stevio
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Post by stevio on Jul 14, 2016 12:06:35 GMT
With Collateral being a new platform, I am considering myself how much I feel comfortable investing and I was wondering what bar others have set? Maybe you could include your reasoning?
Also, I was particularly wondering what would make you more comfortable with the platform and likely to increase your investment?
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oldgrumpy
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Post by oldgrumpy on Jul 14, 2016 12:15:36 GMT
I want it shown clearly, on the page inviting my investment, exactly how much I have already lent to this borrower.
One (commercial) borrower has multiple loans on raw gemstones and other collections, and I probably have enough exposure to him.
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archie
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Post by archie on Jul 14, 2016 12:20:28 GMT
I assume the poll is for overall investment, not per loan?
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ben
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Post by ben on Jul 14, 2016 12:23:43 GMT
I am happy to invest more then what I currently have invested. At the moment I am using both unbolted and collateral for pawn.
There is a few issues at the moment but most seem to be getitng fixed and every new site has them, but communications seem good.
I would think once a few loans start repaying then investor confidence will increase.
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jonno
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nil satis nisi optimum
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Post by jonno on Jul 14, 2016 12:39:18 GMT
I particularly like it for its diversification opportunity. FS don't do much other than property these days, and MT have the legacy pawn but not much new. I use Unbolted who have a reasonable offering, although at Provision Fund protected lower rates. So I thought Collateral would aid in investing in other than property and SME's. I must admit I've probably dived in quicker (and deeper) than I initially intended due to the rapid rate of loan offerings; bearing in mind the real acid test wont arrive until maturity time.
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 14, 2016 13:06:32 GMT
It is my understanding that we are lending to Collateral (UK) Limited and not the borrower/s directly, meaning that lender's risk is governed by platform/company failure rather than the loans many would believe they're investing in. Furthermore, it appears that Collateral themselves have sole access to the majority of items that loans are listed as being secured against, so until the assured clarification has been presented by Collateral's legal team, my personal investment will remain capped. Why are you under that impression ? The T&Cs are fairly explict that you are lending direct to borrowers & not to Collateral, the Security company or any employees. Security is by assignment like MT and held by a seperate Security company not by Collateral. Structure seems much the same as most P2P ISTM. Am I missing something?
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MONEY
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Post by MONEY on Jul 14, 2016 13:18:53 GMT
ilmoro - possibly worded badly by Gordon, but still, verification by Collateral's legal team was assured in a later post, and is still to arrive. From the COLBB thread:-
The Buy Back items have effectively been bought by Collateral but the agreement gives the “seller/borrower” the option to buy back the goods within a period of time for a fee. Collateral cannot sell the items within this period without the consent of the “seller/borrower” as we are both bound by the agreement.
I used the words “redeeming/defaulting” as I was also referring to other asset classes which we are looking to fund such as property where defaulting will be the correct terminology.
Many thanks,
Gordon
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ilmoro
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'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Jul 14, 2016 13:33:32 GMT
ilmoro - possibly worded badly by Gordon, but still, verification by Collateral's legal team was assured in a later post, and is still to arrive. From the COLBB thread:-
The Buy Back items have effectively been bought by Collateral but the agreement gives the “seller/borrower” the option to buy back the goods within a period of time for a fee. Collateral cannot sell the items within this period without the consent of the “seller/borrower” as we are both bound by the agreement.
I used the words “redeeming/defaulting” as I was also referring to other asset classes which we are looking to fund such as property where defaulting will be the correct terminology.
Many thanks,
Gordon
I see what you mean. Bit of disconnect between that & the T&Cs. Need an extra step between the defacto pawnbroker & the lenders.
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rogerbu
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Post by rogerbu on Jul 14, 2016 19:28:54 GMT
Each COLBB loan contains the following
'This item has been underwritten by two of our jewellery trade partners in the event of default by the borrower.
This loan is via a Buy Back Agreement (COLBB) whereby Collateral agrees to buy the goods from the client at a set price and gives the client the option to ‘buy back’ the goods within a set period of time, (in this case 6 months) at an agreed ‘buy back’ price. This is the original purchase price plus a buy back fee, which equates to a monthly interest rate. The 6 months interest payments (the Buy Back fee) have been deducted upfront from the loan, to ensure the LTV doesn’t increase during the lifetime of the loan.'
So it is Collateral that owns the item. Not a trustee company etc. Also we are dependant upon an unknown 'trade partner' if the borrower does not redeem.
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sikas
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Post by sikas on Jul 15, 2016 18:50:46 GMT
"Also, I was particularly wondering what would make you more comfortable with the platform and likely to increase your investment?"
staying put for now and re-evaluate in about 4-5 months time, as soon as some of these jewellery loans are repaid with no dramas, ill likely increase my investment pool
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Post by justdabbling on Jul 20, 2016 10:07:05 GMT
I do intend to increase on the very small sum currently invested but I won't go above about £1000 without a bit more of a track record - just more months in business and loans completed as Stevio said without dramas. The communications on this forum are influential and encouraged me to try Collateral as diversification of both platform and type of security.
I would be building up my investment quicker if it was easier to put money in though - it would be better if I could make two or three investments and then pay once. This morning I cannot make any investments as my on-line banking seems to be down and the card system is not yet available.
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dermot
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Post by dermot on Jul 25, 2016 16:21:58 GMT
I'm closing in on my current self imposed cap of £15K - at least until I see a few loans repay without drama.
I see the movie has dropped out, but never attracted much funding. Wonder what happened there? Not interested in the more speculative like that.
I will only use collateral for jewellery type stuff, not property like the warehouse. I have quite enough exposure in the property market elsewhere.
If all goes well over the next few months, I plan to at least double my current investment or maybe a bit more....
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dermot
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Post by dermot on Jul 25, 2016 16:26:21 GMT
Some clarification from Collateral on the T&Cs issues raised by others would be welcome ....
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littleoldlady
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Post by littleoldlady on Jul 25, 2016 21:50:43 GMT
I see the movie has dropped out, but never attracted much funding. Wonder what happened there? . I still hold part of this. It's supposed to be 2% funded.
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fp
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Post by fp on Jul 25, 2016 21:52:50 GMT
I see the movie has dropped out, but never attracted much funding. Wonder what happened there? . I still hold part of this. It's supposed to be 2% funded. Is it not showing as repaid?
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