blender
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Post by blender on Oct 7, 2019 21:02:15 GMT
'FS heavies' - love it! 'The borrower's story is credible - and true'.
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blender
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Post by blender on Oct 7, 2019 15:30:31 GMT
Institutional lenders and FCIT used to buy whole loans, not partial loans, and in the days when you could see the loan book you could see which was which by the number of loan parts in the loan, many or one. So when you sell a loan part it will go to a retail lender, or at least someone who has signed up to use the platform as a retail lender. The lucky recipient is probably someone just like you.
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blender
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Post by blender on Oct 7, 2019 9:15:24 GMT
The computer is just pausing occasionally to chant prayers for the unfortunate mug purchasers.
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blender
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Post by blender on Oct 6, 2019 10:29:56 GMT
Sounds very creditable, and necessary to get the xmas income. I would like to support it but there are so many unanswered questions like; Who are 'the guys', and under whose authority are they working on the asset? The borrower Co for 67& 68 is still in administration and still owns the freehold premises charged to 67&68, as far as I know. Who is the builder Co (not identified) who will be contractor to the intended borrower SPV, and on whose abilities and resources the project depends? Can't do DD on them. The builder is an 'unsecured creditor' with a debt of £219K, but no such creditor is listed in the administrator's proposals of 15 Feb for the borrower of 67 & 68, and owner of the asset, nor the parent Co in administration as far as I can see. So who is the creditor, who is the debtor, and is the £219k (to be capitalised into equity) wholly related to work on this asset? We are not told. Who is the borrower for 129? It is neither formed nor defined financially, apart from debts and this loan. How will the borrower SPV relate to the borrower Co for 67&68 (in administration), so as to control both the debts (without defaulting) and the asset? How does a loan get drawn down without a borrower? Obviously it cannot and the borrower SPV has to be created, but then how does a loan contract get created? presumably the bidders have to consent to the borrower, because the T&C's do not allow ablrate to choose a borrower on self-select loans, a problem compounded when ablrate proposes to have equity in the borrower and where the borrower (legal person) is not compliant with 4.1. first sentence. 'Only borrowers with a track record in their industry are permitted to post borrowing requests on Ablrate.' I suppose that if you hold anything significant in 67 or 68 you don't care much about such a pedantic critique, but I think I must await any further tranche for this worthy project.
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blender
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Post by blender on Oct 4, 2019 12:55:27 GMT
I was not suggesting that, and have no information. But I remember 'crappy scrappy' where there was a subsequent criminal conviction directly connected to the loan use. Sometimes FC's lending offers look a bit like a garage leaving a customer's car unattended with the doors open, the keys in the ignition, and the engine running. Of course it is all much better in 2019 - perhaps I should re-invest.
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blender
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Ablrate (ABL) in Administration
1000132
Oct 4, 2019 12:44:37 GMT
p2pfan likes this
Post by blender on Oct 4, 2019 12:44:37 GMT
The company being bought with this latest loan round made an operating profit of £42k. This was £188k for YE Sept 2017, so it has reduced. This company is being used as collateral, alongside the IP which keeps being used again to borrow more money and the IP will be challenging to sell. As @ifisacava states, one has to be willing to take risk for such a ROI, but the security on this doesn't look great. Still, I'll be investing as the borrower has an excellent track-record with their payments on the two previous loans through ABL. That's what this is about. Do ABL charge as high as 7% to borrowers? Is that a typical percentage for borrowings through ABL? Agreed, and it seems that the target has a rather low gross margin around 27% and 2017 may have been a positive blip. We have no p&l for 2016 but the cumulative profits reduced. This vertical integration could help? Agree, and with VI, about the security, though I have never been still in an Ablrate loan when the security became important - and hope never to be. I suppose I must be impressed with the change from 131 to 132. Abl state their monthly fee on all loans in the borrowing proposal - this 7% is on the lower side, but the total sum of three loans provides a substantial income.
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blender
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Post by blender on Oct 4, 2019 11:13:46 GMT
I think I have to congratulate ablrate on the quality of the presentation and the depth and completeness of the information provided. Others can judge the risk. I am biased as an ex-engineer and keen to see a UK start-up creating IP, exploiting it at home and abroad and using UK manufacturing - when you would feel this might have gone to China very easily. The target co looks attractive in its own right. No connexion with the other main groups of connected loans. What's not to like? Tell me someone? I liked the IOM plane project also, for a year or so.
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blender
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Post by blender on Oct 4, 2019 10:34:51 GMT
Security is for wimps; FC go Fully Commando.
