shimself
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Post by shimself on Oct 14, 2017 14:41:20 GMT
The risk you list is that growth might not be achieved
How about the disputed invoice in adjudication for £1.48M?
Oh and from 2016 but still not settled an intercompany balance of £1.462m owed by B***** USA, a former subsidiary that was disposed of in 2016. The directors believe that this loan is still recoverable. The word still speaks volumes.
Don't they sound like risks to you?
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liso
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Post by liso on Oct 14, 2017 15:12:09 GMT
Definitely, I agree.
The risks in this one are not commensurate with the return being offered IMO. Not for me.
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Post by dharm999 on Oct 15, 2017 15:48:14 GMT
Absolutely, the risks on this seem very high. Not one for me. Am surprised by Archover, this one seems out of line with others they have offered
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Steerpike
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Post by Steerpike on Oct 15, 2017 15:58:22 GMT
It appears that the company is profitable, but I haven't invested in this one partly because of these issues, perhaps alextaylorrrrr or hugoarchover may care to comment on the questions raised.
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Post by hugoarchover on Oct 16, 2017 16:31:00 GMT
The risk you list is that growth might not be achievedHow about the disputed invoice in adjudication for £1.48M? Oh and from 2016 but still not settled an intercompany balance of £1.462m owed by B***** USA, a former subsidiary that was disposed of in 2016. The directors believe that this loan is still recoverable. The word still speaks volumes. Don't they sound like risks to you? Hi shimself, With regards to the £1.48m currently in adjudication, we have already discounted this in its entirety from our security calculations. The business expects to recover a significant proportion of this which will enhance the security further. The business has exercised prudence and provided for the intercompany balance it is owed from a former subsidiary in its accounts; the balance sheet will not suffer if the loan is not recovered. We can assure you that a substantial amount of time has been spent analysing this Borrower. As with every Borrower on the ArchOver platform, some of my colleagues conducted a site visit at the business’s Swansea office before the loan went live. You may also be interested to know that several members of the Company’s Senior Management Team have chosen to support the business by lending across the ArchOver platform. Hugo
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Post by hugoarchover on Oct 16, 2017 16:38:09 GMT
Absolutely, the risks on this seem very high. Not one for me. Am surprised by Archover, this one seems out of line with others they have offered Hi dharm999 We applied the same credit analysis to this Borrower as we do to all our loans and are satisfied that the business warrants inclusion on our platform. The current plan is to support U*********** with further lending over the ArchOver platform and it would be our intention to hold a first ranking charge eventually. However, having said that you must not invest in U*********** on the assumption this lending will definitely happen and you must be comfortable with the current security on offer in case no further lending takes place.
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shimself
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Post by shimself on Oct 16, 2017 19:51:06 GMT
The risk you list is that growth might not be achievedHow about the disputed invoice in adjudication for £1.48M? Oh and from 2016 but still not settled an intercompany balance of £1.462m owed by B***** USA, a former subsidiary that was disposed of in 2016. The directors believe that this loan is still recoverable. The word still speaks volumes. Don't they sound like risks to you? Hi shimself , With regards to the £1.48m currently in adjudication, we have already discounted this in its entirety from our security calculations. The business expects to recover a significant proportion of this which will enhance the security further. The business has exercised prudence and provided for the intercompany balance it is owed from a former subsidiary in its accounts; the balance sheet will not suffer if the loan is not recovered. We can assure you that a substantial amount of time has been spent analysing this Borrower. As with every Borrower on the ArchOver platform, some of my colleagues conducted a site visit at the business’s Swansea office before the loan went live. You may also be interested to know that several members of the Company’s Senior Management Team have chosen to support the business by lending across the ArchOver platform. Hugo So to make sure I understand: The accounts at end 2016 which show a loss of 970K, net assets negative 943K. If the adjudication on the unpaid bill was adverse the position would worsen by appx 1480K. Is that right? And can you elaborate on the security calculation please? If the interco was repaid then - what would happen to the figures? Yes it's very encouraging to know your high-ups have invested; can you give some idea of the amount, and will they guarantee to hold to term?
