getting money from holding fund into new loans
Posted 27 June 2012 - 09:56
After 17 days on Zopa (and addicted already) I still can't find out how to get money which was in processing, but is now back in my holding fund, into a new loan offer I have set up today.
I jut have 4 new loans, all set up today, all showing pink, waiting for my Faster Payments tfr at the moment. Can I get the holding fund money into one of these or do I have to set up another loan especially for this "rejected" money?
Also I have one other question. Has anyone experience of selling loans? I would really like to know how long this takes on average as I have some more money I can lend out but may need it back next year. Would it be wise to invest it for up to a year?
I would just like to say the Zopa website (on the whole) is very good. Also I am amazed how long it takes to get loans processed and how many fail! After only 2 weeks with Zopa I have had loans which have taken 10 days to get withdrawn. Is this because of the recent BBC article or is it normal?
Thanks for your help so far and hopefully I can sort this couple of queries out and settle back to a happy life with Zopa
Posted 27 June 2012 - 10:31
Payments from a borrower will go into the holding account as will money you add to zopa. If autolend is switched on money will then move automatically from the holding account into the offer with autolend enabled.
In terms of other funds I can't comment on whether it's worth it, but depending on how you need to get the money out if you turn off autolend any capital and interest will go into the holding account at which point you can withdraw it. This might work well if you don't need all the money at once. If you need the money as a lump sum you'll need to look at rapid return which will affect your interest (but I'm not sure how much)
Posted 27 June 2012 - 10:34
The RBS problems are having an impact on some people on transfers in.
Bet remember that capital is being paid back all the time. If you lend in the shorter markets you will have had about 1/3 of the money back (excepting defaults) in a year. Make sure you turn auto lend off if you don't want this lent back out.
Posted 27 June 2012 - 11:15
I will look into the fee payable for Rapid Returns, thanks for that info.
Posted 27 June 2012 - 11:20
I think you mean you have 4 new offers rather than 4 new loans? I don't understand why you feel the need to have so many? Ideally set up one and include all of the markets you wish to lend to. If you want to set up a 2nd offer, again to all markets at slightly higher rates that's fine but remember you could end up lending more than a tenner per borrower. If you have multiple offers there's a possibility you could really over expose yourself per borrower. I've never created an unfunded offer, when money is in my holding a/c I put it in my offer(s) manually. I'm not sure how the system will allocate your money to the offers that are unfunded. I'd suggest closing those offers and making things really simple for yourself for a while. When money arrives in from either borrower repayments or your funding add it manually to the offer(s) you wish to top up.
When setting up a new offer Zopa suggest
Please note that if you have more than one active Lending Offer, one borrower could get a slice of money from each offer, which increases your exposure to that borrower. This is why we recommend you have only one active offer, unless you are sure you understand how this could affect your overall returns.
and this is partly why
The A*-C markets form a sliding scale of credit-worthiness and any rates you offer will automatically be offered to markets of lower risk of the same term. So, if you offer to the C36 market at 10%, this rate will also be available to B36, A36 and A836, but it won’t be available to any of the 60 month markets. Remember your money will be lent out in each market according to how expensive it is, so this rate might be competitive in C markets but could be at the back of the queue in A markets.
Note that the Young markets do not form part of this sliding scale of A*-C borrowers, so offers made on these markets will not be available to A* - C borrowers and vice versa
As for selling by RR the process is quick (minutes) providing there are lenders who are willing to buy at the rates your loans are set at. Don't forget loans that have ever missed a payment don't qualify to be RR'd. As others have said the selling fee will cut into your profit, FWIW I'd put the funds you might need at a future date somewhere else and only add to Zopa what you know can run the full term. You can always use RR for emergencies.
Just seen you last post. Get rid of/close the unfunded pink/yellow/psychedelic offers or you'll confuse yourself, (and the system more than likely). Keep the offer which you've got money in at the moment and add to it using the £ symbol in edit offer. I think it depends how much you told the unfunded offer that you wanted to lend? that could be what's causing the problem. It defaults to £10, maybe you changed it?
Edited by figures18, 27 June 2012 - 11:25.
Posted 27 June 2012 - 14:49
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