sj
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Post by sj on Nov 4, 2019 10:48:58 GMT
I find it strange that the borrower has fallen into the habit of coming up with the payment two days late (this last one fell over a weekend so i'm being generous with the 2 day count...) - is it really so hard for them to get the money sent on time? If they didn't have the money then it'd take longer than 2 days to send funds I would have thought. Maybe they're just incredibly forgetful/disorganised. Or maybe they think it's perfectly acceptable to pay a bit on the late side, is this how the catering industry works? Great to see that ABL will be gently reminding them of the virtues of timely repayments.
Full disclosure, I did buy a bit more of the loan at the tasty-looking offered rates but my holding wasn't that big to start with anyway.
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nw99
Posts: 340
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Post by nw99 on Nov 4, 2019 10:53:04 GMT
Buying nicely at 97.2,3 area
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Post by ladywhitenap on Nov 4, 2019 11:09:47 GMT
I don't know why ABL and others don't use direct debit to collect their repayments. I let residential property and use GoCardless as a DD intermediary to collect monthly rent and they charge £2 admin per payment ie chicken feed on the sums involved. The big advantage is that if a tenant cancels or does not cover the DD I get told immediately. Relying on standing order means the sender has all the control and the first the payee is aware of a problem is just non arrival of funds.
Shameless plug for Go Cardless here - they are absolutely brilliant and their system never misses a beat!
LW
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Post by ablrate on Nov 4, 2019 11:25:07 GMT
I don't know why ABL and others don't use direct debit to collect their repayments. I let residential property and use GoCardless as a DD intermediary to collect monthly rent and they charge £2 admin per payment ie chicken feed on the sums involved. The big advantage is that if a tenant cancels or does not cover the DD I get told immediately. Relying on standing order means the sender has all the control and the first the payee is aware of a problem is just non arrival of funds. Shameless plug for Go Cardless here - they are absolutely brilliant and their system never misses a beat! LW We negotiated with Gocardless, unfortunately they would not accommodate payments of over £5,000 which, in the main, our payments are.
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Post by ladywhitenap on Nov 4, 2019 11:41:53 GMT
I don't know why ABL and others don't use direct debit to collect their repayments. I let residential property and use GoCardless as a DD intermediary to collect monthly rent and they charge £2 admin per payment ie chicken feed on the sums involved. The big advantage is that if a tenant cancels or does not cover the DD I get told immediately. Relying on standing order means the sender has all the control and the first the payee is aware of a problem is just non arrival of funds. Shameless plug for Go Cardless here - they are absolutely brilliant and their system never misses a beat! LW We negotiated with Gocardless, unfortunately they would not accommodate payments of over £5,000 which, in the main, our payments are. Ah I'd not come across an upper limit with GoCardless as all my rental payments are all sub £1k. LW
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blender
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Post by blender on Nov 4, 2019 13:07:12 GMT
Pleased to see the admin note, ablrate . There is a slippery slope between regular late payments being tolerated and a general idea that repayment is optional. That's what happened, in part, to Funding Suckers imo.
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Post by webbski9 on Nov 5, 2019 13:14:58 GMT
Ablrate,along with all platforms should INSIST on a Direct Debit from ALL borrowers for ALL interest and Capital Payments ...why not ? How difficult is that to arrange ?? In fact it should be written into the loan arrangement .
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Post by ablrate on Nov 5, 2019 13:35:28 GMT
Ablrate,along with all platforms should INSIST on a Direct Debit from ALL borrowers for ALL interest and Capital Payments ...why not ? How difficult is that to arrange ?? In fact it should be written into the loan arrangement . As we have said, there is an upper limit on Gocardless and others of £5k.. the vast majority of our loan repayments are above this. We are evaluating other providers and other ways of using the DDM system.. however most have a £5k threshold because of the indemnity... i.e if a borrower complains (cancellation not cancelled etc etc).. all the shenanigans that borrowers can get up to.. then the provider would have to refund the bank of the borrower and argue the toss in court or with the bank... so while it is tremendously useful it also has potential issues. We are looking to see if we could do directly through the bank but it is not a quick process.
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Post by Badly Drawn Stickman on Nov 5, 2019 13:45:43 GMT
Ablrate,along with all platforms should INSIST on a Direct Debit from ALL borrowers for ALL interest and Capital Payments ...why not ? How difficult is that to arrange ?? In fact it should be written into the loan arrangement . As we have said, there is an upper limit on Gocardless and others of £5k.. the vast majority of our loan repayments are above this. We are evaluating other providers and other ways of using the DDM system I take it parallel Direct debits is not an option?
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Post by ablrate on Nov 5, 2019 13:47:31 GMT
As we have said, there is an upper limit on Gocardless and others of £5k.. the vast majority of our loan repayments are above this. We are evaluating other providers and other ways of using the DDM system I take it parallel Direct debits is not an option? Doesn't help with the indemnity... but good lateral thinking!
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blender
Member of DD Central
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Post by blender on Nov 5, 2019 14:57:26 GMT
Cake shop has paid up. There should not be a problem this soon into an interest-only loan.
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nw99
Posts: 340
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Post by nw99 on Nov 5, 2019 14:58:20 GMT
Paid is the main thing secondary should be firmer as a result
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Post by webbski9 on Nov 5, 2019 16:46:09 GMT
Thank you Ablrate .Certainly something needs to be done.
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Post by danraj on Nov 7, 2019 9:03:54 GMT
As we have said, there is an upper limit on Gocardless and others of £5k.. This is their starting limit for new accounts. Once you evidence good performance, they will increase the limit, with periodic reviews.
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TitoPuente
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Post by TitoPuente on Nov 7, 2019 9:22:23 GMT
As we have said, there is an upper limit on Gocardless and others of £5k.. This is their starting limit for new accounts. Once you evidence good performance, they will increase the limit, with periodic reviews. Management 101 question: So what? For a loan with a defined and constant service amount that doesn’t help.
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