elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Jan 26, 2018 4:56:33 GMT
Or judging by has avatar, elliotn is a beach bum at heart and an (ex?)accountant by necessity / unfortunate accident. It would be churlish to suggest that an English graduate, sat in the careers' library heavy with debt and in heart, didn't have the qualifications for Actuary so simply turned back to Accountant. Or at least off-topic, so let's digest jjc's food for thought instead .
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Jan 26, 2018 5:03:53 GMT
The re-settlement compensation has been partially paid out on third party invoices. A large compensation scheme may be susceptible to 'padding' (or at least a state of the art relocation courtesy of the tax payer) but we would expect MT's due diligence to rule out anything worse (we are told it was completing DD that held up the initial loan). Some breakdown of costs, verification and which acxounts they sit in required for the faq's. Edit - MoneyThing is it possible for you to upload your due diligence documents. You could maintain your retail friendly summary on the loan page and those that corroborate their invesments could look in more detail as they see fit (so MT "filter" doesn't have to worry about data overload). Would save admin having to hurriedly provide reactive faq's ahead of launch and provide the confidence/info for others to invest more heavily.
|
|
registerme
Member of DD Central
Posts: 6,234
Likes: 6,038
|
Post by registerme on Jan 26, 2018 9:08:01 GMT
The question I always ask myself with these kind of loans is "if it's such a no-brainer why isn't a mainstream lender providing funds at a much lower rate"? And if I don't know the answer to that the next question is "ok, so where's the risk"? At the moment I am not sure I know the answers to those two questions.
|
|
copacetic
Member of DD Central
Posts: 305
Likes: 666
|
Post by copacetic on Jan 26, 2018 10:21:15 GMT
The question I always ask myself with these kind of loans is "if it's such a no-brainer why isn't a mainstream lender providing funds at a much lower rate"? And if I don't know the answer to that the next question is "ok, so where's the risk"? At the moment I am not sure I know the answers to those two questions. Possibly because mainstream lenders aren't interested in giving a £550,000 unsecured loan to a company whose last submitted accounts show their balance sheet sitting at £78,000 and where the loan amount is 9 times their profit. What we're really lending against here is the promise of an HS2 payment coming through and the hope that the owners don't do a runner once they have both the loan and the payment.
|
|
m2btj
Member of DD Central
Posts: 626
Likes: 749
|
Post by m2btj on Jan 26, 2018 10:51:23 GMT
The question I always ask myself with these kind of loans is "if it's such a no-brainer why isn't a mainstream lender providing funds at a much lower rate"? And if I don't know the answer to that the next question is "ok, so where's the risk"? At the moment I am not sure I know the answers to those two questions. This is true of many P2P loans. There is always risk involved in lending....just how much is that risk worth?
|
|
r00lish67
Member of DD Central
Posts: 2,691
Likes: 4,048
|
Post by r00lish67 on Jan 26, 2018 11:03:20 GMT
The question I always ask myself with these kind of loans is "if it's such a no-brainer why isn't a mainstream lender providing funds at a much lower rate"? And if I don't know the answer to that the next question is "ok, so where's the risk"? At the moment I am not sure I know the answers to those two questions. It's a useful thought process, and exactly why I sold out of the FS Trust property 36% LTV, 13% p.a loan (now 5 months overdue). I'm still waiting to find out what exactly it was that I didn't understand in the risk of that loan as, it seems, are FundingSecure. In the interim thankfully my interest will not continue to accrue Anyway....this loan. I haven't painstakingly analysed it, but I just don't quite get it. With the first iteration of this loan, I think I recall saying here that I would be amazed if the exit plan came to fruition : "This loan has a six-month term albeit it is expected to be repaid on or before the 10th January 2018 and provide an exit to lenders". Subsequently, they received this payment as planned, and yet still find a need for this loan. So was that exit plan ever valid? It doesn't really feel like it. So, as it seems they didn't feel obliged to be up front with the term of the loan and its true exit in the first place, I'm not really feeling like this is a firm I want to take a chance on. That's my honest view at the moment, but as I say I haven't studied it properly so I'll ask the mumsnet question - AIBU?
|
|
robski
Member of DD Central
Posts: 772
Likes: 462
|
Post by robski on Jan 26, 2018 11:03:34 GMT
The question I always ask myself with these kind of loans is "if it's such a no-brainer why isn't a mainstream lender providing funds at a much lower rate"? And if I don't know the answer to that the next question is "ok, so where's the risk"? At the moment I am not sure I know the answers to those two questions. Possibly because mainstream lenders aren't interested in giving a £550,000 unsecured loan to a company whose last submitted accounts show their balance sheet sitting at £78,000 and where the loan amount is 9 times their profit. What we're really lending against here is the promise of an HS2 payment coming through and the hope that the owners don't do a runner once they have both the loan and the payment. Always the problem though when getting closer to more service orientated rather than purer manufacturing type companies. There value is in their product and service, not in physical assets, as the assets needed to produce the product are not particularly expensive. I doubt there would be any issue with finding a mainstream lender for this, but I suspect the rate would't really be that different and they would probably be considerably more painful to deal with. Wanting to introduce the small business lending manger to "help and advise" and such what
|
|
jlend
Member of DD Central
Posts: 1,817
Likes: 1,444
|
Post by jlend on Jan 26, 2018 11:57:49 GMT
BS = Balance Sheet (amongst other things ) These ones always make me smile BTW Bring The Wheelchair IMHO Is My Hearing-aid On BYOD Bring Your Own Dentures
|
|
|
Post by sirkillalot on Jan 26, 2018 12:45:24 GMT
Not really flying off the shelves - still in two minds on this one.
|
|
liso
Member of DD Central
Posts: 390
Likes: 394
|
Post by liso on Jan 26, 2018 12:51:12 GMT
FAQ now available on the platform, answering a lot of the questions raised here.
|
|
robski
Member of DD Central
Posts: 772
Likes: 462
|
Post by robski on Jan 26, 2018 12:52:15 GMT
Not really flying off the shelves - still in two minds on this one. I was the same, in the end I have gone in at my platform max (but thats now only 1/4 of what it was until defaults are dealt with). I find in these situations the more you question the harder it feels to take the plunge.
|
|
dovap
Member of DD Central
Posts: 467
Likes: 410
|
Post by dovap on Jan 26, 2018 12:55:28 GMT
wonder if cashback will be sprinkled on this unsecured fancy (if punters are dragging their feet)
|
|
|
Post by badboyyardy on Jan 26, 2018 13:48:24 GMT
Cashback for sure get those BH in - but I assume will need a few days stewing before MT take the 1% hit. Let's see maybe after limits are lifted if may start flying off the shelves
|
|
dermot
Member of DD Central
Posts: 862
Likes: 517
|
Post by dermot on Jan 26, 2018 13:50:00 GMT
FAQ now available on the platform, answering a lot of the questions raised here.
The answers seem reasonable, but I do wonder about the spectacular implosion of Carillion. At least the HS2 section close to London doesn't seem to be run by Carillion (SCS and Costain), which is a relief, though one could question the value of taking the HS2 as far as Aylesbury then catching a bus to Brackley ... I'll probably chuck a bit in, especially if I get some interest payments on other loans before this one is filled, since it seems to be reasonably OK otherwise.
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Jan 26, 2018 15:02:24 GMT
FAQ now available on the platform, answering a lot of the questions raised here.
Thanks SophieThing / MoneyThing. Is it possible to confirm that the leasehold improvements are being capitalised in our borrowing co and therefore enhancing the assets under our debenture, thanks.
|
|