elliotn
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Post by elliotn on Nov 19, 2017 0:53:35 GMT
has CB for this been paid yet? Account -> Transactions. Paid on drawdown, notified by email.
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elliotn
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Post by elliotn on Nov 19, 2017 0:50:35 GMT
Hopefully we'd get time to do DD for loans to an existing borrower where the security is different, but I don't follow the logic regarding no bid limits. A limit would help more people get a slice and BH can still scoop up the remainder 24h later if they so desire. I think abl have seen the take up of these loans previously and are comfortable about the time for 0.5M. If it were the loans mentioned above we should have days rather than seconds .
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elliotn
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Post by elliotn on Nov 18, 2017 4:45:27 GMT
Hi ablrateWould it be possible to gove us a hint as to who the existing borrower is for this loan? Just need to know whether or not to transfer any funds... Could save abl bank fees in/out as well as investor time although perhaps they prefer funds on board to increase platform activity instead of a non-event for pre-announced cars or pubs
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elliotn
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Post by elliotn on Nov 18, 2017 4:41:05 GMT
2pm, much better when we are given reading time for a new borrower will it be a morning/afternoon split ie within the working day ablrate? Will accommodate overseas investors and those that prefer to spend their time with families in the evening
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elliotn
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Post by elliotn on Nov 18, 2017 2:00:05 GMT
9th Advance interest & capital now repaid. Processing 10th (final) Advance... Fini! (Now onto processing those withdrawals....) In Edit: Thank you all for waiting for me to finish before initiating your withdrawals. Way passed my bedtime and with the big vote of conifidence in the SM and allowing for some quality time with the TwinThings, I'll politely wait until Monday, Well done!
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elliotn
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Post by elliotn on Nov 17, 2017 12:27:20 GMT
Morning, FAQ's added to the platform for this loan. Kind regards Sophie Excellent update. Purchase price confirmation, repayment track record and decent term warrants a diversifying nibble from me 😊 .
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elliotn
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Post by elliotn on Nov 17, 2017 12:25:04 GMT
Coll have different security - they owned the cars through a chattels' mortgage and then 'loaned' them back via a sales' agency agreement to allow the borrower to sell our cars on their forecourt. The initial statement of affairs was disconcerting but it was only the threat of criminal action for fraud or theft of our cars that led to the loan repayments. In the same situation MT's debenture would be worthless in a bankrupt company with no assets to recover. Hi Elliottm, I am not a solicitor and my comments below do not relate to any other platform as I have not looked at their security. However I have a couple of general points to make. My understanding is that a chattlels mortgage, which we also use ourselves where appropriate, is a security document that gives rights over movable assets. A debenture is a different type of security, but no less 'secure' than a chattles mortgage. The terms of our loan agreements give us the rights to audit and access the site and we have standard default provisions that allow us to secure any assets covered by our security documents. We use solicitors that advise us on appropriate security for our loans and I am confident that we have good standing on security in this case. As a more general point, I am a little puzzled by your comments as a chattels mortgage does not transfer ownership and therefore it is not possible to 'own' something through a chattles mortgage and 'loan' it to someone else. Moreover, if a platform 'owned' an asset and then raised funds on its platform against that asset, then surely it is raising funds for itself, which you are not allowed to do as a P2P lender. Moreover, if you own an asset then it is not a loan, it is a sale which cannot be financed through P2P as it is not a loan. Perhaps there are other facts... Kind regards Sophie The other element is a buy back agreement where the borrow can buy back their original asset at the amount it was pawned for plus a fee equal to the interest retained and paid to the lender. These were rolling stock inventory co-managed by borrower and platform. In the two weeks from liquidation to the platform notifying investors there were no meaningful assets left to exercise a debenture over just a long list of unsettled creditors. This is from memory without all the information available to the platform but it was certainly an eye opener.
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elliotn
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Post by elliotn on Nov 17, 2017 5:51:32 GMT
So over £8.5m loaned, only 9 days to run and no obvious progress in the work.... Still, the LTV is based on the guesstimate of the completed GDV so it gives LY plenty of headroom to throw more investors' money at this borrower by way of a further tranche. These massive DFLs are my least favourite of all loans. I wrote on here a few months ago that I await the day when one of these DFL biggies repays in full. I'm still waiting. I hope I don't have to dig out a certain Bob Marley record. (I got out of this one months ago but it was a nice 12% in its earlier, lower risk days). You think it was lower risk when they were gutting the original office use and destroying inherent value wholesale? Extremely high risk if the group had any problems.
