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Post by angrykittens on Aug 31, 2017 12:11:37 GMT
Grouped Jewellery Loan
Interest P/A - 10%
Loan value of £50,000 (value £100,905)
LTV 49.55%
Loan Term - 6 months
Pre Fund - £50
Bid Limit - £50 (total £100)
As an aside I guess 10% is the way these asset loans are going to go, and I certainly appreciate the change from Property loans.
However I feel that while 10% may be appropriate for loans where the assets are held securely by collateral, and underwritten by a trade partner. Grouped asset loans and the increased risk with asset security and potential abuse by borrowers warrant the 12% - as evidenced by the car loans. While the car loans look as though everything will end well for us as lenders, it could have gone differently. Certainly jewelry is far easier to make disappear.
While I have no doubt the loan will fill I wanted to at least voice my thoughts on this. Although undoubtedly the extra 2% in Collateral's back pocket won't make it's way to lenders for underwritten future jewelry loans, I hope grouped asset loan interest rates are returned to 12%
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Post by Collateral Rep on Aug 31, 2017 12:19:57 GMT
Hi angrykittens, On this particular loan we had to be competitive on interest rates charged to the borrower. We went ahead with the loan because of the demand expressed on the forum, but will consider this in the future. Many thanks, Gordon
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Post by angrykittens on Aug 31, 2017 13:12:26 GMT
Thanks for the reply Gordon, there's obviously more moving parts behind the scene than we see so makes sense.
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elliotn
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Post by elliotn on Aug 31, 2017 13:20:31 GMT
Hi angrykittens, On this particular loan we had to be competitive on interest rates charged to the borrower. We went ahead with the loan because of the demand expressed on the forum, but will consider this in the future. Many thanks, Gordon Gordon, Are you as confident that the Pledge Agreement at the borrower's premises will prove as legally robust as the BB/AoC/SAA did for the car loans. Also, for the borrower ID can we have these at the UBO level please to make sure we link this with the related loans of ACC00016, thanks .
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elliotn
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Post by elliotn on Aug 31, 2017 13:33:45 GMT
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Post by Collateral Rep on Aug 31, 2017 13:38:54 GMT
Hi elliotn, Yes we're confident with the agreements we have with this loan. As for the related loans, they are two separate legal entities but do have a connected director. Many thanks, Gordon
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Post by Collateral Rep on Aug 31, 2017 13:53:58 GMT
Hi elliotn, Sorry, I can't see that, can you let me know where I've put 12% and I'll change it. Many thanks, Gordon
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dermot
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Post by dermot on Aug 31, 2017 14:04:26 GMT
Hi angrykittens , On this particular loan we had to be competitive on interest rates charged to the borrower. We went ahead with the loan because of the demand expressed on the forum, but will consider this in the future. Many thanks, Gordon I'm sure you'll see what investors appetites are for loans like this by around 1.15 pm tomorrow ... the proof of the pudding is in the lending levels ... I do take angrykittens point, however about grouped asset security seeming weaker than items locked away in your piggy bank, but given the way your contracts are written and the prompt way (so far) you manged things with the grouped asset car borrower, I would hope that security is still strong enough. All that said, I suspect enthusiasm would quickly evaporate if this started a race to the bottom for interest rates on jewellery and other non-property loans. Given that the whole P2P market is a relatively untried model (at least from a 2008- style financial crash perspective), I don't get at all interested investing in anything under 10% - except for historic smaller chunks in RS and AC from long ago. I *do* like the bling market - the only downside is that my wife nags me that she can't actually *wear* the stuff she sees me investing in ...
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elliotn
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Post by elliotn on Aug 31, 2017 16:38:11 GMT
Hi elliotn, Sorry, I can't see that, can you let me know where I've put 12% and I'll change it. Many thanks, Gordon Apologies, can't see that now. I think you have answered this before but could you remind us of the main difference between the pledge of assets and the assignment of chattels please. It seems in both instances that Coll end up as the owner and the borrower only keeps the security as the sales' agent, is that right? Many thanks.
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theshape
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Post by theshape on Aug 31, 2017 17:25:01 GMT
Any chance of an increased bid limit on this tomorrow? It's less than 25% full as I post. The current limit appears too low and it looks likely that a large amount will be available for a small number of investors to snap up large chunks when the bid limit ends. A larger bid limit tomorrow (£100/£150?) will likely give a more equitable share. Ps Can someone tag Collateral Rep for me? Can't see how to do it. pps thanks dan1
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Post by df on Sept 1, 2017 1:50:03 GMT
Grouped Jewellery Loan Interest P/A - 10% Loan value of £50,000 (value £100,905) LTV 49.55% Loan Term - 6 months Pre Fund - £50 Bid Limit - £50 (total £100) As an aside I guess 10% is the way these asset loans are going to go, and I certainly appreciate the change from Property loans. However I feel that while 10% may be appropriate for loans where the assets are held securely by collateral, and underwritten by a trade partner. Grouped asset loans and the increased risk with asset security and potential abuse by borrowers warrant the 12% - as evidenced by the car loans. While the car loans look as though everything will end well for us as lenders, it could have gone differently. Certainly jewelry is far easier to make disappear. While I have no doubt the loan will fill I wanted to at least voice my thoughts on this. Although undoubtedly the extra 2% in Collateral's back pocket won't make it's way to lenders for underwritten future jewelry loans, I hope grouped asset loan interest rates are returned to 12% IMO 10% grouped asset jewellery loan @50% LTV is reasonable. It is likely to be renewed for as long as business exists and in case of default the assets are relatively easy to sell to recover the capital and acquired interest. The risk is there of course, but not as big as investing in property loans.
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Post by yorkshireman on Sept 1, 2017 8:09:48 GMT
Afternoon, We have a new loan going live tomorrow at 10am (Friday 1st September 2017), this loan will be in Pipeline at 1pm today with Pre-Funding available. 1) Grouped Jewellery Loan Interest P/A - 10% Loan value of £50,000 (value £100,905) LTV 49.55% Loan Term - 6 months Pre Fund - £50 Bid Limit - £50 (total £100) You can see this loan in Pipeline at 1pm today - the loan is offering interest at a rate of 10% per annum.Many thanks, Gordon I’ve no doubt that the correct rate is 10% for this loan but having prefunded it appears in “My live loans” at 12% ?? I’ll take the 12% please!
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Post by Collateral Rep on Sept 1, 2017 8:30:55 GMT
Morning yorkshireman, Thanks for that, I've spoken with the developers and they're fixing the display error now. It is 10%!! Many thanks, Gordon
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elsee
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Post by elsee on Sept 1, 2017 8:59:44 GMT
Tried to pre-fund this about 10 mins ago but there is no "invest" box. Others have managed it today, strange.
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Post by yorkshireman on Sept 1, 2017 9:01:31 GMT
Morning yorkshireman , Thanks for that, I've spoken with the developers and they're fixing the display error now. It is 10%!! Many thanks, Gordon
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