registerme
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Post by registerme on May 23, 2017 17:33:43 GMT
I'm no accountant (as this will probably demonstrate), but can somebody explain the balance sheet on page 5 of the borrowing proposal to me? I don't understand how you end up with Net Assets of £225k. It seems to be missing about £1.4m of liabilities? Thanks in advance  . RM |
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Post by runtley on May 23, 2017 22:22:27 GMT
I'm no accountant (as this will probably demonstrate), but can somebody explain the balance sheet on page 5 of the borrowing proposal to me? I don't understand how you end up with Net Assets of £225k. It seems to be missing about £1.4m of liabilities? Thanks in advance . RM They just haven't included long term liabilities (loans with remaining terms over one year etc) in the summary - these will be equal to the 'missing' £1.4m you have correctly identified. Current assets well in excess of current liabilities is usually seen as a good thing as it implies positive cash flow. Hope that helps
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kaya
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Post by kaya on May 24, 2017 7:22:35 GMT
In what ways exactly does this/these loans differ from the Vehicle sales (Leeds) loan? Are the risks different?
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elliotn
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Post by elliotn on May 24, 2017 7:53:23 GMT
In what ways exactly does this/these loans differ from the Vehicle sales (Leeds) loan? Are the risks different? VSL is an individual company funding growth in its niche ie after sales service. AC1 are funding over 100 car dealers UK wide (with defaulted loans swapped out). Reserves are being left in the vehicle (as it were) to bolster equity after a profitable 1st year's trading whereas VSL is a new co. For me there is more diversification in the latter approach with a profitable proof of concept - although both may share the same UBO guarantee who are ramping up their capital by 1M ie ACF? (more ilmoro 's area of expertise ).
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paulgul
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Post by paulgul on May 24, 2017 8:22:15 GMT
ablrate - the details panel (and the proposal doc) states 36 months but the table beneath suggests a 48 month term. Which is it please? I contacted Ablrate on this and they confirmed its 36 months
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kaya
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Post by kaya on May 24, 2017 9:07:36 GMT
If ACF got in financial trouble, would both loans be at risk/equal risk?
If VSL got in financial trouble, would ACF bail it out? Would trouble at VSL perhaps put ACF at risk?
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registerme
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Post by registerme on May 24, 2017 9:31:11 GMT
I'm no accountant (as this will probably demonstrate), but can somebody explain the balance sheet on page 5 of the borrowing proposal to me? I don't understand how you end up with Net Assets of £225k. It seems to be missing about £1.4m of liabilities? Thanks in advance . RM They just haven't included long term liabilities (loans with remaining terms over one year etc) in the summary - these will be equal to the 'missing' £1.4m you have correctly identified. Current assets well in excess of current liabilities is usually seen as a good thing as it implies positive cash flow. Hope that helps That makes sense, thanks. My interpretation of that is that this is essentially a working capital loan where the working capital in this case is going to be tied up in more.... cars.
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SteveT
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Post by SteveT on May 24, 2017 9:40:56 GMT
ablrate , can we please have the 3 loans to the "ACI 1 Ltd" SPV labelled consistently so that their connection is obvious? At the moment we have: 1000038-Basket of Secured loans 1000043-Basket of Secured Loans (II) and now 1000073-ACI 1 Ltd Term Loan
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Post by ablrate on May 24, 2017 10:52:42 GMT
ablrate , can we please have the 3 loans to the "ACI 1 Ltd" SPV labelled consistently so that their connection is obvious? At the moment we have: 1000038-Basket of Secured loans 1000043-Basket of Secured Loans (II) and now 1000073-ACI 1 Ltd Term Loan Hi SteveT Yes sorry about that, we wanted to avoid the title 'Basket of Secured Loans' because this harps back to the 'wholesale lending' situation and we don't want to confuse on that basis - we have already had questions....which are answered in the borrowing proposal.... Also on the tab 'other loans' you can see the previous ones... Point taken, however.. Would anyone be upset if we changed the title of the others to be more consistant?
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SteveT
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Post by SteveT on May 24, 2017 10:55:04 GMT
Would anyone be upset if we changed the title of the others to be more consistant? Fine by me
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greatmarko
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Post by greatmarko on May 24, 2017 10:57:13 GMT
Would anyone be upset if we changed the title of the others to be more consistant? Nope! (Although, to avoid any confusion you could always email investors in those other loans to let them know of the name change)
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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 May 24, 2017 10:57:38 GMT
ablrate , can we please have the 3 loans to the "ACI 1 Ltd" SPV labelled consistently so that their connection is obvious? At the moment we have: 1000038-Basket of Secured loans 1000043-Basket of Secured Loans (II) and now 1000073-ACI 1 Ltd Term Loan Hi SteveT Yes sorry about that, we wanted to avoid the title 'Basket of Secured Loans' because this harps back to the 'wholesale lending' situation and we don't want to confuse on that basis - we have already had questions....which are answered in the borrowing proposal.... Also on the tab 'other loans' you can see the previous ones... Point taken, however.. Would anyone be upset if we changed the title of the others to be more consistant? As long as the description clearly identifies which loan they are, ie ACI 1 Ltd Term Loan 1,2, 3, 4 as that is what appears in the transaction statements (not loan number) and its already an issue distinguishing between the secured property loans
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dandy
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Post by dandy on May 24, 2017 11:12:39 GMT
Is this loan not effectively wholesale lending?
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treeman
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Post by treeman on May 24, 2017 11:22:05 GMT
Is this loan not effectively wholesale lending? Apparently not - see ADMIN NOTES on the loan details Just noticed the COMMENTS section too
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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 May 24, 2017 11:24:43 GMT
Is this loan not effectively wholesale lending? The Financial Conduct Authority have been reviewing the practice of 'Wholesale Lending' where platforms have arranged loans from lenders to businesses that onward lend those funds. Ablrate, as with all other platforms, were asked to submit any loans where we thought could be classed as such. The Motor Stocking loans were part of that submission. We believed that the way these agreements are structured, i.e that [the borrower] always owns the cars until they are sold, does not fit with the definition. In our discussions with the FCA they have concurred that this is their belief also, hence resuming loans for this customer.
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