number5
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Post by number5 on Jun 20, 2019 16:06:46 GMT
Hi guys
Looking at investing with Ablrate, however I just wanted to get a feel of it before I jump in
What is the loan flow like, do new loans come up often....do they fill relatively quickly or slowly etc?
What is the SM like...can you sell many with a premium? Can you always sell before term etc
Cheers!
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Post by flobberchops on Jun 20, 2019 16:30:59 GMT
Hi there,
The loan flow is slow but steady. Reassuringly so. You get the impression Abl are doing plenty of due diligence and are selecting only the best borrowers. They fill relatively slowly (nothing like Moneything's "fastest finger first" bloodbaths... remember those?) but that's because they're usually in the high six figures. Abl also has a portfolio loan currently running which you can grab a slice of if there are no individual loan offerings at a given time.
The SM is active and fairly easy to use. You can indeed sell at a premium and you can sell before term unless Abl has decided to place restrictions on an individual loan.
Ablrate is my favourite platform and I have nothing but praise for the way it's run, the loan flow, and the way they have not succumbed to the rash of defaults that are plaguing other platforms at the moment. By all means buy in with the minimum to have a play around and get a feel for how it works, but I suspect you won't be disappointed.
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nw99
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Post by nw99 on Jun 20, 2019 16:33:48 GMT
Secondary market is the best out there .
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ceejay
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Post by ceejay on Jun 20, 2019 17:55:57 GMT
The flow of new loans was far too slow for me.
And you also need to watch out for multiple loans to the same party, which is sometimes more obvious than others - there are clusters of linked loans, so if you have a preference not to lend too much to one party then there are considerably fewer loans to buy into than might be apparent. You may need to read the documents carefully to uncover these links.
Also: note that the interest rates being paid by the borrowers are in the order of double what you see listed ... and you need to ask yourself what kind of business needs to be paying 25-30% to borrow.
The mechanics of the platform, including the SM, are excellent, but IMHO they have pointed themselves at a very small marketplace of borrowers and will find it difficult to grow.
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ptr120
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Post by ptr120 on Jun 20, 2019 19:26:41 GMT
I would describe the loan flow as spasmodic. It is unusual to have 2 self select loans and 1 portfolio loan available as is currently the case. A significant number of loans are related and genuinely new borrowers are not common. One thing that I find a bit annoying is that they don't always (often) say if the borrower intends to come back to the platform for further funds at a later date. They seem to work hard on recoveries although there are two loans that defaulted a couple of years ago where nothing has been recovered. However, they have promised that no lender will lose out on those loans, but it is a bit of a worry wondering how long I'll need to wait to get my money back on those loans as they have not yet clarified how they are going to ensure that I don't lose out.
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macq
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Post by macq on Jun 20, 2019 20:04:27 GMT
As to your question about the SM and selling at a premium(or trying) the answer is yes - but assume you realise that you may equally find your trying to sell at a discount or find the loan paused in certain cases
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number5
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Post by number5 on Jun 21, 2019 5:30:07 GMT
Hi there,
The loan flow is slow but steady. Reassuringly so. You get the impression Abl are doing plenty of due diligence and are selecting only the best borrowers. They fill relatively slowly (nothing like Moneything's "fastest finger first" bloodbaths... remember those?) but that's because they're usually in the high six figures. Abl also has a portfolio loan currently running which you can grab a slice of if there are no individual loan offerings at a given time.
The SM is active and fairly easy to use. You can indeed sell at a premium and you can sell before term unless Abl has decided to place restrictions on an individual loan.
Ablrate is my favourite platform and I have nothing but praise for the way it's run, the loan flow, and the way they have not succumbed to the rash of defaults that are plaguing other platforms at the moment. By all means buy in with the minimum to have a play around and get a feel for how it works, but I suspect you won't be disappointed.
I have never been on MT, however I was previously on FC and currently phasing away from FS. I was one of those 'flippers', so those fastest finger first loans were my best! So I take it it is not really an option here? How is it possible to sell on MT the FFF loans if there are no premiums on the SM? I am also not very keen to hold loans to term, so is it fairly confident if ABL do not freeze a loan, that you can get out before term by selling at a discount? What is a protofolio loan?
