debeast
(o)(o)
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Post by debeast on Aug 27, 2014 12:54:40 GMT
I've got a few questions about the business that i thought i'd post here so everyone can contribute . These are just the ones that come to mind. You may well have answered them elsewhere so apologies if you have :-) I'd very much like to diversify into this sector with a chunk of change but as you are new and i know next to nothing about plane
Q1) What happens to investments and any cash balances should Ablrate go under?
Q2) What is the security on the assets? For example whats to stop someone flying off with a the plane and selling it on? I'm sure it wouldn't be easy but it could of course happen
Q3) What is the assurance that the price given for a plane reflects its current retail value?
I'm sure i'll think of a few more as time goes on...
thnaks in advance
/beastie
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Post by ablrate on Aug 27, 2014 17:54:47 GMT
I've got a few questions about the business that i thought i'd post here so everyone can contribute . These are just the ones that come to mind. You may well have answered them elsewhere so apologies if you have :-) I'd very much like to diversify into this sector with a chunk of change but as you are new and i know next to nothing about plane Q1) What happens to investments and any cash balances should Ablrate go under? Q2) What is the security on the assets? For example whats to stop someone flying off with a the plane and selling it on? I'm sure it wouldn't be easy but it could of course happen Q3) What is the assurance that the price given for a plane reflects its current retail value? I'm sure i'll think of a few more as time goes on... thnaks in advance /beastie Hi Thanks for your questions.let me address these initial ones. 1. The cash is held in a segregated client account so any cash balances do not form part of our assets, so any un-invested cash balances will be returned. Any cash already invested in loans will be taken over by a third party administrator. Currently this is our accountants but we are speaking with some specialist providers as we want to make sure that in the unlikely event something happens to us, that any administrator is not charging a fortune to administer existing loans. This is the same set up as most other p2p firms have. 2. Aircraft are seriously protected. Basically if you want to fly a commercial aircraft anywhere you have to have the permissions to take off and land, if your aircraft is not registered correctly you wouldn't be going anywhere. Small private aircraft are a little different (as they could be flown into unmanned airports etc) but with commercial aircraft it is very difficult to do anything with them if their registrations are not in affect (which they would not be if they have been put in default by our lessors). No one would spend $5 million + on a stolen aircraft as they would never be able to register it anywhere, fly it anywhere, refuel it anywhere or maintain it anywhere. 3. We use Ascend Worldwide for valuations, they are like a 'blue book' for aircraft. We are subscribed to their valuation service so any aircraft transaction that is proposed to us can be input into their system and we will get all the details on that aircraft including its current market value (as well as residual values etc). That does not mean that is what a lessor pays as there are other commercial considerations, such as how much they can lease it out for (they may pay a little more than 'book' if they have a lessee that is willing to pay above market value for the lease for example). Generally a lessor will be looking to get a discount on the book value as you would with any other asset that you buy. If any deal came to the platform where the value was materially above the Ascend value we would likely turn that deal down unless there were compelling reasons for it to be valued as such. Hope those answer your initial questions! Regards Ablrate
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smee
Member of DD Central
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Post by smee on Aug 28, 2014 19:14:59 GMT
Just a question about your secondary market. You say that any unsold loan parts from your first loan will be put up for sale on the secondary market. If existing lenders then want to sell on their loans, do they go to the back of the queue or do they take priority over the unsold loan parts? Since a lot of your loans are likely to be large ones, I expect this situation might arise quite often, and it would encourage people to invest if they know their loans are likely to sell if necessary.
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oldgrumpy
Member of DD Central
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Post by oldgrumpy on Aug 28, 2014 19:26:16 GMT
I'm watching this platform and digesting opinions before I (possibly) dip in.
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j
Member of DD Central
Penguins are very misunderstood!
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Post by j on Aug 28, 2014 20:30:25 GMT
I'm watching this platform and digesting opinions before I (possibly) dip in. ditto!
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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Post by ilmoro on Aug 28, 2014 21:07:25 GMT
Just a question about your secondary market. You say that any unsold loan parts from your first loan will be put up for sale on the secondary market. If existing lenders then want to sell on their loans, do they go to the back of the queue or do they take priority over the unsold loan parts? Since a lot of your loans are likely to be large ones, I expect this situation might arise quite often, and it would encourage people to invest if they know their loans are likely to sell if necessary. I asked this question in the new features thread & ablrate confirmed that lender parts would take priority over outstanding/UW parts www.p2pindependentforum.com/post/19409
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smee
Member of DD Central
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Post by smee on Aug 29, 2014 0:50:49 GMT
Thanks Il Moro, I hadn't noticed that. Question answered.
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Post by ablrate on Aug 29, 2014 8:22:06 GMT
Just a question about your secondary market. You say that any unsold loan parts from your first loan will be put up for sale on the secondary market. If existing lenders then want to sell on their loans, do they go to the back of the queue or do they take priority over the unsold loan parts? Since a lot of your loans are likely to be large ones, I expect this situation might arise quite often, and it would encourage people to invest if they know their loans are likely to sell if necessary. Hi Smee Priority will definitely go to existing lenders on the Secondary Market. Regards Ablrate
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smee
Member of DD Central
Posts: 84
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Post by smee on Aug 30, 2014 20:18:24 GMT
I understand the significance of full and partial bids with auctions, but am I right in thinking that the choice is irrelevant with a fixed interest auction? I am assuming that with the removal crate loan, for instance, when it is 100% filled, no further investment will be taken, and all bids up to then will be accepted. Is that correct?
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Post by ablrate on Aug 30, 2014 22:18:35 GMT
I understand the significance of full and partial bids with auctions, but am I right in thinking that the choice is irrelevant with a fixed interest auction? I am assuming that with the removal crate loan, for instance, when it is 100% filled, no further investment will be taken, and all bids up to then will be accepted. Is that correct? Hi Yes in a fixed rate loan it is only relevant to the last bidder. Regards Ablrate
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