oldgrumpy
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Post by oldgrumpy on Jul 25, 2014 15:16:51 GMT
Well, this one is certainly different. How secure the security can be on craft gallivanting around the Med carrying rich bods will be interesting.
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j
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Post by j on Jul 25, 2014 15:20:34 GMT
AC getting into the yachting business ... lookout Saving Stream. 10.25%, 68% LTV Coming thick & fast now! I think SS needn't worry....yet. Their 12% rate on offer easily trumps the circa 10% on AC but their problem is the much smaller loan amounts currently available (only a few thousand £s usually) which means a lot of people miss out due to slow fingers (myself included sometimes  ). Will be interesting to see what things will be like in 12 months' time. I think we'll have to accept lower rates maybe here to stay now & the days of 12-18% loans maybe effectively over
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j
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Post by j on Jul 25, 2014 15:21:41 GMT
Well, this one is certainly different. How secure the security can be on craft gallivanting around the Med carrying rich bods will be interesting. ...& ditto OG's thoughts which crossed my mind too when I read the outline of the loan
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Post by batchoy on Jul 25, 2014 15:24:54 GMT
Well, this one is certainly different. How secure the security can be on craft gallivanting around the Med carrying rich bods will be interesting. Then sailing out to the Caribbean and back. I think I need to consult friends who own a similar sized boat as to running costs, as they regularly bemoan the cost of having it lifted onto the dock to have its bottom scrubbed.
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oldgrumpy
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Post by oldgrumpy on Jul 25, 2014 15:35:15 GMT
....I think we'll have to accept lower rates maybe here to stay now & the days of 12-18% loans maybe effectively over.....
Probably with underwriters getting their "margin" for stumping up so much in advance, we cannot expect the top possible rates any more.
I wonder whether AC would consider regular and consistent cashback facilities for all lenders who commit funds (even as shadow) in advance of the larger auction closures. Even if only 1%, that might be cheaper for AC than the underwriter alternative (not that I know what % is allowed to underwriters over an above the public lenders' rates). Then perhaps we wouldn't just sit back, eat fruit, have a pint, and wait for the aftermarket.
Talking of fruit .....
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j
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Post by j on Jul 25, 2014 15:46:10 GMT
Don't start me on cashback now, we still haven't been paid for the last one Share your sentiments OG re:regular cashback paid on individual loans. I, for one, would happily revert my strategy & start investing in live loans again rather than wait for AM. AC should really look at this seriously as I think lender money is out there but many are holding back due to drawdown issues. Cashback, paid promptly, would go a long way to alleviating these issues |
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mikes1531
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Post by mikes1531 on Jul 25, 2014 16:25:24 GMT
Don't start me on cashback now, we still haven't been paid for the last one Share your sentiments OG re:regular cashback paid on individual loans. I, for one, would happily revert my strategy & start investing in live loans rather than wait for AM. AC should really look at this seriuosly as I think lender money is out there but many are holding back due to drawdown issues. Cashback, paid promptly, would go a long way to alleviating these issues I have to agree. What's the point of committing to this loan now when it's clear that a massive amount of underwriting is going to be required and there will be plenty of availability on the Aftermarket after drawdown? And, if those units stay available for long enough, investors who wait might have the advantage of learning how the boat building process is going and how many advance bookings have been made. And speaking of advance bookings, is it normal for a company to use advance booking money to finance the purchase of the assets to be hired? ISTM that client deposit money ought to be required to be set aside in a client account by travel industry consumer protection regulations/laws. I also note that they're not just taking small deposits -- they're expecting a half year's revenue to be received before 'pre-launch'.
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Post by Ton ⓉⓞⓃ on Jul 25, 2014 17:01:53 GMT
And speaking of advance bookings, is it normal for a company to use advance booking money to finance the purchase of the assets to be hired? ISTM that client deposit money ought to be required to be set aside in a client account by travel industry consumer protection regulations/laws. I also note that they're not just taking small deposits -- they're expecting a half year's revenue to be received before 'pre-launch'. A deposit is 5%, 10% perhaps even 20%, but that seems to be the fee being paid early. I'll be reading this report when I have to. I used to always put a load of £20 shadow bids in, but the new unnamed system doesn't seem to need this user intervention any more. I imagine it will be in operation by then.
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bigfoot12
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Post by bigfoot12 on Jul 25, 2014 17:02:34 GMT
What's the point of committing to this loan now when it's clear that a massive amount of underwriting is going to be required and there will be plenty of availability on the Aftermarket after drawdown? It seems to pay interest from 4 weeks after the auction closes, but drawdown will be protracted. (Given the number of loans which expected a quick drawdown but still took two months....) If you can bid with your shadow money you might do okay?
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j
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Post by j on Jul 25, 2014 17:23:48 GMT
It seems to pay interest from 4 weeks after the auction closes, but drawdown will be protracted. (Given the number of loans which expected a quick drawdown but still took two months....) If you can bid with your shadow money you might do okay? That's what I was thinking, earn some shadow interest, and hope it takes for ever to drawdown. The question is, will accrued interest be paid if loan fails to draw down full stop?
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bigfoot12
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Post by bigfoot12 on Jul 25, 2014 17:41:46 GMT
The question is, will accrued interest be paid if loan fails to draw down full stop? That is exactly the sort of question that needs to be sorted in advance. And on other platforms (not AC) I struggle to get answers. The risk isn't that high with this as all you are wasting is a bit of your shadow allowance. But in other cases there is a chance it will make a big difference.
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agent69
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Post by agent69 on Jul 25, 2014 18:07:23 GMT
2 mil for 5 yachts. What sort of luxury do you get for £400k a time?
I worked in Weymouth last year where £100k got you an old tin sink with a dirty sheet for a sail
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j
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Post by j on Jul 25, 2014 18:14:02 GMT
I worked in Weymouth last year where £100k got you an old tin sink with a dirty sheet for a sail Ahhhh............the high life!
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baz657
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Post by baz657 on Jul 25, 2014 18:30:18 GMT
One thing that struck me as odd was the sales director had a salary of 55k yet the advertising budget for the first 15 months was.......... ermmmmmmmmm.......... zero.
Every start-up I've ever started-up needed some advertising.
Every start-up I've been involved in also had to pay bank charges (zero) and training (also zero).
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mikes1531
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Post by mikes1531 on Jul 25, 2014 19:15:00 GMT
2 mil for 5 yachts. What sort of luxury do you get for £400k a time? I worked in Weymouth last year where £100k got you an old tin sink with a dirty sheet for a sail £2M is what they're borrowing. The valuation is that they're worth £638k each (a total of £3.19M) though they're being bought for "a base cost of £620k each" (a total of £3.1M). We're also told the boats will "be custom-fitted with expensive soft furnishings etc". Capital costs pre-launch are said to be £3.2M, but £20k/boat for custom-fitting doesn't sound like enough, not to mention that the company is bound to have capital costs associated with setting up offices, etc.
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). Will be interesting to see what things will be like in 12 months' time. I think we'll have to accept lower rates maybe here to stay now & the days of 12-18% loans maybe effectively over
