LinkedFinance - new website

Cute Hoor · 23-03-2016 9:53am

Yurple wrote: »

hi I'm brand new to linked finance and placed a bid on the solar panel company and the print company. The print company ended a day ago and the solar company last night.

I checked both pages and my bids are still green not red / rejected.

What happens next ? I read the faq and it states they have 5 days to accept the loan now? Can they still reject other bids? Do we get email notifications?

Sorry for my many questions but I tried reading all their faq and can't find the process after making a bid.

I would think a company wants to accept the loan as soon as possible.

Welcome on board!

The business has now to accept the loan from Linked Finance, the vast majority of businesses do, but the odd loan is never completed for whatever reason, it could take a couple of days for this process to complete - there is one that is waiting 11 days for a decision at the moment but this is very unusual. If the business rejects the loan you will get an email from LF saying so and the money will be refunded to your account. Otherwise your bid will move from the 'Bids' tab to the 'Lent' tab as soon as the loan is accepted.

Yurple · 23-03-2016 11:54am

Thank you very much. I will just wait and see what happens. I will continue to bid on loans closing soon

at9qu5vp0wcix7 · 23-03-2016 6:28pm

I had a bid recently which was shown as accepted in the seconds before closing. However, upon closing, my bid along with about a dozen or so around me were also rejected. A bit annoying that it is not entirely real-time in stating if a bid is accepted or rejected.

Smiler1955 · 23-03-2016 6:31pm

Coppinger Row have just posted a very generous special offer today, one of the best I've seen offered of late.

manafana · 23-03-2016 6:33pm

Mila Calm Ax wrote: »

I had a bid recently which was shown as accepted in the seconds before closing. However, upon closing, my bid along with about a dozen or so around me were also rejected. A bit annoying that it is not entirely real-time in stating if a bid is accepted or rejected.

this the least of the issues, always possible you can lose out if you try go for the highest rate at the time, best to go .1% under

sceach16 · 23-03-2016 6:41pm

Mila Calm Ax wrote: »

I had a bid recently which was shown as accepted in the seconds before closing. However, upon closing, my bid along with about a dozen or so around me were also rejected. A bit annoying that it is not entirely real-time in stating if a bid is accepted or rejected.

It is not entirely real time but fairly close. A lot of people try and squeeze the best rate last minute, it's probably better to go a few pips below. Better for blood pressure anyway !

Smiler1955 · 23-03-2016 6:49pm

I have noticed recently alot of borrowers are not accepting their loan offers because of high interest rates,i.e Patton Interiors today rejected. Personally I go in a sub-11% all the time and find that I get accepted on most loans.

sceach16 · 23-03-2016 6:59pm

Smiler1955 wrote: »

I have noticed recently alot of borrowers are not accepting their loan offers because of high interest rates,i.e Patton Interiors today rejected. Personally I go in a sub-11% all the time and find that I get accepted on most loans.

Yes but if you bid 11 and I bid 13 and the borrower accepts an average 12, I am happier than you ! More seriously, it is a decision to be made by each individual as to what to bid. I started at 10% ish but now bid closer (much) to 15.

Cute Hoor · 23-03-2016 7:36pm

Smiler1955 wrote: »

I have noticed recently alot of borrowers are not accepting their loan offers because of high interest rates,i.e Patton Interiors today rejected. Personally I go in a sub-11% all the time and find that I get accepted on most loans.

It's not just because of high interest rates that loans don't go through. I had one a couple of months ago that was sitting in my 'Bids' tab for ages. I queried it with LF and they said that they were waiting for the business to provide them with some additional information, the business didn't comply and the loan eventually lapsed. I suspect something similar with Patton Interiors. this loan closed 11 days ago and it took until today to resolve it.

spudwould · 24-03-2016 7:29am

Smiler1955 wrote: »

I have noticed recently alot of borrowers are not accepting their loan offers because of high interest rates,i.e Patton Interiors today rejected. Personally I go in a sub-11% all the time and find that I get accepted on most loans.

