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Post by Financial Thing on Oct 5, 2016 14:42:36 GMT
While these group asset loans seem convenient, I see a large increase in risk but no increase in return. Since the loan is secured by a company debenture, isn't it more like a SME business loan, akin to AC or FC? Yes I know it's secured by the debenture but a default situation could be very complicated, not like single pieces of jewellery that could be sold within a few weeks of default to recover capital and interest.
Just my 2 pence worth.
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n
Member of DD Central
Yet another Nick
Posts: 879
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Post by n on Oct 5, 2016 14:45:37 GMT
Hi Collateral Rep. I understand that MT visit their grouped asset borrowers regularly to carry out physical audits. Is this something you will be doing, or are you going to rely on a paper trail?
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Post by Collateral Rep on Oct 5, 2016 15:07:13 GMT
Hi Financial Thing, In the event of a default we can take the stock, as the borrower has assigned full title guarantee of the stock for the duration of the loan. Many thanks, Gordon
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Post by Collateral Rep on Oct 5, 2016 15:09:26 GMT
Hi Collateral Rep . I understand that MT visit their grouped asset borrowers regularly to carry out physical audits. Is this something you will be doing, or are you going to rely on a paper trail? Hi n, Yes we will be carrying out regular audits along with the paper trail. Many thanks, Gordon
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Post by Financial Thing on Oct 5, 2016 16:52:34 GMT
Hi Financial Thing , In the event of a default we can take the stock, as the borrower has assigned full title guarantee of the stock for the duration of the loan. Many thanks, Gordon Hi Gordon...how legally complicated / lengthy would this be? I presume more complicated than defaulting on a past due pawn item? Just curious thanks.
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Post by Collateral Rep on Oct 5, 2016 17:06:51 GMT
Hi Financial Thing, Our agreements are legally binding so the legal implications are actually quite simple. The stock has been assigned. Also the LTV is 55.3% of cost/trade price and not retail. Thanks, Gordon
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fp
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Post by fp on Oct 5, 2016 17:28:22 GMT
That answer may be acceptable for a small loan, but this is a sizable jump for Collatoral and your handling of this expansion is not looking good Well, I haven’t been here long, and I realise this is a slightly different asset type, but they already have a loan book near £1.5 million, and they’ve had one coin loan larger than this, and several single piece jewellery or car ones not so far off. Unless it’s a really bad deal, late loan information may be an issue for you, but I don’t think it will be for them. I can understand the issues that platforms can sometimes have releasing early information. However, I do hope that they put a bid limit on it for a while ( I think £1000k was suggested) cause this will give people more of a window to review the information. With very fast deposits and withdrawals’, the only issue with moving money in on the off chance is if it wasn’t ‘spare’ in the first place I guess, and if in doubt, there will always be more loans...... Based on that, we're talking two thirds of the current loan book?
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star dust
Member of DD Central
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Post by star dust on Oct 5, 2016 18:15:41 GMT
Well, I haven’t been here long, and I realise this is a slightly different asset type, but they already have a loan book near £1.5 million, and they’ve had one coin loan larger than this, and several single piece jewellery or car ones not so far off. Unless it’s a really bad deal, late loan information may be an issue for you, but I don’t think it will be for them. I can understand the issues that platforms can sometimes have releasing early information. However, I do hope that they put a bid limit on it for a while ( I think £1000k was suggested) cause this will give people more of a window to review the information. With very fast deposits and withdrawals’, the only issue with moving money in on the off chance is if it wasn’t ‘spare’ in the first place I guess, and if in doubt, there will always be more loans...... Based on that, we're talking two thirds of the current loan book? Well keystone did suggest transferring in £57k on the off chance there was no bid limit again (or one 17+ times loan size) . I seem to be having one of those weeks
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