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scheister

spudwould wrote: »

Personally I try and get as close to the 15% as possible.
After all if they went to a bank they would have a higher interest rate.
If you got the full 15% and linked finance take their cut you are lending at approx 13% so over 3yrs it is 4.25% which I think if a fair rate.

I see lenders giving loans @ 8% ... which is about 2% a year after LF cut and after DIRT it is about 1.2% a year!
Doesn't make sense to me! Either they have a big wallet .. a big heart and want to help companies .... or do not realize their returns.

The last point i think is a little short sighted. i can leave my money in the bank and i think i get .25% a year or your maths above says gives loans at 8% works out a 1.2% a year. So personally i am making .95% more then i would if i left the money in the bank and am helping a business aswell so to me its a win win

sceach16

spudwould wrote: »

Personally I try and get as close to the 15% as possible.
After all if they went to a bank they would have a higher interest rate.
If you got the full 15% and linked finance take their cut you are lending at approx 13% so over 3yrs it is 4.25% which I think if a fair rate.

I see lenders giving loans @ 8% ... which is about 2% a year after LF cut and after DIRT it is about 1.2% a year!
Doesn't make sense to me! Either they have a big wallet .. a big heart and want to help companies .... or do not realize their returns.

The rate You bid is an annual rate...
"You can choose to apply an Annual Percentage Rate (APR) of interest of between 5% and 15% each time you bid on a loan request". (Cut and Paste from Website)

Nody

sceach16 wrote: »

The rate You bid is an annual rate...
"You can choose to apply an Annual Percentage Rate (APR) of interest of between 5% and 15% each time you bid on a loan request". (Cut and Paste from Website)

But the amount it is applied to goes down overtime which lowers your actual ROI for the loan.

sceach16

Nody wrote: »

But the amount it is applied to goes down overtime which lowers your actual ROI for the loan.

So does the amount lent so the ROI is consistent.

Tar.Aldarion

scheister wrote: »

The last point i think is a little short sighted. i can leave my money in the bank and i think i get .25% a year or your maths above says gives loans at 8% works out a 1.2% a year. So personally i am making .95% more then i would if i left the money in the bank and am helping a business aswell so to me its a win win

KBC have like a 4% savings account.

Smiler1955

I emailed Sarah Smyth in Linked Finance to query why PS Patton was rejected. Just got a reply that he refused due to the high interest rate.It's all well and good getting a high return @14-15% but when a solid healthy business rejects because of the rate then it is totally self defeating as investors.

sceach16

Smiler1955 wrote: »

I emailed Sarah Smyth in Linked Finance to query why PS Patton was rejected. Just got a reply that he refused due to the high interest rate.It's all well and good getting a high return @14-15% but when a solid healthy business rejects because of the rate then it is totally self defeating as investors.

Yes, you have a point BUT I started bidding at 9.5 on my first loans and rapidly realised others were getting up to 15% on the same loan. If overall, rates are not acceptable, bidders will have to lower their expectations. Until then, I will try and maintain my average loan rate of 13.8%. Having said that, it is clear that the supply of lenders has increased and average rates seem to be falling compared to the second half of last year when I joined.

lcwill

I also started in the 9.5 - 10.5 range but now aim higher - average is at 12.3% but I am normally bidding in the 13-14% range.

The annual return you get = (average interest rate * total principal outstanding) - linkedfinance fees - tax

benjamin d

If these companies qualified to go through the banks what are the average rates? Because I do feel a little like I'm taking advantage with double digit interest.

sceach16

benjamin d wrote: »

If these companies qualified to go through the banks what are the average rates? Because I do feel a little like I'm taking advantage with double digit interest.

If You go back a few pages on this thread, you will see comments of people who had loans go bad. I am lucky (so far) that I have not had a bad loan but I am only lending for 7 months. If I lose 80% of one loan , say 80 euro, I need to get , roughly calculating, an extra 160 euro in higher interest to cover the loss (interest is taxed and subject to linked finance fees). You, like me, are taking a risk lending unsecured....if a borrower can get a better rate, he/she will. They will borrow from us if it suits them....not if it suits us!

manafana

sceach16 wrote: »

If You go back a few pages on this thread, you will see comments of people who had loans go bad. I am lucky (so far) that I have not had a bad loan but I am only lending for 7 months. If I lose 80% of one loan , say 80 euro, I need to get , roughly calculating, an extra 160 euro in higher interest to cover the loss (interest is taxed and subject to linked finance fees). You, like me, are taking a risk lending unsecured....if a borrower can get a better rate, he/she will. They will borrow from us if it suits them....not if it suits us!

surely any bad loans can be written off for tax purposes.

sceach16

manafana wrote: »

surely any bad loans can be written off for tax purposes.

My understanding is that they can not be written off. Anyone got chapter and verse?

manafana

sceach16 wrote: »

My understanding is that they can not be written off. Anyone got chapter and verse?

as far as i can see their is gap in tax law here, your paying at income tax rates yet you can't claim interest less loans written off, it doesn't really make sense.

