blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on May 4, 2017 7:39:53 GMT
Hi Andy @ablerateandy Could you expand on your interest logic here? I notice that the annual tax statement did not recognise the later funding tranches as having paid interest to acquire, so does that mean the whole outlay is capital and how would the different tranches fit together. Can you show that the net gain on a full redemption is recognised as interest? No more, no less? ablrate has previously commented that the annual tax statement on the website is not yet complete, as it's not offsetting accrued interest purchased against interest paid. This loan in particular is the one that most needs that problem to be fixed! I am not sure that Ablrate are intending to offset accrued interest purchased in the tax statement. The tax statement is there and to be used as is. The plan may be just to provide the data.
|
|
|
Post by dan1 on May 4, 2017 13:14:26 GMT
There is a very simple solution; make this loan tradable on the SM - killing two birds with one stone, allows those agitating for the return of their money an escape route & those who actually want to increase their holding an opportunity to do so. It has just been made tradeABLe. Being relatively new to the platform I'd ignored this thread, I'm intrigued.
|
|
nick
Member of DD Central
Posts: 1,055
Likes: 825
|
Post by nick on May 4, 2017 13:57:49 GMT
Now that there has been a partial redemption of this loan, does anyone know how to calculate interest earned on the redeemed amounts, ie how do you apportion the original accrued interest paid on original purchases of the various loan tranches? I'm inclined to use a average purchased accrued interest paid spread across total capital when allocating this as a deduction to determine interest earned on each redemption/sale - I'm not sure how else an allocation would be made given each loan tranche is indistinguishable post purchase. Has anyone else given this any thought?
|
|
|
Post by dan1 on May 4, 2017 14:17:55 GMT
There is a very simple solution; make this loan tradable on the SM - killing two birds with one stone, allows those agitating for the return of their money an escape route & those who actually want to increase their holding an opportunity to do so. It has just been made tradeABLe. Being relatively new to the platform I'd ignored this thread, I'm intrigued. And 'Paused' again, just as well I downloaded the document set.
|
|
|
Post by ablrate on May 4, 2017 14:25:13 GMT
It has just been made tradeABLe. Being relatively new to the platform I'd ignored this thread, I'm intrigued. And 'Paused' again, just as well I downloaded the document set. We are doing the partial loan repayment.,... and other bids keep coming... so we paused and unpause... we will be done soon.
|
|
|
Post by dan1 on May 4, 2017 14:32:08 GMT
And 'Paused' again, just as well I downloaded the document set. We are doing the partial loan repayment.,... and other bids keep coming... so we paused and unpause... we will be done soon. Thanks for the update. It all makes sense having read the 1 year update. This loan was paused before I began investing on the platform...hence my interest in the status of the loan.
|
|
rogerbu
Member of DD Central
Posts: 398
Likes: 213
|
Post by rogerbu on May 4, 2017 18:16:59 GMT
Is anyone able to give a simple explanation of Andy's statement 'for every £1000 of capital that you invested you will see an entry of £938.34 of capital and £247.70 of interest. This totals £1,186.04.'
My simple brain can't think of any logic why my capital has reduced just because it is being repaid early.
I can see that Capital £938.34 + Interest 247.70 (21.0% for 430 days) = Capital £1000 + Interest £186.04 (15.4% for 430 days). So I haven't dipped out, but I will be paying tax on more interest than I expected.
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on May 5, 2017 7:34:58 GMT
Is anyone able to give a simple explanation of Andy's statement 'for every £1000 of capital that you invested you will see an entry of £938.34 of capital and £247.70 of interest. This totals £1,186.04.' My simple brain can't think of any logic why my capital has reduced just because it is being repaid early. I can see that Capital £938.34 + Interest 247.70 (21.0% for 430 days) = Capital £1000 + Interest £186.04 (15.4% for 430 days). So I haven't dipped out, but I will be paying tax on more interest than I expected. I emailed ablrateandy yesterday with much the same question and he's replied " The numbers were balanced on the way in and the way out to ensure that everyone got 15.4%. This involves varying the capital price because although you are receiving 15.4% per year, it is compounded so is actually the equivalent of 21% per year. David is currently working on improving the tax statement which should resolve this." I don't profess to understand this fully but I suspect the discount was applied as a manual work-around in the Ablrate system to ensure the overall payment (capital + interest) reflected the contractual rate, given that the loan was originally configured only to repay capital + rolled up interest at the end of the 5 year term. If so, the tax implications of returning some of the capital as interest instead will need to be corrected for in the tax statement. Good to hear that ablrate is working on this. Update: My follow-up question and Andy's reply: Q: So it is a work-around in the Ablrate system to ensure the overall payment is made at the correct rate, rather than something intrinsic to the contractual terms of the loan?A: Absolutely. From a purely maths point of view, you are actually receiving 21% per year (15.4% compounded 5 times). However to make sure that everyone got the same deal we are using this 15.4% AER as our base number so that what ever day someone comes in or out of the loan they know that the return is constant.
|
|
rogerbu
Member of DD Central
Posts: 398
Likes: 213
|
Post by rogerbu on May 6, 2017 17:15:15 GMT
I thought I understood that we would be getting about 20% repaid 'imminently' a couple of days ago. Anyone seen any sign of it?
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on May 6, 2017 18:49:59 GMT
I thought I understood that we would be getting about 20% repaid 'imminently' a couple of days ago. Anyone seen any sign of it? Yes, I had 19% repaid with interest on the 4th
|
|
|
Post by ablrateandy on May 17, 2017 23:01:13 GMT
Sorry - everyone should have had 19% of the face amount repaid (together with interest). If we missed you, then please email me on andy@containersupply.co.uk and I will get ablrate to check your account! We are just sorting out a couple more internal things whilst we ponder where to go next. I have spoken directly to quite a few people and am happy to chat to anyone about the loan, business thoughts etc. My eye is focussed keenly on (a) Capital preservation, which has been achieved despite some rather adverse circumstances and (b) targetting the 15.4% return, which we feel on track with. Our internal thoughts are whether to adopt a more aggressive strategy (which imho goes outside my mandate and would require a new structure), a continuation of the current strategy (which is tough but possibly achievable) or a wind-down (which gives me my life back but annoys me because I think that we can make this work). More news will be forthcoming but I am always happy to chat personally.
|
|
Balder
Member of DD Central
Posts: 641
Likes: 614
Member is Online
|
Post by Balder on May 23, 2017 8:41:00 GMT
What is the total value of this loan now. The site still has £650K - I assume it is now -19%. Be good if things were followed through completely.
|
|
blender
Member of DD Central
Posts: 5,719
Likes: 4,272
|
Post by blender on May 23, 2017 14:12:10 GMT
What is the total value of this loan now. The site still has £650K - I assume it is now -19%. Be good if things were followed through completely. Is that intended? Amortising loans show the original value, not the outstanding principal (and no need to change).
|
|
|
Post by elephantrosie on May 30, 2017 20:36:23 GMT
sorry, trying to get my head around this situation. has this loan defaulted?
|
|
SteveT
Member of DD Central
Posts: 6,873
Likes: 7,918
|
Post by SteveT on May 30, 2017 21:28:30 GMT
sorry, trying to get my head around this situation. has this loan defaulted? No, a partial early repayment was made.
|
|