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number5
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Post by number5 on Jun 21, 2019 5:32:52 GMT
As to your question about the SM and selling at a premium(or trying) the answer is yes - but assume you realise that you may equally find your trying to sell at a discount or find the loan paused in certain cases I take it selling at a premium is not very common on Abl then? I guess if a good rate can still be achieved selling before term at discount it is still one for me to consider. At what point in the loan term do Abl tend to freeze some loans?
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number5
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Post by number5 on Jun 21, 2019 5:39:12 GMT
Tbh I try to avoid keeping any loan to term.
Ideally sell at a premium if that is not possible at least sell at a discount and still achieve a good rate and avoid holding to term.
I used to be on FC and FS, so trying to find a similar model...obviusly need to have higher rates to make up for the sale at a discount
Can you recommend any, if not Abl?
I am considering MT, Abl and Rebus?
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nw99
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Post by nw99 on Jun 21, 2019 5:46:09 GMT
MT too many defaults and no money back . ABL is the best out there and secondary is very liquid .
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Post by Badly Drawn Stickman on Jun 21, 2019 6:43:39 GMT
Tbh I try to avoid keeping any loan to term. Ideally sell at a premium if that is not possible at least sell at a discount and still achieve a good rate and avoid holding to term. I used to be on FC and FS, so trying to find a similar model...obviusly need to have higher rates to make up for the sale at a discount Can you recommend any, if not Abl? I am considering MT, Abl and Rebus? Whilst I have found your quest over the last few years amusing, roaming from platform to platform looking for the one where you can sell at a premium after taking all the safe interest. I can but wonder why you have not worked out that no such Nirvana exists and you either accept the risks attached with investing or work out a niche area where you can minimize your risks. MT is currently a good place for new investors prepared to do a bit of research, several decent offerings at good discounts (also some real stinkers). Ablrate is a place where you can make money, but not as easily as losing it if you are unwilling to 'do the legwork'. Coffee, smell and wake up are useful terms, in the current P2P climate.
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sapphire
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Post by sapphire on Jun 21, 2019 8:28:29 GMT
On the plus side, there is fairly good transparency of the loan terms e.g. as noted ablrate discloses fulls details of the rate of interest and other charges the borrower is paying, so this helps assess the risk better. (Not all platforms disclose what the borrower is paying).
I think one thing to be careful about is that their computed LTV is not always based on first charge assets. Sometimes they derive this based on a combination of first and lower charge assets and one should look at their LTV computation to assess and understand the true level of LTV risk, as just relying on the 'headline' rate can be misleading. (For a loan secured over a number of assets with different levels of charges, the overall 'hybrid' LTV can be computed in a number of ways - some more 'risky' than others!)
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hazellend
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Post by hazellend on Jun 21, 2019 9:29:01 GMT
Although I like a liquid secondary market, investors obsessions with getting a discount or premium amuse me. It’s really picking up pennies in front of a steamroller. Recently I bought 15k of a loan on SM at 100% but there were bids around 2k between 0.1- 0.5% discount.
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number5
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Post by number5 on Jun 21, 2019 9:54:03 GMT
Although I like a liquid secondary market, investors obsessions with getting a discount or premium amuse me. It’s really picking up pennies in front of a steamroller. Recently I bought 15k of a loan on SM at 100% but there were bids around 2k between 0.1- 0.5% discount. Would you mind please elaborating on "I bought 15k of a loan on SM at 100% but there were bids around 2k between 0.1- 0.5% discount." I have seen the terms bids and offers on the site... Also is the portfolio loan like a AC quick access account?
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IFISAcava
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Post by IFISAcava on Jun 21, 2019 10:16:09 GMT
Although I like a liquid secondary market, investors obsessions with getting a discount or premium amuse me. It’s really picking up pennies in front of a steamroller. Recently I bought 15k of a loan on SM at 100% but there were bids around 2k between 0.1- 0.5% discount. Would you mind please elaborating on "I bought 15k of a loan on SM at 100% but there were bids around 2k between 0.1- 0.5% discount." I have seen the terms bids and offers on the site... Also is the portfolio loan like a AC quick access account?
no. if you want access you go into a queue where you have no idea where you are in the queue. That's a big downside of the portfolio loans in my view.
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