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elliotn
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Post by elliotn on Nov 17, 2017 5:46:08 GMT
I'm also happy for this one to renew - and would probally increase my current holding. Not sure why the decision to renew (or the comms around it) has not appeared. If it does renew at least we can consilidate the multiple tranches into one loan Presumably our borrower has secured cheaper funding to refi and complete Phase 2. Shame but well done and at 7 months overdue we mustn't grumble .
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elliotn
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Post by elliotn on Nov 17, 2017 5:39:33 GMT
14% enough? not sure as yet, with the serious uncertainties hanging over the second hand car market, the economy generally and the recognised bubble in car financing (shades of sub-prime lending pre 2007) the medium term viability of this business model is to say the least uncertain, hasn't been stress tested in difficult economic conditions. Therefor the critical questions are firstly the security of the supporting assets ( I will see what the FAQ's have to say about tracking the assets) and secondly the adequacy of the securing asset, and the questions raised earlier in the thread on cross trading, boosting values and evidencing the validity and independence of purchases relate strongly. £14.00 interest is no compensation if you lose £100.00 capital. CO sorted the buggers out in quick order when the borrower had sold "our" cars. I see no reason why MT can't do the same. Coll have different security - they owned the cars through a chattels' mortgage and then 'loaned' them back via a sales' agency agreement to allow the borrower to sell our cars on their forecourt. The initial statement of affairs was disconcerting but it was only the threat of criminal action for fraud or theft of our cars that led to the loan repayments. In the same situation MT's debenture would be worthless in a bankrupt company with no assets to recover.
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elliotn
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Post by elliotn on Nov 16, 2017 15:59:00 GMT
Hi MoneyThing, the 70% purchase price max is attractive - given our borrower's other automotive interests what assurances will you have that these are all arms' length purchases ie auction paper work etc, thanks.
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elliotn
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Post by elliotn on Nov 16, 2017 15:20:57 GMT
Although perhaps I was right the first time Surprised MT were still doing BS loans following FCA authorisation. 70% max purchase price gets a nibble (despite min. 12 months of repayments by a technically insolvent borrower in May 16 - good luck with that GeorgeT ). Based on some of the subsequent posts, including by MT, I think I misunderstood what you meant by BS loans. I think you still had your Ly hat on!
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elliotn
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Post by elliotn on Nov 16, 2017 15:09:34 GMT
Thanks Sophie. We do see different models for authorised co's ie Kufflink fund 20% of their loans whereas MT stopped all pre-funding and RS moved away from BS loans whilst Ly stopped self-funding borrower interest payments which both seemed 'fca-friendly'. Perhaps just prudent book management as you say .
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elliotn
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Post by elliotn on Nov 16, 2017 14:52:32 GMT
A vast majority of P2P loans discussed on this forum are to companies and UK company (abbreviated) accounts are normally available at Companies House if the company has sufficient trading history Would anyone be willing to point out the basics, to even the advanced method of analysis of these types of accounts to help us evaluate a companies financial situation? Also any links to good self learning? Tagging a few people I know who have mentioned an accounting/financial background elliotn nick Steerpike @bobo dualinvestor - tag others if you feel could contribute Tagging a few other motley crew of "know it alls" 😉 as they are normally clued up on everything P2P and might be kind enough to share there wisdom as I have asked so nicely 😎 ilmoro cooling_dude mrclondon jamesMost of the borrowers are small co's that are exempt from audit to lighten the regulatory burden. If you look at MT's latest borrower you get a one pager for the balance sheet only. At best you can take the movement between years of the profit and loss reserves as current year profit/loss but that can be skewed by other payments such as dividends. For F******* Cars all we know in mid 2016 is they owed more in the next year (MT loans?) than they owned in stock (2nd hand cars) and were technically insolvent (negative net assets). Abbreviated accounts need to be supplemented by credit reports and director histories at a minimum.
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elliotn
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Post by elliotn on Nov 16, 2017 14:27:08 GMT
If you put your loan parts for sale, is the interest still being earned (until somebody buys your loan) or as soon as it is on the market, you stop receiving interest? thanks You lose interest for each day listed but can de-list before midnight and keep thay day's interest. Edit - given recent policy changes worth dropping Ly an email to confirm.
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