Account's Available Cash Missing

[wcwei5800]

i only being using my lending club to invest through Folio notes. Recently, I been noticing my account available cash balance decreased without me taking any action. (Did not purchase notes, no auto investing, and did not withdraw). It generally decrease by amount less than 2 dollars.

For example, today at noon, after I purchased notes, my available cash is $842.94. Thie evening, before I purchase any notes, my available cash is only $840.85. i did not take any actions in between. I use program to purchase notes and document available  cash, so I don't think thist is one of those cases where I remember it wrong.


Is there a reason that my account available will decrease? Fees should not be the reason because LC takes fees from payments.

Did anyone else experience the same thing?

[wcwei5800]

I contacted LC previously, they said they did not noticing anything, and ask me to provide time stamp and screen shots. Obviously, I do not have screen shot since I do not know when this will happen. I contact LC again today, and provide exact time stamp. If anyone is interested, I will provide more follow up once they get back to me.

[Fred93]

This is common.  The way LC's accounting works, thing happen at different times of day. 

For example, in the early evening, they pull the "fees" out of your account, and then later in the evening, they deposit that day's payments.  Your cash balance drops, and can go negative, in between these two events.  I see this all the time.

The cash transactions between LC and folio also happen at some odd time, not even on the day you would expect.  I haven't ever tried to track them down exactly, so for example I don't know whether folio fees come out at the same time as cash comes in from sales, or if there's a time skew on that too.  I wouldn't be surprised to see another skew.

Once there are folio transactions "in flight" it is very difficult to reconcile the cash accounting.  You can't just subtract out the last few folio transactions, because they don't complete in the order you placed them.  I complained to LC about this once, and they suggested I stop trading on folio for a few days so there'd be no transactions in flight.

As I said, this makes reconciliation difficult.  They history page shows dates but not times on transactions, so it isn't easy to figure out.  If there are only LC  transactions, I think I understand it all, but once there are folio transactions, its really messy.

Aside: Not the way I would have designed it.  I think one of the basic requirements of accounting and reporting systems is that they should be reconcilable.  You have to be able to do the equivalent of "balancing your check book" using what they provide.

...but its the way it is.

[wcwei5800]

This is common.  The way LC's accounting works, thing happen at different times of day. 

For example, in the early evening, they pull the "fees" out of your account, and then later in the evening, they deposit that day's payments.  Your cash balance drops, and can go negative, in between these two events.  I see this all the time.

The cash transactions between LC and folio also happen at some odd time, not even on the day you would expect.  I haven't ever tried to track them down exactly, so for example I don't know whether folio fees come out at the same time as cash comes in from sales, or if there's a time skew on that too.  I wouldn't be surprised to see another skew.

Once there are folio transactions "in flight" it is very difficult to reconcile the cash accounting.  You can't just subtract out the last few folio transactions, because they don't complete in the order you placed them.  I complained to LC about this once, and they suggested I stop trading on folio for a few days so there'd be no transactions in flight.

As I said, this makes reconciliation difficult.  They history page shows dates but not times on transactions, so it isn't easy to figure out.  If there are only LC  transactions, I think I understand it all, but once there are folio transactions, its really messy.

Aside: Not the way I would have designed it.  I think one of the basic requirements of accounting and reporting systems is that they should be reconcilable.  You have to be able to do the equivalent of "balancing your check book" using what they provide.

...but its the way it is.

For example, in the early evening, they pull the "fees" out of your account, and then later in the evening, they deposit that day's payments.  Your cash balance drops, and can go negative, in between these two events.  I see this all the time.

This would make sense for my case. I only purchase through Folio so the transaction fee does not really effects me. Do you have any idea what time range do they pull the fees? I generally see my cash balance drop in the afternoon, between 12PM to 6PM. Is this the time they generally pull the fee?

[rubicon]

also they cancel buy purchases during the day (if say the note has an event). That would put cash back into your account.