poppyland
Member of DD Central
Posts: 237
Likes: 243
|
Post by poppyland on Feb 1, 2018 20:46:31 GMT
Hello guys, I thought I'd ask these questions in this old thread rather than start a new one:
If I open an Ablrate IFISA in April, will I be able to transfer money currently in a Funding Secure IFISA into it? i.e. Will I be able to end up with 40k (this year's allowance plus next year's) in an Ablrate IFISA?
Do you think that Ablrate is better at selecting loans and getting them repaid than certain other platforms, or do you think they've just been lucky so far? I've got nearly 16k stuck in problem loans with Lendy, and 1k stuck with FS, and I'd like to believe that things are likely to be better over here, but at the same time, I don't want to delude myself.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Feb 1, 2018 20:51:41 GMT
Yes to the first. Or transfer the FS ISA across immediately and then add to it come April
Also yes (IMO) to the second, albeit there’s plenty of scope for the wheels to come off at some point. The one significant default Ablrate have had to date (actually 2 connected loans) is a pretty nasty one, but was small relative to most of their current loans.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Feb 1, 2018 23:49:16 GMT
Hello guys, I thought I'd ask these questions in this old thread rather than start a new one: If I open an Ablrate IFISA in April, will I be able to transfer money currently in a Funding Secure IFISA into it? i.e. Will I be able to end up with 40k (this year's allowance plus next year's) in an Ablrate IFISA? Do you think that Ablrate is better at selecting loans and getting them repaid than certain other platforms, or do you think they've just been lucky so far? I've got nearly 16k stuck in problem loans with Lendy, and 1k stuck with FS, and I'd like to believe that things are likely to be better over here, but at the same time, I don't want to delude myself. I think yes to both of these questions, they are better and they have been lucky. One strength is that the number of loans is small and the CEO personally scrutinises each one. Another strength is that there is real and effective engagement with the lending community which effectively increases the DD and makes it visible. A third strength is that the monitoring post drawdown is better than most platforms, and again supported by this forum. This is supported by a larger than usual monthly charge by the platform to the borrower, which allows them to resource monitoring. A fourth strength is that this is a platform where every loan matters and you do not just get told the statistics and advised to diversify. Against that, the borrowers are paying high rates in total and the risks are clear, though they often refinance early. Also there are large sums with some borrowers, which causes concern for platform resilience, though I believe this has improved of late. For good liquidity, of a large sum, this is not the best option. The valuations for security are sometimes surprising. There has to be some element of good fortune so far, but as time goes on that luck seems to hold, over say three years. Past loss performance does not predict future performance, but it has to mean something.
|
|
elliotn
Member of DD Central
Posts: 3,063
Likes: 2,681
|
Post by elliotn on Feb 2, 2018 1:58:58 GMT
What monitoring post-drawdown do you see? I have many Comments unanswered for over a year, sometimes dbw never returns with a forum reply for issues on acf/acp loans and he has admitted this in the portfolio launch thread. Interested as this is my main gap on this platform (now that I have Acrd for SM Buys too!)
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Feb 2, 2018 9:20:32 GMT
What monitoring post-drawdown do you see? I have many Comments unanswered for over a year, sometimes dbw never returns with a forum reply for issues on acf/acp loans and he has admitted this in the portfolio launch thread. Interested as this is my main gap on this platform (now that I have Acrd for SM Buys too!) The only sound comparison I have is with FC, where once a loan is made the only monitoring is on the making of the repayments and formally-reported credit events. Or when more cash is required. If a loan fails on FC it is just a matter for the statistics. I do think that more of a relationship is established between Ablrate and the borrowers, and while there is a risk downside to having multiple loans with one borrower, even with separate security per loan, there is also an upside in that those borrowers are continuously monitored as part of the client relationship. Ablrate cannot afford to take the eye of the ball - nor would wish to. The fact that Ablrate has moved its fees from an upfront payment to upfront plus monthly means that they have a financial interest in a loan's continued health. Also the cost, for a small niche platform, of a default to the platform, in cash, in resources employed and in reputation, must keep the management very much on their toes to avoid another. Example - the recent late payment on 21 - FC would not even have noticed. Concerning responses on this board. Sometimes it is not wise to reply and carry on the discussion, even when action has been taken. We know that this forum is read and acted on by the CEO. We cannot really expect a blow by blow account of a difficult encounter with a current borrower to be posted in public. The important question is whether you have trust that the platform is working for the lender's interests, without seeing the detail.
BTW, I am biased by having to justify to myself the large proportion of my cash which is in this platform.
|
|