Cashback was offered to fill the loan. Once the loan is filled, cashback ends. Cashback isn't paid (to those who helped fill the loan) until the loan actually completes (draws down). Anyone who sells out between the loan filling and it completing may or may not lose some or all of their cashback, I know not. But the idea that someone who buys in after the loan has already filled should be entitled to cashback seems bizarre to me.
Presumably you're pushing CL hard so that they pay you 4% cashback on your whole stake rather than "just" 3%. But the parts you've bought on the SM may have been entitled to a much lower cashback rate. Why should CL pay out potentially an extra £1000 when the loan is already filled?
I was just in the process of transferring some funds over that had finally sold on another platform to buy this loan and I got the email that it had filled so missed out entirely on the cashback! But at least I read the email first before logging in to Collateral otherwise I would have bought not realising the cashback had finished. Oh well, plenty on the SM to buy into if I wanted. collateral Is there likely to be cashback on the subsequent tranches?
It does lead to a bit of abuse to the platform if investors invest and then put up for sale on the SM before they get the cashback, knowing that they will get the cashback a drawdown.
The issue was cashback was still advertised for SM sales and on the purchasing page, you had no idea that you was buying from the PM or SM. Future CB loans will not have this issue.
Apart from the statement saying fully funded, secondary market active displayed instead of the percentage available. Its on the small side so easy to miss I guess for the new to site.
Minor shareholder in Assetz Capital, Brickowner and now Welendus
PLEASE NOTE : All opinions and observations made on this forum are my own view and made in a personal capcity. I have no links to any platform and I am not a financial professional so nothing posted should be consider financial advice or promotion. I accept no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in my posts.
Well you, for one, knew you were buying SM parts since you'd already posted here to register your frustration at missing out on 4%.
I didn't, I'm new to Collateral and think the Primary market and SM are not very distinct. I invested about 10mins before the email clarifying the situation was sent.
I am an established Collateral investor and I would agree, if you were in a hurry to invest you may well not have spotted the secondary market banner which doesn't appear on the investment page. In addition I think the cash-back information was still on the site (could possibly be wrong there), and the e-mail did not arrive as soon as the loan filled.
I also think there was/is a lack of clarity as to whether you needed to still hold the loan at drawdown in order to receive the cash-back.
Note: As I was neither a seller nor purchaser on the SM I have no vested interest here other than a desire for clarity.