manafana

Yeah LF cleared that up eventually, they really do need a forum.

Do people think a bid minimum of 20 would help funding or weaken it?

Also closing at 9pm seems to encourage late tactical bidding to get near max ratem, surely a 12pm cut off works better, iv been few mins late logging on and missed some loans

Welruc

How much money are you guys investing? Im looking at sticking in €100 or so every couple of weeks all going well after a couple of years there would be a €100 or so coming in every month and at this point id just keep re investing this income. Obviously in a perfect world im expecting every loan to be paid.

Is this idea doomed to failure?

Katawalah

deuceswild wrote: »

How much money are you guys investing? Im looking at sticking in €100 or so every couple of weeks all going well after a couple of years there would be a €100 or so coming in every month and at this point id just keep re investing this income. Obviously in a perfect world im expecting every loan to be paid.

Is this idea doomed to failure?

I started with LF in February 2015 and added between 100€ and 250€ a month, depending on the loans available. At the beginning, I was reviewing carefully every loan offer and lending only to companies I had a crush on (micro-breweries, trendy cafes, bike shops, etc.) and the ones with a cool and attractive special offer. So, I would lend larger amounts at fairly low rates (i.e. 250€ at 7%).

Then, I started adding more funds and switched my strategy to lend only 50€ at the highest rate possible, usually between 12% and 14.9%. My average interest rate now is 12.1%

It took me a bit more than 1 year to invest 5K on the platform, which now brings 200€ back every month on my account (principal + interests). I decided not to add more funds because I feel LF is not that interesting anymore. So I just reinvest the 200€ every month in 50€ loans at the higher rate possible, unless I really like a company and/or a special offer.

I have now 87 active loans, of which 1 is 6 months overdue on repayment. I don't know chances of getting anything back from it, and LF communicates as little possible about it. I assume it's in default and lost about 65€ with this one.

Hope this helps

Wheety

Most of mine are for €50, a few are €100 and 1 is for €200. I tend to keep to €50 loans though.

Katawalah

deuceswild wrote: »

How much money are you guys investing? Im looking at sticking in €100 or so every couple of weeks all going well after a couple of years there would be a €100 or so coming in every month and at this point id just keep re investing this income. Obviously in a perfect world im expecting every loan to be paid.

Is this idea doomed to failure?

I started with LF in February 2015 and added between 100€ and 250€ a month, depending on the loans available. At the beginning, I was reviewing carefully every loan offer and lending only to companies I had a crush on (micro-breweries, trendy cafes, bike shops, etc.) and the ones with a cool and attractive special offer. So, I would lend larger amounts at fairly low rates (i.e. 250€ at 7%).

7, 8, or 10% are pretty nice rates as a lender. However, you need to factor in the risk of default on the loans.

Then, I started adding more funds and switched my strategy to lend only 50€ at the highest rate possible, usually between 12% and 14.9%. My average interest rate now is 12.1%

It took me a bit more than 1 year to invest 5K on the platform, which now brings 200€ back every month on my account (principal + interests). I decided not to add more funds because I feel LF is not that interesting anymore. So I just reinvest the 200€ every month in 50€ loans at the higher rate possible, unless I really like a company and/or a special offer.

I have now 87 active loans, of which 1 is 6 months overdue on repayment. I don't know chances of getting anything back from it, and LF communicates as little possible about it. I assume it's in default and lost about 65€ with this one.

Hope this helps

Welruc

Thanks for the replys lads, think ill stick to €100 every 2 to 3 weeks at the higher rates and see how things go

Wheety

Will you split that into 2 x €50 loans or 1 x €100?

Welruc

€50 loans to begin with to keep the risk down a bit.

spudwould

Squall Leonhart wrote: »

I had my last 50eur bid on last night's loan. It seems that LF have allowed 20eur of it go towards the loan, leaving me with 30eur available, which is essentially useless unless I want to pay more money into the account.

This is really irritating! They only allow minimum bids of 50eur yet will take it upon themselves to use a fraction of that towards a loan if it suits.

This happened to myself once ... but only once over the 3 years that LF is running.
It is quite annoying ... but then again I did not mind the cut as I got a good rate on the remaining investment.

spudwould

deuceswild wrote: »

How much money are you guys investing? Im looking at sticking in €100 or so every couple of weeks all going well after a couple of years there would be a €100 or so coming in every month and at this point id just keep re investing this income. Obviously in a perfect world im expecting every loan to be paid.

Is this idea doomed to failure?

I am a member from the birth of Linked Finance ... which is 3 yrs this month meaning my baby(1st loan) will be leaving the nest"egg"!
At first i was skeptical and decided to make a project of crowd-funding and see how it goes.
I invested 50 euro a month and only invested in "Director guaranteed" loans and at the highest rate possible.

I have however fallen down on my commitment and have not invested any monies since Dec 2015 ... my investments return approx 200 euro a month(Principle + interest) which I reinvest.
I have 60 loans ranging from 50 euro to 240 euro.(The higher number is because sometimes I do not see a loan I like in that month and monies carry over)

I have 3 loans in arrears ... but LF have sent me a mail to inform that 1 loan has now restructured @ 50% ... so it will be a bi-monthly payment (I am quite happy with that)

All-In-All ... Linked Finance is a super platform ... they do their homework but like any investment company there will be defaults and Irish Companies get a loan that may be critical to keep trading.

I give Linked Finance a "thumbs up"!

PS I also opened a "Mintos" account which I now invest into as a project

Wheety

O Brother Brewing Limited have played this well. 3 days left and the average is only 8.7%. Maximum you can go in for now is 10.9.

I hope companies notice that by giving special offers they will get a much lower rate.

It helps if it's food or drink too

sceach16

Wheety wrote: »

O Brother Brewing Limited have played this well. 3 days left and the average is only 8.7%. Maximum you can go in for now is 10.9.

I hope companies notice that by giving special offers they will get a much lower rate.

It helps if it's food or drink too

I can get nice Tshirts for a euro in the local charity shop.:D.Not a reason to for a low ROR !