benaj
Member of DD Central
Posts: 4,855
Likes: 1,591
|
Post by benaj on Aug 14, 2019 16:12:09 GMT
How much are you willing to invest in these loans? 5%/10% / 20%/ 50%/ 100% of UB portfolio? Presumably, all loans are lent out to same borrower. Total outstanding loan is over 339k on the platform, repaid / renewed over £723k last 12 months.
|
|
picnicman
Member of DD Central
Posts: 238
Likes: 215
|
Post by picnicman on Aug 14, 2019 16:41:07 GMT
How much are you willing to invest in these loans? 5%/10% / 20%/ 50%/ 100% of UB portfolio? Presumably, all loans are lent out to same borrower. Total outstanding loan is over 339k on the platform, repaid / renewed over £723k last 12 months. benaj - I have about 9% of my UB portfolio in the loans to this particular borrower (re the latest/new loan). They are/have been in effect rolling loans which have repaid capital and also monthly interest on time. They are loans which are asset backed and in the possession of UB and whilst not protected, they are as good as any other asset backed loan. I am happy so far and may be proved wrong in the future, but UB valuations so far and their recoveries where needed have been much better than any other platforms I invest in. In brief, am happy to hold such investments. It is only my investment strategy which I stick rigidly to, that prevents me from taking bigger chunks. They do make admin easier too in terms of having to keep track of small value protected loans. Not sure if this of use, but that is my take - Cheers P
|
|
|
Post by sannytwist on Aug 14, 2019 17:17:15 GMT
I've invested in this latest loan but only dipped my toes in it as l also have money lent to this borrower in his other loans on UB.
|
|
|
Post by df on Aug 14, 2019 17:57:09 GMT
How much are you willing to invest in these loans? 5%/10% / 20%/ 50%/ 100% of UB portfolio? Presumably, all loans are lent out to same borrower. Total outstanding loan is over 339k on the platform, repaid / renewed over £723k last 12 months. My latest self-imposed limit is 2% per borrower. This particular loan - 0.3% as I already have some funds in other loans to this borrower.
|
|
|
Post by df on Aug 14, 2019 20:23:42 GMT
How much are you willing to invest in these loans? 5%/10% / 20%/ 50%/ 100% of UB portfolio? Presumably, all loans are lent out to same borrower. Total outstanding loan is over 339k on the platform, repaid / renewed over £723k last 12 months. benaj - I have about 9% of my UB portfolio in the loans to this particular borrower (re the latest/new loan). They are/have been in effect rolling loans which have repaid capital and also monthly interest on time. They are loans which are asset backed and in the possession of UB and whilst not protected, they are as good as any other asset backed loan. I am happy so far and may be proved wrong in the future, but UB valuations so far and their recoveries where needed have been much better than any other platforms I invest in. In brief, am happy to hold such investments. It is only my investment strategy which I stick rigidly to, that prevents me from taking bigger chunks. They do make admin easier too in terms of having to keep track of small value protected loans. Not sure if this of use, but that is my take - Cheers P I think such loans are very good opportunity for those who want to significantly increase their allocation on Unbolted. Not protected, but 9.6% is an appropriate rate for the risk. Far less risky than 10% pawn on the other platform. UB is very competent in their trade.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Aug 15, 2019 8:59:36 GMT
My self imposed limit is currently about 5% per borrower, of which I think there are only about 2 or 3 at the moment. I agree with the comments above about the quality of these loans and may be prepared to increase this in the future if I was looking to increase my holding on UB.
