blender
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Post by blender on Mar 2, 2017 11:12:47 GMT
Ambitious is an appropriate word, and good luck to them. An interest only loan for two years at 16% pa to us plus 6% pa to Ablrate. At least we can reduce risk by making it 'amortising' through sales, while Ablrate is in for the term; so they must be confident. Presumably SS needs to match risk to the 12% they offer, and if they declined it the reason might be related to the risk profile of the projects they can support on that platform.
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hazellend
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Post by hazellend on Mar 2, 2017 13:19:16 GMT
Ambitious is an appropriate word, and good luck to them. An interest only loan for two years at 16% pa to us plus 6% pa to Ablrate. At least we can reduce risk by making it 'amortising' through sales, while Ablrate is in for the term; so they must be confident. Presumably SS needs to match risk to the 12% they offer, and if they declined it the reason might be related to the risk profile of the projects they can support on that platform. No way am I amortising this loan through sales. There is a reason why they are taking this loan on at a high rate and that is because there is huge demand for cabin holidays in dumfries. Sure, they might go bust if they don't manage the project well but I think 16% more than compensates for the risk here. If I'm wrong, I'm wrong, but I don't buy loans that I wouldn't hold to the end (although may sometimes sell!)
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dzo
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16%!
Mar 2, 2017 19:48:41 GMT
Post by dzo on Mar 2, 2017 19:48:41 GMT
blender hazellendDo you two know something I don't about upcoming loans? Last I hear we were promised unspecified new loans sometime this week.
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kermie
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16%!
Mar 3, 2017 19:47:44 GMT
Post by kermie on Mar 3, 2017 19:47:44 GMT
while Ablrate is in for the term; so they must be confident. Hmm, bear in mind that Ablrate don't actually have any capital to lose on this - just interest, plus presumably reputation, fees / costs etc. Am not trying to cast aspersions (far from it), but in general lenders ought to remember that the vested interests of platforms is not quite the same as that of the p2p lenders.
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blender
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Post by blender on Mar 4, 2017 0:23:42 GMT
while Ablrate is in for the term; so they must be confident. Hmm, bear in mind that Ablrate don't actually have any capital to lose on this - just interest, plus presumably reputation, fees / costs etc. Am not trying to cast aspersions (far from it), but in general lenders ought to remember that the vested interests of platforms is not quite the same as that of the p2p lenders. What you say about the principal money for the loan is true - but at least the lenders have security. However, this loan must be at least 7% of the current loan book; much more than the container loans which are causing so much work and cost (£20k and rising). Without labouring the point, I believe that a smaller platform like Ablrate, taking on a large loan like this, will consider carefully the possible consequences for the platform and those involved should the loan go TU. This is not FC, where individual loans cannot affect the business, just the lenders.
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