zlb
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Post by zlb on Sept 29, 2018 7:33:51 GMT
I remember a notice from AC about moving away from property loans to business loans in order to help underpin hard work and the economy. I can't find ref to this in the threads. So, is there a difference between the businesses that borrow from AC, and others like FC? Are AC borrowers bigger business, but different to WiseA? I find myself residing with AC fundamentally owing to product structures, reading this forum, and a vague understanding that they are well established financiers which is very reassuring. However - should I be so reassured by this latter point re borrowers? After all we're seeing elsewhere that borrowers cause the problems not the platforms or the product structure.
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bigfoot12
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Post by bigfoot12 on Sept 29, 2018 9:14:33 GMT
Sounds a bit like a message from Funding Circle a year or so ago?
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Post by jevans4949 on Sept 29, 2018 9:26:46 GMT
The main point about Assetz is they look for a good business plan, and for some solid assets (typically bricks and mortar) over which they can raise a legal charge. Sometimes the plan goes pear-shaped, either through bad luck or failure on the part of the borrower. Sometimes it turns out that the bricks and mortar aren't worth what the surveyor said at the beginning. Sometimes it appears that Assetz, and the lenders, have been misled by a borrower.
Apparently in response to public demand, Assetz have set up some "fire and forget" investment accounts, specifically for Green Energy projects and non-building projects, with a Provision Fund to cover cases where a failure occurs. The results in these cases have sometimes been less than perfect.
In the case of non-building business loans, security is sometimes against equipment or material stock. The value of such items in a "second-hand" sale is usually much less than the borrower paid for it, especially if the technology has moved on.
Having said that, most borrowers do repay their loans at about the intended end date, and in the case of failure Assetz do usually manage to recover at least some of the capital, although this may be a long process.
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m2btj
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Post by m2btj on Sept 29, 2018 10:04:34 GMT
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borrowers
Sept 29, 2018 12:15:48 GMT
via mobile
Post by stuartassetzcapital on Sept 29, 2018 12:15:48 GMT
Assetz Capital ceased any lending without property security quite a while ago - we do normal trading business loans as well as house building etc but it’s always the property security requirement now.
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