paulg
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Post by paulg on Apr 13, 2016 19:39:26 GMT
UPDATE: MTAF308 - Loan is due to be repaid sometime on Friday (£203,000). : Ed - will this loan be replaced by another supercar loan as originally envisaged?
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Post by MoneyThing on Apr 13, 2016 20:06:00 GMT
UPDATE: MTAF308 - Loan is due to be repaid sometime on Friday (£203,000). : Ed - will this loan be replaced by another supercar loan as originally envisaged? Yes, but not immediately. Since these are the first loans to redeem, the borrower (and myself), were keen to demonstrate to lenders clear loan cycles (i.e. loan capital & interest repaid), rather than simply reassigning new assets against a facility. Regards, Ed
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freddy
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Post by freddy on Apr 14, 2016 0:35:49 GMT
I idler stand the reasoning however investors have been given the option to tick the box to re-invest in these loans. This gave me the impression that existing investors would automatically roll-over into new loans. Is this the case and if so, when? Having assumed the investment would roll-over I hadn't done any planning around having current investment funds becoming available.
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Post by MoneyThing on Apr 14, 2016 6:25:41 GMT
I idler stand the reasoning however investors have been given the option to tick the box to re-invest in these loans. This gave me the impression that existing investors would automatically roll-over into new loans. Is this the case and if so, when? Having assumed the investment would roll-over I hadn't done any planning around having current investment funds becoming available. Morning, Had the sales of these cars not completed, then the loans would have been rolled over for a period of time (hence the renew opt-in being available for this scenario). However, any new loans (unlike the MPs), would be secured by different assets with varying loan amounts and therefore being entirely new loans they would not be undertaken via a roll-over. Kind regards, Ed
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stevio
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Post by stevio on Apr 14, 2016 7:27:51 GMT
I idler stand the reasoning however investors have been given the option to tick the box to re-invest in these loans. This gave me the impression that existing investors would automatically roll-over into new loans. Is this the case and if so, when? Having assumed the investment would roll-over I hadn't done any planning around having current investment funds becoming available. Morning, Had the sales of these cars not completed, then the loans would have been rolled over for a period of time (hence the renew opt-in being available for this scenario). However, any new loans (unlike the MPs), would be secured by different assets with varying loan amounts and therefore being entirely new loans they would not be undertaken via a roll-over. Kind regards, Ed So Ed, are you saying these cars have sold? I thought the eventual plan was to set up a loan facility for this company? I think what people would like to know is the likelihood of these loans renewing?
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ben
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Post by ben on Apr 14, 2016 7:39:59 GMT
The pipeline states that a deposit has been placed on them both so I guess as good as sold if not be enough to cover interest for next 6 months as would guess the deposit will be about 10%
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Post by MoneyThing on Apr 14, 2016 8:24:22 GMT
Morning, Had the sales of these cars not completed, then the loans would have been rolled over for a period of time (hence the renew opt-in being available for this scenario). However, any new loans (unlike the MPs), would be secured by different assets with varying loan amounts and therefore being entirely new loans they would not be undertaken via a roll-over. Kind regards, Ed So Ed, are you saying these cars have sold? I thought the eventual plan was to set up a loan facility for this company? I think what people would like to know is the likelihood of these loans renewing? Morning, Yes, as mentioned previously these cars are being sold (customer deposits in and the first to taken away and paid in full is the one on Friday). The renewals on these individual loans will be dependent on when they are sold which may be less than 6 months or go over the 6 months and therefore renew. We may well look at a facility arrangement at some point however like how we started the CS loans, we wanted to undertake individual loans first to help lenders become familiar with supercars as a new asset class. Kind regards, Ed
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Post by MoneyThing on Apr 14, 2016 8:34:14 GMT
So Ed, are you saying these cars have sold? I thought the eventual plan was to set up a loan facility for this company? I think what people would like to know is the likelihood of these loans renewing? Morning, Yes, as mentioned previously these cars are being sold (customer deposits in and the first to taken away and paid in full is the one on Friday). The renewals on these individual loans will be dependent on when they are sold which may be less than 6 months or go over the 6 months and therefore renew. We may well look at a facility arrangement at some point however like how we started the CS loans, we wanted to undertake individual loans first to help lenders become familiar with supercars as a new asset class. Kind regards, Ed ...although admittedly, unlike the portfolio of CS loans that consist on average a few hundred pounds, the Supercars as a few hundred thousand pounds will require a different approach.
