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Post by Deleted on Nov 12, 2015 16:34:36 GMT
I note that MT has a little line called "£2,011,221.00 available funding remaining" now you guys are going to think I'm dumb, but, does that mean that there is £2m+ just gone into MT between roughly 3:45pm and 4:30 pm to take up this deal?
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Post by MoneyThing on Nov 12, 2015 16:38:42 GMT
What I would like to know is what draw-down is dependent on. If all the legal work has already been done and it's just amassing the funding fine, but I would think this unlikely and any draw-down delays could wipe out the cash-back advantage. Might be one reason to wait and see, and invest in the second tranche. Or have I got something wrong? Afternoon star dust, All legals are in place so that drawdown for Tranche 1 can execute at the end of the first two weeks. (If MoneyThing is unable to raise sufficient pledges within the two weeks marketing period then drawdown will not happen as insufficient funds will be raised to take out the existing 1st charge holder). Therefore, if Tranche 1 is not funded, then Tranche 2 will not proceed. Hope this makes sense. Kind regards, Ed
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bjorn
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Post by bjorn on Nov 12, 2015 16:39:27 GMT
I note that MT has a little line called "£2,011,221.00 available funding remaining" now you guys are going to think I'm dumb, but, does that mean that there is £2m+ just gone into MT between roughly 3:45pm and 4:30 pm to take up this deal? No, I think it's the sum of currently unfunded amounts (which MT calls "available") in loans that haven't fully funded.
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Maestro
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Post by Maestro on Nov 12, 2015 16:39:54 GMT
thanks wiz, but that is also true of Tranche 1. I can see that from Ed's point of view this will suck in some players to join the existing lenders (and I'm guessing he will have a few contacts he can push this to) hence tranche 2 can be smaller. But, from a lenders point of view why would you lend to tranche 2 instead of tranche 1? Afternoon. The reason for creating tranches is a) so that the borrower can drawdown the first funds more quickly, but also b) £2m represents the minimum funding required for MoneyThing to be able to take a first charge on the site. Kind regards, Ed. Hi Ed, this may not be a popular suggestion but in the future would you consider providing similar loans with two tranches with senior/junior (first charge/second charge) structure with appropriately lower/higher interest rates for each tranche e.g. 10%/14%? Borrower will still pay 12% on average and investor can invest according to their risk appetite.
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Post by MoneyThing on Nov 12, 2015 16:42:05 GMT
I note that MT has a little line called "£2,011,221.00 available funding remaining" now you guys are going to think I'm dumb, but, does that mean that there is £2m+ just gone into MT between roughly 3:45pm and 4:30 pm to take up this deal? Afternoon bobo, I can confirm that we have not just taken £2m+ in deposits! Can you clarify where you are seeing the "2,011,221.00" figure? Kind regards, Ed.
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Post by MoneyThing on Nov 12, 2015 16:44:46 GMT
Afternoon. The reason for creating tranches is a) so that the borrower can drawdown the first funds more quickly, but also b) £2m represents the minimum funding required for MoneyThing to be able to take a first charge on the site. Kind regards, Ed. Hi Ed, this may not be a popular suggestion but in the future would you consider providing similar loans with two tranches with senior/junior (first charge/second charge) structure with appropriately lower/higher interest rates for each tranche e.g. 10%/14%? Borrower will still pay 12% on average and investor can invest according to their risk appetite. Afternoon Maestro. Happy to consider this if there is the demand. Kind regards, Ed.
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Post by MoneyThing on Nov 12, 2015 16:49:41 GMT
I note that MT has a little line called "£2,011,221.00 available funding remaining" now you guys are going to think I'm dumb, but, does that mean that there is £2m+ just gone into MT between roughly 3:45pm and 4:30 pm to take up this deal? Afternoon bobo, I can confirm that we have not just taken £2m+ in deposits! Can you clarify where you are seeing the "2,011,221.00" figure? Kind regards, Ed. My apologies bobo - I can see the figure you mentioned. Yes, this also includes the available funding on the two supercars. Kind regards, Ed.
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grahamg
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Post by grahamg on Nov 12, 2015 16:59:26 GMT
On the loan page the interest rate shows wrongly at "Rate (pa)0.00%"
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chrisf
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Post by chrisf on Nov 12, 2015 17:03:17 GMT
On the loan page the interest rate shows wrongly at "Rate (pa)0.00%" It's the pre-drawdown rate and will go up to 12% after drawdown (I know as I asked the same silly question by email and Sian answered)
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scraggs
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Post by scraggs on Nov 12, 2015 17:13:36 GMT
If tranche one fills and is drawn down, but tranche two doesn't fill, where does the borrower stand ?
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grahamg
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Post by grahamg on Nov 12, 2015 17:18:10 GMT
What I would like to know is what draw-down is dependent on. If all the legal work has already been done and it's just amassing the funding fine, but I would think this unlikely and any draw-down delays could wipe out the cash-back advantage. Might be one reason to wait and see, and invest in the second tranche. Or have I got something wrong? Afternoon star dust, All legals are in place so that drawdown for Tranche 1 can execute at the end of the first two weeks. (If MoneyThing is unable to raise sufficient pledges within the two weeks marketing period then drawdown will not happen as insufficient funds will be raised to take out the existing 1st charge holder). Therefore, if Tranche 1 is not funded, then Tranche 2 will not proceed. Hope this makes sense. Kind regards, Ed Ed what is the exit plan on trache 1 if tranche 2 fails to fund. Where would it leave the tranche 1 investors, other than owning a nice big camp site.
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ablender
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Post by ablender on Nov 12, 2015 17:34:15 GMT
Hi Ed, this may not be a popular suggestion but in the future would you consider providing similar loans with two tranches with senior/junior (first charge/second charge) structure with appropriately lower/higher interest rates for each tranche e.g. 10%/14%? Borrower will still pay 12% on average and investor can invest according to their risk appetite. Afternoon Maestro. Happy to consider this if there is the demand. Kind regards, Ed. I prefer equal rates and equal charges.
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Post by MoneyThing on Nov 12, 2015 17:49:08 GMT
If tranche one fills and is drawn down, but tranche two doesn't fill, where does the borrower stand ? If Tranche 1 fills and draws down, then MoneyThing takes over as 1st charge holder. If Tranche 2 doesn't fill, then the 2nd loan will not complete and therefore the borrower will likely have to find another lender to borrow the additional £1.5m (under a 2nd charge). Regards, Ed.
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trevor
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Post by trevor on Nov 12, 2015 17:54:41 GMT
£3.5m required from 656 registered investors is hefty £5.3k per investor. I hope you get it Ed but I suspect you need some new investors for this one. It's a big step up but welcome all the same.
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grahamg
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Post by grahamg on Nov 12, 2015 18:02:58 GMT
If tranche one fills and is drawn down, but tranche two doesn't fill, where does the borrower stand ? If Tranche 1 fills and draws down, then MoneyThing takes over as 1st charge holder. If Tranche 2 doesn't fill, then the 2nd loan will not complete and therefore the borrower will likely have to find another lender to borrow the additional £1.5m (under a 2nd charge). Regards, Ed. Ed, Am i right to assume that block C work to date was funded partly by the SS loan that expires in 3 months secured against block B, so is tranche 1 intended to facilitate paying off that loan. Also is tranche 2 intended to complete the block or landscape the site.
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