I think it would be useful if there was a facility to allocate cash specifically to this loan type to make it easier to manage, particularly in terms of qualifying for bonus interest. Currently it's a bit hit and miss where funds end up getting loaned out to.
|
|
benaj
Member of DD Central
Posts: 4,855
Likes: 1,591
|
Post by benaj on Aug 15, 2019 15:58:21 GMT
I got a bit greedy, I have about 15% of my UB portfolio to this borrower across 6 loans, although my UB portfolio is relatively small, just around 2k.
|
|
registerme
Member of DD Central
Posts: 6,184
Likes: 5,991
|
Post by registerme on Aug 15, 2019 19:17:35 GMT
I thought I understood the Unbolted model. With these recent changes I'm no longer so sure of that.
|
|
|
Post by df on Aug 15, 2019 20:45:00 GMT
I thought I understood the Unbolted model. With these recent changes I'm no longer so sure of that. Still the same model, no big changes. We can now put a limit on the auto-lend amount to a single borrower and those with a larger budget willing to commit get a bonus + more transparency re. "working capital loans". The rest is the same.
|
|
registerme
Member of DD Central
Posts: 6,184
Likes: 5,991
|
Post by registerme on Aug 16, 2019 8:46:48 GMT
Really? Before I was lending to a borrower secured against a specific asset, with an additional layer of security. Now I'm lending to a borrower, for working capital purposes, against a presumed pool of assets, with no layer of additional security. I'm not against working capital loans, but it's not quite the same product as the old style "here's a watch" type loans, particularly when the volume of the old style loans is likely to drop because they'll be subsumed by the new working capital loans. Or am I getting things confused? Wouldn't be the first time .
|
|
|
Post by df on Aug 16, 2019 9:13:19 GMT
Really? Before I was lending to a borrower secured against a specific asset, with an additional layer of security. Now I'm lending to a borrower, for working capital purposes, against a presumed pool of assets, with no layer of additional security. I'm not against working capital loans, but it's not quite the same product as the old style "here's a watch" type loans, particularly when the volume of the old style loans is likely to drop because they'll be subsumed by the new working capital loans. Or am I getting things confused? Wouldn't be the first time . I might be wrong, but I think the loans against a pool of assets were there for a long time. It's just we didn't have an option to limit the amount we lend to a single borrower.
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Aug 16, 2019 9:56:14 GMT
Really? Before I was lending to a borrower secured against a specific asset, with an additional layer of security. Now I'm lending to a borrower, for working capital purposes, against a presumed pool of assets, with no layer of additional security. I'm not against working capital loans, but it's not quite the same product as the old style "here's a watch" type loans, particularly when the volume of the old style loans is likely to drop because they'll be subsumed by the new working capital loans. Or am I getting things confused? Wouldn't be the first time . I might be wrong, but I think the loans against a pool of assets were there for a long time. It's just we didn't have an option to limit the amount we lend to a single borrower. I think you're right, they were previously lumped in with business loans whereas now they've been identified as a specific loan type with, as you say, the ability to set a limit per borrower (which I suspect is after comments on this forum so well done UB for listening). Which also means, for those not keen on these loans, you can opt out by setting the limit to zero
|
|
registerme
Member of DD Central
Posts: 6,184
Likes: 5,991
|
Post by registerme on Aug 16, 2019 10:04:06 GMT
OK thanks guys .
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Aug 16, 2019 14:38:15 GMT
ashwinp, My understanding was that the asset pool stock for these loans was held in Unbolted's posession. In which cases will you allow stock to be kept in showrooms and shopfronts, and what would the impact be on the interest rate paid given the obvious increased risk to recovery in this scenario? Also, in these cases would this be clearly indicated in the details of the loan to allow a decision to be made as to whether to invest or not?
|
|
Ukmikk
Member of DD Central
Posts: 445
Likes: 298
|
Post by Ukmikk on Aug 20, 2019 10:59:08 GMT
ashwinp, My understanding was that the asset pool stock for these loans was held in Unbolted's posession. In which cases will you allow stock to be kept in showrooms and shopfronts, and what would the impact be on the interest rate paid given the obvious increased risk to recovery in this scenario? Also, in these cases would this be clearly indicated in the details of the loan to allow a decision to be made as to whether to invest or not? ashwinp, would it be possible to shed some light on this please, many thanks.
|
|