ben
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Post by ben on Jul 5, 2016 11:02:03 GMT
Unofficial heads up that this loan may close on Friday lunchtime due to a couple of opportunities for them to use the money. We'll know more later. I doubt it will make it that far not much more to go now.
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Monetus
Member of DD Central
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Post by Monetus on Jul 5, 2016 11:32:11 GMT
Will you be adding some more capacity to this shortly? Would like to place a decent-sized bid
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Post by ablrateandy on Jul 5, 2016 12:31:24 GMT
Hi @monetus. I'm just calling them to see what they want to do.....
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Investboy
Member of DD Central
Trying to recover from P2P revolution
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Post by Investboy on Jul 5, 2016 13:53:12 GMT
What ? gone already, can we have some more please?
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Post by ablrateandy on Jul 5, 2016 14:03:00 GMT
Just increased to £400,000 and that is it. The borrower will be back at some point soon to borrow more once this is deployed effectively.
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Investboy
Member of DD Central
Trying to recover from P2P revolution
Posts: 564
Likes: 201
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Post by Investboy on Jul 5, 2016 15:05:52 GMT
Just increased to £400,000 and that is it. The borrower will be back at some point soon to borrow more once this is deployed effectively. Just made it with my few quid, only 12k remaining
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blender
Member of DD Central
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Post by blender on Jul 5, 2016 15:37:49 GMT
Gone! Congrats.
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james
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Post by james on Jul 5, 2016 15:58:31 GMT
£400k in 24 hours. Not bad going at all! Now, those pub entertainment complexes need a few thousand more in the next couple of days and the cupboard will be bare for new loans for a little while...
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Post by Deleted on Jul 5, 2016 18:35:31 GMT
What's next Andy?
Bin filled up on waste, wasted in pubs, on good terms with credit, side stepped four wheeler dealers, harder still, contain my enthusiasm savouring flight time in Columbia, no Cartels or Arabica to spoil the trip just genuinely enjoying a cabin eyed view on saving with Ablrate.
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stevio
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Post by stevio on Jul 5, 2016 20:43:29 GMT
Just increased to £400,000 and that is it. The borrower will be back at some point soon to borrow more once this is deployed effectively. Hopefully not at a lower rate, despite the demand
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Post by ablrateandy on Jul 5, 2016 20:51:37 GMT
Whilst I can't speak for the borrower, they are a very fair-handed company in my experience and the business is not one where one percent makes a difference.
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Post by GSV3MIaC on Jul 5, 2016 20:59:30 GMT
Given the slo-mo crumpling in the property market(s) a 'flight to aeroplanes' would be very welcome (but in the meantime trade credit will have to do). Go round up some more please.
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stevio
Member of DD Central
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Post by stevio on Jul 5, 2016 21:24:54 GMT
Given the slo-mo crumpling in the property market(s) a 'flight to aeroplanes' would be very welcome (but in the meantime trade credit will have to do). Go round up some more please. Good point, I should have invested more Roll on the next one
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Post by ablrateandy on Jul 5, 2016 21:52:48 GMT
Now the loan is filled and this cannot be construed as marketing..
*Personal opinion and not a recommendation or an Ablrate comment*
I genuinely really like this sector and will be increasingly invested in it. The real key is to have experienced guys running the show. The documentation on each trade is a nightmare (you are probably looking at eight to twenty documents for every single one month transaction) so you have to really, really know your stuff and be able to move quickly. A lot of it is repeat business and relationship driven and in this case Paul and Glyn's contacts are excellent because they have many years under their belt.
There are risks and that is why we are using an SPV structure - even if one transaction goes wrong or is delayed, there is still the capacity to make it back and still meet obligations. In this trade, the borrower has been truly excellent to deal with. I will have sight on every deal that is funded, with copies of all of the paperwork etc shared with me.
I am sure that they would look at funding individual transactions through us but we have a duty to protect lenders. Whilst everyone has a degree of sophistication, putting all of your eggs in one basket is only for the experienced and we would not want to offer people that kind of opportunity at the moment.
They are planning on keeping lenders up to date with reports and deal summaries of what they are doing so that people can see how the money is working. It's important to them that they are not a black box - at some point in time they will raise a little equity, so good IR is important to them.
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james
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Post by james on Jul 6, 2016 0:23:29 GMT
You're not the only one who's really keen on this sector. I'd love to see more deals, particularly with you vetting each advance.
Agreed about the SPV structure as well. I definitely prefer a good distribution of relatively low percentage of total invested deals both for general risk management and because it ensures that each individual lender doesn't get results that differ from the average result by the chance of which deals they happen to be involved in. I also think that properly vetting each deal is more work than most of us would want to do and barring you doing something to blow trust I'm happy with Ablrate doing at least a good bit of at least the initial sniff testing part of the work.
You might look at how MoneyThing does six month renewable participation deals for longer term financing, though. Each six months the borrower has an obligation to repay but the loan is offered for new funding and typically the vast majority of lenders by value just opt to continue and the remaining need is usually snapped up by those who want in. So the borrower doesn't end up repaying until they want to but the lenders get end of term get-out options every six months.
Just grow the total SPV size to some sensible cap (how many millions...) to allow good diversification at sensible relending deal sizes within each SPV and ideally add those regular non-secondary exit opportunities and I think you'll be on a great path with these.
So far as equity goes, I assume that they would want to use SEIS or EIS or less likely VCT. Just because that enhances the value of the proposition to potential investors.
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