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Post by Collateral Rep on Sept 27, 2016 12:52:01 GMT
Afternoon,
We have a new loan which we expect to go live some time next week.
We are providing a facility to a jeweller who has five shops and has been established for over 30 years. The loan will be £50,000 secured against grouped asset's with a value of £100,000 giving a 50% LTV.
There will be a debenture over the company and we will provide a detailed list of the jewellery.
I'll post here and send an email out giving advanced notice before we go live.
Many thanks,
Gordon
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littleoldlady
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Post by littleoldlady on Sept 27, 2016 13:28:31 GMT
Will there be an offer from a third party to but the assets in case of default, as usual?. For me, this is Collateral's USP and very appreciated.
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Post by Collateral Rep on Sept 27, 2016 13:38:27 GMT
Hi littleoldlady , With the deal being 50% of cost value, any number of our trade partners would take the assets in case of default. Thanks, Gordon
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stevio
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Post by stevio on Sept 27, 2016 14:24:51 GMT
Excellent stuff, nice to see larger expansion
What if jeweller wants to sell items before loan end, will there be agreement swap out equivalents?
Who values items, independent or jeweller? If borrower how can trust this?
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Post by Collateral Rep on Sept 27, 2016 14:50:28 GMT
Hi stevio, If stock is sold we have an agreement that it's replaced with jewellery of same value and invoice supplied. As for valuation, we have an initial independent valuation backed with copies of invoices. Many thanks, Gordon
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Post by Collateral Rep on Sept 27, 2016 16:01:35 GMT
Hi,
The borrower has no current loans with Collateral.
Thanks,
Gordon
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duck
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Post by duck on Sept 28, 2016 6:06:09 GMT
Presumptuous it may be but is there a chance of a rough idea of bid limit (or if there is likely to be one).
Moving money can take a couple of days if you have to sell existing loans on other sites and has been commented on other platforms there is nothing worse than selling loans only to find a low bid limit imposed. The back of my sofa is currently empty and from what I have read so far I will be interested in this loan.
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Post by Collateral Rep on Sept 28, 2016 7:00:30 GMT
Hi duck, As this is the first type of group loan we will be doing, we may not put a bid limit on it. If we get feedback to suggest we should, it would still be quite high (£1,000 +). Many thanks, Gordon
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jonah
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Post by jonah on Sept 28, 2016 7:06:51 GMT
Is this still looking likely to be live next week can I ask?
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Post by Collateral Rep on Sept 28, 2016 7:15:01 GMT
Hi jonah, Yes it will be mid to end of next week but I'll give prior notice of loan going live. Many thanks, Gordon
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pom
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Post by pom on Sept 28, 2016 8:04:00 GMT
Hi duck , As this is the first type of group loan we will be doing, we may not put a bid limit on it. If we get feedback to suggest we should, it would still be quite high (£1,000 +). Many thanks, Gordon Given how popular these types of loan are elsewhere I would definitely recommend a limit
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huxs
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Post by huxs on Sept 28, 2016 8:26:06 GMT
Hi duck , As this is the first type of group loan we will be doing, we may not put a bid limit on it. If we get feedback to suggest we should, it would still be quite high (£1,000 +). Many thanks, Gordon Given how popular these types of loan are elsewhere I would definitely recommend a limit Agreed, I am 100% sure you won't have a problem shifting this loan so a limit for £1,000ish for the first 2 hours or so would allow most to get something.
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littleoldlady
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Post by littleoldlady on Sept 28, 2016 8:37:36 GMT
Just out of interest, if you hold a debenture over the company why go to the bother of a charge over the grouped assets? This seems like a lot of admin, especially if the borrower can substitute items. Personally I treat these types of loans (on other platforms) as simply a loan to the borrower's working capital secured against the business, rather than against the basket of assets. If you think there is more security in the assets then it does not seem to say much for your opinion of the prospects for the business.
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Post by Collateral Rep on Sept 28, 2016 8:48:05 GMT
Hi littleoldlady, As this is a new type of loan for us we took legal advice on how best to proceed. To protect the investor and to do future deals with this new borrower, it was agreed that this was the best way forward for all parties. Many thanks, Gordon
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jimc99
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Post by jimc99 on Sept 28, 2016 9:12:55 GMT
Personally I do not like the assets being kept by the borrower and not Collateral. I know these arrangements are popular on MT and so far so good but not for me. Hope there will still be a flow of loans with Collateral keeping the assets themselves.
Anyway, good luck.
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