stevio
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Post by stevio on Mar 16, 2016 19:19:57 GMT
Details
This is a £200,000 loan with ACF, a new MoneyThing partner that provides stocking loan finance to 55 car dealerships as well as acting as an FCA regulated broker. The loan is secured against a rolling stock of cars stored on the premises of the car dealerships.
Purpose
The purpose of the loan is to allow ACF to finance their expansion plans as they roll out their services to more dealerships across the north of the UK.
Security
The portfolio is managed by MoneyThing and ACF to ensure that the loan represents 70% of the current retail value (according to CAP Retail Value) of the underlying vehicles.*
ACF will maintain a portfolio of rolling stock and move cars in and out of the facility as they are bought and sold by the dealerships. The portfolio will be updated on a monthly basis. Initially the loan portfolio will finance three car dealerships and over time, this will be expanded to provide greater diversification.
ACF carefully manages the loans throughout their term and carry out weekly audits of their dealerships. They have also agreed to swap out any defaulted loans with another loan of equal or greater value.
The loan is operated under a Special Purpose Vehicle (SPV) called ‘ACI 2’ and all assets are fully owned by this SPV. MoneyThing holds a debenture over this company. Additional security is provided by a Corporate Guarantee over the main company.
Term
This is a continuing facility with MoneyThing. MoneyThing is offering the loan to investors on an initial 6 month term.
After 6 months, the investor can choose to either liquidate their holding or renew for another 6 months.
An introduction to ACF and a copy of the initial schedule of cars can be found below. Note that the schedule will change on a regular basis as and when cars are purchased and sold, and replaced with other cars of the same value.
* The agreement in place between MoneyThing & ACF allows for up to 5% of the total loan amount to be held in the SPV on a temporary basis as cash rather than assets. This is to assist with the smooth running of the portfolio.
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stevio
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Post by stevio on Mar 16, 2016 19:37:39 GMT
MoneyThing well done on further diversity with a new partner, this seems a great way to go and is encouraging me personally to invest more in Moneything. I like the swapping out defaults that you seem to incorporate with a few partners and also a variety in partner assets to add to diversity. I am presuming that should ACF go out of business, MT would take over running the SPV? If so, would this mean continuing the finance or selling the assets to recover the loan? 70% LTV seems a little high, can you comment further on why you feel this is sufficient?
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stevio
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Post by stevio on Mar 18, 2016 14:45:20 GMT
Obviously no interest? or being discussed elsewhere?
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Steerpike
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Post by Steerpike on Mar 18, 2016 14:49:04 GMT
I agree that 70% of retail CAP seems high.
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Post by MoneyThing on Mar 18, 2016 15:31:24 GMT
Obviously no interest? or being discussed elsewhere? My apologies stevio, I had thought that I caught everything I was tagged on but clearly missed this one. In the event ACF went out of business then MoneyThing would take over the SPV and the loan book. This would entail us either continuing the loan book, wind it down or sell it on to another provider (we would only be in the position to reposes assets and sell them in the event of a failure on the part of the borrower against their loan agreement). The interest rate to the underlying borrowers is a lot higher and ACF have shown a good track record of loan & interest payments received from their borrower base. At 70% LTV of the retail value of the cars, whilst we are lending at a lower LTV than typical mainstream stocking finance providers, we feel comfortable this is a suitable level of finance against the level of security provided whilst still being beneficial to the borrower. King regards, Ed
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Post by caveman38 on Mar 18, 2016 16:19:05 GMT
Re. this loan and the Managed Portfolio that were on the prefunding page till 16:00. I thought when I read the page that you had 24 hours from 16:00 today to bid to a max of £2,000 and £50 till tomorrow and then the loans would be love and open to all bidders. I see that although this one still has money left the Portfolio is fully subscribed. Where have I misinterpreted the prefunding rule. Thanks.
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SteveT
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Post by SteveT on Mar 18, 2016 16:22:18 GMT
Re. this loan and the Managed Portfolio that were on the prefunding page till 16:00. I thought when I read the page that you had 24 hours from 16:00 today to bid to a max of £2,000 and £50 till tomorrow and then the loans would be love and open to all bidders. I see that although this one still has money left the Portfolio is fully subscribed. Where have I misinterpreted the prefunding rule. Thanks. The MP was a renewal and so presumably had very little availability (most lenders roll over their stakes). They were on the Pending loans list and went live at 4pm today. There is no prefunding on MT (for now at least)
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paulgul
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Post by paulgul on Mar 18, 2016 16:24:46 GMT
Re. this loan and the Managed Portfolio that were on the prefunding page till 16:00. I thought when I read the page that you had 24 hours from 16:00 today to bid to a max of £2,000 and £50 till tomorrow and then the loans would be love and open to all bidders. I see that although this one still has money left the Portfolio is fully subscribed. Where have I misinterpreted the prefunding rule. Thanks. Was the managed portfolio a renewal, if so perhaps everybody renewed so there nothing for sale today Edit: crossed with Stevet
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Post by caveman38 on Mar 18, 2016 16:25:37 GMT
Re. this loan and the Managed Portfolio that were on the prefunding page till 16:00. I thought when I read the page that you had 24 hours from 16:00 today to bid to a max of £2,000 and £50 till tomorrow and then the loans would be love and open to all bidders. I see that although this one still has money left the Portfolio is fully subscribed. Where have I misinterpreted the prefunding rule. Thanks. The MP was a renewal and so presumably had very little availability (most lenders roll over their stakes) That I can understand and if that's correct then I wouldn't have had a shout then. If I am correct, this loan showed bidding started today, max 2K and live tomorrow. It is on live now. What am I misreading?
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SteveT
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Post by SteveT on Mar 18, 2016 16:27:05 GMT
The MP was a renewal and so presumably had very little availability (most lenders roll over their stakes) That I can understand and if that's correct then I wouldn't have had a shout then. If I am correct, this loan showed bidding started today, max 2K and live tomorrow. It is on live now. What am I misreading? There is no prefunding. Those loans were on the Pending list. The second date is when the 24 hour bid limit is removed
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Post by caveman38 on Mar 18, 2016 16:31:04 GMT
Cheers for that - getting confused with SS
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nush
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Post by nush on Mar 18, 2016 16:53:30 GMT
I saw £350 flash past in the MP. It had gone by the time my little fingers reacted. same for me, thats life sometimes
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investibod
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Post by investibod on Mar 18, 2016 20:12:23 GMT
I saw £350 flash past in the MP. It had gone by the time my little fingers reacted. same for me, thats life sometimesne I actually managed to get to the page with the "Invest Now" button on this one. More than I have managed with the others this week. However, not too surprisingly, it was all gone before I managed to enter a bid amount.
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Post by caveman38 on Apr 24, 2016 8:04:28 GMT
As there are another 2 loans of this type available on Monday. I wondered if somebody would humour me and explain how they work. I understand the company raises the money to buy cars to lease out or hire on HP. What I cannot understand is how second hand cars can have a resale value of 80% if a default occurs. If I have got this completely a**e up, excuse me. Although I've got reasonable holdings on MT and SS, I have to confess to not fully grasping all of the workings of each loan and rely heavily (my mistake I know) on the greater knowledge available on the forum.
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star dust
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Post by star dust on Apr 24, 2016 9:27:02 GMT
caveman38, in case you have missed them, there is a thread here discussing these types of loans, and another older one here that dates back to when the new partner first started with MT. Both contain useful explainitory information from Ed MoneyThing themselves.
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