alan
Posts: 55
Likes: 14
|
Post by alan on Sept 9, 2015 9:40:14 GMT
That was my first thought but i didnt want to Cheers Alan
|
|
|
Post by ablrateandy on Sept 9, 2015 9:59:37 GMT
If you send me a message you can have 0.3p from me
|
|
alan
Posts: 55
Likes: 14
|
Post by alan on Sept 9, 2015 10:18:32 GMT
If you send me a message you can have 0.3p from me Yes please! Cheers Alan
|
|
|
Post by ablrateandy on Sept 9, 2015 10:43:32 GMT
I'll need your username then! Drop me an email or a message on here. My email addy is firstname dot last name at ablrate.com
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Sept 9, 2015 13:00:13 GMT
Getting back to the loan itself!
Some issues on the security:
- Sale price based on borrower's estimate which in turn is based on production cost - no formal external valuation - the valuation should be completely dependent on there being a market for this device, not the amount it costs to make or the borrowers possibly natural over optimistic sales estimate - Imagine not the most liquid security if do need to sell - likely need to sell to one of the companies clients, take time and likely for less than valuation and would the company assist if they have defaulted/in trouble - is depreciating at 20%/yr, so at the end of the 3yrs the security is worth pretty much what the loan is for - however it is amortizing which would compensate assuming paying back 33% of the capital per yr
|
|
|
Post by ablrateandy on Sept 9, 2015 13:24:27 GMT
Getting back to the loan itself! Some issues on the security: - Sale price based on borrower's estimate which in turn is based on production cost - no formal external valuation - the valuation should be completely dependent on there being a market for this device, not the amount it costs to make or the borrowers possibly natural over optimistic sales estimate - Imagine not the most liquid security if do need to sell - likely need to sell to one of the companies clients, take time and likely for less than valuation and would the company assist if they have defaulted/in trouble - is depreciating at 20%/yr, so at the end of the 3yrs the security is worth pretty much what the loan is for - however it is amortizing which would compensate assuming paying back 33% of the capital per yr Sorry - yes... the loan - Sale price is based upon recent sales made. Yes - to some extent it is a mark-up over the construction cost but it is based upon actual sales made and so from that point-of-view looks realistic. Errrm I don't think that I have the right to disclose the client list but the orderbook currently contains one US-based brewery, a very large office area in London, and a £250mio turnover food logistics company, so it is a good quality client base and this isn't a company that is having to discount units to move them. We mooted an independent valuation but I was left wondering whether there is any point doing this in a situation where the technology is fairly ground-breaking. In the end, I decided that it would add little value. - Agree that it is not necessarily the most liquid security... but hopefully the rate and the headroom compensate for that. The owners of the company are very heavily invested in this company and in the technology. They have a good relationship with DS Leasing and I would be very hopeful that they would help us with clients etc in the (hopefully unlikely event) of their being a problem. The existence of the PG is additional incentive for them to do this rather than get involved in a tussle. - The depreciation is excessive, imho. The AD units have a 20 year life on them and we are using 20% to be conservative, as we always are. The valuation report contains a graph showing value of security vs capital outstanding and as you can see it maintains good LTV. Would this be a good bet on an interest only basis? Personally yes, as I like the company... but others may not be as content. That is why we structured it as an amortising loan as hopefully the continual paydown of capital will add extra comfort to people.
|
|
baldpate
Member of DD Central
Posts: 548
Likes: 406
|
Post by baldpate on Sept 9, 2015 13:52:24 GMT
The price that can be achieved when sold by a company which is a going concern, and therefore available to provide after-market support and maintenance, would be rather greater than the price which can be acheived if it were necessary to sell the assets after the company had gone 'pop', don't you think? It's a factor to take into consideration when assessing the quaility of the asset security.
That said, as has been pointed out, there is plenty of headroom at 47%, and the loan has other attractive features. I shall certainly be participating.
|
|
madpierre
Member of DD Central
Posts: 303
Likes: 374
|
Post by madpierre on Sept 9, 2015 15:14:08 GMT
I didn't get an email but fortunately just noticed the thread
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Sept 15, 2015 15:51:18 GMT
My inbox tells me that there is 1% cashback on this for folks investing over £1k.
Which is nice.
I must admit that I was concerned that this loan might not get funded as it doesn't appear to be underwritten but I assume that this will help.
|
|
stevio
Member of DD Central
Posts: 2,065
Likes: 894
|
Post by stevio on Sept 16, 2015 9:39:33 GMT
My inbox tells me that there is 1% cashback on this for folks investing over £1k. Which is nice. I must admit that I was concerned that this loan might not get funded as it doesn't appear to be underwritten but I assume that this will help. Is that new? Is that 11% PLUS 1% CB or 11% INCLUDING 1% CB?
|
|
|
Post by ablrateandy on Sept 16, 2015 9:41:42 GMT
11pc plus 1pc cash back on invested amounts over £1000. Gets you to 12.3% AER (assuming you stick the cashback into an equivalent yield).
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on Sept 16, 2015 9:43:12 GMT
My inbox tells me that there is 1% cashback on this for folks investing over £1k. Which is nice. I must admit that I was concerned that this loan might not get funded as it doesn't appear to be underwritten but I assume that this will help. Is that new? Is that 11% PLUS 1% CB or 11% INCLUDING 1% CB? Think the 1%CB was added yesterday, although it wasn't mentioned on the loan itself when I looked (only in the email). The deal is 11% amortising, with Instant Returns on invested funds, PLUS the 1% CB on draw-down
|
|
jonah
Member of DD Central
Posts: 2,031
Likes: 1,113
|
Post by jonah on Sept 16, 2015 9:47:35 GMT
Is that new? Is that 11% PLUS 1% CB or 11% INCLUDING 1% CB? Think the 1%CB was added yesterday, although it wasn't mentioned on the loan itself when I looked (only in the email). The deal is 11% amortising, with Instant Returns on invested funds, PLUS the 1% CB on draw-down I was thinking about this... Maybe a 1% CB triangle in to top left similar to the rate one in the top right on the new loans page?
|
|
registerme
Member of DD Central
Posts: 6,225
Likes: 6,029
|
Post by registerme on Sept 16, 2015 10:00:10 GMT
11pc plus 1pc cash back on invested amounts over £1000. Gets you to 12.3% AER (assuming you stick the cashback into an equivalent yield). Sorry to be a pedant, but the the blurb on the loan says £1000 or more, not >£1000....... Let me know if I need to drop another 1p on my proposed lending amount please? .
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on Sept 16, 2015 10:14:02 GMT
11pc plus 1pc cash back on invested amounts over £1000. Gets you to 12.3% AER (assuming you stick the cashback into an equivalent yield). Sorry to be a pedant, but the the blurb on the loan says £1000 or more, not >£1000....... Let me know if I need to drop another 1p on my proposed lending amount please? . That is not pedantic but just the normal and necessary attention to detail. £1000 should be a popular figure. (It looks a good offer.)
|
|