blender
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Post by blender on Jul 16, 2018 8:58:50 GMT
Hi All We created instant returns for this very reason, i.e that you are compensated for a long draw down. The fact that they are accruing focuses the mind of all involved.. we are getting there, but we do want to make sure everything is in place before any money is sent anywhere. I take this ablrate as confirmation that instant returns are accruing and payable on 98, whether the loan draws down or not. This has now been with the applicant borrower for six weeks, and so I assume that the applicant borrower will be contracted to cover that IR, at least since the end of listing.
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Post by gibson on Jul 18, 2018 19:42:57 GMT
How soon can we expect a drawdown on this?
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blender
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Post by blender on Jul 18, 2018 22:17:41 GMT
Never.
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marka
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Post by marka on Jul 18, 2018 23:17:40 GMT
The last remaining director resigned on Tuesday according to Companies House. Something is afoot!
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Post by ablrate on Jul 18, 2018 23:47:42 GMT
The last remaining director resigned on Tuesday according to Companies House. Something is afoot! Nothing to see here.. part of the equity deal.. all PG's etc remain
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Post by GSV3MIaC on Jul 19, 2018 6:17:58 GMT
Heck it was only an 8 month loan .. 20% of that has already passed!
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blender
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Post by blender on Jul 19, 2018 7:49:53 GMT
I do not believe we should worry about the project, just whether they will ever draw down this fixed-term loan, given that it was bridging and the original lenders are still in.
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Post by Ace on Jul 19, 2018 13:10:03 GMT
Am I right in thinking that instant returns will still be paid if the loan is cancelled before it draws down?
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blender
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Post by blender on Jul 19, 2018 16:40:51 GMT
Am I right in thinking that instant returns will still be paid if the loan is cancelled before it draws down? That was the point of my earlier posts. From the proposal:
'What happens if the loan does not get filled The loan has a minimum requirement of £1,495,000 being the total value of the loan. If the loan does not fill Instant Returns will be paid up until the point of closure and all bids will be returned to your Ablrate account.' [It did not reach its minimum requirement, but bids were not returned. 'Closure' is not a defined word.]
From the FAQ 'Instant Returns Instant returns are based on an amount and time period (for more information see here). The opinion we have received is that Instant Returns, because they are not based on a loan closing (we pay them regardless of the loan closing or not), then they are not seen as ‘Interest’.' ['Closing' has a different meaning here.]
The T&Cs say nothing about instant returns when a loan is not drawn down, but defines IR as interest and says it is paid by the borrower, unless … .
Whatever the words mean, Ablrate has always played fair here, and practice has been (going back to a famous planes loan application) that instant returns are paid from bidding up to the point either of drawdown or returning the cash. In this loan the total instant returns is around £40k, which concentrates the mind. This loan has been with the borrower for 45 days, and common sense says that you do not allow a free option once the money is available, at the expense of the lenders. So I expect that the borrower has a liability, on this facility, for the increasing IR, whether or not it draws down. It would be nice if the paperwork told us clearly.
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blender
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Post by blender on Jul 20, 2018 16:17:15 GMT
What a nice surprise, all drawn down. Loads of IR to spend. Loads of cash no longer tied up. Congratulations ablrate. To have taken it to this stage and provided lending opportunities on this scale and to this value is really impressive, imo.
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