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.

scheister · 24-03-2016 9:46am

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 · 24-03-2016 9:49am

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 · 24-03-2016 9:59am

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 · 24-03-2016 10:12am

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 · 24-03-2016 11:02am

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 · 24-03-2016 7:51pm

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 · 24-03-2016 8:20pm

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 · 24-03-2016 10:08pm

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 · 24-03-2016 10:40pm

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 · 24-03-2016 11:02pm

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 · 25-03-2016 11:54am

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 · 25-03-2016 2:45pm

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 · 25-03-2016 3:15pm

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 · 25-03-2016 7:33pm

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

spudwould · 29-03-2016 7:50pm

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 · 29-03-2016 9:25pm

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

ShoulderChip · 29-03-2016 9:26pm

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 · 29-03-2016 9:32pm

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 · 29-03-2016 10:49pm

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 · 29-03-2016 10:57pm

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 · 30-03-2016 8:52am

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 · 30-03-2016 9:00am

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

30-03-2016 11:39am

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 · 30-03-2016 1:50pm

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 · 30-03-2016 2:03pm

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 · 30-03-2016 9:47pm

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 · 30-03-2016 10:00pm

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

at9qu5vp0wcix7 · 30-03-2016 10:08pm

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

TheSheriff · 30-03-2016 10:19pm

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 · 30-03-2016 10:26pm

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)

lusk29 · 30-03-2016 11:51pm

sceach16 wrote: »

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)

I see one lender has bid a total of 5,000 @ 13.9% on this loan, see like a lot to risk on one business

at9qu5vp0wcix7 · 31-03-2016 12:20am

lusk29 wrote: »

I see one lender has bid a total of 5,000 @ 13.9% on this loan, see like a lot to risk on one business

Good news for anybody on 13.8!

tomwaits48 · 31-03-2016 8:35am

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.

not so much significant liabilities, but I've shied away from sole traders. Admittedly there's little chance of recouping money from a LTD liquidation but the sole traders I've looked at have been rather sparse in their info.

for coppinger row - anyone put off by the fact the finance sought is part of a wider 350k fundraising? seems like quite a risk.

Squall Leonhart · 31-03-2016 9:16am

Complete novice question here;

I read that tax is paid at marginal rate on interest accrued. Since each individual lender is responsible for sorting out their own tax affairs, what is the best way to go about this? I.e., how do I give Revenue their money? I am a PAYE worker, so is it a declaration form I fill in and they do a credit adjustment with a P21?

strettie · 31-03-2016 11:10am

Squall Leonhart

The best way to do as a PAYE worker is to submit after the calender year in which you earn interest through Linked finance a form 12. This can be done online. ideally wait until around March ( so for 2016 do it from March 2017 onwards) as the revenue will have prepopulated the eform 12 with all your PAYE income and credits they have on record for you. ON the eform 12 enter yout interest under the heading Non PAYE Income - Untaxed Income arising in the State

To access the above First you have to register for a myAccount with revenue.

To do this go to www.revenue.ie
on the left hand side a third of the way down you will see a box labelled myAccount
click on register for myAccount and follow the instructions to obtain a password

When you obtain the password go to www.revenue.ie
click on myAccount Signin and follow the instructions to access your revenue account

Squall Leonhart · 31-03-2016 11:12am

Thanks Strettie, much appreciated.

I am already registered for myAccount but haven't really used it for anything yet.

at9qu5vp0wcix7 · 31-03-2016 12:15pm

tomwaits48 wrote: »

not so much significant liabilities, but I've shied away from sole traders. Admittedly there's little chance of recouping money from a LTD liquidation but the sole traders I've looked at have been rather sparse in their info.

for coppinger row - anyone put off by the fact the finance sought is part of a wider 350k fundraising? seems like quite a risk.

From the Q&A it appears that the money is going into a completely new company with no trading history. I'm not going to pretend I understand what's going on - so I will stay away from it until I learn more.

strettie · 31-03-2016 1:05pm

OTSSTO

I took a slightly different interpretation from the Q& A below. Although the new restaurant will be run by a new company 100% owned by Lion Hunt, the loan from LinkedFinance will be with the parent company Lion Hunt which I thought gives us more protection. Maybe I have got it wrong ?

Q&A
We are setting up another company that will be owned 100% by Lion Hunt Ltd. Linked Finance have done their due diligence on Lion Hunt as the newco has no trade history yet. For this reason the loan will be with our current trading company, Lion Hunt Ltd. Hope this answers your question

scheister · 31-03-2016 1:54pm

Mila Calm Ax wrote: »

From the Q&A it appears that the money is going into a completely new company with no trading history. I'm not going to pretend I understand what's going on - so I will stay away from it until I learn more.

The normal way i have seen this done is that each restaurant is its own company. The loan is given to a holding company and they pass the loan down to the new company.
It quite common and doing it this way would give more protection and if restaurant b gets into trouble their is still profits from Restaurant A to pay of the loan

strettie · 31-03-2016 2:04pm

Coppinger Row Loan

Does anyone know was Lion Hunt or the Bereens running the Damson Diner when it shut down ?

LinkedFinance - new website

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