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pom
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Post by pom on Apr 14, 2016 9:18:59 GMT
...although admittedly, unlike the portfolio of CS loans that consist on average a few hundred pounds, the Supercars as a few hundred thousand pounds will require a different approach. A (multi?) million pound MP....coooooool 
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freddy
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Post by freddy on Apr 14, 2016 9:44:54 GMT
I understand the points being made however it makes it very difficult to plan for future investment and avoid the potential of having money sitting idle/uninvested. Ticking the box to renew gave me the impression that should the car sell then it would be replaced with a car of similar value. Had I not had the option of a renew box I may have chosen to sell my investment on the SM a couple of months ago and put the money into an alternative MT loan.
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Post by MoneyThing on Apr 14, 2016 9:58:22 GMT
I understand the points being made however it makes it very difficult to plan for future investment and avoid the potential of having money sitting idle/uninvested. Ticking the box to renew gave me the impression that should the car sell then it would be replaced with a car of similar value. Had I not had the option of a renew box I may have chosen to sell my investment on the SM a couple of months ago and put the money into an alternative MT loan. I fully understand your position, however we informed investors as soon as we knew that these loans would end as the cars had been sold (i.e. we could not have provided a 'couple of months' notice in advance). It will always be this case whereby we are lending against assets which are being sold to repay the loan and often this can happen with little in the way of notice. (For some of their cars, customers have turned up with funds on the day and driven away with the vehicle so can be difficult to provide much notice). On the second point, we would be unable to simply move your funds into a new loan against a new asset (regardless if it is the same asset type and loan terms from the same borrower), as lenders still have to be repaid in full as they are lending against a specific loan agreement against a specific vehicle. (The renew opt-in was available in the event that the car(s) were not sold before the loan end date and the loan agreement was renewed.) Kind regards, Ed
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SteveT
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Post by SteveT on Apr 14, 2016 10:00:47 GMT
I understand the points being made however it makes it very difficult to plan for future investment and avoid the potential of having money sitting idle/uninvested. Ticking the box to renew gave me the impression that should the car sell then it would be replaced with a car of similar value. Had I not had the option of a renew box I may have chosen to sell my investment on the SM a couple of months ago and put the money into an alternative MT loan. MT loans that are set up with the intention that they will probably renew each time are labelled "Managed Portfolios". Tick boxes against other loans are only there so that lenders can express an advance wish to be included in any renewal opportunity that does arise, not to indicate that those loans necessarily will renew. This is exactly analagous to the approach taken on FS. [Crossed with Ed!]
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freddy
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Post by freddy on Apr 14, 2016 10:05:14 GMT
Thanks for the prompt reply MT. No biggy!
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Post by Financial Thing on Apr 14, 2016 18:17:15 GMT
Darn it MoneyThing , you're paying back completed loans plus interest, with no default...where's my pound of flesh bonus? Seriously though, well done and keep doing what you're doing. |
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Post by MoneyThing on Apr 14, 2016 18:19:17 GMT
Darn it MoneyThing , you're paying back completed loans plus interest, with no default...where's my pound of flesh bonus? Seriously though, well done and keep doing what you're doing.  I am popping over to meet the borrower next week to look at some new deals so wont be long before the next ones. Regards, Ed.
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I am popping over to meet the borrower next week to look at some new deals so wont be long before the next ones. Regards, Ed.