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Post by hugoarchover on Oct 17, 2017 9:37:07 GMT
Hi shimself , With regards to the £1.48m currently in adjudication, we have already discounted this in its entirety from our security calculations. The business expects to recover a significant proportion of this which will enhance the security further. The business has exercised prudence and provided for the intercompany balance it is owed from a former subsidiary in its accounts; the balance sheet will not suffer if the loan is not recovered. We can assure you that a substantial amount of time has been spent analysing this Borrower. As with every Borrower on the ArchOver platform, some of my colleagues conducted a site visit at the business’s Swansea office before the loan went live. You may also be interested to know that several members of the Company’s Senior Management Team have chosen to support the business by lending across the ArchOver platform. Hugo So to make sure I understand: The accounts at end 2016 which show a loss of 970K, net assets negative 943K. If the adjudication on the unpaid bill was adverse the position would worsen by appx 1480K. Is that right? And can you elaborate on the security calculation please? If the interco was repaid then - what would happen to the figures? Yes it's very encouraging to know your high-ups have invested; can you give some idea of the amount, and will they guarantee to hold to term? Hi shimself , The accounts at Y/E 2016 show a loss of £970k and Net Assets at (£943k), which includes the provision for the intercompany loan. Since then, the business has turned a profit of £588k, improving the Net Assets to (£355k) at the end of August. If the intercompany loan is recovered in part or in full, then the Net Assets figure will improve. If the amount currently in adjudication is not recovered in full, then this will impact the balance sheet. In terms of the security, there are 3 pools of assets that we are looking at: 1. Debtors 2. Unbilled, completed work/applications for payment 3. Retentions We have removed all debt owed by the client subject to the adjudication and set aside the first £2m of debtors for Santander, which currently holds the first charge. Debtors have been discounted to 80% of their value, unbilled completed work/applications to 25%, and retentions to 50%. The value of the combined discounted security is £1.744m, far in excess of the £500k loan. Credit Insurance will also be put in place, through Nexus CIFS. On the lending point, what was meant is that several members of U***********’s senior management team have pledged to their own business across the platform – I’m afraid I’m not at liberty to discuss the specific amounts, but they are significant.
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Post by martinde21 on Oct 19, 2017 17:48:01 GMT
Hi Hugo
Very good to read your posts and the constructive and helpful info you are posting. I have passed on this particular opportunity, as I don't fancy the charge ranking structure, but I have fingers in pleasingly tasty other slices of the Archover pie.
For feedback, I go for Secured and Insured, first charge on receivables, no bespoking of loan terms or deviation from this core offer. I don't like Secured and Assigned. The extra 1% isn't worth it personally for me without the credit underwriting, but that's me.
Keep posting and being open. It gives me a happy level of confidence when I assess lending through your platform.
Best wishes!
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Post by hugoarchover on Oct 20, 2017 10:11:01 GMT
Thank you martinde21 for your feedback and support of the Secured & Insured service offering. We will definitely keep posting and we are always happy to answer any questions anyone may have, either on here or on the platform.
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mary
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Post by mary on Oct 24, 2017 14:03:01 GMT
Rate increased on both loans by 1%, now 8.75% and 9.25%.
Think that's a first for ArchOver. Shows that competition for our money is strong.
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mary
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Post by mary on Oct 24, 2017 14:38:14 GMT
Rate increased on both loans by 1%, now 8.75% and 9.25%. Think that's a first for ArchOver. Shows that competition for our money is strong. And less than £50k left at 9.25%.
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Steerpike
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Post by Steerpike on Nov 3, 2017 11:30:23 GMT
I passed on the first two but had a nibble at the 9 month loan @ 8.62% launched today.
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Post by martinde21 on Nov 3, 2017 19:11:10 GMT
I might have a nibble too. I note from Hugo that credit insurance is in place now. Nice to see lots of info being provided.
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mary
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Post by mary on Nov 3, 2017 19:54:47 GMT
I might have a nibble too. I note from Hugo that credit insurance is in place now. Nice to see lots of info being provided. So does that mean it is now Bespoke and Insured?
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