As in terms of gambling they never tried tax it as income due to fear of losses being claimed back

at9qu5vp0wcix7

The quantity of loans is decreasing, but individually they seem to be worth more, many in the €40-50k range.

spudwould

scheister wrote: »

The last point i think is a little short sighted. i can leave my money in the bank and i think i get .25% a year or your maths above says gives loans at 8% works out a 1.2% a year. So personally i am making .95% more then i would if i left the money in the bank and am helping a business aswell so to me its a win win

So you are on Linked Finance to primarily assist the companies which I applause.
However my financial situation at this point in time states I am primarily here get a good return on my monies invested and secondly to assist companies who can otherwise not get a loan.
So to me it is also a win win.

sceach16

Linked Financestill working on GMT at 21.25 on 29 March! Time changed at the weekend for everyone else!

ShoulderChip

Hi, I am interested in the coppinger Row Brunch promotions (reward for lending 250 @7%), does anyone know how exactly the special offer rates work? will I get a mail if I bid or will I need to chase it up?

sceach16

ShoulderChip wrote: »

Hi, I am interested in the coppinger Row Brunch promotions (reward for lending 250 @7%), does anyone know how exactly the special offer rates work? will I get a mail if I bid or will I need to chase it up?

You will probably get an email. If you don't , follow it up!

Cute Hoor

ShoulderChip wrote: »

Hi, I am interested in the coppinger Row Brunch promotions (reward for lending 250 @7%), does anyone know how exactly the special offer rates work? will I get a mail if I bid or will I need to chase it up?

I was advised of the details of one 'special offer' within 2 days, another one I emailed them about a week later. Give it a few days.

Cute Hoor

sceach16 wrote: »

Linked Financestill working on GMT at 21.25 on 29 March! Time changed at the weekend for everyone else!

They made a fair old cockup of this tonight, it counted down as normal to 9 o'clock, and then started counting back up again after 9 o'clock. I presumed that bids wouldn't have been allowed after 9 and just forgot about it. I just went in again a few minutes ago and found that many bids had been allowed (you being one of the people impacted by their faux pas) after 9, I would not have been impressed if my bid had been rejected because of their mistake.

Heard on the radio today that another Irish P2P lender was starting up in May - anybody know anything about this.

Smiler1955

Cute Hoor wrote: »

Heard on the radio today that another Irish P2P lender was starting up in May - anybody know anything about this.

They'll have some way to go to catch up to Linked Finance, their only other rival Grid Finance is dire, their marketplace features businesses Linked deem too risky.

tomwaits48

out of curiosity, roughly how much have people put in to linkedfinance? Me...€600 all €50 loans....will reassess when I get it up to €1k would like to be in a position where the interest earned pays for new €50 loans

scheister

scheister wrote: »

The last point i think is a little short sighted. i can leave my money in the bank and i think i get .25% a year or your maths above says gives loans at 8% works out a 1.2% a year. So personally i am making .95% more then i would if i left the money in the bank and am helping a business aswell so to me its a win win

The bank account is significantly less risky though!

scheister

Smiler1955 wrote: »

They'll have some way to go to catch up to Linked Finance, their only other rival Grid Finance is dire, their marketplace features businesses Linked deem too risky.

i will agree while i have loans on grid finance the selection is dire. Think one business has been trying to raise funds for last 6 weeks not sure how many times they have failed to reach the target

sceach16

tomwaits48 wrote: »

out of curiosity, roughly how much have people put in to linkedfinance? Me...€600 all €50 loans....will reassess when I get it up to €1k would like to be in a position where the interest earned pays for new €50 loans

I think You have got it right. for a portofolio of 1000, 20 loans at 50 is the best spread U can get. I have more invested in but am trying to get my average loan down toward 150.

manonboard

sceach16 wrote: »

I think You have got it right. for a portofolio of 1000, 20 loans at 50 is the best spread U can get. I have more invested in but am trying to get my average loan down toward 150.

I have 2 loans at 1k each.

why? Cause im an idiot. I regret it. Luckily they are performing well for over 12 months now at 15% each.

My average is about 100-150. I only put money in now into businesses with a substantial trading history. I have about 8k in total in loans.
I just keep recycling the money into new loans, no rush about it anymore. Think i got a little excited about it at the start.

Tar.Aldarion

Put 50 on everything but cornucopia where I stuck a few thousand.

at9qu5vp0wcix7

Is anybody else sceptical about putting money into businesses which have significant liabilities? The Timemark loan, which is currently live, for example.

TheSheriff

The investor known as AUDITOR asks some fairly impressive questions, the timemark loan is one such example - he/she has really done their due diligence on these companies, very thorough......maybe its one of you here :0

sceach16

Mila Calm Ax wrote: »

Is anybody else sceptical about putting money into businesses which have significant liabilities? The Timemark loan, which is currently live, for example.

Balance sheet 1.6 million, net assets c 250k or more than 15% of BS total. Profitable business. I will put my usual 100/200 in. (Declaration... I went to school with Noel Wall 45 years ago, think I met him last year at a reunion)