54439 was/is a used car sales co in Wales. Took out £53k on 10 Apr 18 for 60 months and could not make a repayment of £1165 on 10 May. Has never paid a penny, FC still chasing the guarantor. Indication of some' difficult circumstances' - possibly their dragon died. Profit in accounts Feb 17 was 23K, net worth about the same, but they had already borrowed £35k elsewhere (probably secured on the stock) when applying to FC and net worth would be negative. Computer says yes! Band C 11.5%. Word gets round that you when you are in trouble you can take an FC loan with no security, based on old figures with no questions asked, and repayments are optional, and FC do not have the resources of motivation to be tough on the guarantor = 'underperforming cohort'. £90 I will never see again.
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blender
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Post by blender on Oct 3, 2019 20:31:49 GMT
The FC computer does not do much desk research, and even less visiting of the borrower's work premises to check them out and ask questions.
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blender
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Ablrate (ABL) in Administration
1000132
Oct 3, 2019 20:22:09 GMT
Post by blender on Oct 3, 2019 20:22:09 GMT
If it's an acquisition, the IP may come with the purchase (bought with our loan money). I don't know which of the two manufacturers it is but we will know soon enough.
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blender
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Ablrate (ABL) in Administration
1000132
Oct 3, 2019 16:18:22 GMT
Post by blender on Oct 3, 2019 16:18:22 GMT
There is another manufacturing borrower, who does amortising loans at 13%. We cannot be sure.
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blender
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Post by blender on Oct 3, 2019 15:02:09 GMT
My funds requested on 02/06 have just come through so here endeth, so far as it can ever end, my seven years with FC. Despite the annoyances, the obfuscations, the increasing lack of loan information, my relationship with FC was a profitable one especially in the early years before the change to black box investing. I’ve steadily reduced my exposure to p2p over the last year with remaining funds parked close to the exit in Assetz’ quick access account. May restart manual lending with them if and when my confidence in the sector returns.......... By 'them' you must mean Assetz and not FC, just for the benefit of anyone who has not read Deeeees conversation. I had the same experience of many years of good returns from FC before the black box, and have also gone to Assetz, with quite a bit in the QAA in case liquidity gets sticky there, and that is now my major platform. The problem is that I have another platform which provides high interest but increasing risk. I remember the old adage that if you sup with the devil you should use a long spoon, and when you see a platform using multiple short spoons used then it is time to look around. I guess that if the old timers experienced lenders all move to Assetz then they will have too much cash and rates will go down. Where else? (I lend only to businesses).
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blender
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Post by blender on Oct 3, 2019 14:29:34 GMT
There is a genuine problem with loan 85, where the borrower is currently a subsidiary of this aspiring borrower but may be sold. That has to be sorted because the disposal would affect the financial position of this borrower company. The hope must be that all the cash from 80 and 98 comes back and some of it finds its was to 131. In current circumstances, and without any definition of the security, it would be wise, imo, to treat this loan like an FC unsecured loan, though lacking the personal guarantee. I do believe that ablrate is working hard on this loan, and 85, but cannot personally supply the required information.
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blender
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Post by blender on Oct 3, 2019 8:16:44 GMT
My 'Funds available' email arrived at 7.02am this morning, of the funds remaining in the a/c around 91% were sold, I guess the remainder are the usual unsaleable runts. I'm one of the many people who were selling up simply to move funds into my FC ISA a/c. Once you do this, the selling delay issues, which I was completely unaware of, become quickly apparent. This, coupled with the rash of new defaults recently, makes it unlikely that my released funds will now be going back into my FC ISA. I'm not sure what to do with these funds now, Lending Works is looking increasingly attractive but placing more cash here doesn't do much for my diversification. To be fair the more recent loans I have currently in my FC ISA are faring reasonably well, just a couple of defaults so far. Hmm...what to do.. Unlikely? Don't do it geofft. I think you may be suffering from Stockholm syndrome, being held captive for four months. There's this p2p provider which used to have excellent liquidity and promised reasonable returns, but admits to making a whole raft of bad lending before/through an IPO, and will not allow you to sell your part of their bad lending for 120 days (and rising), even to transfer the cash to another account with the same provider, and provides much worse returns than suggested, and much of that is based on loans that cannot be sold, and you can never close an account, and, and, … Better to spend it, geofft - have a good time.
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blender
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Ablrate (ABL) in Administration
Tax Statement
Oct 3, 2019 8:02:54 GMT
Post by blender on Oct 3, 2019 8:02:54 GMT
No problem with retaining the information, but at the moment there is no difference from the report for a taxable account - it tells you what to report! I used to think that Ablrate lenders were bright enough to spot that one, but nowadays I'm not so sure (I mean other than forum members and readers of course - always on the ball).
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