archie
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Post by archie on Feb 8, 2018 15:02:05 GMT
being a bit thick probably(certainly)but is the loan term 5 years or 24 months? as i have seen both speed reading before going back to something else If I've understood it correctly, each individual tranche runs for 24 months but the facility agreement is over 5 years.
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ceejay
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Post by ceejay on Feb 8, 2018 15:02:55 GMT
So we are being asked to lend money at the relatively low rate of 8%, where the primary security is a debenture against an SPV company with no assets, underwritten by a guarantee from the parent company with considerable negative assets and losing more money every month?
What am I missing?
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
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Post by stub8535 on Feb 8, 2018 15:03:41 GMT
A load of confidence must be placed in the assurance by ablrate expert that this/ these loans no not constitute wholesale lending. Nothing stated about what happens when fca challenge this and the loans need to be bought out. Care to comment please ablrate?
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des
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Post by des on Feb 8, 2018 15:03:59 GMT
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boundah
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Post by boundah on Feb 8, 2018 15:05:07 GMT
being a bit thick probably(certainly)but is the loan term 5 years or 24 months? as i have seen both speed reading before going back to something else From what I can make out each tranche has a 24m term, with the possibility of sale during term by placing a portion back into the sale queue. M** lend out the funds on much shorter terms (eg 30-60d) - this is a revolving credit facility, so essentially our funds can be lent out many times over.
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bod
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Post by bod on Feb 8, 2018 15:05:38 GMT
being a bit thick probably(certainly)but is the loan term 5 years or 24 months? as i have seen both speed reading before going back to something else I read it as 24 months
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Post by ablrate on Feb 8, 2018 15:14:11 GMT
A load of confidence must be placed in the assurance by ablrate expert that this/ these loans no not constitute wholesale lending. Nothing stated about what happens when fca challenge this and the loans need to be bought out. Care to comment please ablrate? As per page 5 and page 27: "It is important to outline that this loan does not contravene the wholesale lending provisions outlined to platforms recently by the Financial Conduct Authority. Ablrate lenders have loaned £600,000 in two previous tranches both of which have performed perfectly and been paid on time. These loans were submitted to the FCA under their wholesale lending review and no action was taken. Ablrate and *** have also sought a legal opinion from a leading expert in the peer to peer lending market about the facility detailed in this document, the conclusion of which is that these loans fall outside of the wholesale lending regulations."
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Post by richardb67 on Feb 8, 2018 15:16:44 GMT
being a bit thick probably(certainly)but is the loan term 5 years or 24 months? as i have seen both speed reading before going back to something else I read it as 24 months has maturity date of 08/02/23 on details page, 60 monthly payments and says 5 years in text (final para). just reading it at the moment so not sure if it says something different elsehwere
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elliotn
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Post by elliotn on Feb 8, 2018 15:17:19 GMT
ablrate the funding accounts show nothing other than a (very large) interco loan to the trading co - PLEASE upload the transactions' co 16 and 17 accounts so that we may be able to assess underlying business performance and profitability. This would be by far my lowest return on your platform so I am expecting far more profitability than from higher risk borrowers.
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macq
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Post by macq on Feb 8, 2018 15:29:16 GMT
has maturity date of 08/02/23 on details page, 60 monthly payments and says 5 years in text (final para). just reading it at the moment so not sure if it says something different elsehwere think that's where i'm confused - as i stuck a bit of interest in to see how it works and the details say 5 Years but the doc's say 24 months with minimum of 12
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bod
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Post by bod on Feb 8, 2018 15:31:40 GMT
has maturity date of 08/02/23 on details page, 60 monthly payments and says 5 years in text (final para). just reading it at the moment so not sure if it says something different elsehwere Page 26 under credit risk (Risks specified to this loan) "The loan balance will be repaid in a single, one-off payment at the end of the loan term in months 24."
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r00lish67
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Post by r00lish67 on Feb 8, 2018 15:33:11 GMT
One of the specific risks highlighted in the proposal is that the company may not be able to fulfill its grand aims (to paraphrase) should it not be able to draw down funds from the facility. Otherwise performance could be impacted.
I don't know how significant those consequences could be, but seeking £5m of funding for a single company from P2P lenders at only 8% p.a. sounds a big ask to me, especially against a backdrop of apparently forthcoming rising interest rates.
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Post by ablrate on Feb 8, 2018 15:33:19 GMT
has maturity date of 08/02/23 on details page, 60 monthly payments and says 5 years in text (final para). just reading it at the moment so not sure if it says something different elsehwere Each tranche we write as a 24 month loan, but the whole loan is a maximum of 5 years - will check and amend if necessary
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Post by ablrate on Feb 8, 2018 15:35:41 GMT
has maturity date of 08/02/23 on details page, 60 monthly payments and says 5 years in text (final para). just reading it at the moment so not sure if it says something different elsehwere Page 26 under credit risk (Risks specified to this loan) "The loan balance will be repaid in a single, one-off payment at the end of the loan term in months 24." This in in relation to each tranche as per the preceding paragraphs
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Post by dan1 on Feb 8, 2018 15:43:57 GMT
Excellent post blender . Looking forward to reading these docs ablrate - a technically insolvent company making repeated annual losses kept afloat only by an elusive British Virgin Islands creditor. I will be scrutinising these docs to see how the equity joint venture will now transform this loss making venture into a consistently profitable one. I will also be interrogating what changes have occurred to the existing institutional grade credit insured (or bank letter of credit) and customer deposit security that warrants a substantial 1/3 cut to our coupon. The success of the portfolio model depends on such document scrutiny as you suggest. I am aware that M** were to approach Ablrate investors for a further tranche of funding during 2017 a personal inspection of filing records at CH revealed that the Company's 'Confirmation Statement' was overdue which I brought to the attention of DBW and his team, the M** funding request didn't make it to a live funding round and no explanation was provided at that time or since as to why this was. I very much appreciate both blender & elliotn 's posts and also ablrate 's response. The latter so far doesn't address M** 2017's 'failed to make it to funding' and it's subsequent gap period so with good grace I'd seek to ask ablrate for some clarity. Thank you and best regards, J. From the update on 7th June... M** are in negotiations with an equity provider and further funders, so we both agreed to let the dust settle on those before listing the next tranche.
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