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Post by supernumerary on Sept 6, 2018 13:05:40 GMT
FIVE MINUTES: £224,432.00 gone!!!!!
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macq
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Post by macq on Sept 6, 2018 13:10:43 GMT
13% no surprise !!!!!
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hazellend
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Post by hazellend on Sept 6, 2018 13:21:31 GMT
I’m in, only read the documents briefly as on the move today and it was filling fast. Looks okay to me though
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blender
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Post by blender on Sept 6, 2018 13:22:25 GMT
Thanks for the insights all. They pretty much confirm my own analysis, but you've raised a couple of pints that I had missed. I'm considering going in for half my usual amount. Looks like I won't need to practice my fff skills! One point that I wasn't quite clear on is: is the 12 month guaranteed minimum interest held by ABL from the outset, and therefore truly guaranteed, or is this paid monthly from the borrower's income? No, it is not guaranteed in that sense. It is amortising, and so the repayments of principal, the monthly interest, and Ablrate's monthly fee are all paid by the borrower, monthly. It just means that if the loan is repaid early, there is at least the first twelve months' interest to be paid.
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Post by supernumerary on Sept 6, 2018 13:35:36 GMT
Over HALF the loan now gone: £300,503.00
Time taken approx: 35 minutes!
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blender
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Post by blender on Sept 6, 2018 13:44:06 GMT
Over HALF the loan now gone: £300,503.00 Time taken approx: 35 minutes! So, it's stalled then.
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nw99
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Post by nw99 on Sept 6, 2018 13:50:20 GMT
Yes shame it was limited to such small amounts
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Post by supernumerary on Sept 6, 2018 13:50:37 GMT
Over HALF the loan now gone: £300,503.00 Time taken approx: 35 minutes! So, it's stalled then. ...I certainly won't be timing this, to over the £400,000 mark!
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elliotn
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Post by elliotn on Sept 6, 2018 14:40:15 GMT
I am not sure that we should be identifying the other lender, outside of DD central.
As for the loan. We are not told the cost of the acquisition which we are helping to finance. The security valuation against which the LTV is made assumes that the business is a going concern. The 'bricks and mortar' valuation is £1.5M. I'm feeling Boboish - though the security is better than Rainmaker, imo. Seems like it's tough if you're looking for high rates and copper-bottomed security. Also check the registered address and ex-director for potential connectedness.
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elliotn
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Post by elliotn on Sept 6, 2018 14:44:24 GMT
With a first charge of £1.2m i.e. 80% of the a bricks and mortar valuation of £1.5m, this ablrate loan of £600K is effectively underpinned by a second charge 80-120% LTV based on this (bricks and mortar) valuation. A 13% return seems quite low for this huge level of risk if the business were to fail. Am I missing something? You are prob missing the 10% going to abl 😉 steve, blend, have you confirmed borrower’s rate yet? (I can never find it!) Edit - 25% mentioned above
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SteveT
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Post by SteveT on Sept 6, 2018 14:58:08 GMT
20%pa (split 13% / 7%) plus 4% initial admin fee, I believe
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blender
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Post by blender on Sept 6, 2018 14:59:10 GMT
With a first charge of £1.2m i.e. 80% of the a bricks and mortar valuation of £1.5m, this ablrate loan of £600K is effectively underpinned by a second charge 80-120% LTV based on this (bricks and mortar) valuation. A 13% return seems quite low for this huge level of risk if the business were to fail. Am I missing something? You are prob missing the 10% going to abl 😉 steve, blend, have you confirmed borrower’s rate yet? (I can never find it!) Edit - 25% mentioned above It's not that much. There is a 4% fee up front, which would need to cover in part the valuations etc, and then monthly fees equivalent to 7% pa. So over four years borrower is paying APR about 21%, more if repaid early. Edit: yeah - wot 'e sed.
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elliotn
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Post by elliotn on Sept 6, 2018 15:00:38 GMT
Thanks guys!
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hazellend
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Post by hazellend on Sept 6, 2018 15:02:17 GMT
Presumably interest can be offset against profit, or losses carried over, so net interest is less
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SteveT
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Post by SteveT on Sept 6, 2018 15:05:46 GMT
Presumably interest can be offset against profit, or losses carried over, so net interest is less But so can the rent they’ve been paying to date, so I don’t think it’s relevant
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